Shop and Payback 2024: Everything You Need to Know!

Even if you’ve been shopping heavily since the beginning of the year, there’s no need to worry because Shop and Payback 2024 is back! Shopaholics are guaranteed to get huge tax refunds.

Many people may already be familiar with the Shop and Payback initiative, but others might have missed it last year. Today, Muang Thai Life Assurance invites everyone to recheck the details of Shop and Payback: what it entails, what tax deductions are available, and which goods and services qualify for tax reductions. Let’s take a look!

First, we need to understand what the Shop and Payback 2024 initiative is and what the conditions are. The Shop and Payback 2024 initiative allows individuals to use expenses from purchasing goods, services, or fuel between 1 January - 15 February 2023 to reduce their personal income tax. The following conditions apply:

• Purchases must be made at businesses registered for VAT, which can issue full tax invoices. Exceptions include purchases of OTOP products and books or e-books, where receipts with clear names and surnames are acceptable.
• Only VAT-inclusive goods and services are eligible for tax deductions. Items exempt from VAT cannot be used for deductions.
• Purchases and payments must occur between 1 January and 15 February 2023.

🔖 Thairath (as of 1 January 2023)

🔖 Kapook (as of 21 December 2022)

To participate in the Shop and Payback initiative, there’s no need to register. Simply purchase goods or services following the specified conditions and request a full-format tax invoice from the store. After that, include these details when filing your 2024 personal income tax return to claim the tax deduction.

Shop and Payback Eligibility Conditions:

• Must be a personal income taxpayer. Groups or ordinary partnerships are excluded.
• Welfare Card holders cannot use this initiative.
• Individuals without taxable income or whose income does not meet the threshold for paying taxes will not benefit from this initiative, as they are not required to pay taxes.

🔖 Kapook (as of 21 December 2022)

🔖 iTAX (as of 31 December 2022)

✅ Goods and Services Eligible for Tax Deductions ✅

• ✅ Goods and Services Eligible for Tax Deductions ✅
  

• Goods and services purchased from businesses with physical or online stores registered for VAT, which can issue full-format VAT invoices, such as department stores, convenience stores, and restaurants.
• Books, including both physical books and e-books (except magazines and newspapers). For e-books, clear supporting documents must be available to qualify for a tax deduction.
• One Tambon One Product (OTOP) products registered with the Community Development Department. Eligible stores can be checked at otoptoday.

❌ Ineligible Goods and Services ❌

• Alcohol, beer, wine, and tobacco
• Car, motorcycle, and boat purchases
• Car, motorcycle, and boat expenses
• Subscriptions or services such as newspapers and magazines provided electronically.
• Tour guide and travel services.
• Hotel accommodation fees.
• Utilities such as water, electricity, telephone, and internet services.
• Services with contracts allowing their usage beyond the specified eligible period (1 January - 15 February 2024), such as memberships.
• Non-life insurance premiums.

🔖 Accrevo (as of 24 November 2022)

🔖ALLWELLHEALTHCARE (as of 28 December 2022)

The Shop and Payback 2024 initiative offers a maximum tax deduction of 40,000 Baht (including VAT). This is divided into the following categories:

• Purchases of goods and services up to the first 30,000 Baht can be documented using paper tax invoices or full-format electronic tax invoices issued through the electronic tax invoice and e-receipt system (e-tax invoice & e-receipt) of the Revenue Department.
• Purchases of goods and services for an additional amount not exceeding 10,000 Baht are only valid if documented with full-format electronic tax invoices issued through the electronic tax invoice and e-receipt system (e-tax invoice & e-receipt) of the Revenue Department.

🔖 PRD (as of 2 January 2023)

🔖 ACCREVO (as of 24 November 2022)

The Shop and Payback initiative is only applicable to individuals paying personal income tax. The tax deduction benefits from the Shop and Payback initiative are as follows:

• Net income of 0-150,000 Baht (already tax-exempt, so no benefit is gained from the “Shop and Payback” program).
• Net income of 150,001-300,000 Baht, tax rate 5%: shopping for the full amount of 40,000 Baht grants a maximum tax refund of 2,000 Baht.
• Net income of 300,001-500,000 Baht, tax rate 10%: shopping for the full amount of 40,000 Baht grants a maximum tax refund of 4,000 Baht.
• Net income of 500,001-750,000 Baht, tax rate 15%: shopping for the full amount of 40,000 Baht grants a maximum tax refund of 6,000 Baht.
• Net income of 750,001-1,000,000 Baht, tax rate 20%: shopping for the full amount of 40,000 Baht grants a maximum tax refund of 8,000 Baht.
• Net income of 1,000,001-2,000,000 Baht, tax rate 25%: shopping for the full amount of 40,000 Baht grants a maximum tax refund of 10,000 Baht.
• Net income of 2,000,001-5,000,000 Baht, tax rate 30%: shopping for the full amount of 40,000 Baht grants a maximum tax refund of 12,000 Baht.
• Net income from 5,000,001 Baht upwards, tax rate 35%: shopping for the full amount of 40,000 Baht grants a maximum tax refund of 14,000 Baht.

That’s all about the Shop and Payback 2024 initiative. This initiative is primarily suitable for shopping enthusiasts who are salaried taxpayers, particularly those with higher tax brackets and who need additional support for tax deduction. The Shop and Payback initiative is an attractive option because, in addition to shopping, it also offers tax reductions. Don't forget to follow the conditions for submitting the required documents for purchases made between 1 January and 15 February 2023. Keep everything well-prepared so that during the tax deduction period in January-March 2024, you can receive huge benefits.

When planning your shopping for tax deductions, also take the opportunity at the start of the year to plan care for yourself and your family. Even though health insurance and life insurance cannot be used under Shop and Payback, they are still eligible for tax deductions as follows:

• General life insurance: deductible based on the actual amount paid, but not exceeding 100,000 Baht.
• Annuity insurance: deductible at 15% of income, but not exceeding 200,000 Baht.
• Health insurance for yourself: deductible up to 25,000 Baht per year, but when combined with life insurance premiums and life insurance deposits, it must not exceed 100,000 Baht.
• Health insurance for parents: deductible based on the actual amount paid, but not exceeding 15,000 Baht.

For more information:

☑️ Call Tel. 1766

☑️ Contact life insurance agents, or branches of Kasikornbank, and Land

and Houses Bank.

Choose lump sum insurance, choose Muang Thai Life Assurance.

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• Coverage period of the rider must not exceed the coverage period of the life insurance policy that this rider is attached to.
• Premium is eligible for tax deduction. Conditions are as specified by the Revenue Department.
• Underwriting is subject to the Company’s rules.
• Conditions are subject to the medical standards and necessity.
• Conditions are as specified by Muang Thai Life Assurance PCL and the banks.
• Please study the details of coverage, conditions and exclusions before making a decision to purchase insurance.