Down under or Thai? Aussie mum trades Oz for Land of Smiles

[pritch84]

So should a European client be deducting tax based on their country from the payment for my services that I'm providing based in Thailand. I have a Thai company so presume they should be paying me in full and it's my responsibility to pay Thailand taxes as the client is not a Thai company.

 

Thanks

[Scottjouro]

Maybe which country ? Maybe a withhold tax of sorts ?

 

Very hard to answer and besides legally they are not paying you, they are paying your legal entity of which you are a director, which then pays you and you are liable for your personal tax assuming a limited liability company..

 

Without proper detail unable to answer the question

[pritch84]

Thanks for your information. It's a French company but they're not paying my company account, I use my personal thai account for business in my name as my lawyer just always told me mai dai for setting up a business account for whatever reason! So taxes I sort yearly or whenever my accountant asks for all my statements. So yes either way that has nothing to do with the French company I believe... So they listed TTC and deducted from what they owe me. I just don't see how they can deduct a french tax for me when I'm operating and giving them services here in Thailand and when I submit the invoice and receipts I'll likely get taxed here also. 

[Scottjouro]

1 hour ago, pritch84 said:

Thanks for your information. It's a French company but they're not paying my company account, I use my personal thai account for business in my name as my lawyer just always told me mai dai for setting up a business account for whatever reason! So taxes I sort yearly or whenever my accountant asks for all my statements. So yes either way that has nothing to do with the French company I believe... So they listed TTC and deducted from what they owe me. I just don't see how they can deduct a french tax for me when I'm operating and giving them services here in Thailand and when I submit the invoice and receipts I'll likely get taxed here also. 

"They are not paying my company account, i use my personal thai account" and there is your answer as to why your being taxed on the French end

Edited October 24, 2018 by Scottjouro

[pritch84]

7 minutes ago, Scottjouro said:

"They are not paying my company account, i use my personal thai account" and there is your answer as to why your being taxed on the French end

Could you elaborate please? In a lot of years I've never had this issue before. 

[Scottjouro]

1 hour ago, pritch84 said:

Could you elaborate please? In a lot of years I've never had this issue before. 

Simple, to invoice as a business the payment needs to go into a business account, which is a legal entity, not a personal account, strictly speaking you are stealing money from the business and committing fraud if your using a company invoice and detouring the money to a personal account..

 

Because they are sending money to a personal account, you are treated as an individual  not a company and they will be obligated by law to invoke withholding tax from you, as they dont know where you are resident or paying tax...currently the transaction is company to indivudual...

 

To not pay tax in france, you need to invoice from the company, money is paid into the company account, you draw a "salary" from your company and pay income tax on that in Thailand...then this transaction is company to company (legal entity to legal entity)

 

 

 

 

 

 

 

 

 

[pritch84]

5 minutes ago, Scottjouro said:

Simple, to invoice as a business the payment needs to go into a business account, which is a legal entity, not a personal account, strictly speaking you are stealing money from the business and committing fraud if your using a company invoice and detouring the money to a personal account..

 

Because they are sending money to a personal account, you are treated as an individual  not a company and they will be obligated by law to invoke withholding tax from you, as they dont know where you are resident or paying tax...currently the transaction is company to indivudual...

 

To not pay tax in france, you need to invoice from the company, money is paid into the company account, you draw a "salary" from your company and pay income tax on that in Thailand...then this transaction is company to company (legal entity to legal entity)

 

Thank you very much mate! Great answer ???? Not what I wanted to hear but at least I know what to do about it now! lol

 

 

 

 

 

 

 

 

[Scottjouro]

Always remember a Limited Company is an entity, a person, if you like, you are an employee or officer of that company, so everything gets done in the name of that person, not in your name 

[robblok]

On 10/24/2018 at 8:29 PM, Scottjouro said:

Simple, to invoice as a business the payment needs to go into a business account, which is a legal entity, not a personal account, strictly speaking you are stealing money from the business and committing fraud if your using a company invoice and detouring the money to a personal account..

  

Because they are sending money to a personal account, you are treated as an individual  not a company and they will be obligated by law to invoke withholding tax from you, as they dont know where you are resident or paying tax...currently the transaction is company to indivudual...

 

To not pay tax in france, you need to invoice from the company, money is paid into the company account, you draw a "salary" from your company and pay income tax on that in Thailand...then this transaction is company to company (legal entity to legal entity)

 

 

Not sure where your from,  am an Dutch accountant and it would not be stealing money in the Netherlands. It would just create a debt between the company and the owner. One that could be offset by wages that are not paid out.

 

In the Netherlands it does not matter where the money is paid to as long as its administrated correctly. But this is not a matter of the French company at all they should just pay the invoice and be done with it. Its an foreign country invoice nothing special about it.

[robblok]

On 10/24/2018 at 8:45 PM, Scottjouro said:

Always remember a Limited Company is an entity, a person, if you like, you are an employee or officer of that company, so everything gets done in the name of that person, not in your name 

Quite true, but in most countries that  know there can be a debt relation between the owner of the company and the company. Its stealing if you don't book it that way. There are no laws against receiving money in an other account (not in the Netherlands) as long as you book the correct debt between the person and the company.

[varun]

I assume you're providing services instead of selling physical products.

 

Whether or not they should deduct taxes from what you're owed, depends on your payment terms.

Hopefully in your contracts somewhere you have stated, the amount you're owed is net of all taxes and fees.

Your invoice should clearly specify this.

If the invoice value is $10,000, you're owed $10,000.
 

This places the burden of dealing with the EU tax system and or any deductions on your client, not you.

 

 

 

Edited October 26, 2018 by varun

[Scottjouro]

On 10/26/2018 at 9:07 AM, robblok said:

Not sure where your from,  am an Dutch accountant and it would not be stealing money in the Netherlands. It would just create a debt between the company and the owner. One that could be offset by wages that are not paid out.

 

In the Netherlands it does not matter where the money is paid to as long as its administrated correctly. But this is not a matter of the French company at all they should just pay the invoice and be done with it. Its an foreign country invoice nothing special about it.

Under standard corparate business law using a limited liability type company re-routing money intended for a business account, ie invoiced on their paperwork, is theft from the limited company, the "owner" is an officer of that company, which is a legal entity ie a person...you as an accountant should know this..which it appears you dont...it could only be recorded as a debt if Ltd Company loaned the money to the individual after the fact...

 

In holland the dutch equivlant of a Ltd Company is a Besloten Vennootschap (BV) i believe 

 

What you are talking about would only apply possible in the case of a sole propriety type company...where the legal entity is the owner or possibly a legal partnership

 

You obviously dont under the basics of company formation or structure lol nothing to do with holland, france or the anywhere else in europe for that matter...

 

 

Edited October 27, 2018 by Scottjouro

[Scottjouro]

On 10/26/2018 at 9:22 AM, varun said:

I assume you're providing services instead of selling physical products.

 

Whether or not they should deduct taxes from what you're owed, depends on your payment terms.

Hopefully in your contracts somewhere you have stated, the amount you're owed is net of all taxes and fees.

Your invoice should clearly specify this.

If the invoice value is $10,000, you're owed $10,000.
 

This places the burden of dealing with the EU tax system and or any deductions on your client, not you.

 

 

 

Where or not taxes are deducted at source are a function of how it is invoiced and the transation...if he had invoiced as a company and had the cash paid into the company account as he is  legally suppose to, no tax would have taken on the French end..he invoiced as a company, and had them deposit the money into a personsal account thats why he was taxed...its not rocket science...but yes the burden of dealing with EU tax is on his client...thats why they taxed him on the french end...

Edited October 27, 2018 by Scottjouro