From year 2020 to 2024, Super Savings Fund (SSFs) will replace Long-Term Equity Funds (LTFs) for tax allowance purpose.
Investments made each calendar year in SSFs are tax-deductible up to 30% of the taxpayer’s gross assessable annual income but capped at THB 200,000.
There is no minimum investment amount and as opposed to LTFs and RMFs, there is no requirement to invest continuously each year from 2020 to 2024 to enjoy tax benefits. However, taxpayers may only use the tax allowance in the years that they invest in SSFs.
There is no minimum holding period but to be able to use the tax benefits, investments in SSFs must be held for a continuous period of not less than 10 years from the purchase date. Capital gains from SSFs are tax-exempted.
Changes were also made to RMFs: investments in the funds are now deductible up to 30% (formerly 15%) of the taxpayer’s gross assessable annual income and the minimum annual investment amount (3% of gross assessable annual income or THB 5,000, whichever is lower) was lifted.
In total, the tax allowance may not exceed THB 500,000 when combining investments in Super Savings Funds (SSFs), Retirement Mutual Funds (RMFs), provident funds, government pension funds, private teacher aid fund contributions, national savings funds and annuity insurance premiums.