Work Permit: How Much Tax?

[Rajah]

If you apply for a work permit you have to pay tax. Does anyone know how much tax has to be paid? According to the work permit and application you have to have a monthly income of at least 50 000 baht a month.

[Mario2008]

It depends on your nationality.

Nationality Minimum Income

1. European Countries, Australia, Canada, Japan, and U.S.A. Baht 50,000/month

2. South Korea, Singapore, Taiwan and Hong Kong Baht 45,000/month

3. Asian Countries, South America, Countries in Eastern Europe, Countries in Central America, Mexico, Turkey, Russia and South Africa Baht 35,000/month

4. African Countries, Cambodia, Myanmar, Laos and Vietnam Baht 25,000/month

[Lite Beer]

If you apply for a work permit you have to pay tax. Does anyone know how much tax has to be paid? According to the work permit and application you have to have a monthly income of at least 50 000 baht a month.

Depends on your nationality.

Too slow again.

Edited July 3, 2008 by Lite Beer

[lopburi3]

He seems to know the income amount - question seems to be how much tax he would have to pay on it from my reading. As people have reported 2-3,000 baht per month range for income of 40k expect it would be a bit more than that but will depend on deductions.

[NHJ]

If you apply for a work permit you have to pay tax. Does anyone know how much tax has to be paid? According to the work permit and application you have to have a monthly income of at least 50 000 baht a month.

hi,

did you get that minimum salary from the labour department recently?

according to sunbelt, since a month the labour department does allow as lowest salary the minimum income to apply for extension of stay per nationality.

the tax should be 3K bath/month.

[Rajah]

He seems to know the income amount - question seems to be how much tax he would have to pay on it from my reading. As people have reported 2-3,000 baht per month range for income of 40k expect it would be a bit more than that but will depend on deductions.

OK. Thanks. It would be an income of 50 000 baht as I posted.

[Firefox3536]

He seems to know the income amount - question seems to be how much tax he would have to pay on it from my reading. As people have reported 2-3,000 baht per month range for income of 40k expect it would be a bit more than that but will depend on deductions.

OK. Thanks. It would be an income of 50 000 baht as I posted.

On 35K income its 1,500 Baht withholding tax per month. On 50K income per month it is 3,000 Baht in taxes per month (if you are single). Of course you would have 750 Baht Social Fund tax per month, if you are an employee as well.

Edited July 3, 2008 by Firefox3536

[bazmlb]

He seems to know the income amount - question seems to be how much tax he would have to pay on it from my reading. As people have reported 2-3,000 baht per month range for income of 40k expect it would be a bit more than that but will depend on deductions.

OK. Thanks. It would be an income of 50 000 baht as I posted.

On 35K income its 1,500 Baht withholding tax per month. On 50K income per month it is 3,000 Baht in taxes per month (if you are single). Of course you would have 750 Baht Social Fund tax per month, if you are an employee as well.

The Tax works out a little less if its calculated annually rather than monthly, also if you have your name on the company register as a director you don't have to pay to the social fund, if you are registering a new company you can even apply to the social fund now if you are a company director. If you are in the social fund its 5% of your salary or a maximum of 750 baht, the company has to match this contribution as well, so a total of 1500 baht would be paid to the social fund on a salary of 50,000 baht.

[Rajah]

3750 baht tax and social fund . Thanks for your information.

[TerryLH]

The Social Security payments can be deducted off your gross when you file your tax form.

[astral]

The amount of tax depends on your income and what allowances you can claim.

http://www.rd.go.th/publish/6045.0.html gives you the relevant information to calculate your tax liability.

[opalhort]

The amount of tax depends on your income and what allowances you can claim.

http://www.rd.go.th/publish/6045.0.html gives you the relevant information to calculate your tax liability.

Astral, are you sure the document you linked above is up-to-date?

As I recall the tax rates have changed effective Jan. 01, 2008 as stated in a full page ad placed by the Revenue department in the BKK Post on March 27, 2008.

Example: The amount exempted is now 1 - 150,000 B compared to the 1 - 100,000 B in the past.

I tried to find an updated version on-line but to no avail, not even in Thai.

Does anybody have a link to the latest info?

opalhort

Edited July 6, 2008 by opalhort

[NHJ]

yes opalhort, the information you provided is correct, changes have been made at the date you said but it's not reflected on the revenue department website.

those changes are in application already by the way.

[AndyCanfield]

If you apply for a work permit you have to pay tax. Does anyone know how much tax has to be paid? According to the work permit and application you have to have a monthly income of at least 50 000 baht a month.

I own my own company. A few years ago I hired myself. In order to get a work permit I had to pay myself 60,000 baht per month Also I had to hire four Thai people at 5,000 per month each, and pay social security taxes on them and on myself, plus payroll taxes on myself. All in all I figure that work permit cost me around 25-30 thousand baht per month. Also the company had to shell out money for a licensed accountant to certify the books.

I can't be sure of the exact figures now, because the law changes. For example this thread says the minimum wage for Americans is 50,000 baht now, not 60,000. But what gets you is not the taxes, it is the expense o complying with Thai corporate law, which is designed for Hewlett and Packard, not Charlie and Nok.

[NHJ]

<br />

If you apply for a work permit you have to pay tax. Does anyone know how much tax has to be paid? According to the work permit and application you have to have a monthly income of at least 50 000 baht a month.

<br /><br />I own my own company. A few years ago I hired myself. In order to get a work permit I had to pay myself 60,000 baht per month Also I had to hire four Thai people at 5,000 per month each, and pay social security taxes on them and on myself, plus payroll taxes on myself. All in all I figure that work permit cost me around 25-30 thousand baht per month. Also the company had to shell out money for a licensed accountant to certify the books.<br /><br />I can't be sure of the exact figures now, because the law changes. For example this thread says the minimum wage for Americans is 50,000 baht now, not 60,000. But what gets you is not the taxes, it is the expense o complying with Thai corporate law, which is designed for Hewlett and Packard, not Charlie and Nok.<br />

<br /><br /><br />

it depends for now you don't need anymore thai employees in bangkok and if your accountant knows the right persons at the labour department in your region, the four thais employees will never be needed.

this is my case.

[Issangeorge]

I have worked teaching for two different schools and have had two different work permits. I have never paid any tax and have always wondered how to do so as I want to obey the law. One school told me that the school would pay the tax, but I know they never deducted it from me and one school paid me in cash. I only was paid ฿35,000 a month at one school and this was only for four months and again ฿30,000 a month at another school, again only for four months, is thia why I would not have to pay tax? Issangeorge

[opalhort]

I have worked teaching for two different schools and have had two different work permits. I have never paid any tax and have always wondered how to do so as I want to obey the law. One school told me that the school would pay the tax, but I know they never deducted it from me and one school paid me in cash. I only was paid ฿35,000 a month at one school and this was only for four months and again ฿30,000 a month at another school, again only for four months, is thia why I would not have to pay tax? Issangeorge

Since each employment was only short-term the schools probably thought you won't be liable to pay tax, but if both employments occured in the same tax year you will be liable to pay tax.

In any case you will have to file your tax returns not later than March 31 for the preceding tax year where you'll have to state your combined income and pay any taxes due which have not been deducted at the source of payment.

The form to use is the Tax form Por Ngor Dor 91.

opalhort

[Issangeorge]

What happens if I file late as I have not filed for last year? Issangeorge

[opalhort]

What happens if I file late as I have not filed for last year? Issangeorge

There is a fine for late filing but I'm not sure about the amount (probably very minor)

If you have to pay overdue taxes the additional fine is 1.5% per month of the outstanding amount counting from the March 31 date line.

opalhort

[Moonrakers]

More than a few websites I have looked at have said that income tax is 40%........

Now I KNOW that this can't be/is not right, so could somebody let me know what they could be referring to as it's quite confusing.

Thanks.