Lowering your income tax as an expat? (e. g. cost of moving here)

[welovesundaysatspace]

I will start to work in Thailand again next year. In my home country, I can lower my income tax by declaring certain expenses I had. One significant example is all cost related to moving to a new place if it is connected with a new job. However, since I will be moving abroad and will be paying tax here (and not in my home country anymore), the cost of moving here won't be accepted as deductions anymore.

 

Is there a way I can declare these cost in my income tax declaration here in Thailand because they were related to finding and starting a job here?

 

What other (legal) ways do exist to get part of your income tax back?

[AlexRich]

I’m not sure about tax rebates in Thailand, but I’m pretty sure you will not be allowed to deduct your expenses in getting here and setting up for working here ... unless perhaps it comes under a business expense, but as you are an employee I don’t think you can.

 

hopefully there is a local tax expert who can confirm.

[allane]

In 22 years here, I have met a lot of farang who act as though they are God's gift to Thailand, though this one might take the cake.  These expenses won't be incurred in Thailand; why would the Thai Revenue Dept. allow them to be deducted here ?

Edited November 29, 2017 by allane
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[glamont002]

I am a US CPA here in Thailand for 8 years. I assume you are an American as the moving expense deduction is permitted under current US tax law (the tax bills being considered now in Congress would do away with it going forward). The Thai Revenue Code has no similar provision. Not deductible.

[Koguma]

Since you have to continue paying taxes to your home country regardless, you can still use this deduction (like the CPA above, I assume you're American as well) when you file your US taxes.

[pattayadon]

21 hours ago, allane said:

In 22 years here, I have met a lot of farang who act as though they are God's gift to Thailand, though this one might take the cake.  These expenses won't be incurred in Thailand; why would the Thai Revenue Dept. allow them to be deducted here ?

God's gift to Thailand.....  Get real!

[SiSePuede419]

"I will start to work in Thailand..."

 

And just what kind of high paying job do you do in Thailand that you're so worried about income taxes? 

 

Seriously, most English teachers in LOS earn only about $12K/year.

 

That's a grand total of $160 a year in Federal Income tax due. ?

 

https://www.taxformcalculator.com/tax/12000.html

 

 

[4MyEgo]

I have to do a tax return before March next year, story goes like this:

 

I moved here two years ago as I retired, and invested in the stock market, no tax or capital gains tax payable as a non resident.

 

In the last financial year I did some consultancy work for a couple of clients, i.e. $25,000 AUS, not bad considering it was easy, but boring work and as a non resident I have to pay 32.5c for every dollar earned, i.e. $8,125, and as there is no $18,200 threshold, that is the amount I would have to pay.

 

I spoke to my accountant and I asked if the usual stuff was deductible, like back in the old country with his reply being yes, i.e. you can depreciate items such as laptops, computers, printers, etc, etc and can pretty much deduct the following straight off the top, i.e.previous years accountants fee, mobile calls, internet usage, toner cartridges for printer, stationary, computer software programs, new mobile phone, memberships that are a requirement for you to be doing your job, i.e. certifications/accreditation's, office furniture, and so on and so forth.

 

As you can see, I have already complied a little list which should bring it down to around $20,000 so it will be $6,500 in tax, therefore saving around $1,625 in tax, which is better than a kick in the teeth.

[Chongalulu]

23 hours ago, allane said:

In 22 years here, I have met a lot of farang who act as though they are God's gift to Thailand, though this one might take the cake.  These expenses won't be incurred in Thailand; why would the Thai Revenue Dept. allow them to be deducted here ?

Are you an authority on Thai tax law - or just an ignorant ass trying to belittle someone asking for help with a genuine question? 

Yes it's rhetorical.....

[BigT73]

Not sure if you could apply for a aussie ABN online and put the money through as a sole trader and pay tax there giving you the 18k threshhold and the moving expenses? 

[SantiSuk]

17 hours ago, SiSePuede419 said:

"I will start to work in Thailand..."

 

And just what kind of high paying job do you do in Thailand that you're so worried about income taxes? 

 

Seriously, most English teachers in LOS earn only about $12K/year.

 

That's a grand total of $160 a year in Federal Income tax due. ?

 

https://www.taxformcalculator.com/tax/12000.html

 

 

Are you an authority on the profile of expats working in Thailand - or just an ignorant ass trying to belittle someone asking for help with a genuine question? 

Yes it's rhetorical.....  [with acknowledgement to nChuckle].

 

Keep it nice! 

[huawei]

On 30/11/2017 at 5:04 PM, SiSePuede419 said:

"I will start to work in Thailand..."

 

And just what kind of high paying job do you do in Thailand that you're so worried about income taxes? 

 

Seriously, most English teachers in LOS earn only about $12K/year.

 

That's a grand total of $160 a year in Federal Income tax due. ?

 

https://www.taxformcalculator.com/tax/12000.html

 

 

Ignorance...you would be surprised at the money that has been available to those with appropriate and needed skills since the mid 80's when I first came to work here. I have stayed here almost every since because the money was so good and there were many like me. Asia has boomed , those who took the risk were rewarded. They still are , job skills have changed.

[suzannegoh]

Assuming that you're an American, you'd still be able to deduct those expenses on your US tax return, assuming that they meet the criteria that the move is job related.

[suzannegoh]

On 11/30/2017 at 5:04 AM, SiSePuede419 said:

"I will start to work in Thailand..."

 

And just what kind of high paying job do you do in Thailand that you're so worried about income taxes? 

 

Seriously, most English teachers in LOS earn only about $12K/year.

 

That's a grand total of $160 a year in Federal Income tax due. ?

 

https://www.taxformcalculator.com/tax/12000.html

 

 

Why do you assume that he's an English teacher?  There are lots of corporate expats in Thailand earning in excess of US$100K per year.

[speedtripler]

On 30/11/2017 at 5:04 PM, SiSePuede419 said:

"I will start to work in Thailand..."

 

And just what kind of high paying job do you do in Thailand that you're so worried about income taxes? 

 

Seriously, most English teachers in LOS earn only about $12K/year.

 

That's a grand total of $160 a year in Federal Income tax due. ?

 

https://www.taxformcalculator.com/tax/12000.html

 

 

Not everyone is a peasant tho... 

[welovesundaysatspace]

On 11/29/2017 at 7:51 PM, allane said:

These expenses won't be incurred in Thailand; why would the Thai Revenue Dept. allow them to be deducted here ?

Because these expenses, as they are related to working here, thus generate tax revenue for the country. At least that’s the reasoning why I can deduct such expenses back in my home country: 

Everything that is related to finding or starting or performing work that’s generating tax revenue (including moving closer to your work place, learning/development, applying,  etc.) can be deducted somehow. To me that makes perfect sense, as these expenses are directly related to generating tax revenue. Same as a company isn’t taxed based on its revenues but profit, why shouldn’t an individual be allowed to deduct his cost first? 

 

On 11/30/2017 at 3:39 PM, glamont002 said:

The Thai Revenue Code has no similar provision. Not deductible.

Thanks, that’s what I wanted to know. 

 

On 11/30/2017 at 4:50 PM, Koguma said:

Since you have to continue paying taxes to your home country regardless, you can still use this deduction (like the CPA above, I assume you're American as well) when you file your US taxes.

No, I’m not from the US. And I won’t be paying tax back home anymore. Thus it makes perfect sense to me why I cannot use this deduction back home anymore. These expenses will not generate tax revenue for my home country, they actually lead to a loss of tax revenue (because I will now pay tax here in Thailand).

 

On 11/30/2017 at 5:04 PM, SiSePuede419 said:

 

And just what kind of high paying job do you do in Thailand that you're so worried about income taxes? 

None of your business. And, by the way: A teacher earning peanuts would be equally (maybe even more) interested in keeping his cost low. 

[SantiSuk]

"None of your business ... "  Haha, the right response to the typical sneering and rude response you get on ThaiV to a perfectly reasonable request for advice/experience (from SiSePuede419). Responder should stick to the Pub forum