Thailand Plans TISA Investment Scheme Based on Japan's NISA

Matichon•International•1d ago

Reader Briefing

Thailand is developing the Thailand Individual Savings Account (TISA) to encourage long-term household investment and address aging society challenges.

•The SEC proposed the Thailand Individual Savings Account (TISA) modeled after Japan's NISA.
•Investors can allocate up to 600,000 Baht per year into various financial products.
•The government is also considering tax-exempt savings accounts for children up to 200,000 Baht per child.

Overview

•The SEC is proposing the Thailand Individual Savings Account (TISA) which allows investors to allocate up to 600,000 Baht per year in stocks, debt instruments, and mutual funds.
•Thailand aims to shift household savings from low-yield bank accounts into long-term investments in stocks and bonds to combat the burdens of a rapidly aging society.
•The TISA concept was first discussed nearly one year ago during a period of poor performance in the Thai stock market and foreign investor outflows due to political uncertainty.
•Pronong Busaratrakul stated TISA would be the first time investors receive tax benefits from direct investment in stocks and bonds, replacing existing short-term tax-deductible funds.
•According to the Association of Investment Management Companies, existing government-certified retirement and long-term savings funds have total assets of approximately 725,000 million Baht.
•The government is considering a tax-exempt savings account for children, allowing parents to invest up to 200,000 Baht per child annually until the child reaches 20 years of age.

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Source: Matichon (Original)

Key Quotes

Pronong Busaratrakul

"We are looking for ways to incentivize households to move money into investments through tax measures."

เรากำลังมองหาวิธีจูงใจให้ภาคครัวเรือนเปลี่ยนเงินออกมาเป็นการลงทุนผ่านมาตรการทางภาษี

Key Entities

Organization

Bloomberg(บลูมเบิร์ก)

The media outlet that reported on Thailand's preparation to launch a Japan-inspired savings project.

Securities and Exchange Commission(สำนักงานคณะกรรมการกำกับหลักทรัพย์และตลาดหลักทรัพย์ (ก.ล.ต.))ℹ️

The organization that proposed the Thailand Individual Savings Account (TISA).

Association of Investment Management Companies(สมาคมบริษัทจัดการลงทุน)

The organization providing data on the total asset value of existing retirement and long-term savings funds.

Policy

Thailand Individual Savings Account (TISA)

A proposed investment scheme allowing annual allocations up to 600,000 Baht for tax benefits.

Nippon Individual Savings Account (NISA)

A Japanese investment model used as the reference for the TISA project.

Person

Pronong Busaratrakul(พรอนงค์ บุษราตระกูล)

The Secretary of the Securities and Exchange Commission.

Place

Thailand(ประเทศไทย)ℹ️

The country implementing measures to attract household savings into the capital market.

Japan(ญี่ปุ่น)ℹ️

The country whose NISA model inspired Thailand's savings project.