Maximize Your Savings: A Comprehensive Guide to Tax Deductions in Thailand for 2567 (2024)

Exploring Tax Deductions in Thailand for 2567: Insights for Maximizing Savings and Aligning with Updated Regulations

Introduction 

Tax season is fast approaching, and with it comes the opportunity to lower your taxable income through strategic planning. For the year 2567 (2024), Thailand’s government has introduced updates and incentives designed to ease financial burdens, promote investments, and encourage responsible spending. Understanding these tax deductions can significantly reduce your tax liabilities. 

This guide covers the essential deductions you can claim, including personal and family deductions, health and life insurance benefits, travel incentives, and more. Additionally, it explains how you can leverage digital tools, like e-receipts, to ensure compliance and make the most of your savings opportunities. 

Personal and Family Deductions 

For individuals and families, a variety of deductions are available to reduce your taxable income. Taxpayers can claim personal deductions, as well as deductions for spouses, children, and dependents. 

• Personal Deduction: Every taxpayer is eligible for a personal deduction of 60,000 Baht. 

• Spousal Deduction: You can claim an additional 60,000 Baht for a legally registered spouse who has no income. 

• Child Deduction: For each child, taxpayers can claim 30,000 Baht. For children born after 2561 (2018), this amount increases to 60,000 Baht for subsequent children. 

• Antenatal Care and Childbirth: Taxpayers can also claim up to 60,000 Baht for antenatal care and childbirth expenses for each pregnancy. 

• Support for Parents: You can claim 30,000 Baht for each parent who is 60 years or older and has an annual income not exceeding 30,000 Baht. 

• Support for Disabled Persons: A 60,000 Baht deduction is available for each disabled person financially supported by the taxpayer. 

These deductions aim to ease the financial burden on families and encourage responsible financial planning. 

Health and Life Insurance Deductions 

In Thailand, premiums paid for life and health insurance, as well as social security contributions, can provide significant tax benefits. Here’s what you need to know: 

• Life Insurance Premiums: Taxpayers can claim a deduction for premiums paid on life insurance policies, with a maximum limit of 100,000 Baht. 

• Health Insurance Premiums: Premiums paid for health insurance are deductible up to 25,000 Baht. 

• Health Insurance for Parents: You can also claim up to 15,000 Baht for health insurance premiums paid on behalf of your parents. 

• Social Security Contributions: Contributions made to social security are deductible up to 9,000 Baht. 

These deductions not only reduce your tax liabilities but also encourage investing in long-term health and social security coverage. 

Investment and Retirement Deductions 

For individuals making contributions to retirement and investment plans, Thailand offers generous tax deductions to encourage long-term financial planning. 

• Retirement Mutual Funds (RMF): Contributions to retirement mutual funds are deductible up to 500,000 Baht, or 30% of your assessable income, whichever is lower. 

• National Savings Fund (NSF): Contributions to the NSF are deductible up to 30,000 Baht. This fund is designed to help individuals save for retirement. 

• Investment in Thai ESG Funds: Investments in Environment, Social, and Governance (ESG) mutual funds are deductible up to 300,000 Baht, or 30% of assessable income. 

These investment deductions help individuals plan for their retirement while supporting responsible and sustainable investing. 

Travel and Tourism Deductions 

To stimulate tourism and training activities in less-visited regions, the government has introduced a travel deduction incentive in relation to travel to less-visited areas. Individuals can claim actual travel expenses for trips to such areas in Thailand. This deduction is capped at 15,000 Baht and is applicable to the period from May 1, 2024, to November 30, 2024. 

• This incentive encourages travel to areas that need economic stimulation while supporting professional development. 

E-Receipts for Tax Deductions 

The Thai government has introduced a system that allows taxpayers to claim deductions through e-receipts. This digital initiative makes the process of claiming deductions more efficient and transparent. 

• E-receipt Period: To qualify for many of the deductions, particularly those related to travel and purchases, taxpayers must obtain full tax invoices issued electronically (e-Tax Invoice & e-Receipt). 

• E-receipt Eligibility: The e-receipt period runs from January 1, 2024, to February 15, 2024, and taxpayers can claim a tax deduction of up to 50,000 Baht for eligible purchases made during this time. 

• Eligible Purchases: Goods and services purchased from VAT-registered businesses that issue e-invoices or e-receipts are eligible. However, purchases of alcoholic beverages, fuel, utilities bills, and non-life insurance premiums are excluded. 

The e-receipt system is designed to simplify tax compliance and streamline the deduction process. 

Housing and Property Deductions 

Homeownership and property-related expenses are another area where taxpayers can benefit from tax deductions. 

• Home Loan Interest Deduction: Taxpayers can deduct interest paid on home loans up to 100,000 Baht. 

• Construction Costs for New Homes:  

For individuals constructing new homes between April 9, 2024, and December 31, 2025, an additional tax deduction is available based on the actual construction costs, with a maximum deduction of 100,000 Baht. For example, if the total construction cost is 1,000,000 Baht, you can reduce your tax by up to 10,000 Baht. 

• To qualify for this deduction, the construction contract must be paid with stamp duty through e-filing, and the tax allowance can be claimed in the year the construction is completed. 

These deductions provide financial relief for homeowners and those building new homes, incentivizing investments in real estate. 

Conclusion 

With a wide range of tax deductions available for the year 2567 (2024), taxpayers have numerous opportunities to reduce their taxable income and maximize their savings. To take full advantage of these opportunities, it’s important to maintain accurate records, ensure all documentation is in order, and comply with the latest regulations, particularly regarding the e-receipt system. 

By understanding and utilizing these deductions effectively, individuals and businesses can enhance their financial planning and align with Thailand’s economic goals. Consulting a tax professional is always recommended if you require personalized advice or assistance with your tax filings. 

Remark: The documents required to apply for the tax reduction must include the taxpayer's name, address, and Tax ID.