Income Tax In Thailand

[QED]

I am soon to start working in Thailand after living here for 3 years on an extended holiday. I have done my research about tax rates and unfortunately will be paying quite a bit, but still less than the UK.

I read on another forum that farangs get 2 years tax free (or part of the first year and all of the 2nd year, depending when you start in the tax year). I can't find reference to this on any official websites, just wondering if anyone has experience in this area, and can confirm or deny the above.

Thanks for any input

QED

[monty]

Are you talking personal income tax?

If so, can't say I've heard that one before! No reason at all why they would exempt foreigners from this tax.

Corporate taxes, for BOI approved investments can have several exemptions, depending on many factors.

[NHJ]

it was true last year i had from may to december without any tax but this was a governement discount on tax.

[QED]

Are you talking personal income tax?

If so, can't say I've heard that one before! No reason at all why they would exempt foreigners from this tax.

Corporate taxes, for BOI approved investments can have several exemptions, depending on many factors.

Yes personal income tax as an employee. I have read about it in several places now, but all of them said they had to ask for it as it was not offered.

[Junglejumbo]

I have never heard anything about free tax and last year started a new job in a new tax yr with a new visa and still paid the same tax without any rebate. You must be confused with something else.

However, I am wondering what the situation is regarding selling a condo if we need to include the profit as personal income?

[katabeachbum]

I have never heard anything about free tax and last year started a new job in a new tax yr with a new visa and still paid the same tax without any rebate. You must be confused with something else.

However, I am wondering what the situation is regarding selling a condo if we need to include the profit as personal income?

You dont sell a condo with profit (income tax). You sell the condo at purchasing price(no tax) after you have sold the decorations/fixtures etc(no tax) to the buyer in a separate agreement.

[tvaddict]

If you come directly from the UK, and bring your p45 p60 for proof then you are eligible for not paying tax here for 2 years from date of entry

There is a double taxation agreement between Thailand and the UK as there is with many other countries- check the list.

Dependent on your employer and the local governement staff they may/ may not know this and may /may not allow you to not pay tax directly.

Where I am, in Rayong, the local tax office is fully aware of this and my employer, having had previous experience of this was able to pay me my salary with no tax deduction for 2 years. Many companies however, will deduct tax from your salary and then expect you to fill in a tax return form at the end of the tax year to claim it back.

It definitely exists- I know many people who didn't pay tax for the first 2 years here.

Check out the details though- it may be linked to specific professions.

Also, -caveat- make sure you exit the country at the end before 2 years is up and then return again to remain eligible

there is a lot more about this in the financial forum on thai visa-- have a look

[Misty]

I am soon to start working in Thailand after living here for 3 years on an extended holiday. I have done my research about tax rates and unfortunately will be paying quite a bit, but still less than the UK.

I read on another forum that farangs get 2 years tax free (or part of the first year and all of the 2nd year, depending when you start in the tax year). I can't find reference to this on any official websites, just wondering if anyone has experience in this area, and can confirm or deny the above.

Thanks for any input

QED

I've never heard that all foreigners get 2 years income tax free in Thailand. What I have heard is that there's a specific section of many Income Tax Treaties that Thailand has with various countries (the US, UK, etc) that applies to teachers and researchers only. It provides that an individual visiting Thailand for a period not exceeding two years for the purpose of teaching or engaging in research at a recognized education institution is exempt from paying income tax in Thailand during those years.

It's also my understanding that if you end up staying longer than 2 years you'll owe tax on the first 2 years. I've heard this was applied at one of the big international schools in Bangkok, and a number of teachers who stayed longer than 2 years ended up owing back taxes and penalties on their income for the first two years when they didn't pay tax. Not pretty.

However, I'm not a tax advisor, so I could be wrong. Probably be in your best interest to get some advice from someone who is.

Cheers, Misty