Personal Tax Deductions in Thailand

Thailand's tax laws provide for various deductions that individuals can claim to reduce their taxable income. According to the Thailand Revenue Department, these deductions include:

• Contributions to Provident Funds: Contributions made by an individual to approved provident funds are deductible up to a certain limit specified in the Thai Revenue Code.
  • Section 65 ter of the Thai Revenue Code
• Contributions to Social Security Fund: Contributions to the Social Security Fund are deductible from taxable income.
  • Section 65 quater of the Thai Revenue Code
• Life Insurance Premiums: Premiums paid for life insurance policies that meet certain criteria may be deductible.
  • Section 65 quinque of the Thai Revenue Code
• Education Expenses: Tuition fees and educational expenses for the taxpayer, spouse, or children may be deductible up to a specified limit.
  • Section 65 sex of the Thai Revenue Code
• Healthcare Expenses: Medical expenses, including expenses for medical treatment, dental treatment, and medical insurance premiums, may be deductible.
  • Section 65 septem of the Thai Revenue Code
• Donations to Charitable Organizations: Donations to approved charitable organizations are deductible from taxable income.
  • Section 65 octo of the Thai Revenue Code
• Employment Expenses: A standard deduction of 50% of income from employment, up to a limit of THB 100,000.
• Charitable Contributions: Deductions for donations to specific categories and institutions, with some qualifying for a double deduction, subject to limits based on net income.
• Mortgage Interest Expenses: Deductible up to a maximum of THB 100,000.
• Retirement Mutual Fund and Super Savings Fund Investments: Deductible within specified limits, but the total cannot exceed THB 500,000.
• Health Insurance Premiums: A maximum deduction of THB 25,000 is allowed for health insurance premiums, with additional provisions for premiums paid for the taxpayer's parents.
• “Easy E-Receipt” Tax Scheme: Offers individuals tax deductions of up to THB 50,000.

In addition to tax deductions, individuals in Thailand may benefit from various tax credits, exemptions, and rebates, including:

• Personal Allowance: Each taxpayer is entitled to a personal allowance, which is subtracted from their taxable income.
  • Section 40 of the Thai Revenue Code
• Tax Exemptions for Certain Income: Certain types of income, such as income from government bonds or scholarships, may be exempt from taxation.
  • Various sections of the Thai Revenue Code
• Tax Credits for Foreign Tax Paid: Taxpayers may be eligible for a tax credit for foreign taxes paid on income earned outside of Thailand.
  • Section 68 bis of the Thai Revenue Code
• Tax Credits for Specific Investments: Taxpayers may receive tax credits for investments made in designated industries or projects that contribute to economic development.
  • Various sections of the Thai Revenue Code

These deductions and benefits are established in the Thai Revenue Code to promote various policy objectives, including incentivizing savings, encouraging education and healthcare expenditure, supporting charitable activities, and fostering economic growth. The specific articles of the Thai Revenue Code cited above provide the legal basis for these deductions and benefits, outlining the conditions and limitations for claiming them.

The intent behind these provisions is to create a fair and equitable tax system that balances the need for revenue generation with the goal of supporting taxpayers and stimulating key sectors of the economy.