Post by Fletchsmile on Nov 3, 2015 8:58:53 GMT 7
Very welcome extension - as one of my favourite all time investment vehicles. Always nice to reduce your tax bill 
I've already maxed my LTFs for this year as usual by investing the same amount each month over the first 10 months to get the full tax benefit. I've also maxed my RMF allowance for the tax relief too
They're changing it so you have to hold LTFs for 5 years instead of 5 calendar years. Makes sense to me
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LTF privileges get 3-year extension
Investors will enjoy tax deductions for their investments in long-term equity funds (LTFs) for another three years after the Finance Ministry's decision to extend the privilege period, says a senior ministry official.
Published: 3/11/2015 at 08:05 AM
Newspaper section: topstories
The source said the ministry would seek cabinet approval today to extend LTF tax privileges for three years after they were due to expire at the end of next year.
"The Finance Ministry acknowledged the severely negative effect on the stock market that might occur if it let the privileges expire in 2016, as a huge portion of investors are invested in LTFs to tap tax benefits," the official said.
The ministry also wants to serve the government's policy of boosting the number of investors and encouraging people to invest more for retirement.
The lock-up period for investment in LTFs has been extended from the previous five calendar years to the date of purchase until a full five years at a minimum.
Under the previous conditions, the ministry said some LTF holders in practice held units for slightly more than three full calendar years, buying the units as year-end approached and redeeming them early in the fifth year.
Taxpayers can deduct contributions of up to 15% of their personal income or 500,000 baht, whichever is lower, for investment in LTFs.
Also, the Finance Ministry will slash by half the upfront fee for Treasury Department land in special economic zones (SEZs) in a bid to attract private investment.
But the annual rental rate and the condition of a 15% increase in that rate every five years will remain unchanged, said Deputy Finance Minister Wisudhi Srisuphan, who chaired yesterday's meeting.
The reduction in the upfront fee came after frequent requests by the private sector to cut both the upfront fee and the annual rental rate.
The department now charges various rates depending on location for a 50-year term, with the highest upfront fee of 600,000 baht a rai and annual rental rate of 40,000 baht a rai for SEZ land in Songkhla province.
Land for SEZs in Tak province has the second-highest upfront fee of 500,000 baht a rai with an annual rental rate 36,000 per rai, followed by Sa Kaeo at 450,000 baht a rai for the upfront fee and 32,000 a rai for rent.
The department charges the same upfront fee of 320,000 baht a rai and annual rent of 24,000 a rai for SEZ land in Trat, Mukdahan and Nong Khai provinces.
The first phase of SEZs are slated for Tak, Sa Kaeo, Trat, Songkhla, Mukdahan and Nong Khai.
Mr Wisudhi said state land rented in the six provinces by the Industrial Estate Authority of Thailand would receive a 30% discount on the annual rental rates.
The conclusions from the meeting must be approved by Deputy Prime Minister Somkid Jatusripitak before being submitted to the cabinet today, he said.
In the meantime, Treasury Department director-general Chakkrit Parapuntakul said his department had gathered 20,000 rai of land outside Bangkok to be used to develop new low-cost housing projects.
The department is surveying which plots are suitable for development.
The initiative to build housing for low-income earners is part of state efforts to improve their living standards.
The department has not found any plots in Bangkok deemed appropriate for the development of low-cost housing projects, Mr Chakkrit added.
Mr Somkid previously said the government would quickly introduce tax incentives for property developers, allowing them to deduct expenses incurred from building homes for the poor.
www.bangkokpost.com/lite/topstories/752276/ltf-privileges-get-3-year-extension
I've already maxed my LTFs for this year as usual by investing the same amount each month over the first 10 months to get the full tax benefit. I've also maxed my RMF allowance for the tax relief too
They're changing it so you have to hold LTFs for 5 years instead of 5 calendar years. Makes sense to me
==================================================================================
LTF privileges get 3-year extension
Investors will enjoy tax deductions for their investments in long-term equity funds (LTFs) for another three years after the Finance Ministry's decision to extend the privilege period, says a senior ministry official.
Published: 3/11/2015 at 08:05 AM
Newspaper section: topstories
The source said the ministry would seek cabinet approval today to extend LTF tax privileges for three years after they were due to expire at the end of next year.
"The Finance Ministry acknowledged the severely negative effect on the stock market that might occur if it let the privileges expire in 2016, as a huge portion of investors are invested in LTFs to tap tax benefits," the official said.
The ministry also wants to serve the government's policy of boosting the number of investors and encouraging people to invest more for retirement.
The lock-up period for investment in LTFs has been extended from the previous five calendar years to the date of purchase until a full five years at a minimum.
Under the previous conditions, the ministry said some LTF holders in practice held units for slightly more than three full calendar years, buying the units as year-end approached and redeeming them early in the fifth year.
Taxpayers can deduct contributions of up to 15% of their personal income or 500,000 baht, whichever is lower, for investment in LTFs.
Also, the Finance Ministry will slash by half the upfront fee for Treasury Department land in special economic zones (SEZs) in a bid to attract private investment.
But the annual rental rate and the condition of a 15% increase in that rate every five years will remain unchanged, said Deputy Finance Minister Wisudhi Srisuphan, who chaired yesterday's meeting.
The reduction in the upfront fee came after frequent requests by the private sector to cut both the upfront fee and the annual rental rate.
The department now charges various rates depending on location for a 50-year term, with the highest upfront fee of 600,000 baht a rai and annual rental rate of 40,000 baht a rai for SEZ land in Songkhla province.
Land for SEZs in Tak province has the second-highest upfront fee of 500,000 baht a rai with an annual rental rate 36,000 per rai, followed by Sa Kaeo at 450,000 baht a rai for the upfront fee and 32,000 a rai for rent.
The department charges the same upfront fee of 320,000 baht a rai and annual rent of 24,000 a rai for SEZ land in Trat, Mukdahan and Nong Khai provinces.
The first phase of SEZs are slated for Tak, Sa Kaeo, Trat, Songkhla, Mukdahan and Nong Khai.
Mr Wisudhi said state land rented in the six provinces by the Industrial Estate Authority of Thailand would receive a 30% discount on the annual rental rates.
The conclusions from the meeting must be approved by Deputy Prime Minister Somkid Jatusripitak before being submitted to the cabinet today, he said.
In the meantime, Treasury Department director-general Chakkrit Parapuntakul said his department had gathered 20,000 rai of land outside Bangkok to be used to develop new low-cost housing projects.
The department is surveying which plots are suitable for development.
The initiative to build housing for low-income earners is part of state efforts to improve their living standards.
The department has not found any plots in Bangkok deemed appropriate for the development of low-cost housing projects, Mr Chakkrit added.
Mr Somkid previously said the government would quickly introduce tax incentives for property developers, allowing them to deduct expenses incurred from building homes for the poor.
www.bangkokpost.com/lite/topstories/752276/ltf-privileges-get-3-year-extension
