HI after paying obscene amounts of tax I decided to pump the maximum allowed into a LTF fund with Kasikorn..

 

Just reading through the info, it quotes the following

 

"Investing in LTFs from January 1, 2020 will not be entitled to receive any tax benefits"

 

I know I have to keep it for 7 years, but does this mean I'm still good for the 500K(or 15% of salary) tax deduction for 7 years?

 

Thanks

 

 

I did some Googling, and it seems that your fears are true. I have been maxing out my LTF investments for a long time, so I appreciate your post. Bangkok Post had a really good article about it, I would post the link, but I was not sure if it breaks TV rules, so better you search yourself.

 

It appears that another scheme is being proposed with a 10 year vesting. Anyone close to retirement would not be interested.

Thanks, Scoutman,

 

I think I read the article you mention, but what is not clear is that starting the LTF which I did today will continue to enjoy tax benefit for 7 years. Or Dec 31st is only the deadline for starting the 7 year fund with the tax benefit.

 

Lee

 

Edited April 19, 20197 yr by Satcommlee

24 minutes ago, Satcommlee said:

what is not clear is that starting the LTF which I did today will continue to enjoy tax benefit for 7 years. Or Dec 31st is only the deadline for starting the 7 year fund with the tax benefit. 

My understanding is that you only get a tax benefit in the tax year that you invest. If you want a benefit for the next year then you must invest again. So if this goes ahead then this will be the last year where it is possible to get this tax benefit.

OK... Accountant time ????

 

I really thought I was onto a 175K a year tax windfall for next 7 years ????

54 minutes ago, Satcommlee said:

OK... Accountant time ????

 

I really thought I was onto a 175K a year tax windfall for next 7 years ????

Am pretty sure I am correct but if the accountant says something different then please report. You'll definitely be able to get a deduction when you file next March. Have been using LTFs for the last few years, will be sad if they go.

The LTF Fund allows a tax deduction from your Thailand employment income for the year you contribute. 2019 will be the last year you can invest in the LTF. However, all your capital gains earned from that investment, and the original contribution, will be tax free, if you wait the 7 year vesting period. If you sell before 7 years, then you will need to pay taxes on those gains, as well as pay taxes on the original contribution.