I Pay To Much Tax, Why?

[pargiyon]

hi all

i live in thailand allredy 1 year,i have work permit and visa non imegrent.

evrey 3 months i go to the Immigration in chiang mai for 2 min just to stamp my visa.

the problem is-i pay 4700 bhat evrey month to my self,tax

and also pay tax for all the worker-have 7,

so evrey month me and my girl frind pay somthing like 10000 bhat.

i get the work permit,frome my sister girl frind-she open a new company for this,

and all the process we do together wite thai lawyer

waht can i do?

im know and im sure its not should to be like this,and becos i dont know,i make mistakeand now i pay for this,and pay alot.

so,waht can i do? have some office in chaing mai for things like this?

some advice?

tnx

[Soutpeel]

hi all

i live in thailand allredy 1 year,i have work permit and visa non imegrent.

evrey 3 months i go to the Immigration in chiang mai for 2 min just to stamp my visa.

the problem is-i pay 4700 bhat evrey month to my self,tax

and also pay tax for all the worker-have 7,

so evrey month me and my girl frind pay somthing like 10000 bhat.

i get the work permit,frome my sister girl frind-she open a new company for this,

and all the process we do together wite thai lawyer

waht can i do?

im know and im sure its not should to be like this,and becos i dont know,i make mistakeand now i pay for this,and pay alot.

so,waht can i do? have some office in chaing mai for things like this?

some advice?

tnx

You dont say what your base salary is, but seeing as you are paying THB4700, your base must be around THB 50,000 a month ie around 10% is normal, so this is not high, its about right.

why are you paying tax for your workers ??.....yes you do the deduction off the salary and pay into the "national insurance" fund, you have 7 employees so should be around THB 5200 a month....so the total amount of money you are paying out seems about right to me...

Its the price you have pay operating your own business

[pargiyon]

hi all

i live in thailand allredy 1 year,i have work permit and visa non imegrent.

evrey 3 months i go to the Immigration in chiang mai for 2 min just to stamp my visa.

the problem is-i pay 4700 bhat evrey month to my self,tax

and also pay tax for all the worker-have 7,

so evrey month me and my girl frind pay somthing like 10000 bhat.

i get the work permit,frome my sister girl frind-she open a new company for this,

and all the process we do together wite thai lawyer

waht can i do?

im know and im sure its not should to be like this,and becos i dont know,i make mistakeand now i pay for this,and pay alot.

so,waht can i do? have some office in chaing mai for things like this?

some advice?

tnx

You dont say what your base salary is, but seeing as you are paying THB4700, your base must be around THB 50,000 a month ie around 10% is normal, so this is not high, its about right.

why are you paying tax for your workers ??.....yes you do the deduction off the salary and pay into the "national insurance" fund, you have 7 employees so should be around THB 5200 a month....so the total amount of money you are paying out seems about right to me...

Its the price you have pay operating your own business

tnx

on the paper maby my slery is 50000,but actulally its more more less

i know have some option to go to the border evrey 3 month-go out,stamp yout visa and cme beck and then you not pay so much tax.....

any way......have some office in chaing mai?

[fred2007]

So correct me but if you earn 50.000 per month your tax schould be about 2400 or maby a bit more

[fred2007]

I have employes just 3 I need to pay componsation insurance but if your employe earns less than 4000 baht a month you should not pay anything on tax for them, unless you pay them over 4000 each

[harrry]

I dont know if this will help. it is from

http://www.boi.go.th/english/how/tax_rates..._agreements.asp

Personal Income Tax

Level of taxable income (baht)

Marginal Tax Rate

1- 100,000

exempt

100,001 - 500,000

10%

500,001 - 1,000,000

20%

1,000,001 - 4,000,000

30%

Over 4,000,000

37%

Note: Expatriates working for ROH can elect to be taxed at the rate of 15% for 2 years instead of normal progressive tax rates

Withholding Tax from Bank Deposits

Rate

A. For individuals

15%

B. For companies

1%

C. For foundations

10%

[Soutpeel]

So correct me but if you earn 50.000 per month your tax schould be about 2400 or maby a bit more

As somebody has indicated above - 10% 500,001 - 1,000,000 tax band on

50,000/month - THB 600,000/yr then would be in the 10% tax bracket..this is on a sliding scale

" know have some option to go to the border evrey 3 month-go out,stamp yout visa and cme beck and then you not pay so much tax"

Dont believe this statement is true, as the amount of money you earning has no bearing on your visa/WP status, except for the point of view that if you earn below a cetain amount of money based on your nationality or the company has not traded long enough/or paid enough company tax, you would not be able to get an extension of stay based on employment, therefore have to do 3 montly "visa runs".

If it is true what the OP believes then all people on work permits irrespective of what we earn would be doing the 3 monthly visa run thing as a means to minimise the tax we pay in Thailand and would not bother with extension of stay etc...

Based on the info you have supplied to date believe what you are paying in tax is about right

[digitalchromakey]

the problem is-i pay 4700 bhat evrey month to my self,tax

You dont say what your base salary is, but seeing as you are paying THB4700, your base must be around THB 50,000 a month ie around 10% is normal, so this is not high, its about right.

For a 50k salary, he is paying too much tax.

[Tywais]

For a 50k salary, he is paying too much tax.

600,000 Gross salary

-60,000 Standard deduction

-30,000 Personal deduction

--------

510,000 Taxable income

-150,000 first 150k exempt

----------

360,000

x10%

----------

36,000 Annual tax liability /12 = 3000Baht/month

[tijnebijn]

Or just let the misses take care of everything , give away with the workpermit ,

as a sole earner your wife will have a very little amount to give the tax authority .

Mine makes 4Ok the month , and they collect only 12OO baht in six months from her .

But having employees it will be another taxonomy , but 2 earners in one family is much more tax !

I just don't interfere with anything and keep my hand up when needing cash , boo me !

[Soutpeel]

For a 50k salary, he is paying too much tax.

600,000 Gross salary

-60,000 Standard deduction

-30,000 Personal deduction

--------

510,000 Taxable income

-150,000 first 150k exempt

----------

360,000

x10%

----------

36,000 Annual tax liability /12 = 3000Baht/month

+ his compensation insurance, believe is THB 750/month

So we are on THB 3700/month....also the OP doesnt appear to know what he is being paid, as he says more or less

so at the end of the day we could be debating over US$ 34/month, so still stand by my comment the tax he is paying is more or less right, its not excessive what he is paying

But to go back to what I think was his original question, do you think he will get away with paying less than what he is paying right now ?....dont think so

[Tywais]

As for the employees, the Social security is 5% of the salary to a maximum of 750 Baht/month. The 750/month max would be 15,000+/per month per employee. Absolute max then would be 750 x 7 employees = 5250/month for them. I suspect though they are not getting the maximum salary of 15k and as such the SS liability would be less.

[Soutpeel]

Or just let the misses take care of everything , give away with the workpermit ,

as a sole earner your wife will have a very little amount to give the tax authority .

Mine makes 4Ok the month , and they collect only 12OO baht in six months from her .

But having employees it will be another taxonomy , but 2 earners in one family is much more tax !

I just don't interfere with anything and keep my hand up when needing cash , boo me !

Dont believe the OP is married, as he talks about a GF, therefore if he gives away his WP, time for tourist visas...!!

If he has 7 employees + GF + himself an over all tax/insurance bill of THB 10,000/month is not that bad...

[ubonjoe]

They are probably just showing the 50,000 on the booiks to meet the minimum requirement for income to get his visa. He said much much less is what he gets.

[Tywais]

If he has 7 employees + GF + himself an over all tax/insurance bill of THB 10,000/month is not that bad...

I agree. I forgot the GF part of the equation.

[Soutpeel]

They are probably just showing the 50,000 on the booiks to meet the minimum requirement for income to get his visa. He said much much less is what he gets.

But if he is on the books for k50/month, that is what he is going to be taxed on, if in reality his take home is a lot less, this will not factor in his tax, ie he cant claim less tax, as this will mess up his visa..??

Suppose the million dollar question is ?......Why is he in business ?....Is it a legitimate business, ie trading or is it just a vehicle to get a work permit and live in Thailand ?

If a legit trading business with 7 employees + GF + himself, then would say the k10/month, is the cost of doing business..

If the company is a vehicle for getting a WP and living here long term, then spending k120/year + his visa run costs is a very expensive way of doing it..

[digitalchromakey]

+ his compensation insurance, believe is THB 750/month ... So we are on THB 3700/month

But to go back to what I think was his original question, do you think he will get away with paying less than what he is paying right now ?....dont think so

Don't wish to appear picky, but you don't pay National Insurance to the Tax Dept, you pay it to Social. It's a different, separate payment.

For a salary of 50,000, if he pays 4,700 pcm, then the OP is still paying too much by getting on for 1,000 baht (perhaps there is an 'accounting fee').

[TerryLH]

"...15,000+/per month per employee..."

I think this was a typo. It should be 1,500 per month.

If there are real employees, the business pays only half the soc sec amount, up to the maximum of 750 B per mo.

The employee should be paying their own half.

Tax form 91 can be downloaded in English. It will help you determine how much you owe.

I think the example Tywais gave is accurate, even to the new 150k exemption. It used to be 100k.

[Tywais]

"...15,000+/per month per employee..."

I think this was a typo. It should be 1,500 per month.

Not a typo, just poorly written. I was trying to say the national/SS insurance is 5% of salary up to a salary of 15,000 baht/month at which point it is capped at 750 Baht/month. 15,000/month salary x 5% = 750 Baht/month maximum deduction.

[Soutpeel]

+ his compensation insurance, believe is THB 750/month ... So we are on THB 3700/month

But to go back to what I think was his original question, do you think he will get away with paying less than what he is paying right now ?....dont think so

Don't wish to appear picky, but you don't pay National Insurance to the Tax Dept, you pay it to Social. It's a different, separate payment.

For a salary of 50,000, if he pays 4,700 pcm, then the OP is still paying too much by getting on for 1,000 baht (perhaps there is an 'accounting fee').

Your not being picky, you are correct, but the OP doesnt appear to even know how much money he is on (and he owns the business, it would appear.. ), He is talking about "tax" and a total amount out going, so we have to assume here he is including his national insurance in his "Tax", and he doesnt have a clue were the cash is actually going or what it is for...

[Maestro]

pargiyon, are you actually working and thus need a work permit? Because if you arranged this company setup only to get annual extensions of stay, not to really work, it would probably be much cheaper to fly to the UK or some other country where you can get a multiple-entry non-O visa to visit friends, then do four border runs and this gives you over 14 months in Thailand.

--

Maestro

[monkfish]

10 000 THB sounds normal, if not cheep.

To obtain 1 WP the company will have to claim a net profit of 1000000 THB per year this will also be taxed at about 5000THB per month

[astral]

Not visa related.

Moved to the business section.

[Soutpeel]

10 000 THB sounds normal, if not cheep.

To obtain 1 WP the company will have to claim a net profit of 1000000 THB per year this will also be taxed at about 5000THB per month

Is this net profit or gross ?....have heard this one before and everyone I have asked has been unable to answer..

Reason I ask, is that if we assume THB 1.0mil net profit then say a 10% margin on a business, then you would need to have a business grossing THB 10 million a year, nearly US$300,000/year...if this is the case, cant see how some businesses are getting WP's issued..??, or is this requirement related to extension of stay only ?

Edited September 29, 2008 by Soutpeel

[monkfish]

Net profit