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Post by mangomoney on Jul 5, 2019 12:06:55 GMT 7
From a few months back. Covers the basics. Thais often wait until year-end but no need to do so.
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Spoiled for choice Asset managers discuss the considerations for LTF and RMF investment.
With the end of 2018 approaching, it's time for income earners to review their tax-saving strategy to ensure that they maximise returns when tax filing season starts early next year.
Tax-saving investments are a good option for individual taxpayers because they not only lower tax bills but also generate tax-free income. Long-term equity funds (LTFs) have become the most popular investment channel for tax-efficient returns.
To enjoy such tax benefits, salaried and non-salaried earners must ensure that they understand and are qualified for the tax-advantaged investments. These investments can be a headache if conditions are not met.
Taxpayers can deduct contributions to LTFs worth up to 500,000 baht each tax year, but no more than 15% of annual assessable income, whichever is lower. The lock-up period for investment in LTFs is at least seven calendar years. This means LTF unit holders can own the funds for slightly more than five full calendar years, buying the units as a year-end approaches and redeeming them early in the seventh year.
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FIREinTh
Crazy Mango
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Post by FIREinTh on Jul 5, 2019 20:36:50 GMT 7
Is there any word if the new government is going to continue LTFs after 2019?
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FIREinTh
Crazy Mango
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Post by FIREinTh on Jul 22, 2019 9:43:56 GMT 7
Saw this in the Bangkok Post today: "Finance Minister Uttama Savanayana, who is also the leader of the ruling Palang Pracharath Party, yesterday said that the party had never promised an outright reduction of income tax during the election. It is merely looking at changing the current tax structure plagued with discrepancies so as to reduce income inequality. This will necessarily involve increasing taxes for some and lowering the rates for others, Mr Uttama said." www.bangkokpost.com/thailand/general/1716407/govt-manifesto-set-for-scrutinyI wonder what the new proposals are... |
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AyG
Crazy Mango Extraordinaire
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Post by AyG on Jul 22, 2019 10:07:01 GMT 7
"This will necessarily involve increasing taxes for some and lowering the rates for others, Mr Uttama said." Let me look into my crystal ball ... things are becoming clearer now ... taxes will go up for the middle income earners whilst the poor and the very richest will still pay little or no tax. Was it ever thus. |
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FIREinTh
Crazy Mango
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Post by FIREinTh on Jul 24, 2019 8:44:08 GMT 7
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AyG
Crazy Mango Extraordinaire
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Post by AyG on Jul 24, 2019 9:27:52 GMT 7
I wonder whether they'll increase the VAT rate back to the official 10% to compensate. After all, they can't afford a drop in tax income given all the tanks, submarines, blimps, novelty golf ball detectors and aircraft carriers they need to buy. And without those purchases how can the Generals accumulate vast personal wealth? Wrist watches are very expensive, you know - particularly if you need lots of them.
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FIREinTh
Crazy Mango
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Post by FIREinTh on Jul 24, 2019 10:12:12 GMT 7
Yea, I don't see how they can keep lowering taxes either. Something has to give somewhere. It seems like taxes go down every time there's a election.
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Post by eldivino on Aug 17, 2019 22:44:55 GMT 7
Apparently there’ll be something called STF replacing the LTF with the difference being that you can deduct up to 50% of your income but capped at 250k. Minimum holding period still 7 calendar years as with the current LTF model. So I guess for most of us not an improvement.
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AyG
Crazy Mango Extraordinaire
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Post by AyG on Aug 18, 2019 0:53:06 GMT 7
Apparently there’ll be something called STF replacing the LTF with the difference being that you can deduct up to 50% of your income but capped at 250k. Minimum holding period still 7 calendar years as with the current LTF model. So I guess for most of us not an improvement. This still seems to be speculation. The only recent, relevant link I could find is brandinside.asia/new-mutualfund-replace-ltf/However, it's pretty clear that the junta wants such investments largely to be in government projects, so there's far less freedom of investment choice than before. Given the (alleged) massive corruption in such projects, this is a rather unattractive option. |
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