Tax breaks to encourage bigger families
THE REVENUE Department will amend the Revenue Code to raise the threshold for child-rearing expenses that can be deducted from personal income tax in a bid to encourage Thais to have more than one child.
Prasong Poontaneat, Revenue director-general, said that under the planned legal amendment, each spouse will be given a tax deduction for additional children at Bt60,000 a year. The tax deduction available for an only child will remain at Bt30,000 a year.
The changes will take effect in the 2018 tax year, Prasong said.
The Bt60,000 deduction allowed for additional children will be available for an unlimited number of children in a family.
The department will also enable parents to treat the cost of antenatal care at hospitals as a tax deduction. This assistance will help families to reduce their cost burden when they have more children, Prasong said.
Accommodative tax policies are among the measures at the government’s disposal to boost population growth, he said, but added that parents needed to change their mindsets to appreciate the benefits of having larger families.
Thailand is facing the economic impact of an ageing society and tax incentives for families – along with other measures - can play a role in easing this problem, he said.
