Personal Income Tax

[Bredbury Blue]

What is the definition of the tax year?

If i earned salary in December 2006 which i RECEIVED in January 2007 would that be included in my current tax return for 2007 to be completed within 31-03-08?

i.e. is it the amounts when actually received in the calendar tax year OR the amounts when actually earned in the calendar tax year?

Thanks

[lanny]

You don't say what country's income tax you are concerned about. However, for most countries, you use the cash basis -- which means you report income when received and deductions when paid.

[Briggsy]

When I receive my end of year statement detailing gross income and deducted tax as an employee in Thailand, it is for the year ending 31 December. For company accounts, the situation may be different.

[Bredbury Blue]

1. Sorry, but yes i did mean Thailand. So the tax year includes amounts RECEIVED in the 12 months.

2. The tax form received from my ex-employer includes 2 figures, 1 for amount earned and 1 for tax withheld. If either of those figures should prove to be wrong (i.e. say the tax dept select my form to check, and say find the tax paid per month does not match the amount on the form) who is responsible, my ex-employer or me? Who would be financially responsible (say more tax needed paying), my ex-employer or me?

[JohnC]

The tax year runs from 1st January until 31st December for all income earned in that year, individuals are responsible for ensuring they are paying the correct tax, if you are unsure ask your payroll dept (in writing) to confirm your tax liability and what has been paid on your behalf.