Huge increase in business tax !

[phantomfiddler]

Being one of around 6,000 small bar/restaurant owners, selling beer and food (4mtrs X 8mtrs), I was recently informed by my lawyer,s office that my business taxes were now to be paid monthly instead of at the end of the year, in Sriracha, effectively raising my taxes by around 1,500%

I have asked numerous other small bar owners if they knew anything about this, and was met with blank stares. Some even contacted their accountants, who seemed to be completely unknowing as to this new change.

Has anyone else out there had any similar experience, or any information on the subject ? 

[ThomasThBKK]

Uhm normally if you are over a certain treshold u pay monthly or quarterly so they are more sure that you pay at all, this is based on other countries knowledge tho.

 

If you pay monthly u pay 1/12 of what you would pay at the end of the year.

 

You don't pay more , just more regularly and only on the last months profit or the projected profit of the average month.

 

The percentage doesn't change, if u pay 20 or 25 percent in taxes yearly its still 25 percent just on a monthly base.

 

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[phantomfiddler]

On 2/18/2019 at 2:48 AM, ThomasThBKK said:

Uhm normally if you are over a certain treshold u pay monthly or quarterly so they are more sure that you pay at all, this is based on other countries knowledge tho.

 

If you pay monthly u pay 1/12 of what you would pay at the end of the year.

 

You don't pay more , just more regularly and only on the last months profit or the projected profit of the average month.

 

The percentage doesn't change, if u pay 20 or 25 percent in taxes yearly its still 25 percent just on a monthly base.

 

Sent from my LYA-L29 using Tapatalk

 

 

 

 

Hi Thomas, do you have any idea of how much is the "threshold" amount, as the first thing I look at is whether I have made enough to pay the day,s wages ? I would say that 85% of the small bars in Pattaya are losing money for 10 months of the year, excluding December and January in the "High Season". Any info would be most helpful ????

[AJBangkok]

Sounds like you need a new lawyer

[blackcab]

On 2/18/2019 at 5:02 PM, phantomfiddler said:

...effectively raising my taxes by around 1,500%...

 

Your tax would not be increased. Each month you would pay 1/12 of the total annual tax due.

 

For example: 12,000 baht at the end of the year, or 1,000 baht each month for 12 months.

[Jeffrey346]

My wife is a lawyer and works for the Revenue Dept. She tells me how you pay your tax depends on your business income.

You can pay taxes monthly if you wish but not required. Seems the law states business earning over 1.8 mil B are required to pay twice a year.

She did say a 1500% increase is ridiculous. The % you pay depends on the business net income. If under 150,000 it's 0%. The max is 30% of net.

 

[AhFarangJa]

I am far from an expert, so can only convey to you my own experience, part of which I have posted on another thread today relating to closing a business. A little under two years ago I purchased a bar  come restaurant, mainly for the Wife to have an income. The establishment employed a British Chef, so it was registered in a company name as we needed a work permit.

We carried on using the same accountant as the last owner, mainly for simplicity and smooth transition. We took all receipts, both sales, and purchases to them every month. Each month we paid them a tax bill of approximately 20 to 22 thousand Baht. Plus fees of three thousand. The chef paid his "National Insurance" for want of a better expression, and we paid the insurance for the three Thai ladies. After a few months I questioned why the VAT was not offset from the profits, and why he only used the receipts from Makro to deduct any purchases we made from the total months takings, i.e. he ignored the receipts from the local momma / poppa shop we use for most beer purchases. His reply was that they do that at the end of the year. Later, our Chef was lured away with promises of big bucks. We therefore, were not in need of a company any more, so went to the accountant to close it down. He tried everything he could to talk me into not doing it. I am convinced to this day that he was on the take, more so when I see now that my wife only pays a small fraction of the old monthly taxes twice a year.

[phantomfiddler]

3 hours ago, blackcab said:

 

Your tax would not be increased. Each month you would pay 1/12 of the total annual tax due.

 

For example: 12,000 baht at the end of the year, or 1,000 baht each month for 12 months.

Alas not so. This 1/12 is not being applied and the 1,500% increase will continue until I can find out what is wrong. The bar is just a small open-air beer bar, but for some strange reason my lawyer has listed it as a disco !!!

[phantomfiddler]

2 hours ago, Jeffrey346 said:

My wife is a lawyer and works for the Revenue Dept. She tells me how you pay your tax depends on your business income.

You can pay taxes monthly if you wish but not required. Seems the law states business earning over 1.8 mil B are required to pay twice a year.

She did say a 1500% increase is ridiculous. The % you pay depends on the business net income. If under 150,000 it's 0%. The max is 30% of net.

 

Hi Jeffrey, I do believe you are completely correct, and this has been the situation for the past many years. I have today been advised by a major law company to take the license holder to the Tax Office in Laemchabang and find out what is wrong. As stated in another reply, my humble little open-air bar has now been listed by my lawyer as a disco ! ???? Very strange indeed, no music and an average net of not much over 150,000 after legal-rate wages paid. Thank you for your reply.

[ThomasThBKK]

The disco thing could have to do with opening times?

I think normal bars have to close at midnight.


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[Jeffrey346]

13 hours ago, phantomfiddler said:

Hi Jeffrey, I do believe you are completely correct, and this has been the situation for the past many years. I have today been advised by a major law company to take the license holder to the Tax Office in Laemchabang and find out what is wrong. As stated in another reply, my humble little open-air bar has now been listed by my lawyer as a disco ! ???? Very strange indeed, no music and an average net of not much over 150,000 after legal-rate wages paid. Thank you for your reply.

I'm not quite sure what the tax increments are without checking with my wife, but believe 150-300,000 is 5%. 

When you go to the Revenue Office and are not comfortable with what you're being told, let me know via PM and I will be glad to put you in touch with my wife.

[phantomfiddler]

Hi Jeffrey, thanks again for your input and offer to put me in contact with someone who may be able to help. Alas I am not computer savvy and when you say “contact you using PM” I am afraid I do not know what is “PM”. I am hoping to sort this out next week, and if you can detail a means of contact that I can pursue that would be most helpful. Again sincere thanks ????

[KittenKong]

23 hours ago, phantomfiddler said:

Alas I am not computer savvy and when you say “contact you using PM” I am afraid I do not know what is “PM”.

Click on the person's name to the left of their post. Then click on the green envelope labelled "message".

 

PM = Private Message.

[phantomfiddler]

On 2/22/2019 at 4:53 PM, KittenKong said:

Click on the person's name to the left of their post. Then click on the green envelope labelled "message".

 

PM = Private Message.

Thank you for educating me, KittenKong, most helpful ????