On 17 Jul 2024, Thailand Tax Ministerial Regulation No.394 (2567) was gazetted, increasing the exemption from personal income tax for lump-sums received on involuntary terminations of employment.

This Tax Insight has been updated for the prescription in Min Reg No.394.

For residents of Thailand, including foreign residents of Thailand, Thai personal income tax law permits the following deductions against assessable income:

• Deductions for expenses,
• Deductions for allowances, and
• Deductions for income exempt from tax.

Deductions for Expenses

Deduction against category (1) income derived from salaries, wages, pension, etc.		50% of assessable income but not more than 100,000 Baht
Deduction against category (2) income derived from services fees, agent fees, meeting fees, directors fees, etc.		50% of assessable income but not more than 100,000 Baht
Deduction against category (3) income derived from goodwill, copyright, and other rights		50% of assessable income but not more than 100,000 Baht*
Deduction against category (5) income derived from rental of property		30% for houses buildings vehicles* 20% for agricultural land* 15% for other land* 10% for other property*
Deduction against category (6) income derived from professional services		60% for medical services* 30% for engineering, architecture, legal and accounting services*
Deduction against category (7) income derived from construction services		60% of assessable income*
Deduction against category (8) income derived from business, commerce, ag-riculture, industry, transport activities		60% of assessable income*
* For these deductions, a taxpayer can choose to claim the shown percentage as expenses (without substantiation) or actual expenses (with substantiation)

Deductions for Allowances

​Care Allowances

For care of self (taxpayer)		60,000 Baht
For care of dependent spouse		60,000 Baht
For care of dependent minor child or child not over 25 yrs studying at an educational institution either in or outside Thailand and having not more than 30,000 Baht income		30,000 Baht for a biological child 30,000 Baht for an adopted child* 60,000 Baht for a 2nd and further biological child born in/after 2018
* If claiming for an adopted child, the allowance for care of dependent children is limited to 3 children in total
For care of a dependent parent of a taxpayer or spouse, 60 yrs of age or older, living in Thailand, and having not more than 30,000 Baht income		30,000 Baht for each
For care of a dependent disabled or incompetent person in Thailand		60,000 Baht for each

Parents ​Health Insurance Allowance

For health insurance premiums of the parents of taxpayer or spouse, 60 yrs of age or older living in Thailand, and income not more than 30,000 Baht

Amount actually paid but not more than 15,000 Baht for each

Spouse's Life Insurance Allowance

For a spouse's life insurance premiums paid to a Thailand Insurance Company

Amount actually paid but not more than 10,000 Baht

Taxpayer's Life and ​Health Insurance Allowance

For taxpayer's life insurance premiums paid to a Thailand Insurance Company		Amount actually paid but not more than 100,000 Baht*
For taxpayer's life insurance premiums paid to a Thailand Insurance Saving A/c		Amount actually paid but not more than 100,000 Baht*
For taxpayer's health insurance prem- iums paid to a Thailand Insurance Co		Amount actually paid but not more than 25,000 Baht*
* The total deduction for these tax allowances cannot exceed 100,000 Baht

Provident Fund, ​Retirement Fund, RMF and SSF Investment Allowances

For the investment of a taxpayer in a Thailand Insurance Pension Fund		Amount invested of not more than 15% of assessable income, and not more than 200,000 Baht*
For the investment of a taxpayer in a Thailand Provident Fund		Amount invested of not more than 15% of assessable income, and not more than 500,000 Baht*
For the investment of a taxpayer in a Thailand National Savings Fund		Amount invested of not more than 15% of assessable income, and not more than 500,000 Baht*
For the investment of a taxpayer in a Thailand Retirement Mutual Fund		Amount invested of not more than 30% of assessable income, and not more than 500,000 Baht*
For the investment of a taxpayer in a Thailand Super Savings Fund		Amount invested of not more than 30% of assessable income, and not more than 200,000 Baht*
* The total deduction for these allowances cannot exceed 500,000 Baht

​Home Loan Interest Costs Allowance

For the home loan interest costs of a taxpayer paid on a home mortgage

Amount actually paid but not more than 100,000 Baht

​Social Security Fund Allowance

For the contributions of a taxpayer to the Thailand Social Security Fund

Amount actually contributed

Closed-Circuit TV Costs Allowance*

For the purchase and installation of a CCTV system for business premises in Southern Border Provinces during the period of 01 Jan 2024 to 31 Dec 2026

Amount actually paid

* As prescribed in Royal Decree (No 785) gazetted on 05 June 2024.

Baby Delivery Costs Allowance

For the baby delivery costs paid by a taxpayer		Amount actually paid but not more than 60,000 Baht per delivery*
* If over 2 years, the total for the 2 years shall not be more than 60,000 Baht

Social Enterprise Investment Allowance

For the investment of a taxpayer in a Thailand Social Enterprise

Amount of the investment but not more than 100,000 Baht

ESG Mutual Fund Investment Allowance

For the investment of a taxpayer in a Thailand ESG Mutual Fund during the period of 01 Jan 2024 to 31 Dec 2026

Amount invested of not more than 30% of assessable income, and not more than 300,000 Baht*

* As resolved by the Government on 30 July 2024, but not yet enacted.

Shopping Tax Allowance 2024

For a taxpayer's purchases of goods and services during the period of 01 Jan 2024 to 15 Feb 2024

Amount actually purchased but not more than 50,000 Baht

Home Construction Costs Tax Allowance*

For a taxpayer's construction of a new residential building during the period of 09 Apr 2024 to 31 Dec 2025

10,000 Bht for each 1,000,000 Bht of construction costs actually paid but not more than 100,000 Baht

* As prescribed in Ministerial Regulation No 393 gazetted on 10 April 2024.

Deductions for Income Exempt from Tax

Disabled Taxpayer

Exemption from income tax (deduction against income) for a disabled taxpayer under 65 years of age

Amount of assessable income up to 190,000 Baht

Taxpayer 65 Years of Age or Older

Exemption from income tax (deduction against income) for a taxpayer 65 years of age or older

Amount of assessable income up to 190,000 Baht

Lumpsum Termination Payments

Exemption from income tax (deduction against income) for taxpayers receiving a lumpsum payment for an involuntary termination under the labor law

Amount of the lumpsum received that is not more than the last 400 days of wages or salary, and not more than 600,000 Baht in total*

* As amended by Ministerial Regulation No 394 (2567) gazetted on 17 July 2024 and applying from and including the 2023 tax year.

Donations

Exemption from income tax (deduction against income) for taxpayer donations entitled to the 100%/200% concessions

Not more than 10% of a subtotaled amount of net income immediately before the donation deduction

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