Thailand Regulatory Revision Concerning Return Payment of Property sector Fund

The Securities & Exchange Commission, Thailand (SEC) is seeking public comment on the revision to regulation governing return payment from the investment of property sector fund. The revision aims to solve tax differences between indirect investment through property sector fund and direct investment in property fund established and managed in Thailand (Thai property fund). 

Under the proposed regulations, property sector fund must pay dividend to unit holders the entire amount of return obtained from Thai property fund in any accounting period. Omission of dividend payment is, however, allowed in the accounting period where dividend to be paid is lower than 0.25 baht per unit. In addition, to prevent any impact  from the revision, the SEC will allow asset management company to prepare the operating system and amend project details, including inform every unitholder of the changes at least 60 days in advance. Within such period, asset management company must repurchase the fund’s units at least once, while unitholder may exit from the fund with no fee charged.

The consultation paper is available on the SEC website at www.sec.or.th. Stakeholders and the interested public are welcome to submit comments through the website, or through facsimile number 0-2695-9915 until June 14, 2012.