Tax incentives for more newborns

BANGKOK, Jan 17 (TNA) – The government introduces tax incentives to encourage families to have more children as Thailand is becoming an ageing society. Nathaporn Chatusripitak, advisor to the Prime Minister’s Office Minister, said the cabinet approved the Finance Ministry’s proposal to allow households to deduct 60,000 baht from their taxable income this year for their second legitimate child. This adds to the deduction of 30,000 baht for the first child. The government also allows families to deduct expenses of up to 60,000 baht on birth delivery or prenatal care from taxable income. Mr Nathaporn said that the tax measure would cope with the outlook of Thailand becoming an ageing society in 2036 when the elderly would form 30% of its population. The tax measure would decrease the government’s revenue by 2.5 billion baht per year and the impact was limited, he said. The cabinet also endorsed a tax incentive for operators to set up day care centres for employees’ children at their workplaces. Operators can deduct the day care centre expense worth up to 1 million baht from their taxable corporate income. (TNA)