Election puts new rules in limbo

New poll adds to government's fiscal uncertainty, writes Wichit Chantanusornsiri

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n 2026, several taxes are in the Finance Ministry's pipeline that will affect salaried employees, the public and businesses.

However, following the dissolution of parliament by Prime Minister Anutin Charnvirakul on Dec 12, several tax measures may be repealed or amended, or may require decisions by the incoming government.

These include reforms to personal income tax deductions for long-term savings investments, the top-up tax, proposed increases in excise taxes on diesel and gasoline, reworked cigarette excise taxes, and a measure to abolish the import duty exemption for goods valued less than 1,500 baht.

TISA

The Anutin administration revised the tax deduction framework for investment expenses intended to support retirement savings.

Under the current system, salaried employees seeking tax deductions may invest in retirement mutual funds (RMFs), annuity life insurance policies, or participate in provident funds (PVDs) through employer contributions, with investment expenses in each category eligible for tax deductions.

However, the deduction limits differ by category. For example, expenses for annuity insurance premiums are deductible up to 200,000 baht, while the combined deduction for RMFs and PVD contributions is capped at 500,000 baht.

Under the new structure, implemented through an account known as the Thailand Individual Savings Account (TISA), deductions will no longer be separated into multiple categories.

Instead, taxpayers can choose their preferred investment instruments, with total eligible investment expenses deductible up to a single consolidated cap of 800,000 baht. Eligible investments may include RMFs, annuity insurance, PVDs, the Government Pension Fund, debt instruments, Thai ESG funds, infrastructure funds, and similar assets.

The method of calculating the tax deduction was also changed — instead of using individual tax brackets, a multiplier is applied.