Thai life insurance premium deduction

(5/2009)

Taxpayers who purchased life insurance coverage before 1 January 2009 may claim the actual premium paid as a tax deduction, subject to an upper limit of Baht 100,000.

However, for life insurance policies purchased after 1 January 2009, only the premium relating to life insurance coverage will be deductible for personal income tax computation. Any embedded health or accident premium will not be deductible. In addition, if the policy includes a plan which provides payback to the policy holder, the rate of return shall not exceed 20% of the annual premium, or the accumulated premium paid.

For example:
A taxpayer buys a life insurance policy containing embedded health and accident cover. The total premium of Baht 112,000 includes Baht 90,000 for life, Baht 12,000 for health and Baht 10,000 for accident cover. The taxpayer may deduct only Baht 90,000.

A taxpayer buys a life insurance policy with annual payback during the contribution period. The premium is Baht 80,000 per annum and the annual payback is Baht 25,000. The taxpayer is not permitted to deduct any of the premium.