Super Saving Fund Extra (SSFX) – Available only until 30th June 2020!

The Thai government last month launched a special one-time mutual fund to help support the Thai SET Index but it is only available until the 30th June 2020. You can invest up to THB 200,000 in this fund for extra personal income tax savings on top of what you can invest in your Retirement Mutual Fund investments (RMF’s). You can invest up to THB 500,000 in to an RMF or up to 30% of your taxable income (or in combination with a Thai domiciled provident fund or annuity).This latest offer means that you can now save your highest marginal tax bracket on investments worth up to THB 700,000.

When all income tax allowances are accounted for, we found that Thailand is a highly competitive tax efficient country in which to reside in.

We can provide a bespoke consulting report covering suitable and cost effective RMFs, life assurance and annuity options for you and summarize all of the Thai tax allowances available to you in 2020 – We can do this for THB 10,000 (exc. VAT) until the 30th June 2020 (a 33% discount off our standard rate).

The Super Saving Fund Extra (SSFX) is very similar to the newly launched Super Saving Fund (SSF) launched at the beginning of this year to replace the Long term mutual Fund (LTF) but the SSFX is on top of the THB 200,000 or maximum or 30% that you can invest in either an SSF or RMF. If you invest the full THB 500,000 in an RMF you can’t invest anymore into a SSF but you can still invest in the SSFX until June 30th 2020. We recommend that placing the full THB 500,000 or 30% of taxable income into the RMF rather than the SSF as RMF’s because RMF’s have a far greater choice available for investment and across many asset classes both in Thailand and abroad while it isn’t clear how diverse an SSF might be. Besides mutual funds, Thailand also provides tax allowances for life assurance plan which is actually a defined benefit savings plan that returns all of your money and an annual payment akin to interest.

If your highest marginal tax rate is 30% then you could save up to THB 60,000 in income tax if you invest THB 200,000 in a SSFX. The catch is that you will need to keep the amount invested for 10 years and at least 65% of this will be in Thai stocks. For an RMF, one of the conditions is that you will need to invest it until you are 55 years of age regardless of the age that you first buy it.

The differences between LTF (scrapped at the end of 2019), SSF and the latest SSFX