Income Tax Question

[lambous]

I'm a foreigner and for my 1st salary payment I received 23,333 Baht for working April 17th to 30th (14 days out of 30 day month). My monthly salary is 50,000Baht. I was taxed 2517 Baht and also deducted 750 baht for social security. This seems like an awful lot of tax compared to my old job where I didn't have anything deducted for social security. Is there something wrong here? Or is tax being with withheld that I will receive in a tax return at a later date? I thought social security was only for Thais

Edited May 8, 2008 by lambous

[bendix]

Seems about right to me. Social security is for everyone, not just Thais. And as for the tax, come on. You're only paying 10%. It's hardly a fortune.

[Tywais]

Seems about right to me. Social security is for everyone, not just Thais. And as for the tax, come on. You're only paying 10%. It's hardly a fortune.

Agree with bendix. 750 is the amount of SS taking from my university salary. I believe it is 5% of the monthly salary and caps at a salary of 15,000 b/month at 750 baht.

[cmsally]

Social security would be correct. You will be eligible for free medical care. But I thought Thai income tax was only paid twice a year (or is that only if you are self employed?). In which case why would it be deducted monthly?

[Tywais]

But I thought Thai income tax was only paid twice a year (or is that only if you are self employed?).

It's paid monthly cmsally for employees but perhaps self employed it would make sense to be bi-annual.

[Cyberstar]

I received 23,333 Baht for working April 17th to 30th (14 days out of 30 day month). My monthly salary is 50,000Baht. I was taxed 2517 Baht

The tax withheld is just that 'withheld'. The money deducted from your April salary does not relate specifically to your April salary. It's more like the monthly average of the tax you should pay for your expected income this calender year. Actually, 2517 Baht would be much too little if you earned 50,000 every month this year, so it seems that your employer has taken into account that you haven't been employed the whole year.

Assuming all is handled as it should, you'll receive a "statement" (sorry, don't remember the correct English term) some time next spring and get eventual excess withheld tax returned - (or a bill to pay if too little has been withheld).