How Do I Know My Thai Income Tax Is Actually Being Paid?

[gtrinbkk]

I'm a musician that has been hired to play at a resort in Phuket through a music agent in BKK.

The agent is withholding 5% of my salary for "income tax". How can I be sure he is actually paying my tax with that? Like most music agents he is not exactly trustworthy. I havent received any taxpayer ID to my knowledge. Is there a document I can request from him for proof of tax paid?

Thanks

[Casanundra]

I'm a musician that has been hired to play at a resort in Phuket through a music agent in BKK.

The agent is withholding 5% of my salary for "income tax". How can I be sure he is actually paying my tax with that? Like most music agents he is not exactly trustworthy. I havent received any taxpayer ID to my knowledge. Is there a document I can request from him for proof of tax paid?

Thanks

First off, you need to get yourself the tax card and then 'insist' that you get a receipt showing the tax paid at the end of the contract for a tax return. If one cannot be produced then ask for the 5% back.

[rogerinthai]

You need to have a Work Permit.

You need to have a Tax ID.

Your salary should be recorded in the company's monthly "Por Ngor Dor 1" forms (a form submitted to Revenue Department for the salaries tax payments).

[cmsally]

For a Thai, income tax is paid twice a year (I presume its the same for foreigners).

You should have a tax ID card, as mentioned above and I see no reason why you shouldn't insist on having the tax receipts (small yellow and white computer print outs). If at some stage in the future you need to prove you have been paying tax (and you might not be working for this person), you will need to show these.

If you can't get these, then see what he is willing to give you as a receipt and if in doubt check the validity with the local Sapakorn office.

Also once you have a tax ID, I would have thought you could go the tax office and get them to punch it into the computer and verify if you have been paid for or not. (I don't know about this one but it does sound feasible).

[omlagus]

If you have wage slips or a tax card, then any office can check for you to see if your tax is being paid. The company I worked for deducted my tax, but didn't give me my tax card, and I also changed provinces. However, I kept some ov my wage slips and they were then able to check the info. I had paid too much and got a nice rebate.

[lingling]

If you have wage slips or a tax card, then any office can check for you to see if your tax is being paid. The company I worked for deducted my tax, but didn't give me my tax card, and I also changed provinces. However, I kept some ov my wage slips and they were then able to check the info. I had paid too much and got a nice rebate.

5%? Sounds more like social security _or_ p.ng.d. 53 withholding (although that should be 3% in this case I think). P.ng.d. 53 makes you responsible for your own income taxes etc, minus whatever was withheld. You should get a withholding tax certificate from them when you receive the payment though.

(but as someone pointed out, unless you are Thai you also need a work permit, tax id etc etc... ....if you are Thai then your national id card number is your tax id number)

[gtrinbkk]

Thanks for all the advice. I do have the WP, so I should pay the tax, but here is the strange thing, The resort is listed as the employer on my WP but I get paid from the agent and he is the one withholding the 5%, so who is paying it, the resort or the agent?. Another thing, where would I get a tax ID card? Thanks

[rogerinthai]

Thanks for all the advice. I do have the WP, so I should pay the tax, but here is the strange thing, The resort is listed as the employer on my WP but I get paid from the agent and he is the one withholding the 5%, so who is paying it, the resort or the agent?. Another thing, where would I get a tax ID card? Thanks

If the resort is the employer, they should pay you. Sounds like the agent is taking a 5% cut from the salary the resort pays. Maybe he also takes another comission from the resort as well. Speak to the resort to sort things out. Tax ID is issued in the Revenue Department office which is in charge of your area.

Edited February 16, 2007 by rogerinthai

[junkofdavid2]

I'm a musician that has been hired to play at a resort in Phuket through a music agent in BKK.

The agent is withholding 5% of my salary for "income tax". How can I be sure he is actually paying my tax with that? Like most music agents he is not exactly trustworthy. I havent received any taxpayer ID to my knowledge. Is there a document I can request from him for proof of tax paid?

Thanks

Very simple. Ask for a Withholding Tax Certificate (It can be bought at office center, or downloaded from the Revenue Department Website. It's a fill-in-the-blanks form on which your agent should completely write your name and passport number (Thai I.D. number if you're Thai). On another part of the form, your agent should write the official name of his company, as well as the Tax I.D. number of his company. On yet another part of the form, he should write the gross amount he paid you, and then the net amount of tax withheld from you.

At the bottom right hand corner of the certificate, an authorized representative of his company should sign it, and stamp it with his company seal.

He should give you 2 copies of that. That is your evidence that tax has been properly withheld from you. At the end of the year when you file your tax return, you use that like some sort of "cash coupon" in paying the government. For example: your total tax for the year is assessed to be 10,000 THB. However, you have Withholding Tax certificates showing that a total of 7,000 THB has already been withheld from you by your agent. You therefore only have to pay the remaining 3,000 THB directly to the government, and then submit the withholding tax certificates worth 7,000 (as though it was as good as cash). Therefore, don't lose it! It's as good as cash as far as paying taxes are concerned!

On a side note... if you use it as I explain above and submit it (in lieu of cash) to the government to settle your taxes, and then it is found out that your agent didn't remit the tax like he was supposed to... then HE will get in serious trouble (not you).

Cheers,

David

Edited February 18, 2007 by junkofdavid2

[gtrinbkk]

Thanks All!

[junkofdavid2]

Thanks All!

You're very welcome.

By the way, while it is advisable that you indeed get a tax i.d. like the other posts suggest, it is NOT NEEDED for this withholding tax certificate.

Cheers,

David

[Tarragona]

For a Thai, income tax is paid twice a year (I presume its the same for foreigners).

Where I work, Thais and foreigners have tax withheld every month and file a tax return annually.