New “Super Fund” to help Thais save gets green light from Government
PHOTO: Khaosod English
The Super Savings Fund (SSF) introduced by the Finance Ministry has been given the go-ahead by Cabinet and is set to replace the older Long-Term Equity Fund.
Thai PBS World reports that the new fund enables investors to deduct 30% of their savings, or up to 200,000 baht, from taxable income. It aims to boost long-term saving of up to 10 years among Thai citizens by using deductions from taxable incomes as an incentive.
The total tax deductible amount for an individual saver cannot exceed 500,000 baht in the same tax year, when savings from other funds are taken into consideration. These funds include the Pension Fund for retired civil servants, the Retired Mutual Fund (RMF), the National Savings Fund, as well as the Welfare Fund for Private Schools and Life Insurance Fund.
The deductibles are only available to those who keep their savings in the SSF for at least 10 years. From 2020, the tax deductible is valid for five years with no lower limit for investing in the SSF. Income derived from selling SSF units will be tax exempt.
In addition, the Cabinet has agreed to a 30% increase on tax deductibles on RMF investments
The cabinet agreed to increase tax deductibles on investments in the RMF from 15% to 30% of taxable income, but the total amount of deductibles for all funds must remain below 500,000 baht.
SOURCE: Thai PBS World
