How Much Tax Will I Pay?

[trader1]

Hi

I have been offered a job paying 115,000 baht /month on a two year contract.

What tax amount will be deducted ?

[sgthai]

Hi

I have been offered a job paying 115,000 baht /month on a two year contract.

What tax amount will be deducted ?

For your info http://www.rd.go.th/publish/6045.0.html

Just a simple and basic calculation for you.

115,000 x 12 mths = 1,380,000 baht per annual.If have bonus you must add it in.

Deduct 90,000 for personal expenses. You may add in insurance or other if you have,pls read from link.

1,380,000 - 90,000 = 1.290,000

First 100,000 tax free

100,001 - 500,000 = 10% ( 40,000 )

500,001 - 1,000,000 = 20% ( 100,000 ) 100,000 + 40,000

1,000,001- 4,000,000 = 30% ( In your case you bal 290,000 x 30% = 87,000.

Total tax for you is 40,000+100,000+87,000 = 227,000 baht.

Your company will deduct from your salary as per the thai law (227,000 divided by 12) 18,917 baht every month. The immigration will only endorse your work permit and stay if they see you have your personal income tax return every month.

Good luck to your new job mate.

[AmericanGuy1066]

Calc above is about right, tho' NI can be taken into account account too and slightly affects the tax calc here. Still a good approximation tho'. Last I saw on NI, was it was 5% on max of 15k per month. i.e additional 750 baht national insurance

However, if you start part way thru year it can be advantageous. Normally tax runs 1 Jan - 31 Dec. If you start on say 1 Jul. That means you would have 690k in first year (half year); 1,380k in second (full year); and 690k in third (half year)

Don't want to fully rework all the calcs but you would be:

690k - 90k = 600k taxable

100k free

500k @ 10% = 50k

Total est tax 50k on 690k. NB ASSUMING YOU HAVE NO OTHER INCOME in Thailand. If so this needs to be added into sgthais calc as well as above. i.e first half year tax of only 50k on 1,390k; instead of 227k on 1,390k. Think that highlghts the advantage of starting mid year.

BTW 37% on 4mio+ band for when you get promoted so good luck!

If you're interested in the stock market, read up on long term equity funds. Ties up our money for 5 years, but you can also get tax breaks which will reduce your tax bill further, while enjoying an interesting ride on the SET.

Edited July 11, 2007 by AmericanGuy1066

[trader1]

Awesome replies, thanks so much!