5 investments to save on taxes!

21/03/2024

Planning for your taxes is an important part of good financial management. Investing to save on taxes is a smart strategy that allows you to keep more of your money with you. These strategies take advantage of existing tax laws to reduce your tax burden. This article will introduce 5 tax-saving investment strategies that you can use.

1. Retirement Mutual Fund (RMF) for doing taxes

RMF is an abbreviation for Retirement Mutual Fund. It is a mutual fund that the government encourages people to save money for use after retirement. With tax benefits as follows:

tax deduction

Money invested in RMF can be used for tax deduction up to a maximum of 30% of assessable income.
But not more than 500,000 baht per year
When combined with other retirement savings such as the Provident Fund (GPF), Government Pension Fund Private Teacher Welfare Fund Pension insurance and SSF

Income tax exemption

When redeeming money from RMF after age 55 and have invested for not less than 5 years will be exempt from taxes on the entire amount.
In the case of redemption due to disability ordeath, the entire amount of the redemption will be exempt from taxes.

Investment conditions

Must invest continuously for at least 5 years.
You can refrain from investing for not more than 1 year consecutively.
Can be purchasednot more than 30% of assessable income.
But not more than 500,000 baht per year

2. Provident Fund (SSF) for doing taxes

SSF is an abbreviation for Super Saving Fund. It is a mutual fund to promote long-term savings. Allows investors to use the invested money for maximum tax deduction. 30% of taxable income, but not more than 200,000 baht per year and can be combined with other funds for maximum tax deduction. 500,000 baht

Features of the fund SSF

Can invest in both Thai stocks Foreign stocks, debt instruments, gold, real estate, etc.
Minimum purchase is just 1 baht.
There is no maximum purchase amount.
Purchased in any year will receive a tax deduction for that year.
Hold investment units for 10 years from the date of purchase

Advantages of investing SSF

Save on taxes
Can invest in a variety of ways
Long-term savings
There is a chance to receive rewards.

Disadvantages of investing SSF

Must hold investment units for 10 years
Returns depend on investment policy.
There is a risk.

3. Life insurance with capital accumulation with tax deduction

Capital accumulation life insurance is one type that has gainedpopularity because in addition to providing life protection, Insurance premiums can also be used for tax deduction up to 100,000 baht

Investment conditions

Must be life insurance with accumulated capital from a life insurance company in Thailand.
The period of protection must be more than 10 years
Money received back along the way must not exceed 20% of annual premiums or 20% of accumulated premiums.

Life insurance with accumulated capital is suitable for those who want to save money for the long term. and want life protection at the same time

Types of capital life insurance

Short premium payment plan Suitable for those who want to save money in the short term, focusing on a lump sum.
Lifetime premium payment type suitable for those who want to save money for the long term. Focus on protection
Premium payment type Unit-Linked Suitable for those who want to invest in mutual funds.

4. Health insurance for tax deduction

In tax year 2024, income earners can use health insurance premiums for tax deduction as follows:

Health insurance for yourself

Tax deductions can be made according to what is actually paid. Maximum not more than 25,000 baht
Insurance must cover medical expenses, disability, and loss of organs.
Accident insurance that covers medical expenses, disability, and loss of organs. bone fracture

Health insurance for spouses, parents and children

Tax deductions can be made according to what is actually paid. Maximum not more than 15,000 baht per person
Insurance must cover medical expenses, disability, and loss of organs.
Parents must have an income not exceeding 30,000 Baht per year
The spouse must have no income.

In the case of having health insurance combined with life insurance

Health insurance premiums combined with life insurance premiums Can be used for tax deduction up to a maximum of 100,000 baht
Life insurance must have a coverage period of 10 years or more.

5. Thai ESG funds and tax deductions

Fund Thai ESG or Thai Sustainability Mutual Fund is a special type of mutual fund that supports investing in businesses that take into account the environment, society and good governance ( ESG) The Thai government has a policy to encourage people to invest in this type of fund. By providing tax benefits as follows:

Tax deduction conditions

Investors must be natural persons.
Invest in Thai ESG funds not exceeding 30% of your assessable income. Maximum not more than
Investment funds must be held no less than 5 years
Thai ESG funds invested must be licensed by the SEC (Securities and Exchange Commission).

Tax benefits

Investors can use the invested amount as a personal income tax deduction not exceeding 30% of their income, up to a maximum of 100,000 baht.

Can invest without a minimum

This tax benefit Not included with benefits from SSF, RMF, LTF, PVD, Teacher Welfare Fund and GPF.

Precautions

Investments are risky.
Past returns do not guarantee future returns.
You should study the information before deciding to invest.

By FDI Accounting & Advisory Provides tax planning services, including tax filing for both individuals and juristic persons. By experts with experience and knowledge More than 28 years of ability to help manage your taxes easily. We help with tax planning In order for customers to save maximum costs, reduce stress, and help increase financial stability. You can check and request our advice and services.here No cost!

FDI Accounting & Advisory Total Business Consulting Service, Completely comprehensive all-in-one place!

🩵 Facebook : FDI Group – Business Consulting

💚 Line : @fdigroup

📞 Phone : 02 626 5999

📧 E-mail : infojob@fdi.co.th

🌐Website : www.fdi.co.th