Employed Overseas

[ezzra]

Hi,

As a foreigner senior geologist I'm employed by a an Australian mob in Indonesia where by i pay 30% of my salary

in taxes to the local Indo government which amount to several hundred of thousand of bath every

month, ( yes you read correct )

my Thai family and i residing in Up country Thailand and i know there must be ligal way to reduce these taxes

by forming a company of some sort but I'm stumped as to go about it and what would be the implecations,

any idea or experience ?

[PattayaParent]

Can your company pay your salary direct to your offshore bank account and declare a lower income amount to the Indo government for tax?

Probably too late to do now though as the Indo government will likely want to know why you got a 90% pay cut!!!

[Soutpeel]

Can your company pay your salary direct to your offshore bank account and declare a lower income amount to the Indo government for tax?

Probably too late to do now though as the Indo government will likely want to know why you got a 90% pay cut!!!

I agree with PP, think on your on your current contract you may be a a bit scre*ed.

As PP has said you need to get on a "double contract"...ie small amount paid in Indo, which is taxed, bulk of the cash

paid direct offshore tax free....

not quite sure how you would tackle setting company to offset tax, because irrespective which country you set a company up in, there will be tax implications for the company...trying to do this from Thailand you would run into work permit issues, 4 employee rule, etc etc...in the end you may find it would cost you more than the 30% of your salary your paying now

[ace]

Can your company pay your salary direct to your offshore bank account and declare a lower income amount to the Indo government for tax?

Probably too late to do now though as the Indo government will likely want to know why you got a 90% pay cut!!!

I agree with PP, think on your on your current contract you may be a a bit scre*ed.

As PP has said you need to get on a "double contract"...ie small amount paid in Indo, which is taxed, bulk of the cash

paid direct offshore tax free....

not quite sure how you would tackle setting company to offset tax, because irrespective which country you set a company up in, there will be tax implications for the company...trying to do this from Thailand you would run into work permit issues, 4 employee rule, etc etc...in the end you may find it would cost you more than the 30% of your salary your paying now

No way if really senior geologist I should think 30% of income would cover the costs in a month or 2.

If you want serious advice though you've got to put up a bit more info, ie. are you a salaried employee or consultant / contractor.

[ezzra]

Can your company pay your salary direct to your offshore bank account and declare a lower income amount to the Undo government for tax?

Probably too late to do now though as the Indo government will likely want to know why you got a 90% pay cut!!!

I agree with PP, think on your on your current contract you may be a a bit Sucre*ed.

As PP has said you need to get on a "double contract"...ie small amount paid in Indo, which is taxed, bulk of the cash

paid direct offshore tax free....

not quite sure how you would tackle setting company to offset tax, because irrespective which country you set a company up in, there will be tax implications for the company...trying to do this from Thailand you would run into work permit issues, 4 employee rule, etc etc...in the end you may find it would cost you more than the 30% of your salary your paying now

No way if really senior geologist I should think 30% of income would cover the costs in a month or 2.

If you want serious advice though you've got to put up a bit more info, ie. are you a salaried employee or consultant / contractor.

Well, I am employed on the freelancer bases for the highest bidder mining Co. where by the company pay me say $ 1,000 a day

for my consultancy and expertise in minerals exploration, being in the field (Jungles) for up to one month or longer at the time,

the balance of the salary after 30% tax being sent to Thailand where my family and i live,

Now i don't mind paying taxes as there is no avoiding neither taxes or death, but i would have liked that the tax money

will go to a country where my family and i can benefit ,

BTW I'm a native a Scotland if it's any help,

Thanks,

[singa-traz]

Can your company pay your salary direct to your offshore bank account and declare a lower income amount to the Undo government for tax?

Probably too late to do now though as the Indo government will likely want to know why you got a 90% pay cut!!!

I agree with PP, think on your on your current contract you may be a a bit Sucre*ed.

As PP has said you need to get on a "double contract"...ie small amount paid in Indo, which is taxed, bulk of the cash

paid direct offshore tax free....

not quite sure how you would tackle setting company to offset tax, because irrespective which country you set a company up in, there will be tax implications for the company...trying to do this from Thailand you would run into work permit issues, 4 employee rule, etc etc...in the end you may find it would cost you more than the 30% of your salary your paying now

No way if really senior geologist I should think 30% of income would cover the costs in a month or 2.

If you want serious advice though you've got to put up a bit more info, ie. are you a salaried employee or consultant / contractor.

Well, I am employed on the freelancer bases for the highest bidder mining Co. where by the company pay me say $ 1,000 a day

for my consultancy and expertise in minerals exploration, being in the field (Jungles) for up to one month or longer at the time,

the balance of the salary after 30% tax being sent to Thailand where my family and i live,

Now i don't mind paying taxes as there is no avoiding neither taxes or death, but i would have liked that the tax money

will go to a country where my family and i can benefit ,

BTW I'm a native a Scotland if it's any help,

Thanks,

http://www.rd.go.th/publish/6045.0.html

Get paid in Thailand, and pay up to 37% tax.

Good to see you making the additional donation :-)

[BEENTHEREDONETHAT]

Not up to date on this but years ago you could set up Corp. in Cayman Islands, Vanautu and a few others and have your consulting money paid to your corp. and the corporation in turn pays you. Then you only pay tax in the country you live in on what the Corp pays you. The corp pays a annual fee to the country you are incorp in, but you pay nothing on the corp earnings. Back when I did it in the 80's it cost about $2,000 US to set one up. Worked really nice then, maybe someone has more recent experience.

It's like getting a 25% raise in pay.

[thaihome]

As you work in Indonesia, the income tax is due to them, not Thailand. You might be able in the future to negotiate a split contract that would allow part of your salary to be paid offshore [from Indonesia] and avoid paying local tax. The problem is this is getting harder for companies to hide from the local revenue authorities as they get more sophisticated in finding what is in effect transfer pricing and is costing them tax revenue they are legally entitled to.

I suspect your company has grossed up your salary already to allow for the local tax.

TH

Edited September 1, 2008 by thaihome