Types of Tax Allowance!

Tax filing is coming in a few months. Last time we talked about Information for New Salaryman about Online Tax Filing 2022 ( In 2023 Taxable Year). Today, we are going to learn about Tax Allowance for those who have income starting from 150,001 per year need to pay Tax and those who have total income under 120,000 per year need to file Tax. Thus, let’s take a look at what can be used in Tax Allowance. 

What can be used as Tax Allowance?

1.Personal and Family Allowance: Spouse allowance, Antenatal care and Childbirth allowance, Parental Care Allowance, and Patronizing for Incompetent Person Allowance.

  • Personal Allowance: It is a gross Tax Allowance for 60,000 baht per year for Tax Filers. 
  • Spouse allowance: For those who register a marriage certificate legally and their spouse must have no income. The amount of Spouse Allowance is 60,000 baht per year.
  • Antenatal care and Childbirth allowance: 30,000 baht allowance per child per year. The child needs to be legally certified or adopted. The age must not be more than 25 years old or studying. However, if the age is over 25 years old but that child being an incompetent person, it can be reduced as well.
    – For legally certified children, you can use as many children according to the laws
    – For adopted children, you can have 3 allowances for 3 children. The amount of allowance is 30,000 baht per child.
    – For those who have both legally certified and adopted children, use the allowance for legally certified children first. If there are 3 legally certified children, you cannot use the allowance for the adopted children. However, if you have 2 legally certified children and 1 adopted child, you can have 30,000 allowance for those 3 children. Thus, you can have only 3 allowance for 3 children according to the law.
  • Parental Care Allowance for your parents and spouse parents. The total amount of allowance is 30,000 baht for 4 people only. Parents must be over 60 years old and have total income per year under 30,000 baht.
  • Patronizing for Incompetent Person Allowance. Incompetent Persons must have total income under 30,000 baht per year and the total amount of Allowance is 60,000 baht per person. There needs to be an Incompetent Person ID card and the Patronizing Certificate. 

2. Insurance and Investment Allowance: Social security, Life Insurance, Health Insurance and Mutual Fund.

  • Social security: The allowance must be according to the actual payment. The total amount of allowance must not exceed 6,300 baht, reduced from 9,000 baths. The allowance reduction due to the deduction in social security savings. 
  • Life insurance premium: The total allowance must not exceed 100,000 baht and the condition of the insurance must have at least 10 years or more of terms of protection and only made in Thailand.
  • Health insurance premiums and Accident Insurance: Total amount of allowance does not exceed 25,000 baht and 100,000 baht when combined with Life insurance premium.
  • Parents Life Insurance Premium. Total amount of allowance does not exceed 15,000 baht. There is no need for parent to be at least 60 years old but their total income must not over 30,000 per year
  • Pension insurance premium. This can have 15% of income allowance. The actual payment is not more than 200,000 baht. It needs to be under the terms of protection for 10 years or more, insurance must be made only in Thailand.
  • Retirement Mutual Fund(RMF). This can have 30% of income allowance. The actual payment is not more than 500,000 baht 
  • Super Savings Fund(SSF).This can have 30% of income allowance. The actual payment is not more than 200,000 bah.

3.Charitable contribution Allowance:General donations, Educational donation, and Political donations.

  • General donations: The allowance is according to the actual payment which is not over 10%.
  • Education, Sports, Society or Health facilities donation. The allowance can be 2 times more than the actual payment. The highest rate is not over 10%
  • Political donations. The total amount of allowance is not over 10,000 baht.

4. Tax allowance for the stimulus package. The refund for good shopping and Home Loan.

  • The refund for good shopping: Value-added and tax-deductible products and services, or VAT. OTOP products and books, as well as E-Books. The discount can be up to 30,000 baht.
  • Home Loan: The discount can be applied to the actual payment up to 100,000 baht.

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