Cabinet approves Super Savings Fund to encourage Thais to save
The cabinet today approved the Finance Ministry’s Super Savings Fund (SSF), in place of the Long-term Equity Fund (LTF), which will allow investors in the SSF to deduct 30% of their investments or not more than 200,000 baht from their taxable income.
The SSF is designed to encourage individuals to save on a long-term basis, for up to 10 years, and reward them with deductions from their taxable incomes.
Added to investments in other funds, such as the Pension Fund for retired civil servants, the Retired Mutual Fund (RMF), the National Savings Fund, the Welfare Fund for Private Schools and Life Insurance Fund, the total amount of tax deductibles for an individual investor must not exceed 500,000 baht in any tax year.
In order to enjoy the deductibles, individual investors must hold their investments in the SSF for at least 10 years from their purchase of SSF units. Revenues from the sale of SSF investments are tax exempted. The tax deductible is valid for five years, beginning next year, and there is no lower limit for investment in the SSF.
The cabinet agreed to increase tax deductibles on investments in the RMF to 30% of taxable income, from the current rate of 15%, but the amount of the deductibles for all funds must not exceed 500,000 baht.