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I read the below on the news feed from TV, but an thu roughly confused ???

What does it mean that 'tax incentives ' may be extended but 'tax privileges' cut?

What is the difference between tax incentive and tax privilege ? As below seems a bit contradictory?

Quote:

The Finance Ministry has agreed to extend tax incentives for investment in LTFs but for a longer investment period and potentially cutting the tax privileges. /Bangkok Post

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I believe what they're trying to say is they are continuing LTFs and therefore they will extend incentives for investing in them. But, the financial benefit/privelege to be gained from investing in them will be reduced,

i.e.the maximum benefit at the moment is 500k at highest rate of 35% = 175k maximum tax benefit. It has to be locked up to cover 5 calendar years

The product will continue but the maximum you will be able to get as a benefit/ privelege will be less than 175k and/or it will need to be locked up to cover more than 10 years. By cutting the maximum amount you can invest or limiting the tax rate and/or extending the period there's less of a benefit/privelege.

So the product should still be there just less tax benefit to taking it out.

Put another way they will continue the product just the terms will be less favourable.

Yes poor wording and not clear

Cheers

Fletch smile.png

Edited by fletchsmile
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it will need to be locked up to cover more than 10 years.

It's not clear if that's going to be the case. With the current rules you have to be invested in 5 calendar years, so you could invest on the last day of December, and that would count for a full year. Then, three years and two days later (January 1st) you could take it out again. You only need to invest for just over 3 calendar years to get the full tax benefit. If this loophole isn't closed the suggested 10 year period could actually be 8 years plus a few days.

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