Financial Planning
Start Better Tax Planning with Just 25,000 Baht
- Date
- 12 November 2025 10:36
What does your dream life look like? Maybe it’s owning a big house, retiring early to live a slow, relaxed life upcountry, or simply enjoying every day with your beloved pet.
No matter what your life goals are, here's something you might not have considered: tax planning is actually one of the shortcuts that can help you reach those dreams faster. It's not just about saving money on your annual tax bill, it’s about using tax benefits to simultaneously “save,” “invest,” and build long-term financial security.
Effective tax planning comes down to investing in financial products, particularly insurance and mutual funds, which together can result in tax savings up to several hundred thousand baht annually. Here are some key examples:
- Health Insurance: Deductible up to 25,000 baht (combined with life/savings insurance, not exceeding 100,000 baht total)
- Life Insurance/Savings Plans: Deductible up to 100,000 baht (requires 10+ years coverage)
- Annuity Insurance: Deductible up to 15% of income, capped at 200,000 baht
- Parental Health Insurance: Deductible up to 15,000 baht (for parents with annual income not exceeding 30,000 baht annually)
- Thai ESG Fund: Deductible up to 30% of income, capped at 300,000 baht
- Retirement Mutual Fund (RMF): Deductible up to 30% of income, capped at 500,000 baht
However, effective tax planning isn't about checking every box on this list or blindly copying what others do. It's about understanding which insurance protects you against what, how each fund invests your money, how much you should invest, and ultimately, how much tax you'll save. Today, we're breaking down the essential strategies for each life stage so you can make tax planning decisions that are truly worth your while.
Fresh Graduate - The Age of Beginnings and Learning
Welcome to the working world! At this stage, many of you likely earn around 15,000 - 20,000 baht monthly - which means you probably don't owe any taxes since you're below the threshold. But here's the secret most people miss...this is your golden window to start building long-term financial habits, because the earlier you begin, the more time you give your money to work for you.
Q: How should you plan?
A: Focus on building stability and establishing disciplined savings habits for the long haul.
- Emergency Fund: Before even thinking about investments, start by building an emergency fund covering 3-6 months of expenses. If you spend 5,000 baht monthly, aim to save at least 15,000 baht. This safety net protects you from life's unexpected curveballs and sets the foundation for a secure future.
- Insurance for Peace of Mind: A sudden illness can drain your savings quickly. Health or life insurance acts as a shield for your finances, plus you get to enjoy tax deductions on top of the protection.
- Provident Fund (PVD): If your company offers one, sign up immediately. Most require only 5% of your salary, you're forcing yourself to save for retirement, and your employer contributes too. It's a win-win that requires minimal effort on your part.
Starting a Family - The Age of Strategic Planning
As your income increases, so do your responsibilities - mortgage payments, car loans, childcare expenses. Financial planning now demands more attention and precision than ever before.
Q: How should you plan?
A: Focus on building wealth and getting serious about retirement planning.
- Increase Insurance Coverage: Protect your family's future. If anything happens to you—especially if you're the family's primary breadwinner—adequate coverage matters. Consider adding insurance for your parents or spouse (if their annual income doesn't exceed 30,000 baht). You protect those you love while maximizing your tax deductions.
- Thai ESG Fund: If you're not ready to commit to longer-term funds like RMF but still want tax benefits, Thai ESG funds are an excellent middle ground. They invest in Thai stocks and bonds, require just a 5-year holding period, and let you contribute to sustainable economic growth.
- Retirement Mutual Fund (RMF): If you want to retire comfortably without worrying about money, RMF is your answer. Beyond the tax savings, it enforces discipline by locking your money in until age 55. When that day comes, you'll have a substantial nest egg waiting for you.
- Don't Overlook Other Deductions: Mortgage interest, Easy e-Receipt if you're a shopaholic, and charitable donations all count. Leave no tax benefit unused.
Nearing Retirement - The Age of Reaping What You've Sown
You're approaching the finish line of your career. Your income is stable, financial obligations are lighter, and you've accumulated solid savings. This final stretch is about consolidating your wealth and finalizing your retirement plans.
Q: How should you plan?
A: Protect your principal and prepare for a comfortable retirement.
- RMF is Your Best Friend: You no longer need to worry about long-term commitments. An RMF investment at this stage requires only a 5-year hold before you can access it at 55. It's the quickest, most efficient tax-planning move available - just make sure you choose funds with lower-risk assets to enjoy true peace of mind in retirement.
- Thai ESG Deserves Attention Too: Once you've maximized your RMF, Thai ESG funds offer full tax deduction potential. They require just a 5-year hold and don't demand annual contributions. Moreover, you can choose lower-risk investments here as well.
- Annuity Insurance: Want guaranteed monthly income in retirement without burdening your children? An annuity insurance policy delivers exactly that. You get tax savings, plus the security of predictable income every month.
Tax Planning = Life Planning
Tax planning shouldn't be a year-end scramble. It's a lifelong strategy that starts today and continues throughout your career. The earlier you start, the more advantage you gain. When you choose products that truly fit your lifestyle, the return isn't just a tax refund - it's the joy of living without financial anxiety.
If you’re still unsure where to begin, let the KKP Better App be your guide! Beyond just tax planning advice, we help you think through and decide on everything...from the small financial details to the most complex decisions. Navigate your money matters stress-free and reach your goals easier than you ever imagined.
Because we believe a great bank should make your life and finances better. Are you ready to plan your future with KKP Better?
Easy tax planning starts today with the KKP Better app.
Warning: Investors should study and understand the product characteristics, conditions, returns, and risks before making an investment decision, and should also study the tax benefits as specified in the prospectus of the mutual fund.
*For more information or to request a prospectus, please contact Kiatnakin Phatra Securities Public Company Limited.
**KKP Better by Kiatnakin Phatra Bank Public Company Limited is a service channel of Kiatnakin Phatra Securities Public Company Limited
***The insured should study and understand the coverage details and terms and conditions before every insurance decision.
****Insurance underwritten by Generali Insurance (Thailand) Public Company Limited. Kiatnakin Phatra Bank Public Company Limited acts as a non-life insurance broker.
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