Tax that first-time parents should know

For first-time parents who are busy in building a family, did you know that after marriage or having children, it can be used for tax deductions as stipulated by the state? Today, ACU PAY will recommend tax deductions that will help relieve the burdens for new parents.

1.Sprouse Allowance

A Sprouse Allowance of 60,000 baht is required to be a spouse by law and only for couples who have no income. If you choose to file a combined tax calculation, you will be entitled to an additional reduction from this section.

2.Antenatal care and Childbirth Allowance

Antenatal care and Childbirth Allowance can be deducted according to the actual amount paid, including pregnancy examination, Antenatal care, maternity, medical treatment, and recuperation in hospital. For pregnant deduction is under 60,000 baht per pregnancy, if they give birth to twins, the maximum deduction will be up to 60,000 baht as well. However, if a mother has no income, her husband can file it instead. It can be reduced and combined with the right to receive maternity/childbirth benefits from public and private welfare but not exceeding 60,000 baht.

3. Child Allowance

Child Allowance can be used to reduce for both father and mother who earn income. Children must be under 25 years old or, if more than that, children must be an incompetent or quasi-incompetent person.

  • A legal child can apply for a tax deduction of 30,000 baht each, for an unlimited number of people, regardless of whether they live or not.
  • Adopted children can file for tax deductions of up to 3 people each for 30,000 baht.
  • If there are both adopted and legal children, all legal children should be deducted first. If you file for tax deductions for 3 legal children, they cannot be deducted more for adopted children.

Is it possible to apply for tax deductions without marriage registration?

From Section 1546, it is concluded that even if a woman has not registered for marriage, the child born is considered a legal child of the woman. Therefore, the woman can file for a Child allowance.

On the other hand, if a man is not registered for marriage, he will not be eligible to file Child Allowance in tax reduction because the child is not considered a legitimate child by law. Unless they register for marriage later or register for adoption under Section 1547, the child from the woman will become a legal child of the man (husband) and the husband will have the right to file for Child Allowance.

When to apply for Child Allowance

According to Section 1557, it was stipulated that “A legal child required by law under Section 1547 will be effective from the day of the child’s birth…” From the provisions of this law, it can be concluded that if a husband registered to marry his wife after the child was born. The legal child is effective from the date the child was born. The husband can apply for a retroactive deduction from the tax year when he was born. 

It can be seen that tax deductions in building a family can help ease the burden of new parents more than expected. Therefore, parents who are going to have a child or have a child can use the tax deduction for their children. In addition, they should check the conditions of their children who are eligible for deductions and study other tax deductions through ACU PAY Thailand.

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