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Personal income tax in Thailand: pay less with a health insurance plan

Attention all expatriates that work and pay taxes in Thailand. Did you know that with the purchase of a health insurance plan for the current tax period, you can reduce your taxable income? Policyholders in the Land of Smiles can expect to reduce their taxable income by up to THB ฿ 25,000. That’s no small change!

To find out more, continue reading this article by Pacific Prime Thailand and learn how to save by securing a suitable health insurance plan.

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Understanding the process of taxation

In Thailand, the tax year runs from January 1st to December 31st. As an expatriate, it is your responsibility to register for a tax identification number, which should be done at the nearest revenue office. You are encouraged to seek the support of your employer, who may have an ongoing service for sorting out taxes. You are then required to file your income tax returns and pay any due tax to the revenue department by March 31st for each previous tax year. For instance, tax filing to be done before March 31, 2022, for the previous 2021 tax period.

What is Personal Income Tax (PIT) in Thailand?

According to the revenue department, the definition of PIT is a direct tax levied on the income of a person. A person is an individual, an ordinary partnership, a non-juristic body of the person, and an undivided estate.

Taxpayers are typically classified into “resident” and “non-resident”. “Resident” is any person that has resided in Thailand for 180 consecutive days in any tax year (calendar). A genuine resident of Thailand is liable to pay tax on income from sources in Thailand, as well as income into the country that is derived from foreign sources. On the other hand, a non-resident is subject to tax only on income from sources in Thailand.

Expatriates are encouraged to review their status with their Thai employers and confirm their type of residency. Additionally, working expatriates in Thailand are responsible for sorting out their PIT. This is why expatriates are advised to get support earlier in the year to ensure all their tax filings are completed well and on time.

Personal taxation for expats in Thailand

As an expatriate working in Thailand, it is your responsibility to register for a tax identification number (TIN) from the Revenue Department. The full tax year runs from January 1st to December 31st. You must pay any due tax to the Revenue Department by March 31st for each previous tax year. For instance, tax filing has to be done before March 31, 2022, for the previous 2021 tax period.

Buying health insurance to reduce taxable income

In Thailand, the government promotes the purchase of health insurance and allows buyers to use their policy as a form of tax allowance. For tax filing purposes, the Revenue Department allows health premiums of up to THB ฿ 25,000 per annum when filing tax returns.

Contact your HR or accounting department for tax filing

As taxation is pretty complicated, it is best to get assistance from someone who works in your HR or accounting department such as a senior member of staff who has experience to help guide you along the way. Generally, expats in Thailand will always have some form of assistance. Some Thai companies even have services dedicated to helping expatriates when it comes to filing their tax. Just make sure you trust and can rely on the support you are given.

How do I get a health insurance plan in Thailand?

You needn’t look far to find a comprehensive and effective health insurance plan. Pacific Prime Thailand has the experience, knowledge, and expertise to help expatriates find a plan that meets their needs and budget. With tax deduction aside, having a suitable health insurance plan can help save you from paying out-of-pocket for a medical emergency. You are probably aware of the substantial cost of receiving treatment within a private hospital. This is because private hospitals in Thailand are world-renowned for providing exceptional care and medical services.

If you are planning to travel abroad, why not consider an international health insurance plan that offers global coverage and substantial benefits such as direct billing and in-network healthcare facilities?

With Pacific Prime Thailand, our multilingual staff can offer impartial advice and compare health insurance plans from several local and global insurance partners including:

Contact us today to speak to an advisor!

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Content Creator at Pacific Prime Thailand
Jimmy is a content writer who helps simplify insurance for readers interested in international private medical insurance. He is on a mission in Thailand to support locals, expatriates, and businesses by bring the latest news and updates to his Pacific Prime blog articles.

His expert view and wealth of knowledge on insurance can also be found in his blogs for China, Dubai, Hong Kong, and Singapore.