Taxes on salary above 115k pm

[Number 6]

Does anyone know the salary brackets beyond 115k THB per month up to 155k? Is it a straight 15%?

[Don Mega]

1st hit on google.... such a great easy to use website to find information.

 

http://www.rd.go.th/publish/6045.0.html

 

[Number 6]

Actually I did right after I'd posted. Thanks for the snide comment.

 

Thought I'd get a barrage of dated and incorrect information. That's why I'd not done it in first place

 

 

Here's a blog as well

 

https://www.thethailandlife.com/income-tax-thailand

 

More coffee

[Crossy]

115k per month is about 1.4 million per annum.

 

From the page linked by Don that puts you in the 25% bracket.

 

If you can get some of your payment classified as "Commission" you may be able to get a reduced rate on that. Talk to your accountant as the rules ours stated seemed somewhat contradictory to me (could be lost in translation).

 

We shall see when the bill arrives ????

 

[Don Mega]

115k a month will put you on 12% overall and 155k will be 15.5% overall.................. give or take.

 

That assuming single,no dependents, no annual bonus and no RMF or LTF invesments.

 

According to the UOB calculator.

 

https://www.uobam.co.th/en/tax-calculation

Edited January 11, 2020 by Don Mega

[Crossy]

That's a good calculator Don, working out an overall tax rate is far easier to handle  ????

 

Any idea about this "Commission" rate our accountant is on about?

 

My employer calculates the tax due and deducts each month like PAYE in the UK, so (hopefully) there will be no surprises when we get the final bill.

[Don Mega]

1 hour ago, Crossy said:

That's a good calculator Don, working out an overall tax rate is far easier to handle  ????

 

Any idea about this "Commission" rate our accountant is on about?

 

My employer calculates the tax due and deducts each month like PAYE in the UK, so (hopefully) there will be no surprises when we get the final bill.

Sorry, I don't know about commision rates.

 

Iam on a fixed salary so my employer works out what the overall tax is for the year and divides by 12 and thats my monthly deduction, works well and is accurate the only curve ball is annual bonus.

[mokwit]

One thing to be aware of if you are in the top tax bracket is that in the first year you are taxed at a rate less than this and thus there is an overhang that will be paid back in future year (years?). If you leave after a year or before the adjustments have been clawed back you will have a tax liability.

[Don Mega]

7 hours ago, mokwit said:

One thing to be aware of if you are in the top tax bracket is that in the first year you are taxed at a rate less than this and thus there is an overhang that will be paid back in future year (years?). If you leave after a year or before the adjustments have been clawed back you will have a tax liability.

If one starts a new job January 1st (start of financial year) why would they be taxed at a less rate ?

[Max69xl]

10 hours ago, Number 6 said:

Actually I did right after I'd posted. Thanks for the snide comment.

 

Thought I'd get a barrage of dated and incorrect information. That's why I'd not done it in first place

 

 

Here's a blog as well

 

https://www.thethailandlife.com/income-tax-thailand

 

More coffee

I found this online:

[Time Traveller]

18 hours ago, mokwit said:

One thing to be aware of if you are in the top tax bracket is that in the first year you are taxed at a rate less than this and thus there is an overhang that will be paid back in future year (years?). If you leave after a year or before the adjustments have been clawed back you will have a tax liability.

Thats complete BS.

If you are an employee, it is your employer who decides on the exact amount of the tax withholding from your salary that gets sent to the Revenue dept. There is no reduced rate in the tax code for high income earners in their first year of employment. 

If there is a mismatch between the tax withheld from your salary and the amount assessed that you should have paid, then that's entirely due to your employer.

[userabcd]

On 1/11/2020 at 6:40 AM, Don Mega said:

1st hit on google.... such a great easy to use website to find information.

 

http://www.rd.go.th/publish/6045.0.html

 

Yes, more often it seems easier type a question on a public forum rather than going to the official revenue site where all such information is readily available and easily understandable.

Edited January 12, 2020 by userabcd

[Number 6]

7 hours ago, userabcd said:

Yes, more often it seems easier type a question on a public forum rather than going to the official revenue site where all such information is readily available and easily understandable.

Actually it's not. But that is the common wisdom and that's what it is - common. Far easier to do a search. Two clicks and half as many words typed.

 

Not to mention in this case I'd thought I'd not get accurate information. But I really should or could have checked first regardless. But it's not EASIER.

 

[Monomial]

There is no specific amount of taxes withheld based on salary. Instead, each employer is responsible for making sure he withholds enough from each employee's paycheck to cover the taxes that will be calculated and due next year. If insufficient taxes are withheld from any employee, the employer may invite a visit from the Revenue Department.

 

If you are planning on doing things such as investing in an LTF or RMF, have a bunch of children or are taking care of your Thai partner's parents, you can petition your employer to withhold less from your salary. It is then up to the employer to decide whether he trusts you or not. He may also require to see your LTF/RMF deposits to prove that you have already invested before making the appropriate adjustments to your withholding calculation.

 

Everything is dependent on total end of year taxes due, and that is entirely dependent on what deductions you plan on taking. Best bet is to calculate your entire taxes due for next year based on your expected salary, bonus and deductions, and then take this calculation to your employer and ask them to only withhold 1/12 of that each month. In theory there is nothing wrong with this. In practice though, it could open the employer up to a visit from the Revenue Department if it later turns out that you weren't entitled to the deductions you said you were.

 

Most employers just use a simple formula for every employee and assume no deductions, resulting in too much in the way of withholding taxes. Good for the Revenue Department as they get an interest free loan with your money. Bad for you, as you don't see that money until next year.

 

 

 

[userabcd]

18 hours ago, Number 6 said:

Actually it's not. But that is the common wisdom and that's what it is - common. Far easier to do a search. Two clicks and half as many words typed.

 

Not to mention in this case I'd thought I'd not get accurate information. But I really should or could have checked first regardless. But it's not EASIER.

 

Of course it is easy to go to the RD web site. It is the most logical place to view the tax information.

 

Type tax thailand in a web search, click on the RD personal tax link and there is all the information for personal tax allowances and deductions, tax brackets etc....

Edited January 13, 2020 by userabcd

[YT3k72Em]

On 1/13/2020 at 10:32 AM, userabcd said:

Of course it is easy to go to the RD web site. It is the most logical place to view the tax information.

 

Type tax thailand in a web search, click on the RD personal tax link and there is all the information for personal tax allowances and deductions, tax brackets etc....

Not really easy.  You go to RD website, click on English, then Personal Income Tax, and you will get this page.  Last update : Thursday, March 13, 2014

http://www.rd.go.th/publish/6045.0.html

 

All the details explained, but information is out of date, so the tax brackets are not correct for the top two tiers.