Tax Incentives for Infrastructure Funds

Royal Decree No. 544, published in the Royal Gazette on 9 October 2012, promotes Infrastructure Funds (“IFF”) by granting various tax incentives:

Keywords: Mazars, Thailand, Tax, IFF, the Royal Gazette, VAT, SBT

  • A ten-year exemption of personal income tax on the dividends distributed from the IFF to the individual unit holders (excluding ordinary partnerships or groups of persons), starting from the day IFF is established. After such ten-year period, the investors will be subject to the normal tax rate that is currently applicable to a mutual fund, i.e. 10% flat tax (instead of a progressive tax rate). Foreign individuals, regardless of their tax residency, will also be entitled to this tax exemption.
  • An exemption from value-added tax (VAT), specific business tax (SBT) and stamp duties for the transfer of the assets from the originator to the IFF, provided the assets will eventually be returned to the originator or transferred to government authorities or state owned enterprises.

Read the Royal decree No. 544 for more information.