News No.   : 6/2007

Date              : 27 December 2006

Subject        : Tax relief for gratitude child.

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                         The Revenue Department, the Ministry of Finance, has launched a New Year present for Thai families. Taxpayers may deduct their or spouse’s parents’ health insurance premium as allowances for tax purpose at the amount not exceeding 15,000 baht (fifteen thousand baht). This will apply to insurance premium from the year 2006 onwards which satisfies the following conditions:

                         Parents with health insurance must have assessable income not exceeding
                         30,000 baht;
                         Taxpayers must be legitimate children (adopted children cannot make
                         the claim);

                        In the case where there are many taxpayers pay for their parents’ health insurance premium, each taxpayer shall claim for the allowance in proportion of the amount he/she actually paid, but not exceeding 15,000 baht in total.
In the case of where only either husband or wife earns income, such husband or wife shall be granted the allowance at the amount actually paid but not exceeding 15,000 baht.

                        Such health insurance will cover medical expenses for illness and injury, payments in the case of disability and organ loss due to illness or injury. This includes payments in the case of accidents but only on medical treatment, disability, organ loss and bone breaking, Critical Illness and Long Term Care insurance approved by the Department of Insurance.
Taxpayer must have receipt or certificate from the insurance company to be used as evidence for claiming allowance. The receipt or certificate must contain at least the following elements:

                        Name surname and personal identification number of the insured person;

                        Name (s) and surname (s) of insurance premium payer (s);

                        Name address and tax identification number of the insurance company;

                        The amount of the insurance premium granted for allowance;

                        The phrase “Legitimate exemption for tax purpose is ……. baht"
 

                        Mr. Satit Rungkasiri, Deputy Director-General and the spokesman of the Revenue Department, said that this policy not only helped creating stronger relationship within the family by allowing children a more qualitative way to look after their parents, but also helped to insure the elders’ health. In addition, health insurance is an alternative way that people can choose to take care of their medical treatment and to look after their health.

                        With respect to the impact on the revenue collection of the government, such impact would be small. Beside, this policy may play a role in reducing the government expense on health care.