List of Thailand’s Personal Tax Deductions and Allowances 2018
Certain deductions and allowances are allowed in the calculation of the taxable income. It would be beneficial to know of these items as some are overlooked and some are not well-known to the public. Which is why we, Krungthai-AXA, has gathered all the information about deductions and allowances for your Personal Income Tax (PIT), with rules and regulations subject to the discretion of the Revenue Department Thailand. Please see the following list.
1. Taxpayer and Family: by looking at the expenses of family members, for example the taxpayer’s self-care allowance is 60,000 baht. Care allowance for dependant spouse is 60,000 baht.
2. If the taxpayer or their spouse both have assessable income then the tax could be deducted together with no more than 120,000 baht. Child allowance can get deducted at the amount of 30,000 per child. 30,000 baht for each of taxpayer’s and spouse’s parents if such parent is above 60 years old. 60,000 baht for the care allowance for dependent disabled or incompetent persons.
3. Insurance premium and other savings including social security fund, providence fund, Annuity insurance premium, RMF, LFT etc. As well as Life Insurance Premium (Insurance policy must be at least 10 years and above), can be used for tax deduction, amount actually paid, but no more than 100,000 baht. Annuity insurance premium can be used for tax deduction, amount actually paid, but no more than 200,000 baht per year. Health insurance on amount actually paid, but no more than 15,000 baht when combined with Insurance premium it should not exceed 100,000 baht. Subjected to the discretion of the Revenue Department Thailand
4. Interests paid to financial institutions for example interests paid to banks, and other financial institutions, cooperatives, or employer. Mortgage interests for the purpose of purchase or construction of a residential building can be deducted on amount actually paid but must not exceed 100,000 baht.
5. Donations, including donations for the purpose of education, public interests are allowed double deduction on amount actually paid to the extent that the combined amount does not exceed 10% of net income. Donations for flood victims occurred in Thailand are allowed 1.5 times the amount actually paid but should not exceed 10% of the income after deducting all other allowances and deductions. Other donations are allowed deduction on amount actually paid but should not exceed 10% of the income after deducting all other allowances and deductions.
6. The government’s stimulus policy on tax. For this part, the information will depend on the government policy in the year 2018 for example Traveling expenses within Thailand (special project)
From the information above, it shows that there are many allowances and deductions on personal income tax, which is a very useful information for everyone to know in order to fully get all of your tax deductions. The Insurance premium is a good opportunity for someone who’s looking for a stability in life, both financially and health – which will benefit directly from your choice of insurances, for example, Annuity insurance premium (iRetire) which will allow you to spend your entire retired life happily. Furthermore, you can get up to 200,000 tax deduction*. Health insurance (iHealthy), covers all medical expenses, anywhere, anytime – and you can get up to 15,000 baht tax deduction.* Another interesting insurance would be the life-long insurance that covers all critical illnesses (iShield) that covers all stages of all critical illnesses up to 70 diseases as well as up to 100,000 baht tax deduction on the life insurance.*
However, for the year 2018, if taxpayer would like to use the insurance premium for tax deduction, the insurance company must be informed in order for the company to give the insurance premium information to the revenue department – so that the taxpayer do not have to submit extra documents for the tax deduction.
*All terms and conditions are subject to the discretion of the Revenue Department Thailand.
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