The Association of Investment Management Companies (AIMC) is set to meet with the Ministry of Finance soon to propose an extension to the Super Savings Fund (SSF) tax-deduction scheme beyond its scheduled expiry later this year.
AIMC chairwoman Chavinda Hanratanakool said the SSF has played a dual role in providing tax benefits and promoting long-term savings.
“From a tax perspective, SSF deductions do not significantly impact government revenue. Therefore, the AIMC intends to push for clarity on whether an extension is possible,” she said.
“If the ministry confirms the extension, it will provide certainty for investors. If there is silence, we can assume the scheme will not be renewed.”
In the event the SSF is not extended, investors could still gain tax incentives through the upcoming Thailand Individual Savings Account (TISA) programme.
Unlike the SSF, which is limited to mutual funds, TISA is expected to cover a broader range of investment vehicles, including equities, tax-saving funds and potentially life insurance.
“TISA would allow a long-term framework for tax-deductible investment without fixed expiration dates, unlike long-term equity funds [LTFs] or SSF,” Mrs Chavinda noted.
She also confirmed that the ThaiESG fund series would be included under TISA, reinforcing its role in sustainable investment promotion.
The SSF is a tax-saving fund introduced in early 2020, following the expiration of the LTF in 2019. The fund itself is set to expire this year, with an estimated total asset under management (AUM) of 50-60 billion baht.
The SSF, according to Mrs Chavinda, has attracted long-term savings into the capital market by offering tax benefits as an incentive for retail investors.
“If the government extends the programme, it will strengthen the confidence in long-term funds.”
The challenge, however, includes the risk that investors may withdraw if the fund is not extended or if there is no policy clarity.
In comparison, the TISA scheme has greater potential than the traditional SSF because it has no expiration date, reducing policy uncertainty relative to the SSF and LTF, whose fixed-term structure encourages investors to hold them for longer periods.
Other notable advantages of the TISA include broader asset coverage because it can be designed to invest in stocks, exchange-traded funds, tax-saving funds and potentially certain life insurance products. That makes the TISA suitable for portfolio diversification.
The TISA also promotes systematic savings through mechanisms such as dollar-cost averaging, helping to shift investor behaviour from short-term deposits to long-term investment.
Besides, the TISA can provide tax incentives aligned with long-term goals. If designed with clear benefits, such as sufficiently high contribution limits and defined tax deductions, it can attract a large number of account holders.