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Thailand Launches New Tax Deduction Savings Scheme

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Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas | Photo via BangkokBizNews

 

Thailand’s Finance Ministry has introduced the Thailand Individual Savings Account (TISA) scheme, offering tax deductions up to 800,000 baht to prepare the nation for an ageing population. Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced the initiative following an economic ministerial meeting on December 8, highlighting its goal to boost financial security.

 

This measure forms part of the government’s fifth economic pillar, enhancing savings. Tax-deductible limits will be increased without yearly approval, benefiting those earning under 1.5 million baht per year with a 1.3x savings boost. Approximately 11.4 million people are expected to take advantage of this scheme.

 

The initiative also aims to inject more capital into Thailand’s financial markets by offering incentives like waived withholding tax on investment gains up to 200,000 baht, if held for over five years. Monthly government savings bonds will be available with a minimum investment of 1,000 baht, granting wider access to stable, government-backed securities. Stamp duty on insurance purchases will also be waived.

 

Though the Cabinet has not yet confirmed when they will review the measure, the government hopes to stimulate savings and investment participation. The Half-Half Plus scheme and state welfare card benefits remain undecided, with further announcements expected soon.

 

In a related step, a 10% customs duty on imports under 1,500 baht will be imposed starting January 1, 2027. This move aims to shield local SMEs from low-cost foreign competition, as current imports in this range are duty-free, reported The Thaiger.

 

Key Takeaways

  • The TISA scheme offers up to 800,000 baht in tax deductions, benefiting around 11.4 million people.
  • Tax incentives aim to increase financial market participation and household savings.
  • A 10% customs duty on certain low-cost imports will begin in 2027 to protect local industries.

 

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Thailand to Launch Six Tax Measures for Sustainability

 

image.png  Adapted by ASEAN Now from The Thaiger 2025-12-09

 

 

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