Mrs. Pornanong Budsaratragoon, SEC Secretary-General, said: “After the Thai ESGX regulations took effect on 16 April 2025, the SEC is currently reviewing applications for the establishment of 37 Thai ESGX submitted by 19 AMCs.* We anticipate that all of these new funds will be ready for initial public offerings as scheduled on 2 May 2025. Thai ESGX will accommodate both the transfers of existing LTF units and new investments. However, transfers of LTF units can only proceed once the registration of each Thai ESGX has been completed.”
Investors can learn more about Thai ESGX by reviewing the fund prospectus or by contacting the AMC managing their LTF**. The offering period for Thai ESGX, as well as the transfer window for LTF units, will run for two months, from May to June 2025 in accordance with the government-supported measures.
Additionally, to facilitate investors in verifying the completeness of LTF transfer, Digital Access Platform Co., Ltd. (DAP), a company in the Stock Exchange of Thailand (SET) Group, which provides an infrastructure system for mutual fund access (FundConnext) has developed system for investors to check information on all their holdings on tax benefit funds including LTF quickly and efficiently. This service has been approved by the SEC and is expected to allow investors to check fund holding information through the SET’s website, starting from the beginning of May.
Thai ESGX is a fund that must invests in assets with outstanding environmental or sustainability attributes, issued by the Thai government sector or businesses established under Thai law. On average, at least 80 percent of the fund’s net asset value (NAV) must be allocated to such assets over the course of each fiscal year. Additionally, Thai ESGX is required to invest in sustainability-focused stocks, with a minimum average allocation of 65 percent of NAV in each fiscal year.
The tax benefit limits are divided into two categories,*** as follows:
Category 1: General investors interested in Thai ESGX can begin purchasing units from 2 May to 30 June 2025. They are eligible for a tax deduction of up to 30 percent of their assessable income, capped at a maximum of 300,000 baht. Investment units must be held for a minimum of five years, counted from the investment date.
Category 2: Existing LTF unitholders who held LTF units as of 11 March 2025, and wish to transfer all such units of LTF held across all asset management companies (excluding units under other tax-benefit classes within the same LTF, such as SSF) into Thai ESGX may do so during the transfer period from May to June 2025. They will be eligible for a maximum tax deduction of 500,000 baht, spread over the 2025 to 2029 tax years. In 2025, the maximum deductible amount is 300,000 baht, while the remaining balance will be equally distributed across the 2026 to 2029 tax years.****
The SEC believes that Thai ESGX will serve as a key mechanism in encouraging businesses to adopt sustainable practices and contribute to the country’s long-term sustainability goals. At the same time, it will promote long-term investment through the capital market. Investors are encouraged to review the available information and select Thai ESGX funds with policies that align with their financial objectives,” added SEC Secretary-General.
Notes:
* There is one AMC with LTF under management that has not established a new Thai ESGX. However, it has collaborated with other AMCs to allow the transfer of units of LTF into Thai ESGX offered by those AMCs.
** All Thai ESGX are currently under review for approval by the SEC. Once approved, investors will be able to access detailed information about the newly established funds through the following channels:
(1) https://market.sec.or.th/public/mrap/mrapdefault.aspx
(2) https://fundcheck.sec.or.th/main and
(3) https://www.sec.or.th/SustainableFinance.
Additionally, more details of Thai ESGX are available at: https://www.sec.or.th/TH/Pages/KnowledgeCapitalMarket/Knowledge-CapitalMarket-THAIESGX.aspx
*** According to the Ministerial Regulation No. 398 (B.E. 2568) (2025), issued under the Revenue Code concerning Tax Exemptions, which was published in the Government Gazette on 28 March 2025.
**** An example of tax deduction for 2025 - 2029: For instance, an investor who transfers LTF units into a Thai ESGX fund worth 380,000 baht can claim tax deductions as follows: 300,000 baht in 2025, and 20,000 baht per year from 2026 to 2029.