1. What is Thai ESGX?

• The Thailand ESG Extra Fund (Thai ESGX) is a special sustainability mutual fund that provides tax benefits for switching LTF units and for new investments made during a designated 2-month period (expected to be May - June 2025).
• Thai ESGX must invest in assets issued by Thai entities that meet sustainability criteria similar to those for the Thailand ESG Fund (Thai ESG). At least 80% of the fund's NAV must be invested in such assets on average throughout the fiscal year. Moreover, at least 65% of the NAV must be invested in sustainable equity.
• The asset types in which Thai ESGX must invest at least 80% of its NAV include:

1. Sustainable equity listed on the SET or mai, accounting for no less than 65% of NAV (not limited to SET ESG Ratings stocks only*).
2. Sustainable debt instruments.
3. Digital tokens promoting sustainability.

• Additionally, Thai ESGX may invest up to 20% of its NAV in Thai stocks that are not ESG-related.

*Thai ESG and Thai ESGX sustainable stocks include those that:

1. Are selected by the Stock Exchange of Thailand or reputable ESG rating providers with recognized global standards, demonstrating excellence in environmental (E) or overall ESG performance.
2. Disclose greenhouse gas emissions data, management plans, and reduction targets that align with Thailand's carbon footprint goals, verified by accredited auditors.
3. Demonstrate excellent corporate governance (G), scoring at least 90 points on the IOD's Corporate Governance Rating (CGR), and disclose corporate value enhancement plans, environmental initiatives, and progress updates.

Thus, fund managers may invest in stocks from criteria (2) or (3) in addition to those with an ESG rating.

2. How does Thai ESGX differ from the original Thai ESG?
Thai ESGX has additional investment requirements:

• Must invest no less than 65% of NAV in sustainable equity.
• Allows the switching of LTF units up to THB 500,000 without the 30% assessable income condition.

Criteria	Thai ESG	Thai ESGX
Investment Policy	- Invest at least 80% of NAV in Thai assets with sustainability characteristics. - May include Thai sustainable stocks/ESG-rated stocks, ESG Bonds, and digital tokens for sustainability-related investments	- Invest at least 80% of NAV in Thai assets with sustainability characteristicsใ -  Specific condition for Thai ESGX: It must invest no less than 65% of NAV in sustainable equity.
Tax Benefits	Up to 30% of assessable income, max THB 300,000	Two tax deduction limits: - 1st For new investments in 2025: Up to 30% of assessable income, max 300,000 THB. - 2nd For LTF unit switching: Up to THB 500,000 without the 30% income limit.

3. What are the conditions for Thai ESGX tax benefits?
 Tax benefits are divided into two separate limits , independent of other retirement savings funds or insurance plans, under the following conditions:
3.1) Thai ESGX (1^st Tax Deduction Limit) for new investments made by individuals in Thai ESGX in 2025 with max 300,000 THB

• Tax deduction limit: 30% of assessable income, up to 300,000 THB (only for 2025).
• Investment period: Within 2 months (expected May - June 2025, every fund dealing date); being separate from investments in the standard Thai ESG fund.
• Holding period: At least 5 years from the investment date (e.g., an investment made on 1 Jun’25, must be held until 31 May 31’30, and can be sold starting 1 Jun’30)

3.2) Thai ESGX (2^nd Tax Deduction Limit) for investors who switch all their existing LTF units from all funds across all AMCs to Thai ESGX units to receive the tax deduction benefit for previous LTF investments, up to 500,000 THB (they may choose to transfer to a single Thai ESGX fund).

• Tax deduction limit: Up to 500,000 THB, spread across 5 years, from 2025 to 2029 tax years.
  • Year 1 (2025): Up to 300,000 THB
  • Years 2 - 5 (2026 - 2029): Gradually deduct taxes by averaging the excess amount and deducting an equal portion each year.
    • For example, switching from LTF to THAIESGX with a value of 380,000 will be tax-deductible as follows:
      • Year 1 (2025): Tax deduction of 300,000 THB
      • Years 2-5 (2026 - 2029): Tax deduction of 20,000 THB per year
• Eligible Investment Units: Investment units held by LTF unit holders on the date the Cabinet approves the aforementioned measures (excluding other tax classes within the same fund, such as SSF class).

Note: LTF unit holders wishing to claim the tax deduction must switch all their LTF units across all Asset Management Companies (AMCs) to Thai ESGX during the designated switching period. If the switching is not completed in full, they will not be eligible for the 2nd tax deduction limit.

• Holding Period: The total number of Thai ESGX units switched from LTF must be held for no less than 5 years (calculated from the date of the LTF unit switching order to the Thai ESGX fund).

Note: Selling the units before the 5-year period will require the return of any tax exemptions received, along with a penalty as per the law or regulations. Additionally, any profits from the sale of units will need to be included in the income tax calculation according to tax guidelines.

• Switching Period: Within 2 months (it is expected to coincide with the sale period for Thai ESGX units under the first tax deduction limit, which will begin on every business day from May to June 2025).

However, in order to use the tax benefit of the 2nd tax deduction limit, LTF unit holders must comply with all the following conditions:

1. Must not sell or switch LTF units (whether switching to another LTF, either within the same AMC or across AMCs), as this would require the original LTF fund to sell the securities it holds at the NAV value of the switched units and transfer the cash to the receiving LTF fund for further investment).
2. Must switch all LTF units held according to condition #1 to Thai ESGX across all funds and AMCs (except for units in the SSF class) between May and June 2025. Partial switching is not allowed, but it is possible to gradually switch to Thai ESGX to complete all units from all funds and AMCs by 30 Jun’25.
3. Must hold the units for 5 years, calculated from the date of switching LTF units to Thai ESGX

4. What happens if an LTF investor has over THB 500,000 in investments for switching to Thai ESGX?
To qualify for the 2nd tax deduction limit, all LTF units from all asset management companies (AMCs) must be switched to Thai ESGX. The total switched amount must be held for at least 5 years from the switching date. (Day Bump Day; From the date of sending the order to switch the existing LTF investment units to Thai ESGX)

5. Summary of Thai ESG Tax Deductions in 2025
Investors have access to three separate tax deduction limits for ESG fund investments, totaling THB 900,000:

1. New investments in existing Thai ESG: Up to 30% of assessable income, max 300,000 THB
2. New investments in Thai ESGX during the 2-month IPO period in 2025: Up to 30% of assessable income, max 300,000 THB.
3. Switching existing LTF units to Thai ESGX with the following deduction limits:

• Year 1 (2025): Up to 300,000 THB.
• Years 2-5 (2026-2029): Up to 50,000 THB per year.

6. How to check eligible LTF units for switching?

• Contact your AMC or investment agent to confirm your current LTF holdings.
• Investors will also be able to verify their LTF unit balance through the Fund Connext platform once available.

7. Can LTF units be switched to Thai ESGX across AMCs?
The tax benefit conditions do not restrict cross-AMC transfers. However, specific switching requirements may vary by AMC. Investors should consult their preferred AMC or refer to fund prospectuses for details before proceeding to switching funds

8. Do investors need to sell LTF units to switch to Thai ESGX?
Switching LTF units to Thai ESGX will use a "pay in kind" method to ensure fairness. The LTF funds will transfer securities directly to Thai ESGX at equivalent value, eliminating the need for LTF funds to sell their assets immediately and minimizing market impact.

Source: Krungsri Asset Management/ Information compiled from SEC Q&A as of 14 Mar’25/ Pursuant to the Revenue Code regarding tax exemption, tax measures to promote investment in the Thai ESGX mutual fund, as amended (No. 126).

• The Thai ESG / Thai ESGX funds promote long-term savings and encourages sustainable investment in Thailand.
• This document is published for general information, compiled from reliable sources as of the displayed date. The company cannot guarantee the accuracy, reliability, or completeness of the information provided. The company reserves the right to amend any information without prior notice.
• Investors should understand the product features, return conditions, risks, and tax benefits in the investment manual before making investment decisions. Investors will not receive tax benefits if they fail to comply with investment conditions.