Country: Thailand
Compliance category: Enhancement of Tax Relief
Regulatory Information:
Regulation: Revenue Code- Revenue Tax Exemption
Notification/Circular No: Ministerial Regulation No.395
Notification date: January 06, 2025
Source: Announcement Notification on ESG
Updates in Compliance:
Summary:
The Revenue Department of Thailand have revised the limits and period of additional tax benefits for investment in the Thailand ESG Fund.
Effective Date: January 01, 2025
The updates include an increase in the maximum tax benefit limit, a reduction in the holding period for investments, and a revised timeline for tax benefit claims for the investment made during the period of 2024 to 2026 as follows:
| Particulars | Existing (2023 to 2032) |
Revised for intermediary period (2024 to 2026) |
| Tax Benefit limit | The maximum amount is 100,000 Baht but not exceeding 30% of assessable income | The maximum amount is 300,000 Baht but not exceeding 30% of assessable income |
| Holding Period of investment | The holding period must be at least a full 8 years starting from the date of your first purchase | The holding period must be at least a full 5 years starting from the date of your first purchase |
| Period of tax benefit claim | TESG will be exempt from tax for the assessable income received before January 1, 2024, and from January 2027 to 31 December 2032 | TESG will be exempt from tax for the assessable income received from January 1, 2024, to 31 December 2026 |
Our Analysis:
These changes aim to enhance the attractiveness of TESG as a viable option for long-term savings and investment, allowing individuals to maximize their financial growth while enjoying favorable tax treatment. The above table summarizes these particulars, highlighting the differences between the current regulations and the proposed extensions.
Investors are encouraged to align their investment strategy with these timelines to maximize their tax advantages.
