Revenue chief to give more tax credits for second child

The Revenue Department is now ready to amend the present Revenue Code to give more tax credit for second child.

Under its proposal, parents having the second child will get 120,000 baht tax credit for each child.

According to Prasong Poontaneat, director-general of the Revenue Department, the tax credit was aimed at encouraging parents to have more babies.

He said revenue officials are now ready to amend the existing law to give tax credits to parents who have second child.

He said tax credit for second baby will be capped at 120,000 baht, breaking down to 60,000 baht per year as expenditures for raising the baby, and 60,000 baht for maternity-related health care spending at hospital.

He expected that the amended law will become effective in the next 2018 tax year, and submission of tax forms for tax deductions will be from January-March 2019.

At present tax credit for legitimate child is set at 60,000 baht per child, equally shared by father and mother and with no limit of how many child they have.

Mr Prasong added that tax credits alone won't be enough to encourage parents to have more babies as now the country is expecting more aging population.

He said more tax incentives are being considered such as improvement of university curriculum to recruit more skill labour personnel to cope with the increasingly aging population.

Source: Thai Public Broadcasting Service (Thai PBS)