How Much Tax

[Brigante7]

If I want to pay my Thai wife a salary of 40,000baht a month in order to obtain a Non Imm O visa extension, how much tax would she pay and what documents would she have to provide to show the income, if any?

Many thanks

[lopburi3]

It varies by deductions but 2-3,000 baht per month has been reported. Believe it just takes her to declare the income and fill out tax forms.

[wca01]

It varies by deductions but 2-3,000 baht per month has been reported. Believe it just takes her to declare the income and fill out tax forms.

Should be less, under 2000 Baht. (New: 150,000 Tax free; old 100,000) An additonal 60,000 can also be deducted.

WCA

[wolfmanjack]

I would appreciate it if you can show details of how it can be under 2,000 per month. I have a wife and 2 children for deductions. My monthly tax payments are 2,521 baht on 40,000 baht per month.

[wca01]

I would appreciate it if you can show details of how it can be under 2,000 per month. I have a wife and 2 children for deductions. My monthly tax payments are 2,521 baht on 40,000 baht per month.

Sorry, I was wrong! With the new tax regulations you will have to pay around Baht 2,175 instead of Baht 2,521. Still better than before.

WCA

[wolfmanjack]

I would appreciate it if you can show details of how it can be under 2,000 per month. I have a wife and 2 children for deductions. My monthly tax payments are 2,521 baht on 40,000 baht per month.

Sorry, I was wrong! With the new tax regulations you will have to pay around Baht 2,175 instead of Baht 2,521. Still better than before.

WCA

Yes 2,175 will be much better than 2,521. When do the new rules go into effect ?: I paid 2,521 for April. Or have they already gone into effect and my accountant is having me pay more than i am supposed to?

[samran]

http://www.thaivisa.com/forum/index.php?ac...st&id=34841

link to a tax calculator.

NOTE: it is set up for calculating tax where the tax free threshold was 100K. You'll need to fiddle with the excel formula get it to 150K.

I beleive the deductions allowed have changed as well, but all in all, should give you a pretty indicative idea of what you need to pay depending on your circumstances.

[TJ9]

You can work out the income tax due using the information on the Revenue Department's website at http://www.rd.go.th/publish/6045.0.html

The page has not been updated to account for the recent change in the tax brackets. The first 150,000 Baht is now tax exempt instead of 100,000 Baht as listed on the website.

Hope it helps.

[Brigante7]

Thank you for the info

[wolfmanjack]

http://www.thaivisa.com/forum/index.php?ac...st&id=34841

link to a tax calculator.

NOTE: it is set up for calculating tax where the tax free threshold was 100K. You'll need to fiddle with the excel formula get it to 150K.

I beleive the deductions allowed have changed as well, but all in all, should give you a pretty indicative idea of what you need to pay depending on your circumstances.

Thanks. This has been a big help. IT looks like my accountant has had me paying way too much before the increase in deductions. I am paying 2,521 and according to the spreadsheet without the extra deduction i should be paying 1,808.33 baht per month. With the new deduction it will only be 1,391.67 baht. Unless i did something wrong.

One question i have is do i get the 2,000 baht per kid deduction for the school if they are going to a public thai school ?

[tijnebijn]

My wife is paying 1900 per half a year .

I thought that was a little amount considering what some are paying ,

but the tax collector insisted that because she is the lone taxpayer and earner in the family

they calculate by different means , when she is not the lone earner or if I have an taxable

income too , they probably tax what I read on here .

Although I do remember a story from a member , who payed the same amount as we do , which nobody believed ....

But she has got her own business , guess calculations depend on situations a lot .

I'll be going to immigration in the next two months for extension , they already okayed

the bill of tax payment which was based on a yearly income of 489.000 .

So we will see what next .

Edited May 7, 2008 by tijnebijn

[samran]

http://www.thaivisa.com/forum/index.php?ac...st&id=34841

link to a tax calculator.

NOTE: it is set up for calculating tax where the tax free threshold was 100K. You'll need to fiddle with the excel formula get it to 150K.

I beleive the deductions allowed have changed as well, but all in all, should give you a pretty indicative idea of what you need to pay depending on your circumstances.

Thanks. This has been a big help. IT looks like my accountant has had me paying way too much before the increase in deductions. I am paying 2,521 and according to the spreadsheet without the extra deduction i should be paying 1,808.33 baht per month. With the new deduction it will only be 1,391.67 baht. Unless i did something wrong.

One question i have is do i get the 2,000 baht per kid deduction for the school if they are going to a public thai school ?

when you submit your tax return next year, the revenue department will do the calculations. You should go down, with your accountant, and may find that you have a refund due....

[TerryLH]

"One question i have is do i get the 2,000 baht per kid deduction for the school if they are going to a public thai school ?"

For kids in school you get the 15k deduction for the child plus the 2k for going to school. = 17k

It isn't limited to public schools. Kids going to private school are also eligible.

"I beleive the deductions allowed have changed as well..."

Samran, what other changes in deductions have you heard about?

Thanks

Terry

[wolfmanjack]

"One question i have is do i get the 2,000 baht per kid deduction for the school if they are going to a public thai school ?"

For kids in school you get the 15k deduction for the child plus the 2k for going to school. = 17k

It isn't limited to public schools. Kids going to private school are also eligible.

"I beleive the deductions allowed have changed as well..."

Samran, what other changes in deductions have you heard about?

Thanks

Terry

Thanks for the info. I assumed the extra 2,000 was for people sending their kids to private schools and was wondering if us poor folks got the deduction also. Thanks for letting me know they do.

[wolfmanjack]

http://www.thaivisa.com/forum/index.php?ac...st&id=34841

link to a tax calculator.

NOTE: it is set up for calculating tax where the tax free threshold was 100K. You'll need to fiddle with the excel formula get it to 150K.

I beleive the deductions allowed have changed as well, but all in all, should give you a pretty indicative idea of what you need to pay depending on your circumstances.

Thanks. This has been a big help. IT looks like my accountant has had me paying way too much before the increase in deductions. I am paying 2,521 and according to the spreadsheet without the extra deduction i should be paying 1,808.33 baht per month. With the new deduction it will only be 1,391.67 baht. Unless i did something wrong.

One question i have is do i get the 2,000 baht per kid deduction for the school if they are going to a public thai school ?

when you submit your tax return next year, the revenue department will do the calculations. You should go down, with your accountant, and may find that you have a refund due....

It sounds nice but i have no hope that the revenue department will give me a refund with me fighting for it. When i spoke to them a few years ago they said i wasn't paying enough taxes based on the size of my buildings. I tried to explain that ALL the money to build my house and buildings came from the USA. They ended up charging me taxes on a business that my wife had 8 years ago even though she has not been running it but she did not pay to shut down so we had to pay.. i was pissed but my accountant said it would cost more than the tax to fight.

[samran]

"One question i have is do i get the 2,000 baht per kid deduction for the school if they are going to a public thai school ?"

For kids in school you get the 15k deduction for the child plus the 2k for going to school. = 17k

It isn't limited to public schools. Kids going to private school are also eligible.

"I beleive the deductions allowed have changed as well..."

Samran, what other changes in deductions have you heard about?

Thanks

Terry

read somewhere that you can invest more now in the retirement and long term funds than before. Meaning, you can put more of your money into the stock market, before tax and thus lowering your threshold. As long as it remains invested in an approved Long term fund (LTF) for at lest 3 years or returment fund (RF) then you can pull it out later tax free.

[Nickthegreek]

Recently done this so its fairly fresh in my mind.

the wifes company for immigration reasons is set at 40,000 baht per month on that for a five month period in order for me to switch my visa from an Non imm B to an O was 1000 baht,which was miles better than I was paying when working!!!!!!!

She had to file a por ngor 90 for half year and for a full year por ngor 94...

Hope this helps.

[JimGant]

If I want to pay my Thai wife a salary of 40,000baht a month in order to obtain a Non Imm O visa extension,

I know this might just be a shell game, but assuming you actually have a monthly positive cash flow of 40k baht/mo with which to "pay" your wife, why would you want to? Just have your Embassy attest to this cash flow, thereby saving annual Thai taxes of possibly 21,000 baht:

Income: .................480,000 (40k/mo)

Less:

Deduction: .............(60,000)

Allowances:

Self:.......................(30,000)

Spouse:..................(30,000)

Tax Floor:................(150,000)

Taxable Income:.......210,000

Tax Rate:....................10%

Taxes Due:................21,000/yr (1,750/mo)

(This would be less with child allowances, charity, insurance expenses, etc.)

Using the US example, the letter from the Embassy/Consulate affirming your "income" actually says nothing about income. It says so-and-so affirms he "receives x dollars a month from somewhere." (Well, actually, "from the US Government and/or other sources," which sure sounds like 'somewhere' to me.......)

So, if you're drawing down a savings account, clipping bond coupons, borrowing money from Aunt Sarah, renting out your house, ad infinitum ..... you've got cash flow that, at least for Yanks, is certifiable.

And for every baht less you have to "pay' your wife to reach a joint monthly income of 40k baht, you put 10 satang in your pocket. So, even if you can only affirm that you receive a monthly dollar flow equivalent to 17k baht, thus having to "pay' your wife the 23k/mo difference, this means her annual income tax would then be only 600 baht (based on the above example).*

Why would you want to pay 20,400 baht *more* in taxes if you could avoid it, especially if you really don't have 40k a month to live on.... (but do have some amount certifiable by your embassy).

* I don't know what would happen if your wife's "pay" slipped below being taxable. Can you file a tax form to show what you were "payed" even if you owe no taxes? Dunno.