Thailand Live Thursday 10 October 2024

[Marvo]

Our recently formed Thai company is about to employ 4 Thai staff on 5000 baht a month plus me on 50,000 baht a month. That will mean approximately 6,000 baht a month in employer payments, social fund payments and personal tax. Is it possible to set a up a standing order with the company's bank to make these payments or can I make them myself by cheque?

I've got a hunch if I hand the task over to the accounting firm, they're going to want to charge me 2000 baht a month for "maintaining and administrating" things. I'd rather find a way around them charging me £40 a month just to write and post a cheque if I can.

Can anyone advise please?

[cmsally]

For social fund payments, once your company is set up in the system with a number, you can pay at any branch of Bank of Ayudhya before 15th of each month.

Personal (not business) tax is payable twice a year and you go to the Sapakorn (tax office) to pay.

Pretty sure you can do neither of these by standing order or cheque.

[Marvo]

For social fund payments, once your company is set up in the system with a number, you can pay at any branch of Bank of Ayudhya before 15th of each month.

Personal (not business) tax is payable twice a year and you go to the Sapakorn (tax office) to pay.

Pretty sure you can do neither of these by standing order or cheque.

Thanks for that cmsally. Just if you could clarify for me:

5% social fund tax = 5% of employees' gross salary. Is that also 5% of my 50,000/mo (director's) salary?

Then 5% "employer's contribution" for 4 Thai employees. Does the Co. pay 5% on my 50,000/mo also?

My personal tax on salary (called p.a.y.e. in uk), is that only paid twice a year, not monthly?

I understand company (corporation tax) is paid twice a year (by end May and end August).

Thanks.

[cmsally]

For social fund payments, once your company is set up in the system with a number, you can pay at any branch of Bank of Ayudhya before 15th of each month.

Personal (not business) tax is payable twice a year and you go to the Sapakorn (tax office) to pay.

Pretty sure you can do neither of these by standing order or cheque.

Thanks for that cmsally. Just if you could clarify for me:

5% social fund tax = 5% of employees' gross salary. Is that also 5% of my 50,000/mo (director's) salary?

Then 5% "employer's contribution" for 4 Thai employees. Does the Co. pay 5% on my 50,000/mo also?

My personal tax on salary (called p.a.y.e. in uk), is that only paid twice a year, not monthly?

I understand company (corporation tax) is paid twice a year (by end May and end August).

Thanks.

I don't understand totally how its calculated as its so long since we did the actual calculation. For speed we just photocopy the form each month with all the details unless someone to add on or take off.

On the form you have a column for wages and then a further column for 5% of the wage (employees contribution).

Under you have a total for what the employer pays which looks like it should be equal to the employees contribution (another 5%)

So in total you are paying 10% every month

There is a clause at the bottom of the form for salaries over 15,000Bt being worked out differently. Can't quite see how it was worked out though. You would need to ask on that one.

Minimum salary to be filled in is 1650 Bt

Personal income tax needs to be paid by last day of march and last day of September.

Corporation tax I don' t know. If you get in the VAT system that needs to be paid by 15th of every month.

[Marvo]

Thanks for all those pointers cmsally, maybe it's not as easy as I'd hoped. Guess I'm ready to have a chat with the accountant now, thanks for preparing me.

Cheers,

Marvo.

[TerryLH]

Social Security is 5% of the salary, up to a maximum of 750 baht per month.

That means if you earn 15k a month or more, you'll only pay the max of 750 baht.

Make less and you pay less.

The employer matches that amount.

[Marvo]

Social Security is 5% of the salary, up to a maximum of 750 baht per month.

That means if you earn 15k a month or more, you'll only pay the max of 750 baht.

Make less and you pay less.

The employer matches that amount.

So for a foreigner on 50,000 a month, the company only has to pay 750 baht a month social security?

[TerryLH]

"So for a foreigner on 50,000 a month, the company only has to pay 750 baht a month social security?"

Yes, that's correct.

The employee and the employer would each pay 750 baht.

[Marvo]

"So for a foreigner on 50,000 a month, the company only has to pay 750 baht a month social security?"

Yes, that's correct.

The employee and the employer would each pay 750 baht.

Ahhh, the "employer's contribution" is also limited to 750 baht is it?