Thailand

Employment expenses

A standard deduction of 50%, with a limit of THB 100,000, is permitted in respect of income from employment. Business deductions are not available against employment income.

Personal deductions

Charitable contributions

Donations in the following categories are deductible in the amount donated but not exceeding 10% of net income after all allowances and deductions:

• Donations to educational institutions, public health care facilities, religious institutions, and approved charities.
• Donations in cash to political parties or in cash, assets, or other forms of benefit to support activities for raising funds of political parties, up to THB 10,000.
• E-donations to the Royal Forest Department for supporting the Community Forest Partnership for Climate Action Programme of the Ministry of Natural Resources and Environment from 1 January 2023 to 31 December 2027.

All donations in the following categories are allowed a double deduction to the extent that the combined amount does not exceed 10% of net income (assessable income after allowances and deductions):

• Donations in support of education (e.g. buildings, computers, books, teachers) under projects approved by the Ministry of Education.
• Donations to state hospitals.
• E-donations to the Equitable Education Fund from 1 January 2024 to 31 December 2028.
• E-donations to the Chai Pattana Foundation, the Information Technology Foundation under the Royal Initiative of HRH Princess Maha Chakri Sirindhorn, and the Ramathibodi Foundation under the Royal Patronage of HRH Princess Maha Chakri Sirindhorn from 26 July 2022 to 31 December 2024.
• E-donations to the Sports Authority of Thailand, Provincial Sports Committees, Provincial Sports Associations, sports associations, or the National Sports Development Fund from 1 January 2023 to 31 December 2024.
• E-donations to the Thai Red Cross Society or medical and public health foundations from 1 January 2023 to 31 December 2024.
• E-donations to the Metrology System Development Fund, the Public Health System Development Fund, the Science and Technology Development Fund, and the Thailand Science Research and Innovation Fund from 1 January 2023 to 31 December 2025.

Life insurance premiums

Life insurance premiums, in an amount not exceeding THB 100,000, paid by a taxpayer on one's own life are allowed as a deduction, provided that the insurance policies are for a minimum period of ten years and the insurer is carrying on a life insurance business in Thailand. If the policy includes a savings plan that provides an annual return to the policy holder exceeding 20% of the annual premium, the entire premium will be non-deductible.

Qualified pension life insurance premiums paid to a Thai insurer are available as a deduction in an amount not exceeding 15% of total assessable income with a maximum of THB 200,000. However, this allowance, together with the contribution to a registered provident fund, the civil servant pension fund, the teacher's welfare fund, and the investment in retirement mutual funds and super savings funds, may not exceed THB 500,000 in the same tax year.

In addition, the amount paid, up to a maximum of THB 10,000, for a life insurance premium for the taxpayer's spouse who does not earn income is also allowed, provided the marital status exists throughout the tax year.

Health insurance premiums

A health insurance premium, up to a maximum of THB 25,000, paid to a life or non-life insurance company in Thailand by a taxpayer for one's own health is allowed as a deduction. However, the deduction for this premium together with the above life insurance premiums paid cannot exceed THB 100,000 in total.

A health insurance premium, up to a maximum of THB 15,000, paid to a life or non-life insurance company in Thailand for the taxpayer's parents or the parents of the spouse of the taxpayer is allowed as a deduction.

Expenses for antenatal care and child delivery

A deduction of up to THB 60,000 for each pregnancy is allowed for expenses paid by the taxpayer or spouse for antenatal care and child delivery. If the expenses for each pregnancy are not paid in the same tax year, the amount actually paid in each tax year is allowed, but in total no more than THB 60,000.

Mortgage interest expenses

Mortgage interest incurred for the purpose of purchase or construction of a residential building in Thailand may be deducted up to a maximum of THB 100,000.

Retirement mutual fund contribution

A contribution to a retirement mutual fund is deductible in an amount not exceeding 30% of assessable income received that is subject to income tax, with a maximum of THB 500,000 in any tax year. However, if the taxpayer also has any of the contributions noted above under qualified pension life insurance, they must be included in the THB 500,000 limit.

Super savings fund investment

An investment in a super savings fund is deductible in an amount not exceeding 30% of assessable income received that is subject to income tax, with a maximum of THB 200,000 in any tax year. However, if the taxpayer also has any of the contributions noted above under qualified pension life insurance, they must be included in the THB 500,000 limit.

Thai environmental, social, and governance (ESG) fund investment

An investment in a Thai ESG fund in an amount not exceeding 30% of the assessable income subject to income tax, with a maximum limit of THB 100,000 in total, can be deducted during the period from 21 November 2023 to 31 December 2032. The investor must hold the units for at least eight years.

However, the Cabinet has approved special conditions for deductions on investments in a Thai ESG fund from 1 January 2024 to 31 December 2026. Under these conditions, the amount not exceeding 30% of the assessable income subject to income tax, with a maximum limit of THB 300,000 in total (instead of THB 100,000), can be deducted. The investor must hold the units for at least five years instead of eight years.

Until the ministerial regulation of the new conditions is in effect, the prior conditions must be used, which include a maximum limit of THB 100,000 and a holding period of at least eight years. Additionally, from 1 January 2027 to 31 December 2032, the deductions will revert to these prior conditions.

Social Security Fund contribution

The contribution to the government's social security fund is also deductible.

Personal allowances

There is a personal allowance of THB 60,000 each for the taxpayer and the taxpayer’s spouse (provided that the taxpayer's spouse does not file one's own return). There is also an allowance of THB 30,000 for each child and an additional THB 30,000 for the second child onwards born in or after 2018. Moreover, an allowance for parental care of THB 30,000 per parent is deductible. A non-resident is allowed deductions for spouse, children, and parent only if they are resident in Thailand.

In addition, a deduction is allowed for the care of disabled or incapacitated family members of THB 60,000 per person and for the care of a disabled or an incapacitated person other than a family member of THB 60,000 in total.

Business deductions

In the case of individuals engaged in business or the practice of a profession, all expenses exclusively incurred for the purpose of the business may be deducted, subject to the various rules prescribed in the Revenue Code. Alternatively, a standard deduction ranging from 10% to 60%, depending on the nature of the business, may be applied.

Losses

For individuals, the carryforward or carryback of losses is not permitted.