“The more you do, the more you received” This quote might not be applicable with those who have income because the more revenue you get, the more tax you will have to pay. Though you don’t have to pay any tax if your annual income is below THB 240,000 (THB 20,000/month); but if your annual income goes beyond that point, this would surely be a big burden for you. So, would it be better if you plan your tax wisely that you don’t need to pay for the full amount of tax anymore? Masri would like to share some ideas of tax deduction methods you need to know.
12 ways of tax deduction
- Social Security Funds
The objective of Social Security Funds is to secure the individual from 7 cases. The amount of Social Security Funds is tax deductible at the actual amount (Maximum THB 9,000)
2. Interest Payment
The interest payment on Home Loan is tax deductible at the actual amount (Maximum THB 100,000). In case it’s a shared loan, the interest payment can be divided equally for the tax deduction with the maximum of THB 100,000 each.
3. Life insurance premium
There are 2 ways that life insurance premium can be used to deduct your personal income tax:
- Normal Life Insurance is tax deductible at the maximum of THB 100,000. For this case, If the taxpayer’s spouse have no income, the maximum deductible is THB 10,000 but if taxpayer’s spouse have an income, the maximum deductible is THB 100,000
- Retirement Life Insurance is tax deductible at 15% of annual income (Maximum THB 200,000)
4. Retirement Mutual Funds
Buying Retirement Mutual Fund can help you save 15% of annual income as a tax deductibles but at the maximum of THB 500,000
6. Provident Funds
Provident fund is tax deductible at the actual amount (Maximum THB 500,000)
The amount of donation can be use as a tax deductibles at the maximum of 10% of total income after all expenses is subtracted. The amount of donation for education is deductible at 2X but not exceed 10% of total income after all expenses is subtracted.
The maximum of THB 30,000 is deductible for the taxpayer whose spouse has no income. Please keep in mind that legal marriage document is needed.
9. Expenses on children
The expense incurred from taking care of your own children and children in law is deductible at THB 15,000 per child (Maximum of 3 children). The children’s age must not exceed 20 years old by the time of tax filing and the children must not have any income.
10. Expenses on parents
The expense incurred from taking care of your parents is deductible at THB 30,000 each. This case is applicable with the taxpayer whose parent age is above 60 years old and possess the annual income lower than THB 30,000.
11. Parent’s Health Insurance Premium
In case that the taxpayer’s parent have an annual income below THB 30,000, the taxpayer can buy them a health insurance and the health insurance premium can be used as a deductions at the maximum of THB 15,000.
12. Health Insurance Premium
Health Insurance Premium is tax deductible at the maximum of THB 15,000. So, if you haven’t had one, you may need to consider buying it this year.