Tax Deductions 2024: Ask About New Insurance for Big Tax Savings!
Before entering the new year, for those with incomes exceeding 120,000 Baht per year and required to file personal income tax, it's necessary to prepare in advance for tax deductions, so you don't have to wait until the end of the year. Even though filing personal income tax for 2023 is already complete, we can start planning tax deductions for 2024 to benefit immediately from the beginning of 2025! With suitable insurance, not only does it help protect finances, but it can also provide tax deductions! Let's explore the list of insurances that can be tax deductible and choose the right insurance for you today!
- Checklist: Tax Deduction Items for 2024
- Health Insurance: The First Must-Have for Tax Deductions
- Tax-Deductible Insurances in 2024: Which One Should I Buy?
Checklist: Tax Deduction Items for 2024
Tax deductions can be divided into 4 groups, each with different applications for tax reduction. These groups include personal and family tax deductions, investment and insurance tax deductions. Each group has its own details as follows.
1. Personal and family tax deductions
1.1 Personal deduction: Up to 60,000 Baht can be deducted without conditions.
1.2 Spousal deduction: Up to 60,000 Baht can be deducted for a legally registered spouse who has no income (up to 1 person).
1.3 Expenses for antenatal care and child delivery: The right is given to the wife with income to exercise the tax deduction rights as paid, but not exceeding 60,000 Baht per pregnancy.
1.4 Child deduction: 30,000 Baht/person
- Must be a legally registered child or an adopted child who has been officially registered.
- Must be under 20 years old, or under 25 years old and currently pursuing education at a university or higher education (diploma and above)
- If over 25 years old but deemed as an incompetent or quasi-incompetent person, still eligible for tax deduction.
- From the second child born after 2018, each child can be deducted up to 60,000 Baht.
1.5 Deductions for taxpayer’s and his/her spouse’s parental care: 30,000 Baht/person, up to 4 persons and 120,000 Baht
- Parents must be over 60 years old and have an annual income not exceeding 30,000 Baht. This deduction cannot be claimed if already claimed by siblings.
- The parents must not be foster parents.
1.6 Deductions for disabled person or incompetent person support: 60,000 Baht/person and the disabled person must have an annual income not exceeding 30,000 Baht and possess a disability identification card. Additionally, a certification of caregiver status is required.
2. Tax deductions from investment and insurance
2.1 Life insurance and savings Insurance premiums are deductible up to the actual amount paid, not exceeding 100,000 Baht.
2.2 Health insurance premiums are deductible up to the actual amount paid, not exceeding 25,000 Baht. (can be combined with 2.2 Life insurance and savings insurance premiums, not exceeding 100,000 Baht)
2.3 Social Security contributions are deductible up to the actual amount paid, not exceeding 9,000 Baht.
2.4 Health insurance premiums for parents are deductible up to the actual amount paid, not exceeding 15,000 Baht.
2.5 Investments in social enterprise businesses can be deducted up to the actual amount invested, not exceeding 100,000 Baht.
2.6 Annuity insurance premiums are deductible up to 15% of the actual income, not exceeding 200,000 Baht. Financial planning with annuity insurance not only reduces taxes but also provides additional funds upon retirement.
2.7 Retirement Mutual Funds (RMF) are deductible up to 30% of the actual income, not exceeding 500,000 Baht.
2.8 Super Saving Funds (SSF) are deductible up to 30% of the actual income, not exceeding 200,000 Baht.
2.9 Provident Fund (PVD) / Private Teacher Aid Fund contributions are deductible up to 15% of the actual income, not exceeding 500,000 Baht.
2.10 Government Pension Fund (GPF) contributions are deductible up to 30% of the actual income, not exceeding 500,000 Baht.
2.11 National Savings Fund (NSF) contributions are deductible up to the actual amount paid, not exceeding 30,000 Baht.
(For the insurance, savings, and investment group, deductions from Item 2.6-2.11 combined cannot exceed 500,000 Baht.)
👉 For more information about tax-deductible funds, read on for more details!
3. Charitable contributions
3.1 General donations are deductible up to the actual amount paid, not exceeding 10% of the income after tax deductions.
3.2 Donations for education, sports, social development, public benefits, and donations to government hospitals are deductible up to twice the actual donation amount, but not exceeding 10% of the income after tax deductions.
3.3 Donations to political parties are deductible up to 10,000 Baht.
👉 Want to know which type of donations can give you double tax deductions? Read on for more details!
4. Government stimulus expenses
4.1 Easy E-Receipt Campaign: You can receive tax deductions of up to 50,000 Baht for purchases made in 2023. Eligible items include VAT-paid goods, OTOP products, and books (including E-Books). You can utilize e-Tax invoices or e-Receipts from registered VAT shops as evidence for tax deductions.
4.2 Home loan interest is deductible up to the actual amount paid, not exceeding 100,000 Baht.
👉 Want to know which purchases qualify for tax deductions under the Easy E-Receipt program? Read more for details!
👉 Curious about tax invoices for tax deductions? Read more for details!
Health Insurance: The First Must-Have for Tax Deductions
For office employees with group insurance as a company benefit, it cannot be used for tax deductions. Therefore, the first deduction we would recommend is health insurance. With it, you can have additional coverage beyond what the group insurance offers, without worrying about limited coverage for medical expenses.
Furthermore, you can opt for health insurance with a deductible option, where you are responsible for the initial medical expenses before the group insurance kicks in. By purchasing additional health insurance like this, you can avoid concerns about medical costs, receive more comprehensive coverage with lower premiums, and even benefit from tax deductions.
Choosing lump-sum health insurance from Muang Thai Life Assurance allows individuals to claim tax deductions of up to 25,000 Baht per year. Alternatively, purchasing it for parents allows tax deductions of up to 15,000 Baht. Choose the right insurance plan to take care of health issues, covering cancer, heart disease, kidney disease, critical illnesses, general diseases, and accidents, with coverage ranging from 200,000 to 100,000,000 Baht.
Mao Chai Extra
Mao Chai Extra is a small health package with affordable premium and comprehensive coverage as you need, up to 500,000 Baht.(1)
- Coverage from accidents and general diseases to critical illnesses like heart disease and pneumonia
D Health Plus
D Health Plus is a medium health package with lump-sum benefits up to 5 million Baht.(2)
- Coverage from minor diseases like office syndrome, hypertension and ulcerative colitis to severe conditions like heart disease, diabetes, and accidents
- Comprehensive coverage for standard single room and medical expenses without any needs for hospital admission
Elite Health Plus
Elite Health Plus is a deluxe health package with coverage from 20 - 100 million Baht per year.
- Coverage for general diseases and critical illnesses like cancer, pneumonia, heart disease and kidney disease with benefits for room fee and medical treatment.
- You can choose from various treatment technologies, including chemotherapy, targeted therapy, and immunotherapy, as well as disease diagnosis through CT scan and MRI without the need for hospital admission.
- Worldwide treatment(3)
Want to know more about health insurance and how to choose the right one? Read more in the details below.
👉 Where to buy good health insurance and which is the right one? Read more for details!
👉 Key tips! For beginners to buy health insurance. Read more for details!
Tax-Deductible Insurances in 2024: Which One Should I Buy?
Apart from buying health insurance for health coverage and tax deductions, if you have increased income or want additional protection and tax relief, you can choose to purchase other insurance plans. These can include life insurance, annuity insurance, and savings insurance. Each plan offers different coverage, benefits, and tax deduction benefits. Therefore, before purchasing insurance, it's essential to study the details of coverage and conditions before making a decision. This ensures you receive the most suitable protection that meets your needs.
Let's see what other insurance options Muang Thai Life Assurance offers for tax deductions besides health insurance. If you don't have tax relief assistance yet, you can explore various insurance options that suit your preferences.
Savings Insurance
For those who want to plan their finances for the future, you can choose to purchase savings insurance. This provides stability, prosperity, and allows for maximum tax deductions of up to 100,000 Baht per year. It offers both investment returns and life protection, with premiums paid never lost. Choose savings life insurance from Muang Thai Life Assurance.
- Muang Thai Smart Linked Pro 10/1 (Global): A new investment-linked life insurance plan guarantees cash bonus every year throughout the contract. Pay the premium once without further burden.
- Muang Thai Smart Linked 15/3 (Global): With regular premium payment for 3 years for cash bonus every year as well as the opportunity for upside gains from investments. Easy application without health examination or questions.
Annuity Insurance
Planning for retirement can be made more effective with an annuity insurance plan. It provides both protection and confidence, ensuring you have money to spend during retirement. Moreover, annuity insurance allows for maximum tax deductions of up to 300,000 baht per year. Guaranteed annuity payment every year after retirement. Choose retirement insurance for a secure retirement plan.
- Muang Thai Return Retire Campaign: Affordable premium payment for 5 years
- Muang Thai 9901 D65 (Tax-Deductible Annuity): Single premium payment
For those who haven't explored various types of insurance but want tax deductions for the year 2024, it's recommended to consider purchasing health insurance first. This way, you'll not only receive health protection but also qualify for tax deductions. After that, you can explore purchasing other types of insurance, such as retirement insurance and savings insurance, which also offer tax deductions. Moreover, it's a way to plan for your financial future so that you won't have to worry about retirement.
For more information
☑️ Call Tel. 1766, available 24/7
☑️ Contact a life insurance agent or a branch of Kasikornbank and Land and Houses Bank
Remarks
(1) For Plan 3 which is a benefit per any inpatient hospitalization
(2) In case of choosing Plan 5 MB which is a benefit per any treatment
(3) In case of choosing worldwide coverage
(4) If you haven't exercised the tax deduction right for general life insurance premiums or if the premiums for general life insurance are still below 100,000 Baht, you can exercise the tax deduction right for annuity insurance premiums up to the full amount of 100,000 Baht. Then, you can use the remaining premium for general life insurance to claim the tax deduction for annuity insurance premium, which is a maximum of 15% of your income but not exceeding 200,000 baht.
- Coverage period of the rider must not exceed the coverage period of the life insurance policy that this rider is attached to.
- Standard single room means the starting price of a hospital single room in Thailand only.
- Premium is eligible for tax deduction. Conditions are as specified by the Revenue Department.
- Underwriting is subject to the Company’s rules.
- Conditions are according to the medical standards and necessity.
- Conditions are as specified by Muang Thai Life Assurance and Bank.
- Please study details of coverage, conditions and exclusions before making a decision to purchase insurance.
- Muang Thai Return Retire Campaign is a marketing name of Muang Thai 8505 Insurance Plan (Tax Deductible Annuity).
Source : Retrieved 06/03/2024
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