Withholding tax certificates (confused)

[Aina24]

Hey All!

I'm a bit confused regarding witholding tax certs. If I'm not mistaken it's a "pay as you go/earn" sceme and each month I'm deducted %3 which gets paid directly to the goverment on behalf of the company I work for. I assumed that means I'm paying the neccesary tax required by law. I was told if I don't wish to  claim a tax refund, it's not neccesary to submit the certs at the yearly report (unless I want to recieve a tax refund of some sort). Is this true?  Then now I'm reading conflicting reports I may be subject to penalties ehhh.. Please take into considration I'm full by the way, so my case might be different.

Edited July 30, 2023 by Aina24

[freeworld]

If you are employed in Thailand, A certain tax is stipulated to be withheld. That is not a final tax and you as an employee and taxpayer are responsible for filing a return to ensure the correct amount of tax is paid by or is reimbursed to, you; depending on your total annual income.

 

4. Withholding Tax

For certain categories of income, the payer of income has to withhold tax at source, file tax return (Form PIT 1, 2 or 3 as the case may be) and submit the amount of tax withheld to the District Revenue Office. The tax withheld shall then be credited against tax liability of a taxpayer at the time of filing PIT return. The following are the withholding tax rates on some categories of income.

 

5. Tax Payment

Taxpayer is liable to file Personal Income Tax return and make a payment to the Revenue Department within the last day of March following the taxable year. Taxpayer, who derives income specified in c, d or f in 2.3 during the first six months of the taxable year is also required to file half - yearly return and make a payment to the Revenue Department within the last day of September of that taxable year. Any withholding tax or half-yearly tax which has been paid to the Revenue Department can be used as a credit against the tax liability at the end of the year.

Edited July 30, 2023 by freeworld

[Aina24]

3 minutes ago, freeworld said:

4. Withholding Tax

For certain categories of income, the payer of income has to withhold tax at source, file tax return (Form PIT 1, 2 or 3 as the case may be) and submit the amount of tax withheld to the District Revenue Office. The tax withheld shall then be credited against tax liability of a taxpayer at the time of filing PIT return. The following are the withholding tax rates on some categories of income.

 

5. Tax Payment

Taxpayer is liable to file Personal Income Tax return and make a payment to the Revenue Department within the last day of March following the taxable year. Taxpayer, who derives income specified in c, d or f in 2.3 during the first six months of the taxable year is also required to file half - yearly return and make a payment to the Revenue Department within the last day of September of that taxable year. Any withholding tax or half-yearly tax which has been paid to the Revenue Department can be used as a credit against the tax liability at the end of the year.

Yes, that's what I was told if I wish to claim a refund of some sorts that I must submit the forms, but if I don't 

I'm just not ellegable for cash back... right? I just want to make sure .. TIA

[freeworld]

10 minutes ago, Aina24 said:

Yes, that's what I was told if I wish to claim a refund of some sorts that I must submit the forms, but if I don't 

I'm just not ellegable for cash back... right? I just want to make sure .. TIA

Depends on your annual income and the tax brackets in which your income falls.

 

Tax rates of the Personal Income Tax

Taxable Income
(baht)Tax Rate
(%)

0-150,000Exempt

more than 150,000 but less than 300,000 5%

more than 300,000 but less than 500,000 10%

more than 500,000 but less than 750,000 15%

more than 750,000 but less than 1,000,000 20%

more than 1,000,000 but less than 2,000,000 25%

more than 2,000,000 but less than 4,000,000 30%

Over 4,000,000 35%

 

Based on the tax table and income brackets you calculate if you have underpaid or overpaid tax on your total annual income.

Edited July 30, 2023 by freeworld

[Aina24]

12 minutes ago, freeworld said:

Depends on your annual income and the tax brackets in which your income falls.

 

Tax rates of the Personal Income Tax

Taxable Income
(baht)Tax Rate
(%)

0-150,000Exempt

more than 150,000 but less than 300,0005

more than 300,000 but less than 500,00010

more than 500,000 but less than 750,00015

more than 750,000 but less than 1,000,00020

more than 1,000,000 but less than 2,000,00025

more than 2,000,000 but less than 4,000,00030

Over 4,000,00035

I see. I earn more than 300k - less than 500k bracket. I'm just confused from conflicting sources. As I've been told by family that the tax-forms I showed said the deduction has already been made and tax paid. *sabai-Sabai*. Now it's past the annually cut of period. Am I subject to a fine of some sorts? ???? ???? ;(..

Edited July 30, 2023 by Aina24

[freeworld]

30 minutes ago, Aina24 said:

I see. I earn more than 300k - less than 500k bracket. I'm just confused from conflicting sources. As I've been told by family that the tax-forms I showered said the deduction has already been made and tax paid. *sabai-Sabai*. Now it's past the annually cut of period. Am I subject to a fine of some sorts? ???? ???? ;(

Maybe you don't owe tax, have you considered the allowable deductions and allowances if you have any.

 

I think a fine if any would be minor from what I have previously read from others.

 

TAXABLE INCOME = Assessable Income - deductions - allowances

 

See how to calculate Taxable income with allowable deductions and allowances you may be entitled to.

 

Personal Income Tax | The Revenue Department (English Site) (rd.go.th)

Edited July 30, 2023 by freeworld

[Aina24]

31 minutes ago, freeworld said:

Maybe you don't owe tax, have you considered the allowable deductions and allowances if you have any.

 

I think a fine if any would be minor from what I have previously read from others.

 

TAXABLE INCOME = Assessable Income - deductions - allowances

 

See how to calculate Taxable income with allowable deductions and allowances you may be entitled to.

 

Personal Income Tax | The Revenue Department (English Site) (rd.go.th)

I appreciate the information. From my understanding I'm owed a refund of some sort. All my colleagues received a few thousand baht, I just didn't claim mine....

[Aina24]

3 hours ago, freeworld said:

Maybe you don't owe tax, have you considered the allowable deductions and allowances if you have any.

 

I think a fine if any would be minor from what I have previously read from others.

 

TAXABLE INCOME = Assessable Income - deductions - allowances

 

See how to calculate Taxable income with allowable deductions and allowances you may be entitled to.

 

Personal Income Tax | The Revenue Department (English Site) (rd.go.th)

I might just pay an accounting firm to help sort my issue out. Do u have any recommendations? ????

[foreverlomsak]

1 hour ago, Aina24 said:

I might just pay an accounting firm to help sort my issue out. Do u have any recommendations? ????

If you do that your just throwing money away, if that's what you want to do go ahead.

It's so simple to do if you follow the guidance in the link provided by @freeworld, when I was working it took only 10/15 minutes to do, and a further 15 minutes in the tax office, to come out with a tax receipt.

I assume you have a tax ID already, not only is tax payable on direct income (e.g. salary) but on bank savings which is a 15% tax withholding.

[Aina24]

32 minutes ago, foreverlomsak said:

If you do that your just throwing money away, if that's what you want to do go ahead.

It's so simple to do if you follow the guidance in the link provided by @freeworld, when I was working it took only 10/15 minutes to do, and a further 15 minutes in the tax office, to come out with a tax receipt.

I assume you have a tax ID already, not only is tax payable on direct income (e.g. salary) but on bank savings which is a 15% tax withholding.

Thanks for the advice. Yes my tax I.D is on the forms. What other supporting docs did you need? T.I.A

[foreverlomsak]

17 hours ago, Aina24 said:

Thanks for the advice. Yes my tax I.D is on the forms. What other supporting docs did you need? T.I.A

Only document I remember being submitted was a statement from me on what salary payments I received during the year.

They did not question the allowances I included for wife and children.