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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) Fund Level

Infrastructure Fund is responsible for paying corporate income tax only for the income under Section 40 (4) (a) of the Revenue Code (Interest and discount). If the income the Infrastructure Fund receives is not under such Section, the proceeds shall not be subject to corporate income tax.

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

For natural person and juristic person in Thailand
  Natural Person Juristic Person
Listed Company Non-listed Company
Dividend Tax Exemption on personal income tax from dividends received by natural persons for 10 tax years from the establishment of the Fund in accordance with the rules, procedures and conditions as announced by the notification of Director-General of the Revenue Department.* Thereafter, dividends shall be subject to 10% withholding tax.

Tax exemption shall be granted, provided that it has held investment units for not less than 3 months before and after the dividend payment date.
If it is not in accordance with the conditions above, the whole dividends shall be subject to corporate income tax.

Dividends received by non-listed company shall be subject to 10% withholding tax and subject to corporate income tax.
Corporate income tax payment can be divided into 2 cases;
(1) If it has held investment units for not less than 3 months before and after the dividend payment date, half of such dividends shall be subject to corporate income tax.
(2) If it is not in accordance with (1) above, the whole dividends shall be subject to corporate income tax.

Capital Gain Tax Exempted Subject to corporate income tax
For the foreigner and foreign juristic persons
  Foreigner Foreign Juristic Person
Dividend Tax Exemption on personal income tax from dividends received by natural persons for 10 tax years from the establishment of the Fund in accordance with the rules, procedures and conditions as announced by the notification of Director-General of the Revenue Department.* Thereafter dividends shall be subject to 10% withholding tax. Dividends shall be subject to 10% withholding tax. The corporate tax payment shall be in accordance with the laws of the country applicable to that juristic person.
Capital Gain Tax Exempted Capital gain shall be subject to 15% withholding tax. The corporate tax payment shall be in accordance with the laws of the country applicable to that juristic person.

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 tax 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.