Individual taxpayers can deduct the interest paid on their mortgages during a given tax year from their taxable income.
From the 2008 tax year onwards, the maximum mortgage interest allowance has been increased to 100,000 baht from 50,000 baht.
The current global economic crisis has had a considerable effect on Thailand's real estate market, and house purchasing demand has decreased accordingly. The stagnant housing market will have an impact on many businesses, especially real estate developers, financial institutions, construction companies, and construction material suppliers.
To address this issue, on Jan 20, 2009, the cabinet passed a resolution that provides tax measures intended to stimulate the Thai economy. One measure is a personal income tax deduction on mortgage loan principal payments of up to 300,000 baht. The cabinet resolution is not yet law, but is expected to be announced in the Government Gazette in the near future.
