Personal Income Tax

[farangtingtong]

Had a bit of a discussion in the THAI company I work with.

The Thai tax office wants us to mention refund of expenses, made by employees for fuel, accomodation and other business expenses, on the monthly pay slip as a part of the assessable income.

I stated to our accounting mananger that that is impossible, even in Thailand: allowances and other benefits: OK!, but our employees pay for fuel, accomodation, etc and they claim that back.......it can't be that that is going to be a part of assessable income.

We keep record of the mileage of every (private) car, used by our employees for company purposes; we pay back the fuel, according the car manufacturers' fuel consumption figures and we add THB 0.20/km for maintenance. So, we pay back real cost and not estimated or fixed per/km.

Anyone help me out here!

[Chang_paarp]

Surely it is petty cash refund of legitimate expences. If you give the staff a small(ish) float they have to balance every week or so they are not even using their own money.

One other way of tracking and treating it would be to issue corporate credit cards. Well that would work in places that took credit cards.

[singa-traz]

Looks like RD is trying to verify that what you declare as business expenses, are not actually benefits to the employee.

http://www.rd.go.th/publish/6045.0.html

Read this:

http://www.rd.go.th/publish/35738.0.html

If they are legitimate business expenses, you do not need to worry

[farangtingtong]

Looks like RD is trying to verify that what you declare as business expenses, are not actually benefits to the employee.

http://www.rd.go.th/publish/6045.0.html

Read this:

http://www.rd.go.th/publish/35738.0.html

If they are legitimate business expenses, you do not need to worry

Thanks,

got the message. Will go into a 'battle' with the RD about this.

[andy1308]

Some companies will include a monthly transport allowance as part of the salary payment, and not require any proof from the employee whether it was used or not. Perhaps that's what they're getting at here ?

[singa-traz]

Some companies will include a monthly transport allowance as part of the salary payment, and not require any proof from the employee whether it was used or not. Perhaps that's what they're getting at here ?

Such allowance are taxable.

[cmsally]

Surely if you can produce receipts equal to the amount of allowance you can prove that it is not part of your income.

Maybe when there is a shortfall in receipts amount, they assume it has become part of your income.