Life insurance premium is one of the specific allowances that are allowed to use as deduction for computation of a taxpayer’s personal income tax in Thailand.
Life insurance premiums actually paid by taxpayer or his/her spouse on the taxpayer’s own life in amount not exceeding Baht 100,000 are allowed as a deduction for the calculation of personal income tax as long as the insurance policies are for a minimum period of 10 years and the insurer’s life insurance business is registered in Thailand.
For life insurance policies carried out from 1 January 2009 on wards, the amount of any health or accident premiums enclosed will not be deductible. Additionally, if the policy includes savings plan which provides an annual return to the policy holder exceeding 20% of the annual premium, the whole amount of insurance premium will be non-deductible.
However, qualified pension life insurance premiums paid to a Thailand based insurer from year 2010 on wards are allowed as a deduction in an amount not exceeding 15% of total taxable income with a maximum of Baht 200,000. Nevertheless, such allowance along with the contribution to a registered provident fund, the welfare fund, the investment in a retirement mutual fund, long term equity fund and the civil servant pension fund should not exceed Baht 500,000 in the same tax year.
Moreover, a life insurance premium paid for the taxpayer’s spouse who does not earn income is also allowed as deduction provided that their marital status still exists throughout the tax year and the amount paid is up to a maximum of Baht 10,000.
Consult with MSNA, English speaking accountants for your accounting and taxation needs.