The personal income tax filing season for 2025 is back. Many people rush to file so they can receive their refunds to support their finances. However, speed is not the only factor in getting a tax refund; the accuracy of the information submitted on the tax form is equally important.
Today, Thairath Money invites you to check the list of “common mistakes to avoid” when filing taxes. This will help you get your tax refund quickly and smoothly.
1. Misunderstanding that transferring from LTF to ThaiESGX “at any time and amount” allows full tax deductions.
Recently, many long-term equity funds (LTFs) have matured but suffered losses. In 2025, the government seems to offer a special promotion allowing transfers from LTFs to the Thai ESG Sustainability Fund (ThaiESGX) with tax deduction benefits.
However, to qualify for these tax benefits, there are three key conditions (according to the SEC):
- No selling or switching of LTF units (whether switching to another LTF under the same or different asset management company) from 12 March 2025 onwards.
- You must switch all LTF units held across all funds and asset management companies to ThaiESGX entirely within May to June 2025.
- Hold units for 5 full years, day for day, counted from the date of switching from LTF to ThaiESGX.
If all three conditions are met, you will receive a maximum tax deduction limit of 500,000 baht. The deduction is not claimed in a single year, but spread over 5 years from tax years 2025 to 2029, broken down as follows:
In 2025, up to 300,000 baht,
and from 2026 to 2029, up to 50,000 baht per year (evenly spread over 4 years).
For those with LTF fund amounts exceeding 500,000 baht (since the transfer must be done in full), the excess above 500,000 baht is not eligible for tax deduction but must still be held for at least 5 full years.
2. Misunderstanding that the amount paid for deductions is fully refunded as tax money.
For example, some believe that if they buy mutual funds or life insurance with a tax deduction of 100,000 baht, they will get the full 100,000 baht back as a tax refund. In reality, the refund amount depends on the taxpayer’s net income bracket because Thailand uses a progressive tax rate (0-20% depending on income bracket). The higher the income bracket, the higher the tax saved. For instance, at a 10% bracket, buying insurance with a 100,000 baht deduction saves about 10,000 baht in tax.
3. Misunderstanding that child health insurance premiums are tax-deductible.
It is true that health insurance premiums are deductible up to 15,000 baht, but only for the insured’s own premiums, and those of their parents and spouse (up to 15,000 baht per insured person). Moreover, parents and spouse must have annual income not exceeding 30,000 baht. Therefore, buying health insurance for children cannot be used for tax deduction.
4. Misunderstanding that you can file any tax form regardless of income type.
In fact, the Revenue Department classifies taxable income into 8 categories:
40(1) Income from employment – salary, wages, bonuses, pensions.
40(2) Income from occasional work – commissions, meeting allowances, consultancy fees.
40(3) Royalties / goodwill.
40(4) Interest, dividends, profit shares.
40(5) Income from property rentals, such as houses, condos, cars.
40(6) Freelance professions like doctors, lawyers, architects, engineers, accountants.
40(7) Income from contracting (including labor and materials).
40(8) Business income such as online shops, agriculture, industry, transportation.
As taxpayers, we must file correctly. For example, a freelance construction contractor should file under 40(7), but if mistakenly filed under 40(2), allowable expenses may be understated, or the Revenue Department might follow up to correct it.
5. Misunderstanding that tax information displayed on the D-MyTax system is always accurate.
The Revenue Department’s D-MyTax system (Digital MyTax) is a one-stop online tax service portal for individuals and entities. However, the data shown is not necessarily complete or fully accurate. According to the Revenue Department’s conditions, although information is consolidated in D-MyTax, taxpayers are responsible for thoroughly checking their data before filing. If errors are found, taxpayers must correct them or face consequences.
Therefore, for the early 2025 tax filing season, besides preparing all documents, you should check the above five points. Filing is open from January to March 2025 (online filing accepted until 8 April 2025). It is recommended to file in February 2025 when companies are likely to have submitted complete data to the Revenue Department, making it easier to verify tax information.
Source: Revenue Department, Securities and Exchange Commission, SET
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