LTF privileges to be extended. Change in holding period rules

[AyG]

According to the press today, LTFs will be available for a further 3 years (i.e. until the end of 2019). However, the minimum holding period for the tax privileges becomes 5 full years.

(Under the current regime it's possible to buy at the end of year one, and sell at the start of year five, meaning a minimum holding period of just 3 years and a few days.)

[rheinwiese]

Got this info from Ernst & Young today.

Personal income tax exemption on capital gains derived from disposal of LTFs

Effective from 1 January 2020, the tax incentives for LTFs will be terminated, including the income tax exemption on gains derived from the disposal of long-term investments in LTFs.

Such income is then to be treated and be entitled to income tax exemption in the same manner as income derived from the disposal of investments in other funds.

The above can be summarized as follows.

LTFs Entitled to tax allowance Capital gain exempted LTF holding period requirement

Purchased between

1 Jan 2008 and 31 Dec 2015 Yes Yes 5 calendar years

Purchased between

1 Jan 2016 and 31 Dec 2019 Yes Yes 7 calendar years

Purchased from 1 Jan 2020 No Yes N/A

Further details of this measure and associated regulations have yet to be announced.

Edited November 7, 2015 by rheinwiese

[Covertjay]

RMFs still gain up to a 15% tax write off.  All depends how close you are to 55 I guess. LTFs until 2020 then RMFs for me. Pretty sure LTFs good for the Thai economy so I'd be surprised if it does end in 2020.