Directions  |   Contact

png Logo OF Word AO, Logo of Admin Outsourcing Company

Personal Allowances and Deductions

Ensure compliance with all legal obligations through our meticulous handling of personal allowances and deductions.

finance accountant in front of table using calculator and paper for Personal Allowances and Deductions​ service.

 

In Thailand, “personal allowances and deductions” and “other allowable deductions” play a crucial role in determining an individual’s net income for tax purposes. The Thai Revenue Department oversees the taxation system and allows individuals to claim personal allowances and deductions from their net income, aiding in the minimization of tax liabilities.

This comprehensive system is designed to provide tax resident individuals in Thailand with a fair framework for planning and calculating personal income taxes. The process involves deducting standard expenses from the gross income in the form of Personal Allowances, as described below. After this deduction, individuals can further reduce their taxable income by claiming various Other Allowable Deductions.  These deductions are essential for ensuring that taxpayers are not burdened with excessive tax obligations and can effectively plan their finances and their long-term savings for the future.

 

Personal Allowances and Deductions:

Each Personal Income Taxpayer is entitled to deduct a range of allowances to reduce their personal taxable income and, subsequently, their tax liability. These allowances include:

  1. Personal, Spouse (if spouse has no income) and Children: Taxpayers can claim allowances for themselves, their spouse, and their dependent children, helping to alleviate the overall tax burden.
  2. Parent allowances: Deductions can be allowed for the taxpayer and/or their legal spouse for their parents over 60 years of age with income less than THB 30,000.
  3. Disabled Care allowances: Depending on specific circumstances, taxpayers are allowed to receive deduction for the care of disabled or incompetent family members; furthermore, care of a disabled or incompetent person other than a family member (limited to 1 person).

Other Allowable Deductions:

Several other deductions are allowed to reduce personal taxable income, which include:

  1. Life Insurance, Pension Insurance, and Health Insurance: These premium contributions are often eligible for deductions, encouraging individuals to invest in protecting themselves and their families from loss of life, health and income.
  2. Provident Fund contributions, Retirement Mutual Fund (RMF), and Super Savings Fund (SSF): Contributions to long-term savings that encourage individuals to invest in their future and their ultimate retirement.
  3. Home mortgage interest: Allowing deductions on the cost of interest paid for the purchase of your home.
  4. Social security contributions: Allowing deductions on the employees’ portion they paid during the year into the Social Security Fund.
  5. Donations: Allowing deductions aided most prominently at support of education development, governmental hospitals, justice, juvenile offenders, sports development and Thai culture and heritage. Deductions are also allowed for certain charities and benefits given for public organizations in Thailand.

It’s crucial for personal taxpayers to keep accurate records of eligible personal allowances and deductions to maximize their benefits and ensure compliance with the tax laws. Taxpayers must stay informed about the specific personal allowances and deductions available to them, as tax laws can change regularly over time. Some personal allowances and deductions that were once available may have been discontinued, and taxpayers should be aware of these changes to avoid any unintended tax consequences.

Tax resident individuals in Thailand who compliantly and fully utilize the above “personal allowances and deductions” can greatly benefit from significant annual personal income tax savings and achieve effective long-term investment / savings planning to secure their personal goals and their family’s future prosperity.

Utilizing AO’s payroll and taxation expertise ensures that individuals can optimize their tax positions while remaining in full compliance with Thai statutory and tax regulations. These services can assist in accurately calculating taxable income, maximizing relevant personal allowances and deductions, and staying updated on any changes to the tax laws that may significantly impact the success of their personal wealth plans.

 

Click Here To Learn More About: Personal Allowances and Deductions

Want to consult about Your Payroll Outsourcing? Contact us

We have specialist team ready To get started for you. 

A Picture of woman employee standing in front of grey background wall.

COO

Contact

Point of Contact

Khun Suwaree has a degree in Business Administration, majoring in accounting and an MBA. She is a seasoned accountant with more than 30 years of professional experience. She has been a Finance & Accounting Manager in various large businesses (production, trading, and services). She is experienced in several accounting programs (MYOB, Xero, QuickBooks, SAP, Navision Accounting, Formula Accounting, MS Dynamics 365, etc.) as well as B-Plus payroll software.

Her commercial mind, with an excellent grasp of Thai Tax, plays a big role in helping both local and International clients across various industries.

The Most Frequent Questions

We offer a comprehensive range of services including Accounting, Finance and Thai Taxation Services, Payroll, Corporate Services, Legal Services, and International Tax. What sets us apart is our philosophy of "Global Excellence, Local Mastery." We provide world-class services tailored to the local business environment in Thailand and other international markets.

Our pricing is both competitive and transparent. We offer standard packages, but we also understand that every business is unique. Therefore, we offer customizable packages that can be tailored to meet your specific needs.

We work with a wide variety of businesses, ranging from startups to established corporations across various industries. While our expertise is broad, our localized knowledge allows us to offer specialized services tailored to different industry requirements.

If you have more questions?

Compliance is at the core of our services. Our team of experts stays up-to-date with the latest legal and financial regulations, both locally and internationally, ensuring that your business adheres to all current laws and best practices.

Our free consultation is a no-strings-attached session where we assess your business needs and challenges. There's absolutely no obligation to commit; the consultation is an opportunity for you to get to know us and for us to understand how we can best serve you.

Our team participates in ongoing training and professional development. We also closely monitor regulatory updates and industry trends, both in Thailand and globally, to ensure we're offering the most current and effective solutions to our clients.