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Tax Advisor Magazine. From and including the tax year, resident individuals including the foreign national resident individuals have been using the Retirement Mutual Funds and the Long Term Equity Funds as salary sacrificing tax allowances. The tax allowance for LTFs expired at the end of year , and the 28 Feb Ministerial Regulation No was issued to replace the LTF tax allowance with a tax allowance for Super Savings Funds and also to amend the maximum amount allowed as salary sacrificing tax allowances. A summary of the sacrificing of salary tax allowances, as amended by Ministerial Regulation No , is as follows:. Not more than 1,, Baht - i.
'Super savings funds' to replace LTFs
First, investors should be aware of the time horizon of long-term investment. With an RMF you cannot cash out until you are 55 years old at the earliest, and the holding period of the fund must be at least five years from the first day of purchase. Please note that the 5-year count will be counted only for the year that RMF is purchased. As for LTF, you cannot redeem it before the seventh calendar year.
This article discusses the merits of both types of investments, and highlights an important change to the LTF holding period. For a period of time U. Retirement Mutual Funds RMFs were established to encourage people to save for retirement by providing Thai tax benefits on savings. There are a number of different LTFs and RMFS managed by the various Thai asset management companies and distributed either directly or through affiliated bank branch networks. If you have a provident fund at work, the total annual maximum tax deduction for both the provident fund and the RMF together is Baht , The rules regarding LTF and RMF contributions can and do change, so make sure you check the current status before making any contributions.