Tax Benefit
Super Savings Fund
(SSFs)
(SSFs)
A Super Savings Fund or SSF is a fund to promote long-term savings which is established to replace Long Term Equity Funds or LTF that ended in 2019. The purpose of this type of fund is to encourage people with
mid-to-low-income group and people who are entering the workforce group to have more long-term savings and receive tax benefits.
These funds able to invest in all classes of assets including Thai securities, offshore securities, debt securities, balanced funds and have both dividend payment and no dividend payment policies, therefore, investors need to understand the characteristics, investment policies and conditions on investment return, risk and tax benefits of SSFs before making a decision to invest.
These funds able to invest in all classes of assets including Thai securities, offshore securities, debt securities, balanced funds and have both dividend payment and no dividend payment policies, therefore, investors need to understand the characteristics, investment policies and conditions on investment return, risk and tax benefits of SSFs before making a decision to invest.
Summary of the Conditions of SSFs
Investment Policy :
Able to Invest in all classes of asset
Tax Benefits :
Maximum 30% deduction of the taxable income but shall not be more than Baht 200,000 and when combined with all other retirement savings shall not be more than Baht 500,000
Minimum Investment Amount and Continuation of Investment :
There is no minimum purchase amount and not required to purchase continuously.
Holding Period :
Not less than 10 years from the date of purchase.
Years that Tax Benefits Apply :
From the year 2020 – 2024
Tax Benefits of SSFs
Not more than 30% deduction of the taxable income but shall not be more than Baht 200,000 and when combined with all other retirement savings funds (such as RMFs, Government Pension Fund,
Private School Teacher’s Welfare Fund, National Pension Fund or insurance premiums of retirement life insurance) shall not be more than Baht 500,000. There is no minimum purchase amount and it is not required to purchase continuously.
The tax deduction is on a year-by-year basis, exercising tax benefits in the year in which the SSFs are bought, the SSF Units are to be held for not less than 10 years from the date of purchase starting from the year 2020 to 2024.
For more information, please visit: Click
Source of information : www.set.or.th
For more information, please visit: Click
Source of information : www.set.or.th
Differences between SSFs, RMFs and LTFs
| Conditions | Type of Fund | |||||||
| LTF | SSF New | RMF New Criteria | ||||||
| % of Deduction | 15% of taxable income |
30% of taxable income |
30% of taxable income |
|||||
| Maximum Deduction Amount |
500,000 Baht |
200,000 Baht* |
500,000 Baht* |
|||||
| Holding Period | 7 calendar years |
10 years (from the date of purchase) |
5 years (continue buying when reached age of 55) |
|||||
| Investment Policy | Not less than 65% in Thai securities |
Any class of asset | Any class of asset | |||||
| Years Deductions Apply |
2019 (last year) |
2020 - 2024 | Starting from 2020 |
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| Minimum Investment | None | None | None | |||||
*According to Revenue Department’s announcement
FAQs
Can I invest in SSFs more than the maximum amount of Baht 200,000?
The portion in excess of Baht 200,000 will not be eligible for tax deduction and the profits derived from the redemption of SFFs (only the excess amount)
will be regarded as income of the year of redemption which shall be included with other income of the year to calculate income tax even though the SSF Units are held more than 10 years.
What happens if I want to redeem the SFF Units before the 10-year holding period required by the SSF?
The tax deduction previously received will have to be refunded in full to the Revenue Department plus 1.50% per month calculated based on the amount of money received from the tax deduction starting
from April of the year the tax deduction was filed and if there was a profit from the redemption of SSF Units not according to the conditions, it would have to be included with other income of the year of redemption for calculation of income tax.
How do I count the holding of SSF for 10 complete years?
Counting from the date of investment of each subscription made, for example:
- Subscription made on 1 November 2020.
- The investment amount will be held for 10 complete years on 30 October 2030.
- The SSF Units can be redeemed on 1 November 2030.
Can the SSF Units be switched?
- Switching between funds of UOB Asset Management Co., Ltd. = fees waived
- Switching with funds of other asset management companies = fees apply, for more details please refer to the fund’s prospectus.