what should prepare before the end of the year for a move to new year securely?
Moving to last month of the year, you are invited to review things that happened on this year and to plan for the next year. What you could not miss is tax deduction planning which many people have been preparing for throughout the year. Besides, it would great if you try to review it again in what additional parts could be added for saving full amount of tax you paid which has two parts to consider:
1. Economic stimulus programs under government measure
Apart from interest on a loan for housing and debit card fees for business people accepting payment by debit cards, there will be another project that get a lot of attention this year names “Shop Dee Mee Kuen”. It is the project that would help personal income tax deduction for the purchase of goods and services which is paid to VAT registrants during 23rd October to 31st December 2020 as actually paid up to 30,000 baht, which products and services that are eligible and popular are:
- Expenses at restaurants, eateries or hotels: Don't forget to request a tax invoice when going out to eat, per meal might not seem like a lot of money, but many times would make it a lot.
- Convenience store items: Buying a few might be not worth but taking the opportunity to shop for food for the New Year's party is a perfect time.
- IT equipment: If it is time to change a new mobile phone or notebook computer, buy only one item and get full project membership privileges.
- Online shopping that seller could issue a tax invoice: Thinking of buying sale products at the end of the year, must calculate the value that would make benefits used for tax deductions.
- Goods and service charges subjected to general VAT
- Registered OTOP products: Buying good souvenirs in province to be Happy New Year gifts could make an impression.
- Books and e-books: Collect books to read during the holidays either textbooks or pocket books, could use the same privileges.
However, do not forget to always check that the store could issue a tax invoice? Moreover, if the tax invoice has been issued, it should be checked every time that the information is correct. Besides, do not forget that those who have been granted "Kon La Krueng" measure will not be able to get “Shop Dee Mee Kuen” because it would waste your money without any reasons.
2. Insurance and investment
- There should be at least one life insurance for prevent future risks that might arise and also help support the family. If you have money more to buy life insurance for savings, it would be good to be money for the future
- Health insurance is advised to have during this pandemic, therefore, we could apply a deduction for both our own and parents' health insurance, in case the parents earn no more than 30,000 baht per year.
Another important category which could be deducted up to 500,000 baht such as:
- Annuity Insurance Premium
- Provident Fund / Government Pension Fund / Teacher Aid Fund
- National Savings Fund
- Retirement Mutual Fund (RMF)
- Super Savings Funds (SSF)
and reduce Super Savings Fund Extra (SSFX) that could be reduced 200,000 baht more.
If anyone who has never invested or want to invest more, Principal has good funds recommended and there will be 3 outstanding funds to recommend as follows:
1. Principal Asia Pacific Dynamic Income Fund (PRINCIPAL APDIRMF)
Invest in a growing region with great potential for opportunities to generate good returns in a long term Invest with a Barbell Portfolio strategy in stocks or REITs that pay high dividends and invest in Growth Stocks. Besides, there is a dynamic scaling of investments in REITs, fixed income and cash to generate appropriate returns at each investment period. PRINCIPAL APDIRMF creates opportunities to invest in quality stocks with growth potential with Megatrend. The examples of a master fund’s investment stocks are Tencent, SAMSUNG, Alibaba and LG Chem
For more information: https://www.principal.th/en/principal/APDIRMF
2. Principal Global Opportunity Fund (PRINCIPAL GOPP-SSF)
Increase the opportunity to generate returns that go along with the new evolution. Besides, increase investment opportunities in companies with global competitiveness which grow amid changing social and technological trends (Disruptive Innovation).
The samples of a company investing in a master fund are Zoom, Amazon, TAL, Servicenow, Alphabet.
For more information: https://www.principal.th/en/principal/GOPP-SSF
3. Principle Enhanced Property and Infrastructure Flex Income Fund (PRINCIPAL iPROPEN-SSF)
Opportunities to increase investment potential with quality assets, focusing on investing in REITs listed on Asian and Australian stock exchanges. There is flexibility to scale and open for investment opportunities in assets that could be grown with Megatrend such as Elderly Home, Data Centre and Logistic Centre which is an ideal asset to invest in the world interest environment that is still likely to continue to decline and liquidity oversupply.
For more information: https://www.principal.th/en/principal/iPROPEN-SSF
Lastly, for those who do not feel effectively plan about tax yet. You are suggested to do a good income and expense account for planning along with considering the purpose in both economic stimulus programs including goals and investment periods. Adapted to suit our way of living not sticking to samples from others, that might have different goals and will certainly help make plans for the next year to be clear and stable.
For more information https://www.principal.th/en/mutual-fundth
Or visit www.principal.th or call at 02-686-9595
References: https://taxbugnoms.co, www.itax.in.th, https://www.moneybuffalo.in.th
Disclaimers:
PRINCIPAL APDIRMF
- Investors should understand the product type (fund), conditions, returns, and risk before deciding to invest
- This master fund is concentrated in Hong Kong and China; therefore, investors should consider the diversification of their investment portfolio.
- Investors should study information about tax incentives stated in the investment in mutual fund manual. If investors do not follow the conditions, investors will not receive tax benefits and must return tax benefits
- Previous performance could not guarantee for future performance
PRINCIPAL iPROPEN-SSF
- Investors should understand the product type (fund), conditions, returns, and risk before deciding to invest. Investors should study and understand conditions of investing in mutual funds for savings or super savings funds (SSF) that are in the investment manual following the rules of the revenue department. Investors should study and understand the information in the prospectus /Fund Fact Sheet. The prospectus should be kept as information for reference in the future and when in doubt, should ask the investor contacts to understand before purchasing investment units.
- Switching investment units or transfer investment units of investment units for savings or funds for savings can be switched or transferable between investment units for savings or other savings funds that have tax benefits only unless there is a law or related announcements, additional announcements or changes
- Investors cannot use the investment units of Super Savings Funds or any savings types for sell, transfer, pledge or use as collateral
- Because the fund focuses on investing in the unit trust of property funds and/or REITs and/or infrastructure fund. Those funds have the same risk as investing directly in real estate business or infrastructure fund, for example, risk from fluctuation of rental and rental rates, property tax increases, changes in relevant laws or related regulations, environmental risks, natural disasters risks, building depreciation, interest rates increase and etc. Besides, concentration risk may lead to more volatility than diversified investments across multiple industries
- Master fund is concentrated in many Asian countries; therefore, investors should consider the diversification of their investment portfolio.
- The fund has a policy to invest abroad, it might be exposed to foreign exchange risk. Investors may lose or gain from exchange rate and also might gain the refund lower than the initial investment.
- The fund might invest in futures contract for profit (Efficient Portfolio Management) and to hedge the risks associated with the exchange rate that might be caused from foreign investment according to appropriate and the circumstances of each moment depending on discretion of fund manager. Fund manager would consider from market conditions, regulations and other relevant factors such as direction of securities price, interest rate, exchange rate and hedging costs involved. It might have more risk than other mutual funds and the fund might get foreign exchange losses or get a lower return initiative investment.
- Previous performance could not guarantee for future performance
PRINCIPAL GOPP-SSF
- Investors should understand the product type (fund), conditions, returns, and risk before deciding to invest
- Master fund is concentrated in North America; therefore, investors should consider the diversification of their investment portfolio
- Investors should study and understand conditions of investing in mutual funds for savings or super savings funds (SSF) that are in the investment manual following the rules of the revenue department. If the investors have a question, should ask the investor contacts to understand before purchasing investment units
- Switching investment units or transfer investment units of investment units for savings or funds for savings can be switched or transferable between investment units for savings or other savings funds that have tax benefits only unless there is a law or related announcements, additional announcements or changes
- Investors cannot use the investment units of Super Savings Funds or any savings types for sell, transfer, pledge or use as collateral
- Previous performance could not guarantee for future performance
