Council of Economic Ministers approves 800,000-baht tax exemption for savings
Council of Economic Ministers approves TISA scheme letting earners deduct up to 800,000 baht for retirement, plus extra tax breaks on long-term bonds.
The Council of Economic Ministers on Monday approved a programme allowing taxpayers to deduct up to 800,000 baht from their taxable income by saving for retirement, the finance minister said.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the Council approved the Thailand Individual Savings Account (TISA) scheme at its weekly meeting to encourage income earners to save for retirement.
Ekniti said he was still uncertain whether the project would be submitted to the Cabinet for deliberation on Tuesday.
He said the TISA scheme would benefit about 11.4 million income earners. They would be eligible to deduct their savings in the TISA scheme by up to 800,000 baht automatically, without needing to seek approval from the Revenue Department each year.
The TISA project would benefit those earning less than 1.5 million baht a year, who would be able to deduct up to 1.3 times the value of their TISA savings from their taxable income.
The project would benefit Thailand as it enters an ageing society, encouraging more people to save while also supporting the capital market, he added.
At the same time, the Finance Ministry would introduce new measures to encourage people to save by buying bonds, Ekniti said.
Bond buyers would be able to deduct the first 200,000 baht of their bond purchases from taxable income, on condition they hold the bonds for at least five years.
Ekniti said the government would also issue “government savings plus” bonds for the public to buy every month, with a minimum purchase of 1,000 baht. The purchases would be exempt from stamp duty.
Asked whether the new “Let’s Go Halves Plus” scheme and the new state welfare scheme would be submitted to the Cabinet for consideration on Tuesday, Ekniti said the Council of Economic Ministers had not discussed these measures.
Ekniti also expressed confidence that the border fighting would not affect Thailand’s negotiations with the United States on reciprocal tariffs because Thailand did not start the conflict. However, he said he would discuss the matter with Commerce Minister Suphajee Suthumpun as soon as possible.
