"Perks" in lieu of salary to reduce Thai tax burden, anything available?

[Crossy]

Topic title says it all really.

 

I'm married, no kids, Thai mortgage (in Madam's name), assorted credit cards (all have some balance, not maxed out).

 

Anything (legal of course) that my employer can give me in lieu of salary to reduce our tax burden?

 

 

[KhaoNiaw]

I don't know the ins and outs but in a previous job part of my remuneration was a housing allowance which wasn't taxed. 

[Crossy]

1 minute ago, KhaoNiaw said:

I don't know the ins and outs but in a previous job part of my remuneration was a housing allowance which wasn't taxed. 

 

Thanks, that's one that's on my radar too ???? 

 

I just wish I'd thought of it 10 years ago ???? 

[wordchild]

depends on employer, but a number of international corporates pay non Thai staff a proportion of salary (or eg their  annual bonus) outside Thailand, eg to an account in a tax friendly jurisdiction. sometimes this is dressed up as "consultancy fees" for another part of the business.

 

I know it sounds dodgy but it is a fairly widespread practice and has been for many years.

[Crossy]

10 hours ago, wordchild said:

depends on employer, but a number of international corporates pay non Thai staff a proportion of salary (or eg their  annual bonus) outside Thailand, eg to an account in a tax friendly jurisdiction. sometimes this is dressed up as "consultancy fees" for another part of the business.

 

I know it sounds dodgy but it is a fairly widespread practice and has been for many years.

 

Yeah, we used to do that, getting about 50% paid out of Hong Kong to my offshore bank. As a non-resident no tax was payable in HK.

 

Unfortunately, with most of our projects now being located in Thailand (previously we were active in much of South and South East Asia) and thus paying in Baht, along with the difficulty of exporting company $$$ from Thailand, this (like all good things) had to come to an end ???? 

[Nonthaburi Boy]

You probably know most of these and some may no longer be relevant to your circumstances - just running through what I have come across.

 

Relocation allowance, housing allowance, home leave, school fees for kids, transportation per diem, company car (although it has to belong to the company, they can sell to you at a decent price later when fully depreciated and repeat), golf membership (belonging to the company and only ‘in lieu’ if you really are a avid golfer), other entertainment costs (proper receipt in company name). Training and education, if you want it (your employer may get an extra deduction on these as a bonus). Just off the top of my head. Some will add to your employer’s admin of course and for home leave I don’t know the details - suddenly getting that might be a big red flag.

 

Provident fund via your employers’ contributions? Max that instead of salary. And (real trust and some basic maths needed) work at a lower salary now and compensate by boosting your salary in last year of employment to take fullest feasible advantage of the 50% deduction on the statutory termination payment. Narrative support, including a promotion, might be needed for this. 

 

Getting to another level of dodgy and requiring more maths: gifts to your wife (if company pays tax at significantly lower rate than you) and wife employed as consultant for fixed periods of time (not risking triggering obligations to her as employee). Really not suggesting this but it might trigger an idea.

 

Not at all dodgy, but maths heavy, you could also look at whether switching to contractor or even independent contractor status would help (whole other world of possibilities). The answer is probably yes, but only worthwhile if a fair amount of money is involved.

 

Personally I am too lazy/ honest to do any of this stuff but looking back now at my tax bills vs my remaining assets, and knowing how common (even expected) it is, feel as much regret as pride.  

 

Of course once you start something like this you need to keep a close eye out for law changes. Companies get caught out by that (and ignoring the details) all the time. Can’t be lazy.