Salaried people need to know how much RMF can buy, how much tax can be reduced.

Salaried people need to know how much RMF can buy, how much tax can be reduced. 

Salaried and working people must recognize RMF or Retirement Fund as one of the funds established by the government to support Thai people to save for retirement planning so that they can have money at the end of life by providing tax benefits to those who buy RMFs, butHow much can RMF buy?And how much is tax deductible? Let's take a look.

 

RMFs or Retirement Mutual Funds are funds that the public sector has set up to allow people to plan for retirement and have money to spend. RMFs are used annually and provide tax benefits. Therefore, they are one of the funds that everyone should have in their portfolio to help reduce income tax each year.

However, RMFs have relatively large holding conditions, leading many people to overlook them and buy other funds or use other tax benefits instead.

The first condition of the fund is that it must be held until the age of 55. If the fund is withdrawn first, it must return the tax benefit or simply say refund the tax deduction.

In addition, we must hold it for a minimum period of 5 years and require continuous investment at least every other year.

But it's not that we have a lot of money, we can buy a lot of RMFs, because the law also sets the maximum threshold for buying RMFs, which depends on our income.

With this income level, how much can I invest in RMFs? You can invest up to 30% of your total annual income in RMFs, but not exceeding 500,000 baht. And when combined with other retirement savings funds, the total must not exceed 500,000 baht as well.

Know how much the RMF can buy and let's see how much of the RMF we buy is tax deductible. The answer is that the total deductible is not more than 30% of the total income for the whole year, but not more than 500,000 baht. The question is, if we buy more than the RMF limit, what to do? The answer is that the profit from the redemption of the investment unit must be used to calculate income tax, which may not be worth the purchase itself.

In fact, RMFs can be invested in a variety of forms and assets, including gold, real estate, debt securities, and more, which we can choose according to our investment objectives and according to the risk we can take in order to achieve the return we want.

For those who are looking for a good option for annual tax deduction, they are planning to retire by buying RMFs but don't know how much they can afford yet. The answers in this article will hopefully be useful for investment planning and tax deduction planning for everyone.