The South Pacific Stock Exchange has welcomed the decision to level the playing field for resident and non-resident shareholders with tax free dividends across the board.

This follows government's announcement that all dividends paid out of profits of a listed company which were subject to a lower corporate tax rate of 20%, to be deemed tax paid in the hands of the shareholder regardless of the residency status.

FIRCA has clarified that this exemption will only apply to listed companies that qualify for the concessionary 20% corporate tax rate.

SPSE Chief Executive Jinita Prasad said the returns from the stock market will now be more attractive to offshore investors, adding this will be an incentive to encourage more companies to list on the stock exchange.

She adds the timing of the announcement is excellent as they recently launched their electronic trading platform last week, which forms the foundation on which they aim to expand regionally in order to attract more foreign companies and investors to our market.

Story By: Ana Naisoro