What Should You Purchase In Order To Maximize Tax Deductions?

When it comes to taxes, most people would think that it is a complicated thing as there are laws involved. To reduce tax liability and get the most potential refunds, it is important to make informed decisions about deductible expenses. Although tax seems complicated and intimidating, tax planning is essential for everyone who has income. Actually, it is quite simple for them as they are required to fill the individual tax returns. Calculating taxes and identifying opportunities for deductions can be useful to help save money. Here are some key considerations:

1. Deduction from Health Insurance Premiums.

Personal Health Insurance.

Those who pay for their health insurance premiums can apply the amount paid to reduce taxable income, with a maximum of up to 25,000 Baht. If health insurance is combined with general life insurance, the deduction does not exceed a total of 100,000 Baht. ‘Health Me M’ health insurance plan from Muang Thai Insurance, offers comprehensive coverage with an annual premium that is affordable for working-class people. This plan provides a maximum annual benefit of 3 million Baht, covering inpatient treatment, room fees, meals, and services up to 10,000 Baht, as well as outpatient care for 1,000 Baht.

Purchase Health Me M Health Insurance from Muang Thai Insurance, Here.

Parental Health Insurance.

For those who pay health insurance for their parents, it also can be claimed for deductions, with a maximum of 15,000 Baht per parent. However, there is a condition that the parent's annual income cannot be more than 30,000 Baht. The health insurance plan that dSurance would like to introduce is the Health Me XL plan for seniors from Muang Thai Insurance, offering coverage with an annual benefit of 10 million Baht. It covers inpatient treatment, room charges, meals, services, outpatient treatment (about 2,000 Baht) and surgical expenses.

Purchase Health Me XL plan from Muang Thai Insurance, please click here.

2. Deduction with Life Insurance

General Life Insurance

Life insurance premiums with a duration of 10 years or more can be used for tax deductions based on the actual amount paid, not more than 100,000 Baht. dSurance would like to recommend ‘DIY Life Insurance’. This plan allows you to choose your own coverage up to 3 options, including coverage in case of loss of life, daily and also additional coverage like hospitalization compensation and coverage for the 10 critical illnesses.

Purchase DIY Life Insurance, click here

3. Deduction with Investment

Provident Fund.

Provident Fund can be deductible up to 15% of monthly income. Government officers can get a higher reduction of up to 30% of their monthly income, not exceeding 500,000 Baht.

Retirement Mutual Fund (RMF)

Combinations of the RMF are deductible up to 30% of taxable income, combined with a Provident Fund not exceeding 500,000 Baht.

National Savings Fund (NSF).

NSF is limited to 30,000 Baht and when combined with Provident Fund, RMF and retirement life insurance premiums, the total deduction must not exceed 500,000 Baht.

Social Security Fund (SSF).

SSF is deductible up to 30% of taxable income, with a maximum limit of 200,000 Baht. When combined with a Provident Fund, RMF, retirement life insurance premiums and NSF, the total must not exceed 500,000 Baht.

4. Deduction with Charitable Donations.

- Political Party Donations : Deductible up to the actual paid amount, not more than 10,000 Baht.

- Donations for Education, Sports, and Public Hospitals : Get 2 times of the actual donation, not exceeding 10% of the total deductible amount.

- Donations to Foundations and Public Welfare Organizations : Deduction not exceed 10% of taxable income.

Understanding these tax deductions can make a huge impact on your overall financial strategy. You can use the article above as a reference. Additionally, life insurance can be a tax-saving investment, providing both protection for your life and potential tax benefits. Nowadays, it is super convenient to get life insurance because everything is online. dSurance has gathered life insurance plans from reliable insurance companies so you can explore and compare them and choose the one that meets your needs the most.

Insurance plans from dSurance that are suitable for tax deductions are both health and life insurance. With health insurance , annual premiums start at just 5,850 Baht with maximum coverage of 10 million Baht per year. For life insurance , the DIY Life Insurance allows you to customize your coverage with up to 3 coverage options which include case of death, daily hospitalization compensation and the 10 critical illnesses. Both health and life insurance serve as essential needs for future life, providing financial security and tax advantage. Consider it as a must-have item for a secure life and future.