For those looking to invest in long-term equity funds, or LTF, it's important to note that you can only use them for tax deductions until the year 2019. In other words, the ability to use long-term equity funds for tax deductions will be discontinued starting in 2020. But don't worry! Even though LTF has been discontinued for tax deductions, there are still many other types of savings that can help reduce your taxes. Today, we have some of those methods to share with you.

      1. Save in Retirement Mutual Funds – RMF

Although LTF has lost its tax deduction privileges, the tax deduction for retirement mutual funds, or RMF, is still available. If you're looking to save money for the long term or want savings for after retirement, RMF is definitely a great option. Importantly, the investment units purchased in RMF can be deducted from your taxable income at 15% of your taxable income, with a maximum limit of 500,000 Baht.

      2. Save through Provident Funds

A provident fund is a fund established voluntarily by both employers and employees to help employees save money for retirement or when leaving a job. Not only do you save money each month, but you also receive contributions from your employer. Additionally, you can deduct contributions from your taxable income at a rate not exceeding 15% of your taxable income, with a maximum limit of 500,000 Baht.

      3. Life Insurance

Purchasing life insurance is another form of saving. Besides saving, it also provides protection. If you buy a policy with a term of 10 years or more, you can also deduct the premiums from your taxable income. There are two types of life insurance premiums:

1. General life insurance can be deducted up to 100,000 Baht.

2. Pension life insurance can be deducted at 15% of your income, with a maximum limit of 200,000 Baht.

Even though long-term equity funds (LTF) have been discontinued, there are still many ways to save money while also being able to reduce your taxes. All of these methods are easy ways to save money and can help you with tax deductions. We encourage you to consider and adapt these good methods to suit your needs.

SOURCE:  www.moneyguru.co.th