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Stock Exchange Welcomes Budget Announcement

Stock Exchange Welcomes Budget Announcement
South-Pacific-Stock-Exchang
July 04
14:06 2018

The South Pacific Stock Exchange (SPSE) has enthusiastically applauded the 2018/2019 budget announcement regarding the tax incentive for company’s anticipating to list on SPSE in terms of the exemption of taxes from income and capital gains derived in the process of listing.

As part of the budget announcement, the Fijian Government has proposed that the Income Tax Act will be amended to grant exemption for any gain made by a resident person from the sale of any capital asset including shares where the company undergoes listing.

Additionally, the income tax (Exempt income) regulations will be amended to extend the current exemption which is applicable to the ‘income made from the gain of the sale of shares for the purpose of listing on the SPSE’ to include ‘any income’ in addition to gain made from the sale of shares. This exemption will be extended to public companies.

SPSE chief executive officer (CEO) Krishika Narayan said: “any consequential income, including the sale of shares derived in the process of listing whether it be through re-organisation, restructure or amalgamation of a company is now exempted from income tax and capital gains tax for companies that undertake such actions for the purposes of listing on SPSE.

“This incentive provides the much needed clarity and extension to the current incentive which was in place for the gains and income derived from the sale of shares only.

“The proviso to list the company within 24 months of re-organising/re-structure to access these incentives remains unchanged”.

Ms Narayan further added that with the continuation of various lucrative tax incentives such as 10 per cent corporate tax rate, tax free dividends for shareholders, and exemption from capital gains tax derived from gain on sale of shares; this latest incentive echoes the commitment of the Fijian Government towards pro-capital market policies that has in turn cemented confidence in listed companies and other industry players regarding the uninterrupted continuity of stock market incentives in Fiji.

She concluded by saying that SPSE would continue to work closely with investment advisers to realise listings of potential Fijian companies on the official list of the Exchange.

In addition to the tax incentive, the Fijian Government has also announced in the 2018/2019 budget that SPSE will host the 2020 World Exchange Congress in Fiji.

The World Exchange Congress is an event that will attract around 500 delegates from across 60 countries with specialists from all different sized stock exchanges around the world, from tier one, mid-tier to frontier markets.

The event provides an
ideal backdrop for showcasing the best of Fijian hospitality, unique culture, Fiji’s capital markets, investment opportunities and Fiji as a tourist destination.

Hosting the event in Fiji will also help position SPSE as the preferred capital markets destination and financial markets hub of the South Pacific region.

In this regard the SPSE CEO, Krishika Narayan said: “There are multiple benefits from hosting an event of such magnitude in Fiji including but not limited to promoting the development of Fiji’s capital markets and building Fiji’s international profile as a tourist destination with investment opportunities as well as one which is very much in tune with global financial market developments.

“More importantly, the event will open SPSE to international markets with the opportunity to collaborate with other stock exchanges around the globe that will in turn enhance our position in becoming the regional stock exchange for the South Pacific”.

The SPSE CEO with other stakeholders will be attending the 2019 World Exchange Congress in Beirut, Lebanon in February 2019 where Fiji will be announced as the Host Sponsor for the 2020 edition of the Congress.

maraia.vula@fijisun.com.fj

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