On 08 Dec 2023, Thailand Ministerial Regulation No.390 was gazetted, granting personal income tax incentives to resident individuals investing in Thailand ESG Mutual Funds for Sustainability.
This Insight summarizes the tax incentives under the Ministerial Reg No.390.
ESG Mutual Funds for Sustainability
Thai ESG Mutual Funds for Sustainability are mutual funds established under the law governing securities and the stock exchange for people to invest in Thailand listed public companies, which enhance the country's sustainability by operating their businesses with ESG objectives and goals for the Environment, Society and Governance, including the reduction of greenhouse gas emissions.
Tax Incentives Under Ministerial Regulation No 390
For the purposes of encouraging the long-term savings of resident individuals through investments in Thai ESG Mutual Funds, Ministerial Regulation No 390 entitles resident individuals to personal income tax incentives, as follows:
Applicability
For investments in Thai ESG Mutual Funds from 21 Nov 2023 to 31 Dec 2032.
Tax Incentives
For resident individuals:
Purchasing investment units in Thai ESG Mutual Funds
Deduction from assessable income for the portion of investment units purchased per year which deduction shall not exceed 30% of assessable income and shall not exceed 100,000 Baht per year
Redeeming investment units in Thai ESG Mutual Funds
Exemption from income tax for the amount of the income derived from the redeeming
Rules, Procedures and Conditions
For the deduction from assessable income for the purchase of investment units in Thai ESG Mutual Funds:
The investment units shall be purchased in Thai ESG Mutual Funds that are established under the securities and stock exchange laws;
The purchases shall be made by a resident individual, not by a non-juristic partnership, body of persons, or an estate;
The purchases shall be made during the period from 21 Nov 2023 to 31 Dec 2032;
The purchased investment units shall be held for not less than 8 years from the date of purchase of the investment units;
The Revenue Department's additional rules, procedures and conditions shall be complied with; and
In the case the rules, procedures and conditions are not complied with, the entitlement to the tax deduction will be lost and income tax shall be paid for the tax deductions claimed.
For the exemption from income tax on income that is derived when redeeming the investment units in Thai ESG Mutual Funds:
The exemption from income tax shall be only for the amount of income that is derived when redeeming investment units which were purchased from 21 Nov 2023 to 31 Dec 2032,
For which the tax deduction entitlement has been claimed, and
Only after the investment units have been held for at least 8 years from the date of purchase.
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