Taxation?

[ThaiFelix]

Hi folks,

I am hoping someone can help me with some questions I have re taxation in Thailand for a farang teacher. I have a work permit, teaching lic. etc (yes a real degree) and have been having tax deducted from my salary (but no tax number yet??). Do I need to do a taxation return? If so from where do I obtain same? I checked with the longest serving teacher here (not many stay very long) and he says he never has but thinks the school does because some years he has recieved a refund from the school. A friend, just started at another school, tells me his new colleagues get all their tax back because they are not permanent residents? I am also considering applying for permanent residence in a couple of years time and want to make sure I am on the right track. I read on one of the forums you must pay tax/submit tax returns to qualify but cant get any info. Can anyone help me or direct me to some online info etc?

Thanks

[lanny]

My expertise is with US taxes, not Thai taxes but I do have some knowledge of the relationship between the two.

Under the tax treaty between the US and Thailand, the salaries of certain people, including teachers, is exempt from Thai tax for up to two years. To qualify, you must file a form with the Revenue Department and attach a statement from IRS that you filed as a US resident. After the two years, the school should start withholding tax and, in nearly all cases, the employer also prepares the Thai return. I don't think you even have to sign it!

You still are required to file a US return, of course. You can claim the foreign earned income exclusion for the Thai salary, if you meet the requirements. Because you are filing a statement with the Revenue Department that you are not a resident of Thailand, you can only qualify for the US exclusion using the physical presence rule, i.e., be outside the US for 330 days out of a 12-month period.

[Ijustwannateach]

On the flip side, if the above rule doesn't apply to you or if you are over the time limit, you do indeed need a tax card and the whole paperwork game begins... if they are collecting tax from you and you do not have this tax card, it sounds very peculiar. How can you have a work permit but no tax number? What was the school planning to do with your tax withholding information this year? It sounds very fishy, and as Thai taxes are due in a month or so you should check it out soon.

[ThaiFelix]

Hey guys thanks for the info. I'm from Oz so the US stuff doesnt apply but thanks anyhow. As for where the tax has been going Im not sure. I did have a WP before and was paying tax but my Non Imm B ran out and I was illegal for a while (ie no tax paid). I have since got my paperwork straight and am back to paying tax again. The school informed me today that they are applying for a tax number for me - so thats good.

As the Permanent Resident requirements call for 3 yrs of unbroken extensions of WP and visas etc, the previous period is not applicable (to my knowledge?). So I'm not too worried about that. I think the school is fairly above board with regards to tax matters (the rest??).

Thanks again.