Shop and Payback 2022: What to shop and get tax deduction
Who can participate Shop and Payback 2022 and its conditions
Shop and Payback is available from 1 January - 15 February 2022 as a spending stimulus measure for individuals paying personal income tax (except for juristic persons). The purchase for goods and services is tax deductible for personal income tax as charged, up to 30,000 Baht per person.
Anyone interested in joining the Shop and Payback doesn’t need to register. Simply buy products or services according to the conditions specified by the campaign, and ask for a full tax invoice from the shops which is tax deductible for personal income tax 2022, combined with other tax deductible items as usual.
Shop and Payback Conditions
- Must purchase products from business registered for Value Added Tax (VAT);
- Must have a receipt or full VAT invoice from purchases to be used as evidence for tax deduction;
- Persons holding goverment welfare card are not eligible;
- The rights are available from 1 January – 15 February 2022 to use as a tax deduction in tax year 2022 to be filed at the beginning of 2023 only.
Tax-deductible products and services
With Shop and Payback campaign, it doesn’t mean you can shop everything in the world. Let's take a look at tax-deductible products and services.
✅ Tax-deductible products and services
- Products and services from entrepreneurs who have storefronts or online stores and must be a VAT registered store that can issue a full VAT invoice, such as department stores, convenience stores and restaurants. Before placing an order, don't forget to check whether the online store can issue the full VAT invoice in order not to lose the right.
- All types of printed books and e-books (except magazines and newspapers). However, for e-books, an evidence is required for tax deduction.
- One Tambon One Product (OTOP) products that have been registered with the Community Development Department which can be checked via otoptoday.
❌ Non-tax-deductible products and services
- Liquor, beer, wine, tobacco;
- Fuel gas;
- Cars, motorcycles and boats;
- Newspapers and magazines both printed and electronic;
- Tour organizing and hotel accommodation service;
- Non-life insurance premiums;
- Utilities, such as electricity, water and telephone
How much is Shop and Payback 2022 tax-deductible?
Before shopping, you must know this. Shop and Payback is not available to everyone. The eligible persons must be a person paying personal income tax in 2022 to be filed in the beginning of 2023 only. They will receive tax reduction from the Shop and Payback as follows.
- Net income per year 0 -150,000 Baht: exempt from taxes, not entitled to a tax refund
- Net income per year 150,001 - 300,000 Baht: income tax rate 5%, per year tax refund up to 1,500 Baht
- Net income per year 300,001 - 500,000 Baht: income tax rate 10%, per year tax refund up to 3,000 Baht
- Net income per year 500,001 - 750,000 Baht: income tax rate 15%, per year tax refund up to 4,500 Baht
- Net income per year 750,001 - 1,000,000 Baht: income tax rate 20%, per year tax refund up to 6,000 Baht
- Net income per year 1,000,001 - 2,000,000 Baht: income tax rate 25%, per year tax refund up to 7,500 Baht
- Net income per year 2,000,001 - 5,000,000 Baht: income tax rate 30%, per year tax refund up to 9,000 Baht
- Net income per year 5,000,001 Baht: income tax rate 35%, per year tax refund up to 10,500 Baht
For those who have no income or have income less than 150,000 Baht per year or have income reaching the tax threshold but having other tax deductions that help you avoid paying taxes, they are not eligible for the Shop and Payback campaign.
It can be seen that the Shop and Payback campaign is suitable for salaried employees who have a high net income and are subject to high tax rate as they can reduce taxes and get more tax refunds, making it possible to save more on taxes. Therefore, before buying anything, you should plan well. Especially in this economic situation, you have to think carefully. You should also look for a health insurance plan that meets your own needs because, in addition to insurance coverage, it is also tax deductible.
General life insurance as charged up to 100,000 Baht
Annuity life insurance as charged up to 15% of income but up to 200,000 Baht
Health insurance as charged up to 25,000 Baht, when combined with general life insurance, up to 100,000 Baht
Parents' health insurance as charged up to 15,000 Baht
For more details, call 1766.
- Underwriting is subject to the Company’s rules.
- Premium is eligible for tax deduction. Conditions are as specified by the Revenue Department.
- Conditions are as specified by Muang Thai Life Assurance PCL and the banks.
- Please study details of coverage, conditions and exclusions before making a decision to purchase insurance.
Sources: data retrieved on 10/12/2021
🔖 bangkokbiznews (data as of 02/01/2022)
🔖 thansettakij (data as of 26/12/2021)
🔖 allwellhealthcare (data as of 30/12/2021)