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Tax related to investment in IF

The following are taxes in relation to Infrastructure funds and investment in Infrastructure funds:

1) TAXES

Tax incentives for investment in infrastructure funds at the fund level and investor level are as follows:

  • FUND LEVEL

    Infrastructure Funds are deemed non-taxable entities for corporate income tax. The proceeds the Infrastructure Fund receives shall not be deducted for corporate income tax before distributing dividends to the unitholders.

    Moreover, value added taxes, specific business taxes, and stamp duties incurred when transferring assets to the Infrastructure Fund shall be exempted if the said transfer has an agreement that such assets must be transferred back to the transferor or transferred to government sectors. In addition, when the Fund transfers the assets back to the transferor or transfers to government sectors according to the agreement, it will also get the exemption on value added taxes, specific business taxes, and stamp duties.

  • INVESTOR LEVEL
  Natural Person Juristic Person
Dividend Tax* Exemption on personal income tax from dividends received by natural persons for 10 years from the establishment of the Fund (as opposed to the current rate for withholding tax of 10%) as announced in the Royal Decree issued under the Revenue Code Governing Exemption from Revenue Taxes (No. 544) B.E. 2555 as published in the Government Gazette on October 9, 2012 (be enforced on October 10, 2012)*

In case of a listed company on the Stock Exchange, tax exemption shall be granted; provided that it has held investment units for not less than 3 months before and after a dividend payment.

In case of a non-listed company on the Stock Exchange, if it has held investment units for not less than 3 months before and after a dividend payment, a half of corporate income tax from such distribution shall be exempted.

A juristic person incorporated outside Thailand shall be exempted from corporate income tax payment under the Thai law and withholding tax payment in Thailand.

Capital Gain Tax Exempted

For a juristic person incorporated in Thailand, the capital gain shall be calculated for the corporate income tax payment. A juristic person incorporated outside Thailand shall be exempted from corporate income tax payment under the Thai law and withholding tax payment in Thailand. "

2) TAXES OFF FEES FOR TRANSFERS OR LEASES**

TAXES Description
Fees for transfers Reduction of official fees from the transfer of assets from 2% to 0.01% (but not exceeding Baht 100,000) in case it is specified in the agreement that the infrastructure assets shall be transferred back from the Fund, or to the government sectors.
Fees for registration of mortgages Reduction of official fees for the registration of mortgages from 1% to 0.01% (but not exceeding Baht 100,000) for transactions where the fund applies for such registration to secure its loans.
Fee for registration of leases Reduction of official fees for the registration of leases from 1% to 0.01% (but not exceeding Baht 100,000) in case that the fund is the lessee or sub-lessee, and in case that the fund is the lessor or sub-lessor.

* Exemption on personal income tax from dividends received by natural persons for 10 years upon the establishment of the fund is under criteria and conditions of the Royal Decree issued under the Revenue Code (No. 544) B.E. 2555
** According to the resolution of the Council of Ministers dated 28 August 2012 and 15 November 2011.