Cabinet approves TESG purchase tax exemption principle, increasing stability of the Thai stock market. Maximum deductible not exceeding 100,000 baht

Mr. Chai Watcharong, spokesman for the Prime Minister’s Office, revealed that the Cabinet meeting resolved to approve in principle the draft Ministerial Regulation No…. (B.E….) issued in accordance with the Revenue Code. Regarding tax exemption (Tax measures to promote investment for sustainability in Thailand)

By exempting personal income tax for investors in the Thailand ESF Fund (TESG), it is expected to cause a loss of government revenue. The loss of personal income tax income in the first year is approximately 3,000 million baht and in the following years approximately 10,000 million baht per year.

As for the expected benefits, Increase long-term investment in the Thai capital market This will increase the stability of the Thai capital market. This has led to increased investment in businesses that take into account the environment, society and good governance. which will help Thailand achieve the Sustainable Development Goals of the United Nations. including carbon neutrality goals and net zero greenhouse gas emissions target

Dr. Kulaya Tantitemit, Director-General of the Comptroller General’s Department acting government official Director-General of the Revenue Department revealed that the Ministry of Finance has proposed a draft ministerial regulation Along with specifying tax benefits for investing in the TESG fund, this fund will invest money in businesses that invest in businesses that take into account the environment, society and corporate governance.

For tax measures to promote investment for sustainability in Thailand The details are as follows.

1. Give income earners the right to deduct the cost of purchasing investment units in the Thai Mutual Fund for Sustainability. At a rate not exceeding 30 percent of assessable income Only the portion not exceeding 100,000 baht for the tax year. The income earner must hold the investment units for not less than 8 years from the date of purchasing the investment units. But it does not include the case of disability or death. This is for the purchase of investment units from 21 November 2023 (the date of the Cabinet There was a resolution to approve the principles) until December 31, 2032 and must be in accordance with the criteria, methods and conditions announced by the Director-General of the Revenue Department.
2. It exempts income earners from having to include money or any benefits received from selling investment units back to the Thai Mutual Fund for Sustainability in calculating personal income tax. Only in the case where the said money or benefit is calculated from the purchase price of investment units that are entitled according to item 1 and the income earner has held investment units for not less than 8 years from the date of purchase of investment units. But this does not include cases of disability or death.”