Personal Tax: Deductions You Can Claim

When filing personal income tax, deductions can significantly reduce your tax liability. Here's every deduction you can claim.

 

Standard Allowances

Personal Allowance

• Amount: 60,000 THB
• Who: Everyone gets this
• Automatic: No documentation needed

 

Spouse Allowance

• Amount: 60,000 THB
• Requirement: Legally married, spouse has no income or files separately
• Documentation: Marriage certificate

 

Child Allowance

• Amount: 30,000 THB per child
• Limit: No limit on number of children
• Requirement: Child under 25 years old (or any age if disabled)
• Documentation: Birth certificates

 

Parent Allowance

• Amount: 30,000 THB per parent
• Requirement: Parent is 60+ years old, income < 30,000 THB/year
• Maximum: 4 parents (yours + spouse's)
• Documentation: Parent's ID, income statement

 

Insurance Deductions

Life Insurance Premiums

• Limit: 100,000 THB/year
• Requirement: Policy on your life or spouse's life
• Documentation: Premium receipts, policy documents

 

Health Insurance Premiums

• Limit: 25,000 THB/year (separate from life insurance)
• Requirement: Health/medical insurance policy
• Documentation: Premium receipts

 

Pension/Provident Fund

• Limit: 500,000 THB/year (combined with other retirement savings)
• Types:
  • Company provident fund
  • RMF (Retirement Mutual Fund)
  • Private pension plans
• Documentation: Contribution statements

 

Investment Deductions

Long-Term Equity Fund (LTF)

• Limit: 500,000 THB/year
• Requirement: Hold for 7+ years
• Benefit: Reduces taxable income
• Documentation: Fund purchase receipts

 

Retirement Mutual Fund (RMF)

• Limit: 500,000 THB/year (combined with pension)
• Requirement: Hold until age 55
• Documentation: Fund statements

 

Social Security Contributions

• Amount: Actual contributions (typically 750 THB/month = 9,000 THB/year)
• Automatic: Employer reports this
• Documentation: SSO statements

 

Donation Deductions

General Donations

• Limit: 10% of net income after other deductions
• Eligible recipients:
  • Registered charities
  • Educational institutions
  • Hospitals
  • Government agencies

 

Political Party Donations

• Limit: 10,000 THB/year
• Requirement: Registered political party
• Documentation: Official receipt

 

Education Donations

• Limit: 2× the donation amount (double deduction!)
• Eligible: Donations to schools, universities
• Documentation: Official receipt from institution

 

Home and Mortgage Deductions

Home Loan Interest

• Limit: 100,000 THB/year
• Requirement:
  • First home
  • Loan from financial institution
  • House value < 5M THB
• Documentation: Bank interest statement

 

Home Rental (for work)

• Limit: 50% of rental cost, max 100,000 THB/year
• Requirement: Renting for work purposes
• Documentation: Rental agreement, receipts

 

Other Deductions

Disabled Person Support

• Amount: 60,000 THB per disabled person
• Who: Disabled spouse, child, or parent
• Documentation: Medical certificate

 

Prenatal Care

• Amount: 60,000 THB
• Requirement: Expenses for prenatal care and delivery
• Documentation: Hospital receipts

 

Calculation Example

Scenario: Foreign business owner, married, 2 children

Gross income: 2,000,000 THB

Deductions:

• Personal allowance: 60,000 THB
• Spouse allowance: 60,000 THB
• 2 children: 60,000 THB (30K × 2)
• Life insurance: 100,000 THB
• Health insurance: 25,000 THB
• Provident fund: 200,000 THB
• Home loan interest: 80,000 THB
• Donations: 50,000 THB

Total deductions: 635,000 THB

Taxable income: 2,000,000 - 635,000 = 1,365,000 THB

Tax calculation:

• 0-150K: 0% = 0
• 150K-300K: 5% = 7,500
• 300K-500K: 10% = 20,000
• 500K-750K: 15% = 37,500
• 750K-1M: 20% = 50,000
• 1M-1.365M: 25% = 91,250

Total tax: 206,250 THB (10.3% effective rate)

Without deductions: Tax would be 375,000 THB Savings: 168,750 THB

 

Documentation Checklist

☐ Salary statements (Form 50 from employer) ☐ Insurance premium receipts ☐ Provident fund statements ☐ Investment fund statements ☐ Donation receipts ☐ Home loan interest statement ☐ Rental agreement (if claiming) ☐ Medical receipts (if claiming) ☐ Marriage certificate ☐ Children's birth certificates

 

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