What Types of Donations an Get You Double Tax Deductions?

It's that time of year again for filing personal income tax returns. For single individuals earning over 120,000 Baht per year or other income types starting at 60,000 Baht per year, and for married couples earning over 220,000 Baht or other income types starting at 120,000 Baht per year, it’s time to file your taxes. You can do this either via paperwork or online. Today, let's explore what expenses can be used for tax deductions. For superstitious person and those who love making merit, don't miss out, as donations can give you double tax deductions. Let's see which types of donations qualify for double deductions!

What are the tax deduction categories for 2023?

Which donations can get you double tax deductions?

What are the tax deduction categories for 2023?

Have you ever checked how much tax is being deducted from your salary every month? If you haven't, it's time to check because, when calculated over a year, you might find you're paying more tax than you thought. So, it's a good idea to start planning your tax deductions now. The tax deduction categories for 2023 are divided into four main groups:

Personal and Family Deductions

• Personal deductions: Taxpayers can claim a personal deduction of 60,000 Baht, which can be applied immediately upon filing your annual income tax return (P.N.D. 90/ P.N.D. 91).

• Spousal deductions: The law allows for a spousal deduction of 60,000 Baht, provided the marriage is legally registered and the spouse (husband or wife) has no income during that year. If both husband and wife have income, they can file jointly to claim the spousal deduction.

• Child deductions: The law allows for a deduction of 30,000 Baht per legal child. If the second child was born after 2018, you can claim a deduction of 60,000 Baht per child. If you have adopted children, or a mix of biological and adopted children, you can claim deductions for up to three children, but they must still be alive. Children must be under 20 years old to qualify; if they are between 21-25 years old, they must be studying at a vocational level or higher, and their income must not exceed 30,000 baht per year (except in the case of dividends).

• Parental deductions: If you support your parents, you can claim a deduction of 30,000 Baht per parent, provided they are your legal or biological parents, aged 60 or above, with an income not exceeding 30,000 Baht per year.

• Deductions for disabled or handicapped dependents: You can claim a deduction of 60,000 Baht per person, with required documentation including a disability ID card or medical certificate and a certificate of support (LY.04).

• Pregnancy and childbirth expenses: These can be deducted up to 60,000 Baht, but must be expenses incurred from 2018 onwards and paid to a state or private hospital. If you are pregnant this year but give birth next year, you can claim the deduction in the year the expenses were paid, but the total deduction cannot exceed 60,000 Baht.
  

Health and Life Insurance

• Life insurance: You can claim deductions for life insurance premiums or life-insured savings deposits paid throughout the year, up to a maximum of 100,000 Baht, provided the policy offers at least 10 years of coverage and is issued by an insurance company in Thailand.
• Health insurance: Health insurance premiums can be deducted up to 25,000 Baht, but the combined deduction for life and health insurance premiums must not exceed 100,000 Baht.
• Parental health insurance: You can claim a deduction for premiums up to 15,000 Baht, provided your parents' income does not exceed 30,000 Baht per year. You can claim this deduction without your parents needing to be 60 years old.
• Pension life insurance: You can claim 15% of taxable income, up to a maximum of 200,000 Baht, for pension life insurance premiums, provided the policy offers at least 10 years of coverage and is issued by an insurance company in Thailand.
• Social security contributions: You can claim the actual amount paid, up to a maximum of 9,000 Baht per year (according to the social security contribution rate of 5% calculated from the ceiling of 15,000 Baht or a maximum of 750 Baht per month).
  

Savings and Investments

• Retirement Mutual Fund (RMF): You can claim up to 30% of taxable income, up to a maximum of 500,000 Baht, for RMF contributions, provided the total deduction for all retirement savings does not exceed 500,000 Baht.
• Super Savings Fund (SSF): You can claim up to 30% of taxable income, up to a maximum of 200,000 Baht, for SSF contributions, provided the total deduction for all retirement savings does not exceed 500,000 Baht. There are additional conditions, such as a minimum 10-year holding period.
• Provident Fund, GPF, and Private School Teacher Welfare Fund: You can claim up to 15% of taxable income, up to a maximum of 500,000 Baht, for contributions to these funds.
• The National Savings Fund (NSF) can be used for tax deductions based on the actual amount paid, up to a maximum of 30,000 Baht per year. When combined with the RMF, the Government Pension Fund, provident funds, the Private School Teachers' Welfare Fund, and annuity insurance premiums, the total deduction must not exceed 500,000 Baht.
  

Economic Stimulus

• Home loan interest: You can claim actual home loan interest paid in 2023, up to a maximum of 100,000 Baht. If you have a joint loan, the deduction will be divided according to the number of co-borrowers.
• Shop Dee Mee Kuen 2023 (Shop and Payback): You can claim actual expenses incurred from purchasing goods or services within Thailand between 1 January and 15 February 2023, up to a maximum of 40,000 Baht.
  

Donations

Donations eligible for double tax deductions: Donations for education, sports, social development, and government medical facilities can be claimed at twice the amount donated, but not exceeding 10% of income after other deductions. General donations can be claimed at actual amounts, but not exceeding 10% of income after deductions. Donations to political parties can be claimed up to a maximum of 10,000 Baht.

Which donations qualify for double tax deductions?

You can earn merit while also enjoying double the tax deduction with the special tax benefits for donations. Donations that qualify for this special deduction can be deducted at twice the actual donation amount, but the total deduction must not exceed 10% of your income after expenses and other deductions. To check which donations qualify for the double deduction, it is recommended to visit the Revenue Department's website and review the list of eligible organizations.

Where can you donate to get double tax deductions?

Educational Institutions

This includes state and private schools and higher education institutions, provided the donation is for facilities, teaching materials, and personnel. Donations must be made through the e-Donation system to qualify for double deductions.

Government Medical Facilities

Donations directly to hospitals qualify for double deductions. However, donations to hospital foundations only qualify for single deductions. Always check the receipt for confirmation.

Other Qualified Organizations: These include sports organizations under the Sports Authority of Thailand, the Fund for the Development of Teachers and Educational Personnel established by the Ministry of Education, local government organizations for early childhood development, rehabilitation centers for children, the Justice Fund, and donations for disabled people to access public facilities. 

• To qualify for double deductions, donations must be made through the e-Donation system.

Required Documentation:
Keep the receipt or donation certificate that includes the name of the recipient organization, the date of the donation, the donor's name, and the amount donated.

With this comprehensive information, don't forget to plan your tax deductions for the 2023 tax year to maximize your benefits and manage your finances effectively. In addition to double tax deductions for donations, other deductions like health insurance can also save you up to 25,000 Baht in taxes.

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More information
☑️ ️Call Tel. 1766, available 24/7.
️☑️ Contact life insurance agent or Kasikornbank branches.

• Health riders must be attached to an effective policy.
  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 as specified by Muang Thai Life Assurance PCL and the Bank.
  Conditions are according to the medical standard and necessity.
• Please study the details of coverage, conditions and exclusions before making a decision to purchase insurance.
  

Sources: Data retrieved on 30/11/2023

🔖 finnomena (data as of  21/11/2023)
🔖 thaipbs (data as of  07/11/2023)
🔖 finnomena (data as of  05/03/2021)
🔖 dst (data as of 06/11/2023)