Tax benefits from a life insurance savings account
On 26 July 2016, the Cabinet approved in principle a draft ministerial regulation (MR) that will grant a personal income tax deduction of up to 100,000 baht for the amount of money deposited by taxpayers into a life insurance savings account. In addition, money or any benefit received due to such deposit will also be exempt from personal income tax.
Keywords: Mazars, Thailand, Tax, Payroll, MR, PIT
31 August 2016
To be entitled to the tax deduction or exemption above, the following criteria must be met:
1. Taxpayers must deposit the money with a bank which is organized under specific laws of Thailand (such as the
Bank for Agriculture and Agricultural Cooperatives or the Government Saving Bank).
2. The money must be deposited into a life insurance savings account with an agreement by the bank to pay money or benefits based on the taxpayer’s life or death.
3. The duration of the deposit period must be 10 years or more.
4. The tax deductible amount under this MR, when included with the amount paid as life insurance premiums, must not exceed 100,000 baht.
This MR is set to be effective from the 2016 tax year onwards.