News No. : 1/2009
Date : 28 October 2008
Subject : Calculating deductible allowance for life insurance premium in the case of combined insurance scheme.
-------------------------------------------------------------------------------------------------------------------------------- With respect to the Revenue Departments proposal on tax law amendment to increase the maximum deductible allowance for life insurance premium up to 100,000 baht for any life insurance premium paid from 1st January 2008 onwards, currently the proposed tax law amendment had passed all the legal procedures and has become effective.
Nonetheless, the Office of Insurance Commission (OIC) has expressed its concern towards the assured whether they are aware of regulations and conditions for deducting such allowance which may lead to inaccurate tax calculation and payment, especially in the case where the assured has applied for combined insurance scheme such as life insurance combined with health insurance. This led to a meeting between OIC, Fiscal Policy Office and the Revenue Department on 21st October 2008 resulting in the following conclusion. In calculating the deductible allowance, a taxpayer must provide document, issued by his or her respective insurance company, which states clearly the proportion of insurance premium that goes to life insurance premium. Only such amount can be used for deduction.
Mr. Satit Rungkasiri, Principal Advisor on Strategic Tax Administration (Finance and Banking) and the spokesperson of the Revenue Department, added that OIC would be in charge of instructing the insurance companies in order to accurately issue the required documents.
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