Income Tax rate when leaving Thailand

[SkyRunner04]

Hi all,

 

after working in TH for two years, I have recently moved on still working for the same parent company. I'm in a bit of a dispute with my former company (an BOI registered IHQ). Here's why, but I might be wrong:

 

My income tax was deducted from my salary on a monthly basis. That happened based on my annual income and the corresponding tax rates.

 

E.g.: Lets say my monthly income was 100,000 THB, hence my annual income was 1,200,000 THB. According to the income tax table that makes me liable to 123k in taxes per year (with the top part of my salary being taxed at 25%) which my company deducted from my salary on a monthly basis (10k). Source: https://www.thaistartup.com/references/pitc.php

 

In February however I had announced that I would leave Thailand end of May. This puts my expected yearly salary to 500,000THB for 2018. That results in a much lower yearly tax debt (10,600THB or 2,120THB a month). My company however kept deducting the full 10k of taxes/month until end of May instead of adjusting the amount.

 

When asked for the remaining money they gave me a "We have to pay taxes based on full year salary, just claim it next year". Well, neither do I plan to be back for the tax filing season next year, nor do I wish to hire a tax consultant for that, hence "claiming it next year" is somewhat of a hassle.

 

Questions: Did they play by the laws or were they just too lazy to adjust my monthly tax deducting knowing I was about to leave? Or in other words: Would the adjustment based on the new expected annual income be against the law?

 

Appreciate any inputs ?

 

Thanks!

Edited July 26, 2018 by SkyRunner04

[thainet]

I had the exact same situation as yours.

Your company have deducted as per the law, and it is up to you to file next year and get the overpaid amount back. I am still in country so I just waited and filed, but if you won't come back to file then you will lose that overpaid amount.

There is no way for your company to pay you back taxes already in the system.

Actually if you had talked to them in January, they may have accommodated you, but once the tax deductions started then they are not obligated to change on your behalf.

So unless you come back and file, then you have gifted Thailand a few thousand baht.

Edited July 26, 2018 by thainet
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[SkyRunner04]

Thanks for the inputs Thainet! 

 

While I wasn't expecting them to able to pay the money back immediately the actual question is probably whether they had the chance to adjust the amount in February or not. If they had the chance (even though not being obligated), I'll make 'em pay for for a tax consultant to do the claim on my behalf ?

 

Thanks,

Sky

[arithai12]

You should get your refund in the form of a cheque mailed to your address in Thailand, valid for six months. Mine was being sent around March. Do you have someone who can collect it for you? Or else tell your company to change your address to something suitable.

Then talk to the bank (the one that will pay the cheque) and see if you can write a power of attorney for the person of your choice to cash it for you.

[scoutman360]

10 hours ago, SkyRunner04 said:

 If they had the chance (even though not being obligated), I'll make 'em pay for for a tax consultant to do the claim on my behalf ?

Have they been doing your annual tax return for you previously? Honestly, you shouldn't be paying anyone. My employer has been doing it for me the last 10 years. The form is so simple (if you can read Thai). The girl doing mine annually is just a 25 yr old staff member and she submits it online. 

[natway09]

The replies are correct. Income per month is based on a years average.

The tax guys here are very good, I have just banked my refund from last year.

You are also among one of about only 8% of Thailand's population of tax payers in Thailand