Taxes For Lt Farangs

[paulfr]

I found this at ....

http://www.faqs.org/faqs/thai/general/

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Personal income tax is applied on a graduated scale as follows:

Net Annual Income (Baht) Tax Rate

60,000 - 100,000 5%

101,000 - 500,000 10%

501,000 - 1,000,000 20%

1,000,000 - 4,000,000 30%

4,000,001 or above 37%

Individuals residing for 180 days or more in Thailand for any cal-

endar year are also subject to income tax on income from foreign

sources if that income is brought into Thailand during the same

taxable year that they are a resident.

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That means an average pensioner on a 1yr retirement extension

with say 40,000 B/month income would need to pay Thai Govt

10% of 12 x 40KB = 48,000Baht

each year even if he was taxed on that income back home.

Is this true to your understanding ?

Does anyone here pay this sort of personal income tax to LOS ??

Thanks

[lopburi3]

1. Remember that there are deductions just as in other countries so most people do not pay full rate bands.

2. For retirement pay many countries have dual taxation treaties with Thailand which normally provide for tax at source.

3. Most people here on retirement live on savings earned in a previous tax year.

[olaus]

paulfr

I am retired. My homecountry has an agreement with Thailand, saying I should pay tax only to my homecountry. This tax is reduced about 7 % from what normal paxpayers pay, due to I am living abroad.

The rule is, if you earned your income previous years from a job within the state, you should pay tax to your homecountry. If you earned money private, you should pay to the Kingdom of Thailand.

You should not be doubletaxed.

I think different countries have different agreements.

I found out this after contacting the Tax Authorities in my homecountry.

Olaus

[bkk_mike]

paulfr

I am retired. My homecountry has an agreement with Thailand, saying I should pay tax only to my homecountry. This tax is reduced about 7 % from what normal paxpayers pay, due to I am living abroad.

The rule is, if you earned your income previous years from a job within the state, you should pay tax to your homecountry. If you earned money private, you should pay to the Kingdom of Thailand.

You should not be doubletaxed.

I think different countries have different agreements.

I found out this after contacting the Tax Authorities in my homecountry.

Olaus

If you're paying tax on it in your home country, so long as that country has a double taxation agreement with Thailand, the worst that can happen is, if Thai taxes are higher than your own country's taxes for the amount you earn, that you pay the difference between the Thai tax, and your home tax to the Thai government.

i.e. Effectively you pay the worst tax rate of the two countries, but you don't pay tax twice.

e.g. Assuming a double taxation agreement exists, if your home country taxes you for the equivalent of 15,000 baht, and Thailand would tax you for 16,000 baht for the same income (based on what you take into Thailand, NOT your total income), then you may find you are supposed to pay 1,000 baht to the Thai tax authorities.

You would only find yourself in the situation of paying 15,000 in tax to your home country, and being liable to 16,000 in tax in Thailand if there is no double taxation agreement.

Thai taxes aren't that high, so that if you're from Europe (except maybe the UK/Ireland, and then only if your income isn't in the top tax band at home, but makes it into the top tax band in Thailand), you're unlikely to find that Thai taxes are more than your home taxes.

Also, this is the worst that can happen under a double taxation agreement. In a lot of cases, specific clauses in the agreement effectively state that income should be taxed in one country, and isn't liable to tax in the other. (Prime example is rental income which is usually taxable in the country where the property is located). But you really need to check the specific double taxation agreement to see where you stand.