Documentation and Compliance

In Thailand, you can legally lower your taxes in a few ways. First off, you can invest into Thai tax saving structures like the Provident Fund, Government Pension Fund, or Retirement Mutual Fund, up to the allowed limits. Investing in Long-Term Equity Funds and Retirement Mutual Funds might also cut down your taxes, but there are rules about how long you must keep your money in them and how much you can put in. You can also reduce your taxes by claiming allowances for your family, like your children, parents, or spouse, and by deducting things like home loan interest and gifts to approved charities—just keep within the set boundaries. You can also take out Thai registered life or health insurance for you or your family members can give you extra tax deductions. Always make sure your tax strategies follow the Thai Revenue Department’s rules to ensure you remain fully compliant.

You can find out more about Thailand’s tax rates, allowances and deductions here or if you prefer to listen to a short podcast here

In Thailand, you might get a tax refund if you’ve paid more tax during the year than you actually owe. This is figured out when you calculate your yearly income and subtract any deductions or credits you’re allowed. To get a refund, you need to fill out an annual tax return with details of your income, deductions, and what you’ve already paid in taxes. The deductions and credits you can get, and how you file your tax return, depend on your own situation, like the income sources you receive and the allowances and deductions available to you. Keep good records of how much you earn, what taxes you pay, and keep your receipts for things you can deduct so you can back up your refund claim.

To claim tax credits in Thailand, you must provide documentary evidence of German tax paid, such as:

• German tax assessments (Steuerbescheid)
• Withholding tax certificates from pensions or banks
• Proof of remittances into Thailand

Without sufficient documentation, Thailand may not grant the credit.

Learn more about the Thailand–Germany DTA in our full webinar here.