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SEC announces criteria for the establishment of Thailand ESG Fund to promote domestic sustainable investments



Monday 4 December 2023 | No. 233 / 2023


Bangkok, 4 December 2023 –  To support the Cabinet approval on the concept of a long-term savings fund that provides tax incentive measures for individual taxpayers to promote sustainable investments in Thailand as proposed by the Ministry of Finance on 21 November 2023, the Securities and Exchange Commission (SEC) has issued regulations for the establishment and management of Thailand ESG Fund whose investment policy emphasizes investments in domestic assets that demonstrate outstanding sustainable or environmental considerations. Importantly, the issuers of such assets shall be public sector entities or businesses established under Thai law.  The regulations took effect on 1 December 2023.

SEC Secretary-General Pornanong Budsaratragoon said: “The SEC has issued 11 notifications containing regulations for establishing and managing Thailand ESG Funds. They have been published in the Government Gazette since 1 December 2023, officially allowing asset management companies to launch the fund right away. Initially, the SEC has received 22 applications for Thailand ESG Funds establishment from 16 asset management companies. The Association of Investment Management Companies (AIMC) and its members plan to officially launch their Thai ESG Funds together on 8 December 2023 at a press conference where the SEC will held it with the Revenue Department, the Federation of Thai Capital Market Organizations (FETCO), the AIMC, and the Stock Exchange of Thailand (SET).”

Thailand ESG Fund is an open-ended mutual fund that must focus the majority of its investments in sustainable assets issued by public sector entities or businesses established under Thai law. The SEC supports this important government’s initiative as it would give investors a greater variety of investment choices via mutual fund while simultaneously benefiting from tax privileges starting from the 2023 tax year. More importantly, Thailand ESG Fund will facilitate green investments and promote sustainable development in Thailand which is needed for the country to achieve Sustainable Development Goals in 2030 and Net zero GHG emissions by 2065.

The SEC encourages investors to thoroughly examine the investment policies and sustainable development goals of each fund before making investment decisions. The Thailand ESG Funds are also required to disclose their sustainability-related information in accordance with the regulations for the Sustainable and Responsible Investing Fund (SRI Fund). Once the fund has been registered after the IPO process, investors can access the Thailand ESG Funds’ information through the SEC website: https://sustainablefinance.sec.or.th/Fund.

Investors are eligible for tax deductions of up to 30 percent of their assessable income, at an amount not exceeding 100,000 baht, for investments in Thailand ESG Funds. This includes the exemption of taxes on capital gain or benefits derived from the redemption of fund units on the condition that the investors maintain the investments for at least eight years from the purchase date.

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Securities and Exchange Commission
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Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 233 / 2023 Monday 4 December 2023
SEC announces criteria for the establishment of Thailand ESG Fund to promote domestic sustainable investments

Bangkok, 4 December 2023 –  To support the Cabinet approval on the concept of a long-term savings fund that provides tax incentive measures for individual taxpayers to promote sustainable investments in Thailand as proposed by the Ministry of Finance on 21 November 2023, the Securities and Exchange Commission (SEC) has issued regulations for the establishment and management of Thailand ESG Fund whose investment policy emphasizes investments in domestic assets that demonstrate outstanding sustainable or environmental considerations. Importantly, the issuers of such assets shall be public sector entities or businesses established under Thai law.  The regulations took effect on 1 December 2023.

SEC Secretary-General Pornanong Budsaratragoon said: “The SEC has issued 11 notifications containing regulations for establishing and managing Thailand ESG Funds. They have been published in the Government Gazette since 1 December 2023, officially allowing asset management companies to launch the fund right away. Initially, the SEC has received 22 applications for Thailand ESG Funds establishment from 16 asset management companies. The Association of Investment Management Companies (AIMC) and its members plan to officially launch their Thai ESG Funds together on 8 December 2023 at a press conference where the SEC will held it with the Revenue Department, the Federation of Thai Capital Market Organizations (FETCO), the AIMC, and the Stock Exchange of Thailand (SET).”

Thailand ESG Fund is an open-ended mutual fund that must focus the majority of its investments in sustainable assets issued by public sector entities or businesses established under Thai law. The SEC supports this important government’s initiative as it would give investors a greater variety of investment choices via mutual fund while simultaneously benefiting from tax privileges starting from the 2023 tax year. More importantly, Thailand ESG Fund will facilitate green investments and promote sustainable development in Thailand which is needed for the country to achieve Sustainable Development Goals in 2030 and Net zero GHG emissions by 2065.

The SEC encourages investors to thoroughly examine the investment policies and sustainable development goals of each fund before making investment decisions. The Thailand ESG Funds are also required to disclose their sustainability-related information in accordance with the regulations for the Sustainable and Responsible Investing Fund (SRI Fund). Once the fund has been registered after the IPO process, investors can access the Thailand ESG Funds’ information through the SEC website: https://sustainablefinance.sec.or.th/Fund.

Investors are eligible for tax deductions of up to 30 percent of their assessable income, at an amount not exceeding 100,000 baht, for investments in Thailand ESG Funds. This includes the exemption of taxes on capital gain or benefits derived from the redemption of fund units on the condition that the investors maintain the investments for at least eight years from the purchase date.

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