Vorapol Socatiyanurak, SEC Secretary-General revealed that the SEC Board approved to allow PE set up as trust, apart from being structured in corporate form (PE company). The introduction of PE trust aimed at increasing PE growth and enhancing use of trust for transactions in the capital market. PE trust will be an alternative fund raising channel for start-ups, small and medium-sized enterprises (SMEs) and technology-based and creative businesses as well as business restructure to have access to financial support from investing public. In addition, as the disadvantage of double taxation has been eliminated, PE trust will be more advantageous than PE company with more flexibility in repayment of capital. The offering of PE trust certificates will be limited to institutional investors or high net worth investors only; therefore, is exempted from the SEC’s approval.
“To make investment in PE trust more attractive, the SEC will further coordinate with the Ministry of Finance on tax privilege for PE trust investors,” Vorapol said.