Thailand LTF and RMF Personal Tax Allowances
On 8 July 2016, Ministerial Regulation No 317 (BE 2559) was gazetted and puts into effect the Government's resolution to extend the personal income tax allowance for investments in LTFs for the four more tax years of 2016 to 2019.
Investors in LTFs should note that Ministerial Regulation No 317 also changes the required period of time for amounts to be invested in LTFs. For each of the 2016 to 2019 tax years, amounts invested in a LTF shall be for a period of at least 7 tax years. The period of at least 5 tax years remains unchanged for amounts invested in the 2015 and prior tax years.
Summary of the Tax Allowances
* For individuals who are also members of other retirement funds, such as your company-sponsored provident fund or a life insurance pension fund, the maximum tax allowance rule applies to the aggregate total of all investments in all retirement funds during the year.
The Tax Savings
The tax savings is the amount you invest in a LTF and/or RMF multiplied by your tax rate, and can be provided to you immediately through a reduction of the amount of withholding tax from your salary income.
This Tax Insight is general information only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.