Home Business Tax deduction in 2021 with RMF-SSF-Life Insurance Fund, which one do you choose?

Tax deduction in 2021 with RMF-SSF-Life Insurance Fund, which one do you choose?

by news dir

Near the end of the year, many people should prepare to plan for tax deduction Some because it will be another way to save money in the pocket that at the end of the year there will be a lot of tax expenses. There are many expenses that can be tax deductible, such as buying life insurance, health insurance, or even investing in RMF, SSF, the latest tax benefits have been improved in 2020. Today, TNN Online has gathered details. including various tax benefits to deposit in case it is a guideline and information for decision making in planning tax reductions in the coming year 2021

mutual fund

The first is to buy mutual funds. There are 2 types that will provide tax benefits:

1. SSF Savings Fund (Super Savings Fund) It is a fund to promote long-term savings. We have the right to buy SSF funds to use. tax deduction Not more than 30% of the annual income but must not exceed 200,000 baht and must be held for a period of 10 calendar years. Initially, the SSF fund will provide tax benefits. For those who invest from 2020-2024, after that, they will be assessed and reviewed again by the Ministry of Finance. investment conditions Which year, buy that year, get a discount and do not need to invest continuously every year Investment units can be redeemed after 10 calendar years of investment.

2. RMF (Retirement Mutual Fund) This fund will be a fund to promote savings. For savings that support life after retirement The new rules have been adjusted. Effective from 2020 onwards to be able to buy RMF funds to exercise the right to tax deduction Not more than 30% of the yearly income, but not more than 500,000 baht without a minimum investment requirement to be in accordance with the requirements of each fund But the investment conditions continue every year. and no more than 1 year in a row remains the same Investors can redeem investment units when they reach 55 years of age and hold at least 5 full years.

Life insurance or health insurance

There are two main types of life insurance purchases that provide tax benefits.

1. general life insurance Life insurance that can be used for annual tax deduction must be insurance with life protection period of 10 years or more. We can bring the premium paid for tax deduction up to 100,000 baht, including the premium in the health supplement contract ( if any), up to 25,000 baht (starting from the tax year 2020)

2. pension life insurance This type of life insurance offers life protection and reimbursement in installments. After we retire We can bring the premium paid for tax deduction up to 15% of the year’s income. but must not exceed 200,000 baht and if we do not buy general life insurance You can use life insurance as a tax deduction pension up to 300,000 baht.

Now, if we are going to bring the funds or life insurance purchased to be tax-deductible, including various savings funds, such as the provident fund, GPF, GOC, etc., there is a condition that When all products that are deductible are counted Must not exceed 30% of the income for the year and not more than 500,000 baht

Group insurance and investment tax deductions

(total not more than 100,000 baht)

social Security Not more than 5,100 baht
parents’ health insurance Not more than 15,000 baht
health insurance Not more than 25,000 baht
Life insurance and savings Not more than 100,000 baht

Group insurance and investment tax deductions

(total not more than 500,000 baht)

Retirement Mutual Fund ( RMF ) 30% of income, not more than 100,000 baht
Savings Mutual Fund (SSF)
30% of income, not more than 200,000 baht
Provident Fund (PVD)
Government Pension Fund (GPF)
Private School Teacher Aid Fund
15% of income, not more than 500,000 baht
National Savings Fund (GOC) Not more than 13,200 baht
pension life insurance 15% of income, not more than 200,000 baht

**note**
The maximum amount of social security deductible is as of October 2021 and is subject to change. If there is an announcement to reduce contributions at the end of the year and depending on the conditions of each section of the insured

Source: The Revenue Department, Insurance Co.

What documents do I need to prepare for the use of tax deduction rights??

There are 2 forms of personal income tax filing: P.N.D.90 (for those earning other than salary) and P.N.D.91 (for those who earn on a salary without any other additional income. ) and must prepare the following documents:

  • Withholding income tax certificate (50 bis certificate) can read more at Misconceptions about 50 bis leaves
  • Tax deductible items collected throughout the year, such as child support parental allowance
  • Documents for tax deduction to fill out a tax filing form, such as a receipt for life insurance premiums or Certificate of payment of life insurance premiums, etc.

Where to file taxes??

1. File your taxes by yourself at the Revenue Department. or the Area Revenue Branch Office

2. File your taxes online via the Revenue Department website. https://www.rd.go.th

3. File taxes through the RD Smart Tax application by registering through the Revenue Department website first. so it can be filed through the application.

However, we will choose to buy a product, whether it is insurance or funds. I want you to consider the needs or lifestyle of each person, for example, if someone is working in a risky work environment. or travel often may choose life insurance that may be purchased from the insurance that the company pays As for people who need to be hospitalized frequently It may be selected as health insurance. But if the nature of work or lifestyle likes to save or like to invest in order to get a return as well, it may choose to buy a fund. But it’s important to look at power and affordability. Because choosing to invest in any product and have additional tax deduction as well considered to be the latter.

And what needs to be emphasized in every TNN Online article is how much data is studied. It will be more beneficial to ourselves only. In addition to the purpose of tax deduction in the future Before we start investing every time, we should also set clear financial goals. and has a systematic, concise planning, including studying the details from the tax manual Or consult an investment advisor to understand the details. Rules and regulations can be detailed beforehand. It will allow us to achieve our financial goals. and receive tax benefits correctly and the most worthwhile

Information: Revenue Department, Social Security, Krungsri Asset Management

Image: AFP, TNN Online

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