Before I Change My Whole Life Just Want To Check

[Nickthegreek]

Hi All,

I know that there are a lot of guys here farming many things and I guess,all varying different ages.

Before I move completely to farming,is this an issue with the yearly extension on the 40,000 baht per month?

I dont want to move from what Iam currently doing and then find out its a headache.

Nick

[ozzydom]

Hi All,

I know that there are a lot of guys here farming many things and I guess,all varying different ages.

Before I move completely to farming,is this an issue with the yearly extension on the 40,000 baht per month?

I dont want to move from what Iam currently doing and then find out its a headache.

Nick

Depends whether your 40k is from your own resources outside Thailand such as pension or whether you are looking to gain the 40k through farming here.

[Nickthegreek]

Ozzydom,

I would want to use the farming to cover the 40,000.

I will be farming 100 rai from january,well, the family will helping for the time being.

I currently have other business in Thailand which affords me my extension,but I wanted to check if farming will cover me from the guys that may be doing it, obviously it will not be a monthly figure..

Nick

[Maizefarmer]

It's possible, but as I think you know Nick - it's not straightforward getting visa's and work permitts as an ex-pat in any of the so-called "restricted occupations" - and farming is one of the "restricted occupations".

Don't get me wrong - its possible, but it needs some thinking through and you'll probably land up listing yourself/occupation as an "agricultural engineer" or "ag consultant", or somthing similar (as I have done since the 1980's).

Chase up the notes I wrote a couple years back about just this subject i.e. the points to consider if wanting to legalise your self, or your business activity if it is farming.

[ozzydom]

Nick , The 40k can be earned by either you or your T/W and it is much easier for it to be by your T/W.

I went as far as to pay one years taxation on 45k per monthonly to be told by Immigration that the business had to be registered,so off we went to the Changwat Office and did so.

We went back to Immigration with everything in order (we thought) only to be told that with farming, the tax has to be on the nett income.

Because of the 80% cost of production write-off for farming it meant we had to show a gross income of about 2.5 million to arrive at the 40k nett.

It turned out that it would be easier and cheaper for the farming enterprise to pay your wife 40k per month salary,pay the required tax on that amount which can be lowered because of personal tax deductions of I think 30% + deductions for any children,insurance etc etc and use that for your visa requirements.

The whole thing boiled down to wages and salaries being based on gross income and farming income on nett earnings.

[Nickthegreek]

Ozzydom,

Now I am so glad I asked first..!!!!!!!!!!!!

Is it still the same tday regarding income amounts from farming ?

I have no intention of working,it will all be in the wifes name,which is how are current businesses are run, but they did not seem too worried,albeit immigration know us quite well now,with the figures as long as we hit the 40,000 per month.

I was sure we would need to open a company as that was required for our other businesses,but how did you of set the salary for your wife if she was the owner,or did they not check? she becomes the manager and thats fine?

80% cost of production,what hat did they pull that out of ??

Nick

I hope I am making sense.

[ozzydom]

Ozzydom,

Now I am so glad I asked first..!!!!!!!!!!!!

Is it still the same tday regarding income amounts from farming ?

I have no intention of working,it will all be in the wifes name,which is how are current businesses are run, but they did not seem too worried,albeit immigration know us quite well now,with the figures as long as we hit the 40,000 per month.

I was sure we would need to open a company as that was required for our other businesses,but how did you of set the salary for your wife if she was the owner,or did they not check? she becomes the manager and thats fine?

80% cost of production,what hat did they pull that out of ??

Nick

I hope I am making sense.

Hi nick , The 80% is evidently the standard cost of production write off.

It seems they are not big on paperwork in Los, they dont want any books, records ,receipts etc , as everything is allowed for in the 80%.

It is just verbal, " we sold 540,000 baht of fish how much tax", they calculated it and told us

and we paid and got the receipt.

I have the paperwork in front of me now so I will quote from the Taxation papers.This is on their form 90 (prefix in thai so I cant read it).

Declared income 540,000 bht

less 80% write off 432,000 "

taxable income 108,000

tax free allowance 30,000

balance 78,000

Then comes the strange part... the actual tax due is worked out on the original gross sales

540,000 x 0.005 = 2700 baht tax payable

This form + receipts we took to Immigration where we were told (and confirmed in phone call to Bangkok Immigration) that as it was income from farming ,we had to show 40k x 12 nett income after the 80% write off , the extension to get those figures meant we had to show sales of about 2.5 mill per annum.

There has been much discussion on TV regarding giving your wife (or yourself a fictitious job paying 40k per month ).

It is probably better to do it via your wife , as Maizefarmer stated ,if you received a salary from your biz you would need a work permit and for farming, that is about as easy as growing 30 tonne of cassava a rai.

So in short to get your visa via the 40k joint income route ,all it will cost you is the tax payable on a 40k salary (less with her taxation allowances).

Unless of course you are going to be big hearted and actually give her 40k per month .

If there have been changes in the last 18 months I am sure somebody will enlighten us.

[Maizefarmer]

No changes last 18months - you summed it up all quite well

[Nickthegreek]

Hi Ozzydom,

Thanks for making that clear from your experience and also making me laugh!!! I will talk to the gods for the 30 tonnes!!

I am somewhat confused tho,as the wife and I have currenlty have two game online internet cafes,one we show and the others in the wind,thai style..

When I received my extension based on marriage we showed 40,000 baht per month exactly,immigration did smile,so it was 40,000 x 12 and then they took our deductions from this.We paid 1000 baht in Tax.

maybe we were lucky ? or maybe the guidelines for farming are different.then again re reading your post,I am 100 % sure that we started at 40,000,then took of rent,internet and fuel and light,went straight through..Wife as owner not employee

I will pop in and ask them,just to clarify,but forewarned if this is the case I will not be moving just yet...

Nick