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Request for Income Tax Exemption under Tax Law
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More convenience in claiming tax deduction privilege:

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.

Matters to be aware of concerning tax deduction on mortgage loan interest:

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.
Why the borrowers need to indicate their intention and give consent for the Bank to send and disclose relevant information on mortgage loan interest to the Revenue Department:

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

Request for Income Tax Exemption under Tax Law
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What the customers must do in order to be eligible for tax deduction on mortgage loan interest:

Customers whose loan agreements have been made since 1 January 2021 must indicate their wish to receive tax deduction privilege and give consent for the Bank to send and disclose information on loan interest as well as other related information to the Revenue Department.

Customers whose loan agreements have been made before 1 January 2021 can choose between 2 options:

  1. Indicate their wish to receive the privilege to the Bank (the same process as loan borrowings since 1 January 2021).
  2. Use the Certificate of Loan Interest (Lor. Yor. 02) issued by the Bank as a supporting document for tax deduction privilege as normal.
Will the Certificate of Loan Interest (Lor. Yor. 02) be issued if the consent has been given?

The Bank will still issue the Certificate of Loan Interest to the customers as supporting document for income tax deduction and will send such certificate to the customers from 15 January 2022. As for the loan agreements made since 1 January 2022, the customers who want to receive the privilege must give their consent to the Bank to send related information to the Revenue Department.

Therefore, the customer who refuses to give consent or has beforehand given but withdrew such consent afterwards cannot use the Certificate of Loan Interest (Lor. Yor. 02) as supporting document for tax deduction again.

In case of joint borrowing, is the consent required from each borrower?

The consent can be given by the person who wishes to receive tax deduction privilege as specified in No. 1 (other joint-borrowers who have no such wish may choose to give consent or not).

In this above connection, tax deduction of both the primary borrower and joint-borrowers must not exceed 100,000 Baht in aggregate, whereby such deduction must be shared equally among all borrowers.

If there are several loan agreements (several houses) or where consent has already been given but the borrower wishes to apply for additional home loan, is another consent necessary?

The consent must be given per agreement. Therefore, the customer who has several loan agreements must provide consent for every agreement made from 1 January 2021. In the event that consent has been given before and the borrower applies for an additional home loan, consent must also be given for the new agreement in order to be entitled to tax deduction privilege for all loan agreements. However, the total deduction amount must not exceed 100,000 Baht.

Can the consent be withdrawn afterwards?

Yes. You can withdraw your consent by accessing menu “Request for Income Tax Exemption under Tax Law”; then choose the relevant agreement and click “Not giving consent.” Click save.

If consent has been given, when can tax exemption be filed to the Revenue Department?

The customer can file tax exemption to the Revenue Department from 15 January 2022 onwards (for tax year 2021).