Bangkok: Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, has announced a new tax incentive program called the TISA (Tax Incentive for Savings Account) aimed at bolstering long-term savings and supporting the capital market. The initiative offers a total tax deduction of up to 8 million baht, along with a second benefit of tax exemption on interest, dividends, and capital gains up to 1 million baht per year. Ekniti has directed the Securities and Exchange Commission (SEC) to expedite the selection of ESG (Environmental, Social, and Governance) stocks for inclusion in the TISA account.
According to Thai News Agency, the announcement was made alongside key financial figures, including Assistant Minister of Finance Benjarong Suwannakiri, Director of the Fiscal Policy Office Vinit Visetsuwannapoom, Director of the Public Debt Management Office Jindarat Viriyathaveekul, Secretary-General of the Office of the Insurance Commission Chuchat Pramoonpol, and Secretary-General of the SEC Pornanong Busaratrakul. They emphasized that savings and financial security measures represent the fourth pillar of the government's Quick Big Win economic policy.
The government identified a significant issue, with over 90% of Thais lacking sufficient retirement savings, as savings dropped from 27.70% of GDP in 2014 to 25.60% in 2023. To address this, the Economic Cabinet approved tax incentives for long-term savings through TISA, allowing a 1.2 times tax deduction on expenses like pension insurance premiums, contributions to provident funds, and investments in GPF, RMF units, stocks, ETFs, and Thai ESG funds, up to 800,000 baht.
Additionally, the measure exempts income from interest, dividends, and capital gains from tax, up to 200,000 baht per year, providing a combined benefit of 1 million baht annually. The TISA program is expected to cover 11 million retail investors, with implementation starting on January 1, 2026. Short-term investments for tax exemptions will begin on July 1, 2026, with investments filed in early 2027. The SEC and the Stock Exchange of Thailand have developed an application for managing these investments.
Ekniti highlighted that savings are crucial for an aging society like Thailand, where many lack financial security for retirement. He noted that previous tax incentives with long-term equity funds led to losses for unit holders, including himself. The TISA program, however, aims to help individuals manage finances better, such as through flood insurance that reduces national treasury burdens.
SEC Secretary-General Pornanong Busaratrakul mentioned the removal of the 30% income tax ceiling and the inclusion of ESG stocks from both SET and MAI, not limited to SET50 stocks. Participants will manage savings through an application and open a Cash Balance Account for stock trading. TISA allows adjustments within a specified timeframe, with tax exemptions on dividends and capital gains.
Public Debt Management Office Director Jindarat Viriyathaveekul announced the introduction of "Savings Bonds Plus," allowing monthly purchases up to 800,000 baht, with a total value of 1 billion baht. The minimum purchase is 1,000 baht, with a developed system for easier redemption and faster cash conversion.
Insurance Commission Secretary-General Chuchat Pramoonpol introduced the "Sabaichai Insurance" measure, allowing insurance purchases up to 800,000 baht. Microinsurance covers short-term personal accident insurance for 30 baht. The TISA aims to encourage insurance companies to increase investments by 100 billion baht annually.
Fiscal Policy Office Director Vinit Visetsuwannapoom stated that the TISA proposal will soon be presented to the Cabinet, detailing the process for purchasing shares and converting them within a specified timeframe. The initiative aims to open opportunities for parents to purchase shares for their children under 20, up to 200,000 baht.
Assistant Minister of Finance Benjarong Suwannakiri remarked that 53 provinces face an elderly population exceeding 20%, raising fiscal policy concerns. The government aims to address this through Quick Big Win measures, with TISA expected to be finalized by year-end and operational by July 2026.