People who regularly donate to the development of society usually donate from the heart, without expecting anything in return. But did you know that this selfless donation can be a great way to reduce taxes? Yes, it is now possible to easily reduce income tax by making tax-deductible donations or tax-obligatory donations (บริจาค เงิน ลดหย่อน ภาษี, which is the term in Thai). And the electronic donation or e-Donation* system has made that path even easier. Read the article below to learn about e-donation and how it helps to deduct tax.
What is e-Donation?
e-Donation is an online donation system operated by the Revenue Department of Thailand, through which if you donate money to a government-approved institution or organization, the amount will be considered as a deduction up to double directly from your tax account. The best part is—you don’t have to submit any documents for this donation! All the information is automatically saved in the Revenue Department’s database.
How can you get a tax deduction?
The entire amount you donate can be tax-deductible, but it must be within 10% of your net income after expenses. If you donate to certain organizations or projects using the e-Donation system, that amount will be considered a double deduction!
Which donations are eligible for double deduction?
- Donations in support of education – Donations for educational materials, scholarships, or infrastructure construction in public and private schools, colleges, or universities.
- Donations to public hospitals – Rajavithi Hospital, Sariraj Hospital, etc.
- Donations to religious institutions – Donations for religious development in mosques, temples, churches, etc.
- Donations for the purchase of books or e-media – Donations for the purchase of books or digital media in educational institutions to instill the habit of reading.
- Donations to recognized charities – Thai Red Cross, Siub Naka Sathyan Foundation, etc.
How to e-donate?
You can e-donate in two ways:
- Directly visiting an organization registered in the e-donation system.
- Scanning the QR code and donating online through the bank, where ‘e-donation’ will be mentioned.
Currently, banks such as Bangkok Bank, Krung Thai Bank, Kasikorn Bank, etc. are providing this service.
Why e-donate?
- No documentation required – all information is saved automatically.
- Fast tax refund – money back with less hassle.
- Maintaining transparency – you can be sure that your donation has gone to the right place.
Conclusion
If you want to donate to the development of society as a conscious citizen, you should accept tax-deductible donations. It not only reduces taxes but also fulfills a kind of honorable social responsibility. If you want to get tax deductions in an easy, transparent, and hassle-free way, then e-donation can be your best option. Let us all harness the power of giving and build a compassionate society.
