In order to facilitate personal income tax deduction filing in accordance with the Revenue Department’s Notification, customers only need to give consent to the Bank for sending and disclosing their information on home mortgage interest as well as other related information in pursuance with the loan agreement to the Revenue Department.
Granting of such consent shall become effective from tax year 2021 onwards.
Under the Revenue Code, home Loan customers are eligible for tax deduction on loan interest as actually paid but not exceeding 100,000 Baht. Highlights are as follows:
- The loan must be granted from a financial institution operating in Thailand only.
- Mortgage interest must be the interest paid under the loan agreement for the purchase or hire-purchase of a building, building with land or condominium unit, or for construction of a residential building on one’s own land or land under one’s title.
- Financed property must be provided as loan collateral (mortgage).
- In case the loan is borrowed to finance more than 1 residence, deduction is allowed for every place but not exceeding 100,000 Baht when combined together.
- In case of joint-borrowers, interest payment shall be divided equally but not exceeding 100,000 Baht when combined together.
For housing loan agreements which have been made since 1 January 2021, the income earners must indicate their intention to receive tax deduction privilege and give consent to the Bank to send and disclose information on loan interests as well as other related information according to the loan agreements to the Revenue Department for the benefits of personal income tax deduction in pursuance with the criteria and methods stipulated by the Revenue Department.
Please study details from the Revenue Department’s Notification: Notification Number 396 | Notification Number 397
