How to Save to Reduce Taxes Without LTF

May 28, 2019 | view 2,956

For those looking to save 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 use of long-term equity funds (LTF) 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, MoneyGuru.co.th has 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 (RMF) is still available. If you're looking to save money for the long term or want savings for retirement, RMF is definitely a great option. Importantly, the investment in RMF can be deducted from your taxable income at 15% of your taxable income, with a maximum deduction of 500,000 Baht.

2. Save through Provident Funds

Provident Funds are established voluntarily by employers and employees to provide employees with savings for retirement or when leaving a job. Not only can 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 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 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 of 200,000 Baht.

Even though long-term equity funds (LTF) have been discontinued, there are still many ways to save money while also reducing your taxes. All of these methods are easy ways to save and can help you with tax deductions, as shared by MoneyGuru.co.th. Try to choose and adapt these good methods to suit your needs.