It’s almost the end of the year, so you need to prepare tax deduction documents for 2023. For those who earn more than 120,000 Baht per year, don’t forget to file personal income tax return. As there are many tax deduction documents required, you need to prepare all the documents to reduce taxes and not lose your tax deduction right. Let’s see how much health insurance or life insurance is tax deductible and also see a checklist of required tax deduction documents for each insurance.

Checklist of tax deduction documents required in 2023  

Tax reductions are divided into 4 groups detailed as follows:

1. Personal and family allowances

1.1 Personal allowance 60,000 Baht, eligible without any conditions required.

1.2 Spouse allowance 60,000 Baht, must be legal spouse who has no income (up to 1 person)
Must be legal spouse who has no income (up to 1 person)

1.3 Pregnancy and maternity allowance Deductible as charged, not more than 60,000 Baht per pregnancy. This tax deduction shall be given to the wife. In case the wife has no income, the husband shall exercise the right instead.

1.4 Child allowance 30,000 Baht for each

• Must be a legal child or an adopted child who has already been registered for adoption
• Not more than 20 years old or not more than 25 years old and currently studying
• In case the child is over 25 years old but declared incapacitated or quasi-incompetent, the child is eligible for the tax deduction.
• Counted from the second child born since 2018, the tax deduction is 60,000 Baht each.

1.5 Allowance for parental care

Allowance for a parent of the taxpayer or the spouse 30,000 Baht per person, up to 4 persons, up to 120,000 Baht

• The parents must be over 60 years old and have an annual income of no more than 30,000 Baht. The allowances cannot be reapplied between siblings.
• Must not be an adoptive parent

1.6 Allowance for a disabled person or person with disability 60,000 Baht per person, and the disabled must have an income not exceeding 30,000 Baht per year and must have a disabled card. The taxpayer must have petitioner’s certificate.

2. How much are insurance and investment tax deductible?

2.1 Premiums of life and saving insurance The deduction amount is subject to the actual payment, up to 100,000 Baht.

2.2 Premiums of health insurance The deduction amount is subject to the actual payment, up to 25,000 Baht. (Tax deduction combined with Item 2.1 Life and Savings Insurance must not exceed 100,000 Baht.)

2.3 Social security fund contribution The deduction amount is subject to the actual payment, up to 9,000 Baht.

2.4 Health insurance premium for parent(s) The deduction amount is subject to the actual payment, up to 15,000 Baht.

2.5 Investments in Social Enterprise The deduction amount is subject to the actual payment, up to 100,000 Baht.

2.6 Annuity life insurance premiums The deduction is for 15% of the actual payment, up to 200,000 Baht. Financial planning with annuity insurance provides you tax deduction and annuity payment after retirement.

2.7 Retirement Mutual Fund (RMF) The deduction is for 30% of the actual payment, up to 500,000 Baht.

2.8 Super Saving Funds (SSF) The deduction is for 30% of the actual payment, up to 200,000 Baht.

2.9 PVD/ Private School Teacher’s Welfare Fund The deduction is for 15% of the actual payment, up to 500,000 Baht.

2.10 Government Pension Fund of Thailand (GPF) The deduction is for 30% of the actual payment, up to 500,000 Baht.

2.11 National Savings Fund (NSF) The deduction amount is subject to the actual payment, up to 30,000 Baht.

(For insurance, savings, and investment Item 2.6 – 2.11, total tax deduction amount must not exceed 500,000 Baht.)

👉 Choose the insurance you need, and exercise your tax deduction right in 2023.

3. Donations

3.1 General donations The deduction amount is subject to the actual payment, up to 10% of income after tax deduction

3.2 Donations for education, sports, social development, public benefits and government hospitals Tax deductible of 2 times of the actual donation amount, up to 10% of income after tax deduction

3.3 Donations to political parties Tax deductible up to 10,000 Baht, starting from 1 January 2018 onwards

4. Economic stimulus of the government

4.1  Shop and Payback Campaign 2023 Tax deductible up to 40,000 Baht. Products and services eligible for tax deduction in 2023 are products and services subject to VAT, OTOP products, and books (including e-books).

4.2 Interest on loans for the purchase or construction of housing The deduction amount is subject to the actual payment, up to 100,000 Baht

What insurance is not tax deductible?

Q: Is group insurance tax deductible?

Group insurance is a welfare that a company provides to its employees. It is tax deductible for the company but not for the employees.

Q: Is insurance for children tax deductible?

Premiums of insurance for children are not tax deductible. Parents can deduct the tax with child allowance as specified by the government. Therefore, before purchasing an insurance to reduce tax, please be careful in choosing the type of insurance.

For anyone who has not yet studied the different types of insurance but would like tax deductions in 2023, it is recommended to purchase a health insurance first as it provides both health coverage and tax deduction. After that, you can study and purchase more insurance as needed, such as annuity insurance and savings insurance which are eligible for tax deductions as well. This is to plan your finances in the future to not worry about retirement life.

Choose lump sum health insurance to take care of both small and critical illnesses with coverage amount from 200,000 Baht to 100,000,000 Baht, covering heart disease, cancer, common diseases, including medical treatment technologies. The insurable age is up to 90 years, with long-term coverage until the age of 99 years.

• Coverage period of the rider must not exceed the coverage period of the life insurance policy that this rider is attached to.
• Premium is eligible for tax deduction. Conditions are as specified by the Revenue Department.
• Underwriting is subject to the Company’s rules.
• Conditions are as specified by Muang Thai Life Assurance PCL and the banks.
• Conditions are according to the medical standard and necessity.
• Please study the details of coverage, conditions and exclusions before making a decision to purchase insurance.

Resources: Data retreived on 24/07/2023

🔖finnomena
🔖 Revenue Department

Content Reposted from Muang Thai Life Assurance Website