Thailand LTF & RMF Personal Income Tax Allowances
Update | July 2016
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 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. For investments in the 2015 and prior years, the 5 years period remains unchanged.
Update | July 2015
On 2 July 2015 Thailand's Director-General of Revenue issued Notifications on Income Tax Nos. 257, 258 and 259, which change the words in his previous Notifications in relation to the 15% cap rule for the LTF and RMF investment allowances.
These new Notifications change the 15% cap rule from "not more than 15% of assessable income" to "not more than 15% of assessable income subject to income tax".
Update | May 2008
On 28 May 2008, Ministerial Regulation No 266 (BE 2551) was gazetted, which increases the personal income tax allowances for both LTFs and RMFs up to a maximum amount of 500,000 Baht each per annum, from and including the 2008 tax year.
Update | September 2004
On 3 September 2004, Ministerial Regulation No 246 (BE 2547) was gazetted, increasing the personal income tax allowance for investments in Retirement Mutual Funds to 300,000 Baht and providing an additional tax allowance for investments in Long Term Equity Funds at a maximum of 300,000 Baht from and including the 2004 tax year.
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.