Retirement Mutual Funds
The Funds provide you with a long-term savings plan for your retirement. Investments are tax deductible in accordance with the conditions of the Revenue Department.
Additional Information
Tax Benefits for RMF
- Investments made from January 1, 2020
You can claim the actual amount of your RMF investment for a tax deduction of not more than 30% of your taxable income and not more than 500,000 baht in total for that tax year. The tax deduction covers investments in RMF, Super Savings Fund (SSF), provident funds, government pension funds, private teacher aid fund contributions, national savings fund and annuity insurance premiums.
- Investments made before December 31, 2019
You can claim the actual amount of your RMF investment for a tax deduction of not more than 15% of your taxable income and not more than 500,000 baht in total for that tax year. The tax deduction covers investments in RMF, provident funds, government pension funds, private teacher aid fund contributions, national savings fund and annuity insurance premiums.
Investment Conditions for RMF
- Annual investment is required until the investor is 55 years old without a minimum investment amount required. Investments made before January 1, 2020 had a required minimum investment amount of at least 3% of your taxable income for any individual tax year or 5,000 baht, whichever amount is lower. However, a grace period of one year is acceptable or in the years that the investor has no income.
- Investment of RMF must be held continuously for 5 or more years from the first date of investment (counting from the first investment date to the anniversary date) and can be redeemed when the investor is at least 55 years old. Investments made before March 1, 2008 can be redeemed on or after the date of the 5-year anniversary of the first investment (counting from the first investment date to the anniversary date).
Breaches of RMF Investment Conditions
- In the case that investments held for less than 5 years from the first date of investment (counting from the first investment date to the anniversary date), conditions are breached. Investors are required to:
- Return the entire amount of the relevant tax exemptions to the Revenue Department
- If there are capital gains incurred from redemption, investors are required to:
- Pay withholding taxes according to the Revenue Code Section 50(2) calculated according to their tax rates
- Incorporate the capital gains incurred from redemption as a taxable income - For investments held for 5 or more years from the first date of investment (counting from the first investment date to the anniversary date) and with no grace period for more than one year regarding the minimum investment, redemption made before the age of 55 (does not apply to investments made before March 1, 2008). Investors are required to:
- Return the entire amount of the relevant tax exemption received for the past 5 calendar years to the Revenue Department (starting from the year prior to the one when conditions were breached)
- File a tax deduction repayment to the Revenue Department by the end of March, in the year following the breach of conditions. If there is a delay in repayment, investors will need to pay a surcharge at the monthly rate of 1.5% on the exempted tax amount.
Breaches of investment conditions 1 to 2 are not applicable in the event of death or disability of the investor, in accordance with the conditions of the Revenue Department.
Notes
- Investments are not deposits and carry the risk that investors may not receive their money back in full when the investment is redeemed (the principal is not guaranteed).
- Investors are strongly advised to study the product characteristics including the prospectus, fund policy, returns conditions, risks, fund performance, and tax benefits in the RMF handbook before deciding to invest.
- The off-shore investment funds have no currency risk-protection policy for most, if not all, of their value. The currency risk policy is at the discretion of the management company. Investors may experience currency losses or profits, or receive a return less than their initial investment.
