Reduce taxation by gifting.

[chiang mai]

13 minutes ago, Yumthai said:

The reality is most of Thai people including the poor workforce you mention is hustling doing multiple undeclared side businesses in order to get by, this is where the tax money is. Needless to mention the elite and high-so who are well structured to avoid an even bigger amount of potential tax. TRD is imo currently not in capacity (or not willing as you think so) to collect that.

Average wage in Thailand, 15,000 per month, that's the reality.

 

https://tradingeconomics.com/thailand/wages

 

That's 180,000 per year, the first 150,000 is zero rated for tax, plus 60,000 Personal Allowance, is 210,000 baht per year. That 75% is 30,000 baht per year short of needing to pay tax.

 

Plus, remove the 25% who already file a return and that means the rest are way under the threshold for paying tax. That's why 75 of the workforce doesn't file a return, they don't earn enough to do so.

[Yumthai]

11 minutes ago, chiang mai said:

Average wage in Thailand, 15,000 per month, that's the reality.

 

https://tradingeconomics.com/thailand/wages

 

That's 180,000 per year, the first 150,000 is zero rated for tax, plus 60,000 Personal Allowance, is 210,000 baht per year. That 75% is 30,000 baht per year short of needing to pay tax.

 

Plus, remove the 25% who already file a return and that means the rest are way under the threshold for paying tax. That's why 75 of the workforce doesn't file a return, they don't earn enough to do so.

There's a reality that is not written anywhere and you apparently don't want to see, fair enough.

[chiang mai]

17 minutes ago, Yumthai said:

There's a reality that is not written anywhere and you apparently don't want to see, fair enough.

That's not true either!

 

You wrote:

 

"The reality is most of Thai people including the poor workforce you mention is hustling doing multiple undeclared side businesses in order to get by, this is where the tax money is".

 

I agree there are those people, lots of them. But the sum total of those individual earnings does still not amount to anything substantial that's worthwhile the effort chasing. Why go after Somchai just because he's 50 or 100k baht per year over the threshold for filing but hasn't? He's hustling like that because he's trying, as you say, to get by. He's not a tax evader in the true sense.

 

Then you wrote:

 

"Needless to mention the elite and high-so who are well structured to avoid an even bigger amount of potential tax. TRD is imo currently not in capacity (or not willing as you think so) to collect that".

 

All this nonsense about TRD not being able to or unwilling to make their own people pay tax....folks simply haven't done the math.

Well, isn't this why the recent rule change was put into force? I don't know why you don't think TRD is not willing to go after them, they did change the rules didn't they?

 

 

[Yumthai]

2 hours ago, chiang mai said:

But the sum total of those individual earnings does still not amount to anything substantial that's worthwhile the effort chasing.

That's your opinion. I disagree. I think official figures are not representative. From what I've seen among all social classes, most Thais got untaxed side hustles.

 

2 hours ago, chiang mai said:

Well, isn't this why the recent rule change was put into force? I don't know why you don't think TRD is not willing to go after them, they did change the rules didn't they?

No actions have been taken yet.

 

[chiang mai]

2 minutes ago, Yumthai said:

That's your opinion. I disagree. I think official figures are not representative. From what I've seen among all social classes, most Thais got untaxed side hustles.

 

No actions have been taken yet.

 

How much do you think that 75% should be reduced by, in order to allow for those people who don't earn enough money to pay tax?  25% already file a return, X% don't earn enough to pay tax so they don't file, Y% are tax evaders. What's the value of X and Y?

[Yumthai]

37 minutes ago, chiang mai said:

How much do you think that 75% should be reduced by, in order to allow for those people who don't earn enough money to pay tax?  25% already file a return, X% don't earn enough to pay tax so they don't file, Y% are tax evaders. What's the value of X and Y?

I have no clue. Some of the 25% who file have extra undeclared income as well. I think Y (intentionally or not evading) is substantial.

[chiang mai]

1 hour ago, Yumthai said:

I have no clue. Some of the 25% who file have extra undeclared income as well. I think Y (intentionally or not evading) is substantial.

We can't go any further with this, not if you are going to ignore average wage stats et al and remain convinced that almost everyone is committing tax evasion.  Let's wait and see what facts come out later and then perhaps return to this. Out.

[Lorry]

The government isn't interested in taxing the poor. On the contrary,  there is talk about negative income tax.

But they are interested in taxing the informal sector,  if the money is substantial (so, not the motorcycle gang)

2 ways to do it: formalize more parts of the economy (close "illegal" guesthouses and restaurants, abolish street vendors,  favor 7-11 over mom-and-pop, legalize casinos...). And monitor all financial transactions (PromptPay was supposed to do this).

It's work in progress

Thai middle class,  even the lower middle class, know very well they should pay taxes and they know how to avoid (ever rented a condo with 2 rental contracts?) and evade (use cash) taxes.