Ricky Batten

Pay less Thailand income tax with health insurance

Did you know that you can reduce your taxable income with a health insurance plan for the current tax period?


Attention all expatriates who work and pay taxes in Thailand. Did you know that you can reduce your taxable income with a health insurance plan for the current tax period? Simply secure one before the end of the year (December 31st). 

I learned about this through my work at Pacific Prime Thailand, a health insurance brokerage. Read on for how you can save money by securing the right health plan. 

How does taxation work in Thailand?  

If you’ve been an expat here for a while, you know the drill. For everyone else, in a nutshell, before paying your taxes, you must register for your tax identification number (TIN) at your nearest revenue office. Your employer may also have an ongoing service for helping employees sort out their taxes. This is fairly common and definitely worth asking about, since any assistance will smooth life in your new country. So simply ask your HR or Accounting department for help with tax filing. 

In the Land of Smiles, tax season runs from January 1st to December 31st. Remember to file your income tax returns and pay due tax to the revenue department by March 31st the following year. 

Personal Income Tax (PIT) and residency status

Personal Income Tax is a direct tax levied on the income of a person. Taxpayers are typically classified into “resident” (i.e. those who have resided in the Kingdom for 180 consecutive days or more in any tax year) and “non-resident”. What that means for long-staying expats is that we’re liable to pay tax on income from sources in Thailand, and income into the country from foreign sources. For newcomers, you are subject to tax only on income earned in Thailand.  

That’s why it’s a good idea to review your residency status with your Thai employers. As expats, we’ll be responsible for sorting out our PIT. I highly suggest getting support ASAP to make sure your tax filings are completed well and on time.  

How to reduce taxable income with health insurance

Good news: the Thai government encourages us to buy health insurance. What that means is that we’re allowed to use our policy as a form of tax deductible. For tax filing purposes, the Revenue Department allows health premiums of up to THB ฿ 25,000 per year when filing tax returns. What’s more, a maximum of THB ฿ 15,000 paid to an insurance company in Thailand for your parents or your spouse’s parents is allowed as a deduction.

If you don’t already have health insurance plans in Thailand, now is a good time to secure one before December 31st to be used for this year’s deductible. Besides the tax incentive, you’ll also gain ready access to top private hospitals in and outside of Thailand. 

Got insurance questions? Why not email me for a chat at ajarn@pacificprime.co.th or contact my team?  



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