The SEC has revised regulations for the Thailand ESG Fund to encourage investment in companies that excel in ESG factors. This includes providing tax benefits for investors, and the changes will take effect on 16 August 2024.
The Securities and Exchange Commission (SEC) has updated the regulations concerning the Thailand ESG Fund to broaden investment opportunities and promote funding for companies that excel in environmental conservation, sustainability, and exhibit outstanding corporate governance with a plan to increase corporate value. These regulatory changes are in line with the Cabinet’s resolution from 30 July 2024, which endorsed revised tax incentives to foster investments that contribute to national sustainability. The new regulations for the Thailand ESG Fund have been effective since 16 August 2024.
Under the new criteria, Thailand ESG Fund can invest in a broader range of stocks of companies with outstanding environmental, sustainability, corporate governance, and disclosure ratings, as evaluated by reliable and independent institutions. This approach aims to foster value creation among listed companies. The SEC has revised regulations for AMCs managing Thailand ESG Fund, requiring them to optimize their knowledge, capabilities and expertise with due care in selecting high-quality assets for investment, in line with the objective of supporting Thailand’s sustainable development.
Investments in the Thailand ESG Fund are eligible for a tax deduction of up to 30% of the individual assessable income, with a maximum limit of 300,000 baht per person per year. This tax benefit applies to purchases of investment units made between January 1, 2024, and December 31, 2026. To qualify for the tax deduction, the investment units must be held for a minimum of five years from the date of purchase. The Ministry of Finance will assess the effectiveness of this tax benefit measure at the end of the three-year period.
Investors are encouraged to carefully review the investment policies and sustainable development goals of each fund before making any investment decisions. The Thailand ESG Fund will disclose sustainability information in compliance with the regulations governing Sustainable and Responsible Investing Fund (SRI Fund). Once investors complete their registration with the SEC, they can access the list of Thailand ESG Fund via the following link: https://sustainablefinance.sec.or.th/Fund
