New Tax Criteria for 2024 Announced: Thai ESG, SSF, and RMF - Essential Updates for Beginners and Experts Save and Plan Taxes with SCBTM (Thai ESG), SCBLT1-SSF, and SCBRM4 Invest Easily with the SCB EASY App

Key Takeaways:
  • End-of-Year Tax-Saving Season: Explore tax-deductible funds such as Thai ESG, SSF, and RMF. Learn about their benefits, suitability, and conditions.
  • Updated Criteria for 2024: Thai ESG funds now offer a higher tax deduction of up to 300,000 baht** (previously 100,000 baht) or 30% of income. The mandatory holding period has been reduced to 5 years from the investment date (previously 8 years).
  • SCB's Recommended Funds: SCBTM (Thai ESG), SCBLT1-SSF, and SCBRM4 offer excellent tax-saving opportunities.
  • For Beginners and Seasoned Investors: Whether you're new to tax-saving funds or looking to update your knowledge, this guide provides essential insights on these funds and how to choose the right one for your goals.


Entering 4Q24: Time to Plan for the Future

As the year draws to a close, it’s an excellent opportunity for all income earners to reflect on financial planning, particularly with a focus on retirement goals. Building an investment portfolio that aligns with long-term objectives—from working age to retirement—is key. Regular, consistent planning every year can set the foundation for a secure future. This is also a prime time to explore ways to reduce your tax burden. One of the most popular and beneficial options is investing in Thai ESG, SSF, and RMF funds, which offer dual advantages: tax benefits and potential investment returns.

While short-term market conditions remain volatile—due to factors like the Federal Reserve's interest rate adjustments, the U.S. presidential election, sectoral investment shifts, and Thailand's ongoing economic recovery—historical data suggests that volatility tends to stabilize over the long term. Tax-saving funds, with their required holding periods, are inherently long-term investments. This approach not only mitigates risk but also enhances the likelihood of achieving desired returns.

If you're wondering about the differences between Thai ESG, SSF, and RMF funds, or trying to determine which fund suits your needs, this article provides all the insights you need.



Invest and Manage Taxes Simultaneously with Thai ESG, SSF, and RMF Funds

Let’s start by briefly understanding the different types of tax-deductible funds and their purchase and holding conditions.

Thai ESG Funds

Thai ESG Funds support long-term savings, offering a way to reduce personal income tax while promoting sustainable business practices among listed companies. These funds invest in Thai stocks and debt instruments that align with ESG principles—focusing on Environment, Society, and Governance—to ensure sustainable growth over the long term.

Key Updates for 2024: On July 30, 2024, the Cabinet approved significant updates to the Thai ESG Fund criteria:
-Higher Tax Deduction Limit: Maximum tax-deductible investment increased to 300,000 baht (up from 100,000 baht), or 30% of assessable income, whichever is lower.
-Shortened Holding Period: Holding period reduced to 5 years from the investment date (previously 8 years).

Important Notes: 

  • Investments made in 2024 will follow the updated criteria: a 5-year holding period from the investment date.
  • Investments made in 2023 will still be subject to the original criteria, requiring a minimum 8-year holding period.

Retirement Funds (RMF) 

Retirement Mutual Funds (RMF) offers tax benefits with a maximum tax-deductible investment limit of 30% of assessable income, capped at 500,000 baht. This is a self-regulated fund, requiring a minimum holding period of 5 years from the date of investment. Additionally, the funds must be held until the investor reaches 55 years of age, making it a suitable option for retirement planning. The RMF provides access to a wide range of assets, including bonds and debt instruments, Thai and foreign stocks, real estate and infrastructure, and gold. Investors can also switch between RMF funds to optimize their portfolio. For example, they can switch from a US stock RMF fund (S&P 500) to a Thai stock RMF fund (SET50) while maintaining the necessary holding period to maximize benefits.

When calculating the 500,000-baht annual tax deduction limit, RMF investments are counted together with other retirement-related investments, including Provident Funds, Super Savings Funds (SSF), Government Pension Funds (GPF), Private School Teachers' Welfare Funds, National Savings Funds, and Pension Life Insurance.

Super Savings Funds (SSF Funds) 

Super Savings Funds (SSF) offer tax benefits with a maximum tax-deductible investment limit of 30% of assessable income, capped at 200,000 baht.

SSF funds allow investors to choose from a wide range of asset classes, including bonds and debt instruments, Thai and foreign stocks, real estate and infrastructure, and gold. To qualify for tax benefits, investments in SSF funds must be held for a minimum of 10 years from the date of investment.
The 200,000-baht limit for SSF funds is part of the overall 500,000-baht annual cap when combined with other retirement-related investments, such as Provident Funds, Retirement Mutual Funds (RMF), Government Pension Funds (GPF), Private School Teachers' Welfare Funds, National Savings Funds, and Pension Life Insurance.

Table Comparing the Conditions of 3 Tax-Deductible Funds


Thai ESGSSFRMF
Investment PolicyFocuses on investments in Thai assets, such as ESG-focused stocks or debt instruments.Offers a diverse range of assets, including bonds, debt instruments, Thai and foreign stocks, real estate, infrastructure, and gold.Provides a broad range of assets, including bonds, debt instruments, Thai and foreign stocks, real estate, infrastructure, and gold.
Investment Deduction LimitUp to 30% of assessable income, capped at 300,000 baht. Deduction does not count toward the retirement group tax deduction limit.* Applies only to investment units purchased between January 1, 2024, and December 31, 2026.Up to 30% of assessable income, capped at 200,000 baht.* Deduction is included in the overall retirement group tax deduction limit.* Up to 30% of assessable income, capped at 500,000 baht. Deduction is included in the overall retirement group tax deduction limit.* 
Minimum Investment AmountNo minimum investment required and no requirement for continuous investment.No minimum investment required and no requirement for continuous investment.No minimum investment required and continuous investment required every year (with allowance to skip for no more than 1 consecutive year).
Holding Period5 years or more from the investment date Applies only to units purchased between January 1, 2024, and December 31, 2026.10 years or more from the investment date5 years or morefrom the investment date and must be held until reaching 55 years of age
Tax Deductions Require Same-Year Fund PurchaseTo claim tax deductions for a specific year, you must purchase the fund within that calendar year. For example, if you wish to claim a tax deduction for income earned in 2024, the fund must be purchased by December 31, 2024. Once purchased, the holding period begins, and the fund cannot be sold before the required holding period ends. Selling before the specified date violates tax deduction conditions, potentially requiring repayment of previously deducted taxes and, in some cases, additional penalties or interest (except in cases of disability or death of the fund holder).
Profits Upon Fund RedemptionWhen the holding period is complete, any profit from selling your investment units is tax-exempt and does not need to be included in your personal income tax calculation.


The tax deduction limit for the retirement group—including SSF, RMF, PVD, GPF, pension life insurance, Teachers' Welfare Fund, and National Savings Fund—is capped at 500,000 baht in total.

With the recent adjustment, the overall tax deduction limit for investments has increased to a maximum of 800,000 baht when combining the maximum limits for Thai ESG, SSF, and RMF funds.



SCB’s Recommended Tax-Benefit Funds
  1. Thai ESG Funds Focused on ESG-Compliant Stocks

     Recommended Fund: SCB Thai Sustainable Mixed Fund (SCBTM ThaiESG)

    • The mixed fund allocates its investments primarily to listed stocks that excel in sustainability, focusing on Environment, Social, and Governance (ESG) principles, and/or aim to reduce Thailand's greenhouse gas emissions. It also invests in debt instruments related to environmental conservation, sustainability, or sustainability promotion, as per SEC disclosure requirements. On average, at least 80% of the mutual fund's net asset value is allocated to these assets annually.
    • This fund is suitable for investors seeking long-term growth opportunities from ESG-compliant businesses in Thailand, offering additional tax-deductible investment options beyond the 500,000 baht limit for SSF, RMF, and other retirement savings funds. It provides a tax deduction of up to 300,000 baht (not exceeding 30% of income) for units purchased between January 1, 2024, and December 31, 2026.
    • SCBTM (Thai ESG) allocates 83% of its portfolio to Thai ESG stocks, with its top five holdings being CPALL, AOT, DELTA, ADVANC, and SAWAD. The remaining investments include 4.16% in deposits, 4.36% in bonds, and 7.96% in private debt instruments (data as of July 31, 2024).
    • Risk Level 5: Moderate to high risk
  2. Mixed Fund Focused on Thai Dividend Stocks

    Recommended Fund: SCB Dividend Stock 70/30 Long Term Equity Super Savings Fund (SCBLT1-SSF)

    • The fund primarily invests in equity instruments such as common stocks of listed companies, mutual fund units, or ETFs tied to stocks from companies with a consistent dividend payment policy. Between 65% and 70% of NAV annually is allocated to these equity instruments, while the remainder is invested in debt instruments.
    • The fund employs an active management strategy, aiming to outperform the index, and is ideal for investors who can tolerate market volatility while seeking long-term returns. It focuses heavily on Thai stocks with consistent dividend payouts, making it an attractive option for those wanting to reduce taxes through SSF investments.
    • As of July 31, 2024, the portfolio is allocated as follows: 69.64% in Thai dividend stocks with top holdings in CPALL, DELTA, ADVANC, GULF, and AOT, 20.08% in bonds, 8.52% in private debt instruments, and 2.77% in deposits.
  3. Quality Thai Stocks 

    Recommended Fund: SCB Equity RMF (SCBRM4) 

    • SCBRM4 invests primarily in common stocks listed on the Stock Exchange of Thailand (SET) that demonstrate strong fundamentals and high liquidity. At least 80% of NAV annually is allocated to such stocks, while the remainder is invested in securities of listed and unlisted companies on the SET, as well as other financial instruments, in proportions suitable for market conditions. The fund aims to deliver returns consistent with the SET50 Index.
    • This fund is ideal for investors seeking exposure to Thai stocks with strong growth potential while benefiting from tax savings through RMF investments. It is particularly suitable for those who can tolerate stock price volatility and are willing to invest for the medium to long term, aiming for higher returns compared to general debt instruments.
    • As of July 31, 2024, the portfolio is allocated as follows: 95.57% in leading Thai stocks with top holdings in DELTA, GULF, CPALL, AOT, and ADVANC; and 4.15% in deposits.
    • Risk Level 6: High risk.

When Is the Best Time to Invest in Tax-Saving Funds: Thai ESG | SSF | RMF? The answer is simple: Start investing now. By starting early, you ensure that you don’t miss out on both investment opportunities and tax deduction benefits, regardless of market conditions.



 Are you ready to invest in SCBTM (ThaiESG), SCBLT1-SSF, or SCBRM4?

Here’s how you can get started today:

  1. Open a Fund Account via the SCB Easy App.
  2. Link Your Fund Account on the SCB Easy App.
  3. Buy a Fund directly through the SCB Easy App.

Learn more:

Special Offer! Receive up to 1,600 baht worth of SCBSFF investment units when you accumulate investments in participating RMF, SSF, or Thai ESG funds between September 2, 2024, and December 30, 2024 via the SCB EASY App.

For more information, click!https://www.scb.co.th/th/personal-banking/investment/fund/mutual-funds/tax-2024.html

Notes:

  • *The terms and conditions of the promotion and participating mutual funds are as specified by the SCB Asset Management Co., Ltd.
  • Investment conditions and tax benefit utilization must comply with applicable laws and announcements by the Revenue Department.
  • *For purchases of Thai ESG investment units between January 1, 2024, and December 31, 2026. **Information on SCB's best-selling RMF stocks, SSF funds (2020-2023), and Thai ESG funds (2023) is accurate as of January 11, 2024, but past performance does not guarantee future results.
  • Mutual funds have specific characteristics and risks. Investors should thoroughly understand the product, return conditions, and associated risks before investing. Review the tax benefits outlined in the fund’s investment prospectus.
  • For detailed information, refer to the fund prospectus available on SCBAM’s website, the SCB EASY App, or contact the SCB Call Center at 02-777-7777.

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