SSF and RMF: Tax Benefits Every Thai Should Know!

                Currently, Thais can choose from a variety of retirement savings funds, such as the Government Pension Fund, the Private School Assistance Fund, the National Savings Fund, or insurance premiums for pension life insurance, among others.

                Recently, the Cabinet has approved measures to promote long-term savings along with a new tax benefit scheme called SSF Fund, and has also revised the guidelines for the RMF Fund. Today, TerraBKK summarizes the key points as follows:

Super Savings Fund (SSF)

  • Tax Deduction = For the amount paid to purchase investment units in the SSF, up to 30% of assessable income, not exceeding 200,000 baht. When combined with other retirement savings funds, the total must not exceed 500,000 baht per tax year. You can deduct the purchase of SSF investment units for 5 years (2020-2024). The Ministry of Finance will evaluate the effectiveness of this measure to consider appropriate future directions.
  • Investment Policy = The SSF can invest in all types of securities.
  • Investment Unit Purchase = No minimum purchase amount is required, and there are no conditions for continuous purchases.
  • Redemption of Investment Units = You can redeem investment units after holding them for at least 10 years from the purchase date, and the income from redeeming SSF investment units will be exempt from personal income tax if the specified conditions are met.

Retirement Mutual Fund (RMF)

  • Tax Deduction Guidelines Updated = Up to 30% of assessable income, with a maximum deduction limit of 500,000 baht when combined with other retirement savings funds (previously limited to 15% of assessable income).
  • Investment Unit Purchase = No minimum purchase amount for RMF (previously required to purchase at least 3% of assessable income or at least 5,000 baht per year, whichever was lower). You must purchase continuously every year and cannot suspend purchases for more than one consecutive year.

                This makes it easier and more flexible for Thais to access long-term savings as there is no minimum purchase requirement, and you can enjoy increased tax deduction benefits of up to 30% of assessable income. For those who have previously invested in the Long-Term Equity Fund (LTF), although tax deductions for the purchase of investment units have not been available since January 1, 2020 (ending the tax benefits in 2019), those holding investment units will still be exempt from tax on profits from redeeming LTF investment units as before. --- TerraBKK

Article by: TerraBKK Investment Tips
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