Improved tax incentives for investment in Thai ESG Funds approved by cabinet
On 30 July 2024 the Thai cabinet approved in principle a Draft Ministerial Regulation proposed by the Ministry of Finance to improve the personal income tax incentives for investment in Thai ESG funds.
The main changes are:
- The minimum period that the investment units in a Thai ESG fund must be held is reduced from 8 years to 5 years for investment units purchased from 1 January 2024 to 31 December 2026.
- The maximum tax deduction allowed in a year is increased from Baht 100,000 to Baht 300,000, but not exceeding 30% of the investor’s assessable income.
In case of investment units purchased between January 1, 2024 and the effective date of the Ministerial Regulation, taxpayers will be entitled to a deduction for the purchase of investment units at the rate of 30% of the assessable income for the portion not exceeding Baht 300,000 baht and the minimum holding period will be reduced to 5 years.
The investment in Thai ESG funds will not be counted with investment in other retirement savings funds, including retirement mutual funds and provident funds, which currently have a combined tax deduction ceiling of not more than Baht 500,000.
