Every tax season, many people find themselves sighing as they face the important financial task of the year once again. Krungsri Consumer, a provider of credit cards and personal loans, offers 5 helpful tips to reduce your worries about taxes and manage your tax expenses smartly.

  1. Notify HR of Tax Deductions in Advance

For salaried employees, many companies allow staff to report their tax deductions in advance from the beginning of the year to reduce the tax withheld from monthly pay slips. This has the advantage of enabling HR to gather and process your information systematically and accurately, which helps in calculating taxes correctly and reduces potential errors.

  1. Ensure All Basic Deductions Are Included

Don’t forget to fill out basic tax deductions such as child support, support for parents, provident fund contributions, and social security, as well as any deductions specified for the year, such as discounts from the Easy E-Receipt program. Additionally, many may not realize that interest from savings and fixed deposits can also be included for tax refunds if your taxable income is below the withheld tax rate.

  1. Four Major Deductions Can Save Up to 1,000,000 Baht, which include:
  • Life Insurance, up to 100,000 Baht
  • Home Loan Interest, up to 100,000 Baht
  • Thai ESG Fund, up to 300,000 Baht
  • RMF + Pension Insurance + Provident Fund, combined up to 500,000 Baht (tax deduction conditions are as specified by the Revenue Department; please study the details carefully).

  1. Donations Can Be Deducted Up to Twice. Donations for education, sports, and government hospitals can be deducted from taxes up to twice the amount. Before donating, it is advisable to consult with officials or check the Revenue Department's website for more details.
  2. Credit Cards as a Tool for Tax-Related Expenses. Did you know that credit cards can be a great help in managing tax-related expenses? For example, they can help you allocate your finances appropriately for spending at different times, as expenses like insurance and funds for tax deductions can be paid via credit card. They also help manage cash flow since you don’t have to pay a large sum upfront, making it easier to manage expenses. Additionally, there are more payment options for tax payments. Normally, the Revenue Department allows tax payments in three equal installments. However, if you choose to pay taxes with a credit card, you can opt for monthly installments or even 0% installments for several months, depending on the terms of each company, which helps you manage and allocate your personal finances more effectively.

Filing taxes doesn’t have to be difficult. If we prepare adequately, we can plan our taxes and manage expenses confidently and without worry.