TH

Taxes associated to Infrastructure Funds and Investments in Infrastructure Funds

Fund level

Infrastructure funds are liable to pay corporate income tax only on assessable income according to Section 40(4)(a) of the Revenue Code. (Interest and discount) if the income received by the Infrastructure Fund is not such income. There is no obligation to pay taxes on that income.

In addition, VAT Specific business tax and stamp duty arising from the transfer of infrastructure assets to the Fund will be exempted. If in such a transfer, there is a contract requiring the fund to transfer the asset back to the original owner. or will be transferred to government agencies and when the fund transfers infrastructure assets back to the original owners or government agencies according to the contract, they will be exempt from VAT. Specific business tax (SBT) and stamp duty as well.

Unitholder level

For individual and juristic persons in the country Dividend tax
Individual
Exemption from dividend tax for 10 tax years starting from the tax year in which the mutual fund is registered in accordance with the rules, procedures and conditions announced by the Director-General of the Revenue Department*, after which dividends will be subject to 10% withholding tax.
In the case of a listed company
Exempt from dividend tax, which must hold investment units for at least 3 months before paying dividends and 3 months after paying dividends. If such conditions are not met, the whole amount of dividend income must be used for tax purposes.
In the case of a limited company
Dividends will be subject to a 10% withholding tax, which must be included in the corporate income tax calculation. The tax payment can be divided into 2 cases:
(1) Hold investment units for at least 3 months before and 3 months after dividend payment. will pay half of the income tax on dividends.
(2) If it is not in accordance with (1), the whole amount of the dividend income must be paid for tax.
Price difference profit tax
Individual
Exemption.
Juristic person
Total calculated as corporate income tax.

For foreign and foreign juristic persons

Dividend tax
Individual
Exemption from dividend tax for 10 tax years starting from the tax year in which the mutual fund is registered in accordance with the rules, procedures and conditions announced by the Director-General of the Revenue Department. Dividends will be subject to 10% withholding tax.
Juristic person
Dividends will be subject to 10% withholding tax, while corporate taxation will be in accordance with the laws of the country applicable to that juristic person.
Price difference profit tax
Individual
Exemption.
In the case of a listed company
Price difference profits will be subject to a 15% withholding tax, while corporate taxation will be in accordance with the laws of the country applicable to that corporate entity.
Transfer or rental fee**

Transfer fee

Reduce transfer fees from 2 percent to 0.01 percent (not exceeding 100,000 baht). This is only in cases where there is a contract to transfer infrastructure assets back from the fund or there is a contract to transfer them to a government agency.

Mortgage registration fee

Reduce mortgage registration fees from 1 percent to 0.01 percent (not exceeding 100,000 baht) in cases where the fund is the one requesting registration as collateral for a loan.

Rental registration fee

Reduction of rental registration fee from 1% to 0.01% (not exceeding 100,000 baht) in case the fund is a lessee or sub-lessee. and in case the Fund is a lessor or sub-lessor
* Individual unitholder will be eligible for a Thailand personal income tax exemption from the dividend paid for 10 consecutive tax years since the Fund’s registration (The Fund was registered in the Year 2017), according to the Royal Decree (No. 544) Year 2013