At the present, Revenue Department of Thailand allows individual income earners to exercise tax benefit from life insurance purchase up to THB 300,000 per year.* However, not all life insurance policies are qualified for such benefit, they must be complied with conditions set by Revenue Department, in terms of policy details and conditions by tax deductible premium types.
Eligible claimants must well comprehend about the regulations in order to properly and worthily gain the benefit. Two types of life insurance premium with tax deduction privilege are as followings:
1. Life insurance and health rider premium of income earner oneself is permitted for annual tax deduction benefit of actual amount paid up to THB 100,000 maximum, and the premium must hold the following characteristics:
2. Life insurance premium of pension plan(s) for income earner oneself is additionally permitted for annual tax deduction benefit of 15% of total taxable income but not over THB 200,000 maximum, and the amount of which must not be over THB 500,000 in total, when being combined with provident fund, government pension fund, private teacher aid fund, and retirement fund (RMF).
In addition, the conditions of tax deductible insurance products must be carefully studied, according to the announcements of Revenue Department.*
Life protection focus with lump sum cash benefit for loved ones
Savings focus with periodical payouts and lump sum cash benefit for one self
Pension and retirement planning focus
1. Health insurance premium for the parents of income earner is permitted for annual tax deduction benefit up to THB 15,000 each, and the premium must hold the following characteristics:
Health protection focus with coverage for inpatient medical treament and surgery expenses
Accidental protection focus with coverage for medical treatement and surgery expenses, including indemnity for dismemberment, disability, and death from accident
Dread disease focus with lump sum cash payment benefit when the dread disease diagnosed
In case of parents buying a life insurance policy for their child, the parents will not get income tax deduction benefit. Only life insurance premium for oneself or for spouse without income, and health insurance premium for parents are granted for individual income tax deduction benefit.
* Announcements from Director General of Revenue Department of Thailand no. 162, 172, 194 and 261
** New rule by Revenue Department will be applied for tax year 2015 onwards. The tax deduction benefit for pension life insurance premium is calculated from taxable income only, excluding tax exempted income such as profit income gaining from investment in Stock Market of Thailand or price receiving from Thai government lottery etc.
Company's standard underwriting and claim reimbursement guidelines are applied.