The tax allowance is important for people with taxable income, which each year has different things. Let’s see what they have and how much we can get.
tax allowance list
tax allowance rate
1. personal allowance
3. child allowance
฿30,000 – ฿60,000 each
4. the parent (father / mother) allowance
5. Disabled or incapacitated family members care allowance
6. Expenses for antenatal care and child delivery
As actually paid, but when combined, must not exceed ฿60,000 per time
7. General life insurance premiums/deposits with life insurance
As actually paid but not more than ฿100,000 combined together (spouse without income deductible as actually paid, but not more than ฿10,000)
8. Parental health insurance premiums (father / mother)
As actually paid but not more than ฿15,000
9. health insurance
As actually paid but not more than ฿25,000 and when combined with general life insurance premiums, it must not exceed ฿100,000
10. GPF / Provident Fund / Private School Teacher Aid Fund
As actually paid, but not more than 15% of salary and not more than ฿500,000 in total.
11. Retirement Mutual Fund (RMF)
As actually paid, but not more than 30% of the taxable income and when combined with No.10. does not exceed ฿500,000
12. Pension insurance premiums
As actually paid, but not more than 15% of taxable income, but not more than ฿200,000, and together with no.10 and RMF shall not exceed ฿500,000.
13. social security fund
As actually paid, but not more than ฿9,000
14. National Savings Fund
As actually paid but not more than ฿13,200 and when combined with no.10 and RMF and pension life insurance premiums must not exceed ฿500,000
15. Super Saving Fund Contribution or SSF
As actually paid, but not more than 30% of taxable income and not more than ฿200,000, and when combined with No.10 and RMF and pension and life insurance premiums and GOC, shall not exceed ฿500,000.
16. Mortgage Interest Expenses
Amount actually paid, but not exceeding 100,000 Baht
17. Fee for accepting payments by debit card
As actually paid when there is income from rent, professional fees, contractors for both wages and goods, or other business income.
18. Donation to political parties
As actually paid, but not more than ฿10,000
19. Social Enterprise Business Investment
As actually paid, but not more than ฿100,000
20. shop dee mee kuen 2022
As actually paid, but not more than ฿30,000 (Waiting for announcement)
21. Donations for education, sports, social development and government hospitals
2 times the actual donation amount, but not more than 10% of the income after deductions
22. general donation
As actually paid, but not more than 10% of income after deductions
Many people misunderstand that when paid the allowance, it will be less taxable according to the amount paid, such as if you take a 1,000-baht allowance, you will get 1,000 baht less tax. This is not correct because they will pay less tax or get a larger tax refund depending on the amount of income and tax rate of each person.
Many people mistakenly believe that a tax allowance is a tax refund that will be earned at all, which is a misunderstanding because even a tax allowance can actually save tax. But the amount of tax refund will depend on the amount of income and the tax rate of each person. For example, if your net income exceeds 5 million baht per year, you will be taxed at a rate of 35%. This means that if you receive a discount of ฿1,000 you will save an additional ฿350 in tax. But if your net income is less than ฿150,000 you are exempt from tax. This way, even with the ฿1,000 deduction, it won’t help you save any additional taxes. because the tax was not paid in the first place.
Many people mistakenly misunderstand the 190,000-baht tax benefit for people over 65 or with disabilities as “Allowance.” But in fact, the law states that this benefit is an income exemption for an income earner aged 65 years old or a disabled person for the first 190,000 baht in income. Therefore, it should be called “tax exempt income.“
Many people confuse the terms expense and allowance as the same term, but they actually have different meanings. In other words, expenses are tax benefits that are legally granted depending on the type of income you receive. For example, having income from a full-time job will deduct expenses in a certain way. But if there is income from interest, the expenses will not be deducted at all. while a allowance is a tax benefit that is provided by law. depending on the status and burden of the taxpayer, such as having to take care of parents, having to pay interest on housing or to pay life insurance premiums, etc.
Reference : www.itax.in.th