Street Vendors in Bangkok Encouraged to Sign Up for Tax Registration

[snoop1130]

 

The city government is encouraging street vendors to sign up for the tax payment program, in efforts to regulate their activity in public spaces and sidewalks.

 

The Governor of Bangkok, Chadchart Sittipunt, stated on Wednesday that only vendors making less than 25,000 baht monthly will be allowed to operate in these areas. Vendors earning more are advised to rent stalls for sales.

 

To implement this policy, it is mandatory for vendors, even those earning below taxable limit, to get registered in the tax payment system.

 

This would enable the Bangkok Metropolitan Administration (BMA) to keep track of their income, as stated by Mr. Chadchart. He also added that the city government has the power to remove vendors from areas if they litter or obstruct pedestrian movement.

 

File photo for reference only

 

-- 2024-05-30

 

Get our Daily Newsletter - Click HERE to subscribe

[0ffshore360]

I am trying to understand how registration for a tax number realistically the  BMA to keep track of income ?

Perhaps the income cap as a basis for limiting permits is the intent but hardly likely to provide honest declarations to either the BMA or the TRD.

Is that  25,000 gross or net ? Those cash sale receipts that habitually get binned at the door suddenly may have gained great importance because the margins made by small traders are not lucrative !

[stoner]

I know if I was a low income earner trying to scrape by in life I would rush to tell the government so they can take more of my hard earned money.

[Sandboxer]

Next they'll ask people to register how much gold their own 555....

[fondue zoo]

*crickets*

[soi3eddie]

11 hours ago, stoner said:

I know if I was a low income earner trying to scrape by in life I would rush to tell the government so they can take more of my hard earned money.

 

A GF I dated, lived in a Moo Baan in Khlong Sam, Phatum Thani. She ran a nail salon and sold some ladies clothes from her house. 50% of the other properties in that community ran some sort of business from their homes. One day, in 2017, the revenue department came by and told them all they must register as businesses. Within a week 70-80% or so had closed down. It destroyed the prosperity and livelihoods of the area.

 

[ezzra]

That'll be the day and a vision to behold to get all those mom and pop operations in every nook, cranny, and ally's of Bkk

getting registered to pay tax..

[stoner]

1 hour ago, soi3eddie said:

 

A GF I dated, lived in a Moo Baan in Khlong Sam, Phatum Thani. She ran a nail salon and sold some ladies clothes from her house. 50% of the other properties in that community ran some sort of business from their homes. One day, in 2017, the revenue department came by and told them all they must register as businesses. Within a week 70-80% or so had closed down. It destroyed the prosperity and livelihoods of the area.

 

 

up near the tesco ya ? i lived on khlong sam for a number of years across the street from disney world. 

[hotchilli]

14 hours ago, stoner said:

I know if I was a low income earner trying to scrape by in life I would rush to tell the government so they can take more of my hard earned money.

I have a Win taxi friend who works outside Big C.. 

I asked him once how much tax he pays?

He replied "7 %" with a grin, every time he buys something.

zero tax and & 7% VAT he said that's all the government gets out of him.

[Purdey]

The tax base in Thailand is incredibly small. Perhaps registering everyone isn't such a bad idea. Lots of Benzes around. 

I know someone who has a good business but "negotiates" an amount whenever a tax man comes around. No one wants to pay unless you teach them they are not exempt.

[Mike Lister]

3 hours ago, soi3eddie said:

 

A GF I dated, lived in a Moo Baan in Khlong Sam, Phatum Thani. She ran a nail salon and sold some ladies clothes from her house. 50% of the other properties in that community ran some sort of business from their homes. One day, in 2017, the revenue department came by and told them all they must register as businesses. Within a week 70-80% or so had closed down. It destroyed the prosperity and livelihoods of the area.

 

IMHO your friend destroyed her own prosperity, not the Revenue people. If she would have bothered to learn about the tax system, she would have understood that she can easily make a good living, without paying tax. My wife is registered for tax as self employed and clears 65k Baht a month on sales of 1 million and legally pays no tax.

[Peterphuket]

3 hours ago, soi3eddie said:

 

A GF I dated, lived in a Moo Baan in Khlong Sam, Phatum Thani. She ran a nail salon and sold some ladies clothes from her house. 50% of the other properties in that community ran some sort of business from their homes. One day, in 2017, the revenue department came by and told them all they must register as businesses. Within a week 70-80% or so had closed down. It destroyed the prosperity and livelihoods of the area.

 

It has already been several years since something similar happened to a relative of my former girlfriend, throughout the neighbourhood old hotel linen was collected and processed as cleaning rags.
There too, the tax authorities came with the obligation to declare the turnover of this.
En masse this was refused, and no action was taken. This was all in Samut Sakhon.

[freeworld]

58 minutes ago, Mike Lister said:

IMHO your friend destroyed her own prosperity, not the Revenue people. If she would have bothered to learn about the tax system, she would have understood that she can easily make a good living, without paying tax. My wife is registered for tax as self employed and clears 65k Baht a month on sales of 1 million and legally pays no tax.

Earning a few thousand baht from selling a few things from home hardly brings in a lot of income. If they were to register as a business as the tax people insist there would be all the costs associated with that and accounting, closing down etc.. Probably for most it is just not worth all the hassle.

[Mike Lister]

2 minutes ago, freeworld said:

Earning a few thousand baht from selling a few things from home hardly brings in a lot of income. If they were to register as a business as the tax people insist there would be all the costs associated with that and accounting, closing down etc.. Probably for most it is just not worth all the hassle.

There's no costs to register and work as self employed, that's what most people, including my wife do.

[freeworld]

10 minutes ago, Mike Lister said:

There's no costs to register and work as self employed, that's what most people, including my wife do.

But this is what the person wrote "must register as businesses"

 

“Self-employed" and “business owner" are terms often used interchangeably. But are they really the same things? The answer is no.

When you're self-employed, you're not always a business owner. You may simply have created your own job. While it sounds confusing, each becomes clear when you understand what the terms mean.

[Mike Lister]

7 minutes ago, freeworld said:

But this is what the person wrote "must register as businesses"

 

“Self-employed" and “business owner" are terms often used interchangeably. But are they really the same things? The answer is no.

When you're self-employed, you're not always a business owner. You may simply have created your own job. While it sounds confusing, each becomes clear when you understand what the terms mean.

Not true! The person has the option to form a company or to work as self employed, the choice is theirs based on whether they are willing to assume full liability or not. My wife advertises a business brand but she isn't a limited company.

[fondue zoo]

26 minutes ago, Mike Lister said:

There's no costs to register and work as self employed, that's what most people, including my wife do.

 

But how does the better half find the time though, there are picket fences that need building if I recall.

[Mike Lister]

Just now, fondue zoo said:

 

But how does the better half find the time though, there are picket fences that need building if I recall.

For goodness sake man, there are twenty four hours in the day, are there not!

[fondue zoo]

Just now, Mike Lister said:

For goodness sake man, there are twenty four hours in the day, are there not!

 

yeah, my bad.

[Darksidedude]

ha ha this for real

[kwak250]

3 hours ago, Mike Lister said:

IMHO your friend destroyed her own prosperity, not the Revenue people. If she would have bothered to learn about the tax system, she would have understood that she can easily make a good living, without paying tax. My wife is registered for tax as self employed and clears 65k Baht a month on sales of 1 million and legally pays no tax.

If you are showing you get 65k a month net profit then you need to pay tax unless you have a huge amount of children/ dependents

She is probably showing she is getting 10k a month but not declaring 65k a month.

My wife's sister works in the tax office and it is common for people to say they get much lower net income than they actually do.

 

***Misleading/incorrect para on when to pay Thai tax removed by moderation.***

 

[connda]

Thailand is going first world:  Tax every satang from the poorest segment of society right down to street beggars. 

In the meanwhile the billionaire class avoids taxes with a paddock of lawyers, tax havens, and offshore account.

So - tax the commoners and peasants to death! 

[Mike Lister]

21 minutes ago, kwak250 said:

If you are showing you get 65k a month net profit then you need to pay tax unless you have a huge amount of children/ dependents

She is probably showing she is getting 10k a month but not declaring 65k a month.

My wife's sister works in the tax office and it is common for people to say they get much lower net income than they actually do.

 

 

Individuals with an annual net income exceeding 150,000 baht must pay taxes according to the specified rates. Taxes can be filed from January 1 to March 31 of every year at the nearest Revenue Department office or through online channels.

All my wife's business is conducted electronically, there is no cash involved on the sales side and all purchases are electronic payment. Consequently, there is no opportunity to under report earnings. I keep her books and I wont let her under report, The first time she filed, the Revenue lady juggled the numbers so she she did under report, so I sent her back and made her correct the return at the District office, which was a big deal at the time. 

 

Sales of 1,000,000 by a self employed person allow her to deduct 60% of her sales as cost, it's a fixed deduction. That leaves her 400,000 of profit that go to the Personal Income Tax calculation. She deducts 60,000 personal allowance for herself, 30,000 for care of her mother, 80,000 deduction for her RMF fund and 150,000 zero rated for tax, total, 320,000. That leaves taxable income of 80,000 which is taxed at 5% or 4,000 baht.....I said she didn't pay tax....I lied! 

 

Her true costs are around 31% of the value of sales or 310,000, leaving after tax profit of 690,000 or 58k a month. I said 65k a month, I lied again, because I used round number for the example.

 

She files a return twice a year, July and January.

 

[john donson]

but they already pay brown envelopes...

[khunjeff]

19 hours ago, 0ffshore360 said:

Is that  25,000 gross or net ?

 

Another article I read specified that it was net of expenses.

[Geir Rasch]

7 hours ago, soi3eddie said:

 

A GF I dated, lived in a Moo Baan in Khlong Sam, Phatum Thani. She ran a nail salon and sold some ladies clothes from her house. 50% of the other properties in that community ran some sort of business from their homes. One day, in 2017, the revenue department came by and told them all they must register as businesses. Within a week 70-80% or so had closed down. It destroyed the prosperity and livelihoods of the area.

 

Business that prefer lock down before tax registration is not a sustainable business. My guess none of them would end up paying tax. A good society is a society where all people contribute by paying taxes (when income is high enough).

[Geir Rasch]

1 hour ago, connda said:

Thailand is going first world:  Tax every satang from the poorest segment of society right down to street beggars. 

In the meanwhile the billionaire class avoids taxes with a paddock of lawyers, tax havens, and offshore account.

So - tax the commoners and peasants to death! 

That is why you need to tax fortune, not only income. Heritage tax should also be considered.

[0ffshore360]

1 hour ago, khunjeff said:

 

Another article I read specified that it was net of expenses.

So some degree of mandatory accountancy required. Not a forte' of the average street vendor I would  imagine.

The world seems to be determined to introduce regulatory mandates involving anything financial at the bottom of the heap.

In Thailand it seem to me an increase in VAT would be a simpler method to extract from the poor!

[DD86]

Let's say it's a globalist thing. Also revenue depts want to control you in Thailand. You 'just' need to get registered. Self employed entrepeneurs will in many cases pay no tax or VAT. First there is a turnover threshold on VAT and then the net turnover is in most cases to low for income tax.

I had a small biss (Co.Ltd) with the wife and we payed almost nill tax. 

[impulse]

Seems reasonable to register street vendors, if only to know who has permission to hawk their wares in that location.  I doubt the tax implications are too onerous, especially if they self report.   Are they local?  Are they Thai?  Are they wanted in another province?

 

The taxing Rubicon will come when every transaction has to be accompanied by a sales tax invoice (like a 7/11 receipt).  That would allow the Revenue Department to track revenue and start enforcing taxes.  But I don't see that coming for awhile.