Most people know that life insurance premiums are deductible from Thai personal income tax. When it comes to health insurance, many are less sure whether it counts at all, and for how much. This article sets out that part of the allowance clearly, along with the points people most often miss.
Your own health insurance premiums are deductible
Health insurance premiums you pay for yourself are deductible as actually paid, up to THB 25,000 a year. The important condition is that, combined with general life insurance premiums, the total must not exceed THB 100,000 under the current rules [check the latest information]. In other words, if you already use the full THB 100,000 on life premiums, health premiums do not add further room. If your life premiums fall short of the limit, health premiums can fill the remainder.
Which health policies qualify
The rules broadly cover insurance providing benefits for medical treatment of illness and injury, disability compensation, the medical-treatment portion of accident insurance, critical illness insurance, and long-term care insurance. The details follow Revenue Department announcements [check the latest information]. The simplest way to confirm is the premium certificate issued by your insurer, which already separates out the premium types that qualify.
Your parents' health premiums — an allowance people often forget
If you pay health insurance premiums for your own parents (or for the parents of a spouse without income), you can deduct the amount actually paid, up to THB 15,000. Conditions apply on your parents' side, such as the income threshold set by law [check the latest information]. This allowance is separate from your own THB 100,000 limit. If siblings share the cost, the allowance is apportioned under the rules. The appeal is that one decision looks after your parents' health and your tax planning at the same time.
Where people go wrong
- Forgetting to give consent to share data. The allowance now relies on insurers submitting data to the Revenue Department electronically. Without your consent on file, the amount may not appear when you file.
- Counting the wrong year. The allowance follows the date the premium was actually paid during that tax year, not the due date. If you pay across a year boundary, check this carefully.
- Assuming the health limit is separate from the life limit. In fact they sit under the same ceiling, which leads to mistaken planning and to buying more than the allowance can absorb.
- Not keeping the paperwork. Even with automatic reporting, keep the premium certificates in case you are asked to substantiate a claim later.
How to plan so the allowance works for you
Start by checking how much of the life insurance allowance you have used this year, and how much room is left for health premiums. Then choose a health plan based on the cover you genuinely need, treating the tax relief as a by-product rather than the reason to buy. A good health plan is one that covers you at the hospital you actually use, at a premium you can sustain for years. The tax you save follows from that. If you would like to check whether you are using your allowance in full, message us on LINE.
This article was inspired by material from the Thai Financial Planners Association (TFPA) and has been entirely rewritten.