Those whose LTFs are about to expire, stop before selling! Because this year, you have a new option to turn your old funds into tax privileges with the Thai ESGX fund, a fund that allows investors to participate in supporting companies that do business responsibly, whether it’s in terms of the environment, social care, or governance (ESG). It is an investment that can use tax privileges. It is an investment that reduces taxes, adds money to your pocket, and helps the world at the same time! 

LTF expired… but don’t lose hope. 

Those who have invested in LTF funds and are about to expire during this period, do not rush to sell or withdraw money. Because in 2025, the government is opening a special opportunity for those who invested in LTFs purchased before 2020 (expired tax deduction privileges). They can use the money that is due from the original LTF to invest in the Thai ESGX fund and use the tax deduction privilege again! In addition, the investment management industry is preparing to offer the Thai ESGX to support the exchange of investment units from LTFs starting from May 13, 2025.

What is LTF exchange to Thai ESGX? 

It is a privilege set by the government to encourage investments from the original LTF that have matured to continue circulating in the Thai capital market system. At the same time, it is also open to the public to receive another tax deduction if the money from the matured LTF is invested in a new fund called Thai ESGX. 

What is the Thai ESGX fund? 

Thai ESGX is a fund with an investment policy in assets that are outstanding in the environment or sustainability, issued by the Thai government sector or businesses established under Thai law, on average not less than 80 percent of the net asset value per accounting year. 

Thai ESGX must invest in stocks in the sustainability group, on average not less than 65 percent of the net asset value per accounting year. The government launched it to promote sustainable investment and is a “new alternative” for those who have invested in LTFs that have expired.

Important conditions for exercising the rights

• Must be money from the original LTF that has matured, especially LTF purchased before 2020 and the holding condition has been met (5 calendar years), which requires transferring money from the sale of the original LTF to invest in Thai ESGX within the tax years 2024 or 2025 only. 
• Must hold Thai ESGX for at least 7 calendar years. If sold back before the maturity date, the tax deduction rights may be returned. 
• Must be money from the sale of LTF only. New cash or money from other funds cannot be used to invest or to request this special privilege. 

Why should you use this special privilege? 

• It is the “only option” that allows money from the original LTF to still be entitled to tax privileges.
• Thai ESGX is a fund that promotes sustainable investment, suitable for those looking for long-term opportunities. 
• Get tax deductions without having to hold for 10 years like SSF (only 7 calendar years).

Tax benefits under the Thai ESGX measure are divided into 2 amounts: 

Deduction amount 1 For general investors interested in investing in Thai ESGX, which can be purchased from May 2 – June 30, 2025, the maximum tax deduction amount is not more than 30 percent of assessable income, only for the portion not exceeding Baht 300,000 by holding investment units for not less than 5 years (the date of investment is counted from the date of investment).  

Deduction amount 2 For those holding LTF investment units as of March 11, 2025, who have notified their intention to exchange all original LTF investment units in all LTF funds in all asset management companies (excluding other tax unit classes under the same fund, such as SSF class) to Thai ESGX investment units during May – June 2025. The maximum tax deduction amount is Baht 500,000 from the tax years 2025 – 2029, where in 2025, the maximum tax deduction amount is Baht 300,000 and in 2026 – 2029, the deduction will be the same amount in each tax year (not exceeding Baht 50,000 per year).

Summary of investments that benefit from tax deductions in 2025 

1. RMF funds – must be combined with other pension deduction groups and deductible by no more than 30% up to no more than Baht 500,000.
2. Thai ESG Fund (Original) can be deducted not more than 30% of the estimated income up to Baht 300,000.
3. The Thai ESGX fund in the first tranche shall be deducted not more than 30% of the estimated income, up to Baht 300,000.
4. Thai ESGX Fund 2nd tranche shall be deducted up to Baht 300,000 (for 2025).

          Finally, friends who are considering investing and exercising tax deductions should thoroughly study the information before making an investment decision in order to get the return on investment and exercise tax rights in a worthwhile and correct way.

Learn more at www.set.or.th.

Author : Ms. Sunisa Noopan

Dharmniti Auditing Co., Ltd.