Tax on income in Thailand . How does it work ?

[Nicebus]

How does personal income tax work in Thailand  for Thai people ?

Do all workers pay income tax ?, like in Australia.

Does a worker , say, in a 7/11 shop pay a rate like a school teacher , doctor or police ?

Just wondering.

[watcharacters]

 

 

Not sure other than all that I've asked about paying taxes give me a blank look.

 

I should add that many falangs also deny a tax obligation.  

 

I think some Brits and Aussies could find they actually have a tax obligation but they'd rather look the other way.

 

 

[Peterw42]

Yes, employees all pay tax except the threshold is high (150,000 pa) before they start paying tax. So your average 7/11 worker pays no tax because they dont earn enough. 

A large percentage of the population would be in the cash economy, market stalls, taxi drivers etc, so not much income declared or tax paid.

 

If you do pay tax its still relatively low

 

 

Non residents pay a flat 15%.

7% VAT, officially 10% but its always under some economy boosting reduction. Low by world standards.

Company tax 20-30% depending on turnover

 

It does make you wonder where the Thai Government gets money from.

Edited June 4, 2018 by Peterw42

[OJAS]

3 hours ago, Nicebus said:

How does personal income tax work in Thailand  for Thai people ?

Have sent you a PM.

[topt]

7 hours ago, watcharacters said:

Not sure other than all that I've asked about paying taxes give me a blank look.

Why answer at all then? As @Peterw42 mentioned the system is fairly clear and the details not difficult to  find with an internet search. Whether everybody who should declare it, does so, is a different question.

 

Please explain why Brits and Aussies are singled out as potentially having "obligations" that don't affect other nationalities?

[AlQaholic]

Just to add to the excellent explanation by peterw42, post #3, The payment of taxes in Thailand works just as in most other countries, the tax is automatically deducted from your salary every month, every year you have to declare your income and possible eligibility for refunding of certain expenses, such as dependables (wife, children) and other deductibles, in short, same as most western countries. 

As a side note, I would like to add that social security is also automatically covered by salary deduction, one part paid by the employer and another small part paid by the employee, this covers almost all possible hospital expenses.

If you have a business, you have the responsibility to produce annual audited accounts, together with the annual income declaration, both for the company and yourself, just as in other countries.

the little food vendors on wheels are all exempt from taxes, regardless how much money they make, as I understand.

Edited June 5, 2018 by AlQaholic

[mr_lob]

18 hours ago, OJAS said:

Have sent you a PM.

Not Thaksin i hope

[scorecard]

14 hours ago, topt said:

Why answer at all then? As @Peterw42 mentioned the system is fairly clear and the details not difficult to  find with an internet search. Whether everybody who should declare it, does so, is a different question.

 

Please explain why Brits and Aussies are singled out as potentially having "obligations" that don't affect other nationalities?

 

Possibly true where there are official 'tax' agreements across two countries, meaning if you have paid in one country you get recognition for this when you submit your tax return for the other country. 

 

 

 

[Cheops]

23 hours ago, Peterw42 said:

Non residents pay a flat 15%.

What do you mean? 

 

Non residents who are working here on a work permit with income in Thai baht pay the exact same rate as local people!

 

So please explain yourself. 

[Peterw42]

1 hour ago, Cheops said:

What do you mean? 

 

Non residents who are working here on a work permit with income in Thai baht pay the exact same rate as local people!

 

So please explain yourself. 

Ok, I stand corrected. a couple of friends that work here mentioned that rate, I must have misunderstood them.

I think they were referring to their circumstances. (a specific tax incentive, that I presumed applied to all expats)

Expatriate concessions

Expatriates working and receiving employment income from a Thai entity with a status of Regional Operating Headquarter (ROH) or International Headquarter (IHQ) are taxable in Thailand at a flat tax rate of 15%. Expatriates working for the IHQ must be in Thailand for at least 180 days and receiving a minimal monthly income of THB200,000 to qualify for the tax incentive.

 

https://home.kpmg.com/xx/en/home/insights/2011/12/thailand-income-tax.html#02

Edited June 5, 2018 by Peterw42

[Cheops]

16 minutes ago, Peterw42 said:

Ok, I stand corrected. a couple of friends that work here mentioned that rate, I must have misunderstood them.

I think they were referring to their circumstances. (a specific tax incentive, that I presumed applied to all expats)

Expatriate concessions

Expatriates working and receiving employment income from a Thai entity with a status of Regional Operating Headquarter (ROH) or International Headquarter (IHQ) are taxable in Thailand at a flat tax rate of 15%. Expatriates working for the IHQ must be in Thailand for at least 180 days and receiving a minimal monthly income of THB200,000 to qualify for the tax incentive.

 

https://home.kpmg.com/xx/en/home/insights/2011/12/thailand-income-tax.html#02

Interesting, I would like to pay only 15% ?

[maisodni]

Any single Thai employee that earns less than 26,584 baht pays zero personal income tax, based on the tax table, and the  personal deduction for Social Fund withholding (ALL Thai employee. except company directors, pay Social Fund tax) .