LTF tax benefit to be finalised in Q1/2015
Finance Minister Sommai Phasee said that it should be finalised within the first quarter of next year whether tax benefit concerning investment in long-term equity funds (LTFs) would be extended.
"I don't think the timetable would be too late," Sommai said.
"Personally, I prefer the extension. Still, this requires a thorough review, so that we can explain why this should be extended or why it should not be. And if it is extended, what conditions should be attached," he said.
LTF unit trust investments are tax deductible for up to 15 per cent of taxable income annually or the deduction must not exceed Bt500,000, whichever is lower.
Mutual fund companies and the stock exchange have pushed for the extension, saying that the long-term investment is necessary to maintain the Thai market's stability.
The tax benefits from LTF investments, initiated in 2004, aim to stabilise the Stock Exchange of Thailand (SET) by increasing the proportion of institutional investors.
At the end of 2013, the net asset value of all LTF funds stood at Bt214 billion.
