Rules, Procedures And Conditions For Tax Exemption Regarding The Assessable Income That Is Paid For The Purchase Of Investment Units In Mutual Funds For Savings According To Ministerial Regulation (No. 357) B.E. 2563 Dated 10 March 2020

For assessable income which has been received since 1 January 2020 onwards, the exemption of personal income tax shall be granted to an individual taxpayer who purchase an investment units in mutual funds for savings under the law on Securities and Exchange.

To be eligible, the taxpayers must comply with the following conditions:

• Must buy investment units in a single or multiple savings fund, in an amount not more than 30% of the assessable income received, which is subject to income tax in that tax year but only for the portion not exceeding Baht 20,000.
• The purchase of investment units in a mutual fund for savings must be purchased between 1 January 2020 and 31 December 2024.
• Must continuously hold investment units in mutual fund savings for not less than 10 years from the date of purchase of the investment units; except in the case where the taxpayer has redeemed the investment units in the mutual fund for savings because of death or disability, resulting in him/her not being able to make a living in which he could not generate an income to buy investment units in Mutual Fund for savings.

In this regard, the taxpayer must be an individual, excluding an ordinary partnership, a group of non-juristic persons and an undivided estate. The person who subsequently fails to comply with the above criteria will lose their right of income tax exemption. However, this is not applicable to the case where a person has redeemed the investment units in a mutual fund for savings because of a disability or death.

Rule for tax exemption 

The taxpayer must have a certificate of purchase for investment units in a mutual fund for savings in order to prove that money has been paid into the mutual fund for such savings. Nonetheless, if the taxpayer has fully or partially transferred investment units in a mutual fund for savings to another fund, the taxpayer must transfer the investment to the savings fund within five business days from the day following the commencement date of the mutual fund, provided that the certificate of purchase of investment units in the mutual fund for savings must be prepared in both Thai and English, along with both Thai and English (Arabic) numbers. In such regard, Thai or Arabic numbers could be used with at least the text in connection with the Notification of the Director-General of the Revenue Department No. 369. The signature of the person responsible for the issuance of the certificate may be stamped by rubber stamp or printed by computer.

Procedure for tax exemption

After deduction under Section 42 bis to Section 46 of the Revenue Code, the tax exempted income shall be deducted from the assessable income under Section 40 of the Revenue Code.

(Source: Ministerial Regulation No. 357 B.E. 2563 dated 10 March 2020, and Announcement of the Director-General of the Revenue Department No.369 dated 13 March 2020)

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