Thailand reviews equal tax deduction rights for all under TISA
The Finance Ministry is reviewing income-based tax multipliers as it develops a more flexible long-term investment framework for retirement savings.
- Thailand's Finance Ministry is reviewing the Thailand Individual Saving Account (TISA) to provide equal tax deduction rights for all investors.
- The review focuses on removing a proposed "multiplier condition" that would have adjusted tax benefits based on an individual's income level.
- This reconsideration was prompted by public concerns, with the ministry now favoring a system where the same tax entitlement applies to everyone.
- Final details on the new TISA rules are expected to be confirmed by the end of the fiscal year in September.
Ekniti Nitithanprapas, Minister of Finance, said the Finance Ministry was reviewing whether to remove the tax-benefit multiplier condition from the Thailand Individual Saving Account (TISA).
The change would give everyone equal tax deduction rights.
Full details are expected to be finalised by the end of the fiscal year this September.
TISA is a key pillar of efforts to strengthen financial security as Thailand prepares for an ageing society.
Ekniti said the ministry had discussed the proposed rules with the Stock Exchange of Thailand.
An earlier approach would have linked tax benefits to income: the deductible amount would be multiplied by 1.3 for people earning below THB1.5 million and by 0.7 for those earning above THB1.5 million.
After taking public concerns into account, the ministry decided to consider removing the condition.
“Given the concerns raised publicly, I do not think there will be a multiplier condition. I think the same entitlement should apply to everyone,” Ekniti reiterated.
Meanwhile, the combined tax deduction ceiling, previously proposed at THB800,000, remains under careful consideration and review.
The main principle behind restructuring TISA is to give people the freedom to make their own long-term investment decisions so that they have financial security in retirement.
The new model would move away from a system in which tax deductions are tied to state-prescribed mutual fund schemes.
Under some previous measures, investors had to invest solely because of tax incentives and faced losses.
The new framework would instead allow investors to combine asset classes, such as shares, bonds or mutual funds, and adjust their portfolios as appropriate.
Under TISA rules, investors could also invest directly in individual shares that meet quality criteria set by the Securities and Exchange Commission (SEC).
