Thailand’s proposed individual savings and investment account scheme, TISA, could broaden investment choices despite keeping the overall tax-deduction ceiling at the same level, according to InnovestX Securities. The brokerage sees high-dividend stocks as beneficiaries, although it does not expect the proposal to deliver a substantial liquidity boost to Thai equities.
InnovestX cited Finance Ministry Permanent Secretary Lavaron Sangsnit as saying that more than 90% of the framework has been settled. Discussions with capital-market participants continue on tax incentives and certain conditions, with Cabinet consideration expected in 2026, ahead of investments beginning in 2027 and related tax filings in early 2028.
The brokerage calculates that the THB600,000 deduction limit would match the combined allowances otherwise available in 2027.
The temporary Thai ESG incentive—allowing deductions of up to THB300,000 with a five-year holding period—expires in 2026. It would then revert to THB100,000 with an eight-year holding requirement. Combined with the THB500,000 allowance for the RMF/PVD/SSF retirement savings group cited in the research, the total would remain THB600,000.
For the government, InnovestX views TISA as a way to retain the existing deduction framework while using additional tax exemptions to encourage long-term investment as Thailand prepares for an ageing society.
Securities companies could gain a larger role as integrated investment-account providers. Direct investing may support trading activity among clients seeking lower fees and create opportunities to develop wealth-management platforms.
Fund managers, meanwhile, would face broader competition as investors gain alternatives to mutual funds. InnovestX expects investment performance and differentiated products to become more important in attracting assets under management.
Greater allocation flexibility could limit TISA’s contribution to stock-market inflows, InnovestX said. Investors would be able to move funds into debt instruments during periods of equity-market volatility rather than keep their tax-incentivised investments in stocks.
If the scheme proceeds as outlined, the brokerage recommends diversifying the first THB600,000 according to individual risk tolerance, with direct investment offering potential savings on fund fees.
For the additional THB200,000, it favours fundamentally sound securities providing consistently high dividends. The proposed exemption from 10% dividend withholding tax would support their appeal for investors seeking long-term income, subject to the final eligibility and holding requirements.
InnovestX’s nine selections for long-term dividend investment are BBL, KTB, KKP, HMPRO, AP, SCCC, PTT, FTREIT and LHSC.
