Shop for tax reduction: Govt. may bring back holiday shopping campaign

The government said it may bring back last year’s gimmick for boosting spending during the New Year’s holiday by offering a tax reduction scheme, which could save residents up to THB5,250 on the amount of income tax they have to pay at the beginning of the year.

The Ministry of Finance is proposing the campaign to the cabinet for approval to boost the economy during the festive season. Last year, the campaign ran from Dec. 25 – Dec. 31, but the ministry would like to extend the period of shopping spree this year, according to MThai.

So, could you take an advantage of it? To put it simply, if you’re a resident who pays tax and earns an annual income of more than THB150,000, you can. During the campaign period, ask any registered business where you spend money to issue a tax reduction form every time to buy something or use a service. This includes restaurants, clothes shopping and purchasing of other goods.

Note that tax reduction forms are not the receipts. Usually, you have to get in a long line at a different cashier, and the staff will issue a form under your name (one receipt per one person only).

Most stuff in shopping malls is eligible for tax reduction except booze, books, and most foods (foods in restaurants work though).

You can spend up to THB15,000 and submit the forms along with your income tax to the Department of Revenue in the beginning of the year. This THB15,000 amount will be considered a tax deduction (the same way that you get a deduction for having kids.)

According to the useful chart above by Krungsri Bank, how much you save on tax depends on the your income bracket. For example, if you earn THB300,001 – THB500,000 per year, your deduction is 10 percent. So if you go all the way and spend THB15,000 during the campaign, you will pay THB1,500 less in income tax.



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