5 Easy Ways To Save Income Tax in Thailand

Who doesn’t want to save income tax in Thailand? All, of course, particularly the expats. When you are filing your return the appropriate taxable income must be reported. And this could be any income that is related to your employment in Thailand. Also, a Thai tax resident, who is staying in the country for more than 180 days in a calendar year and bringing foreign income, should pay tax.

Let’s have a look at some of the ways you can legally lessen your taxes, starting with the deductions allowed to expats;

1. 1. Long-term equity fund (LTF) of up to 500,000 baht every year.
   2. Travel expenses (holiday of up to 15,000 baht per year.
   3. Donations made to religious, charitable institutions and educational organizations, provided it does not exceed 10% of net income each year. However, if donation made to the educational institute donation meets some qualified objectives, the Thai Revenue Department may allow 2 times the deduction for the amount.
   4. If you are a resident in Thailand, you can consider taking a family allowance deduction for the dependent spouse and three dependent children. Typically, a dependent is an individual who doesn’t earn in a tax year. In case you have spouse and children living abroad, they can also be qualified as dependents.
   5. Individuals having a Thai dependent spouse, the below mentioned are deductible;

a. Spouse’s life insurance premiums up to 10,000 baht per year.
b. Spouse’s parents (dependent) allowance up to 30,000 baht each.
c. Both of your parents’ (you and your spouse) health insurance premiums up to 15,000 baht each year.

Well, just make a note here that the tax reduction entitlements on the tax return in Thailand cover only Thai plans. Home mortgages, life insurance plans, charitable donations, social security plans and foreign pension are not deductible on the Thai tax return.