Provident Funds
A Provident Fund is an employee welfare program aimed at promoting savings and financial security for employees at private companies and state enterprises, whereby provident fund members build their own savings by setting aside money each year along with contributions from one’s employer. There are tax benefits via deductions to taxable income up to 500,000 Baht per annum as the law permits.
KTAM offers services to set up and manage provident funds in the form of juristic persons as a vehicle for employees of various companies to save for long-term financial security. Company employees who are members of such fund will receive savings in the fund upon leaving the firm. Furthermore, savings put into the fund are tax deductible up to amounts permitted by law.
Types of Provident Funds
A Single Fund comprises of only one employer which could dictate the policy and self-manage the fund.
A Pooled Fund contains two or more employers in the same fund. It is suitable for firms with smaller fund sizes. Pooled funds can be assembled in many ways, such as established by companies within the same business group which is called a Group Fund. It is similar to a single fund whereby the affiliated companies can determine their fund’s policy and management. Pooled funds have an advantage when they are aggregated into a larger fund, as risk is lowered through a diversified portfolio.
A Provident Fund is an employee welfare program aimed at promoting savings and financial security for employees at private companies and state enterprises, whereby provident fund members build their own savings by setting aside money each year along with contributions from one’s employer. There are tax benefits via deductions to taxable income up to 500,000 Baht per annum as the law permits.
KTAM offers services to set up and manage provident funds in the form of juristic persons as a vehicle for employees of various companies to save for long-term financial security. Company employees who are members of such fund will receive savings in the fund upon leaving the firm. Furthermore, savings put into the fund are tax deductible up to amounts permitted by law.
Types of Provident Funds
- Single Funds
- Pooled Funds
A Single Fund comprises of only one employer which could dictate the policy and self-manage the fund.
A Pooled Fund contains two or more employers in the same fund. It is suitable for firms with smaller fund sizes. Pooled funds can be assembled in many ways, such as established by companies within the same business group which is called a Group Fund. It is similar to a single fund whereby the affiliated companies can determine their fund’s policy and management. Pooled funds have an advantage when they are aggregated into a larger fund, as risk is lowered through a diversified portfolio.