Income Tax Question!

[hitthegroundrunning]

Hi all!

My fiance is South African and she will be earning over 100,000 Baht a month gross. We can't seem to find any info regarding exactly what she will get after tax as a South African working at an International School in Bangkok. Please can someone help and let me know if you need more info.

Also, I shall be teaching English and will be earning 35000 a month (I have a British passport) - how much will I get taxed? Please don't send links to other sites, we've been there and our questions are still not answered. Hopefully you're a SA national yourself working in Bangkok who can shed some light for us!

Thanks,

Hit The Ground Running

[AjarnChan]

Hi all!

My fiance is South African and she will be earning over 100,000 Baht a month gross. We can't seem to find any info regarding exactly what she will get after tax as a South African working at an International School in Bangkok. Please can someone help and let me know if you need more info.

Also, I shall be teaching English and will be earning 35000 a month (I have a British passport) - how much will I get taxed? Please don't send links to other sites, we've been there and our questions are still not answered. Hopefully you're a SA national yourself working in Bangkok who can shed some light for us!

Thanks,

Hit The Ground Running

Sorry I am just a mere Brit, but will try to help

So far as I know your nationality is irrelevant for Tax purposes. If you work in Thailand you must pay Thai Taxes, regardless of any other demands on your income from outside. There are arrangements to avoid double taxation, but I think it is down to you to make sure it happens; though the Thai Taxation authorities will try to assist up to a point.

Surely you need to read everything you can then ask the relevant authorities to make quite sure.

Thai Revenue Department Website >> http://www.rd.go.th/publish/6045.0.html

Quote [from: http://www.asiatradehub.com/thailand/tax.asp ]

"Individual income tax is calculated on progressive rate maximum 37 %, Corporate income tax rate is 30 %.

Aside from BOI tax incentives for certain business all income earned in Thailand is subject to standard levels of taxation. For individuals and corporate non-double taxation, refer to your country's own government or the Revenue Department in Bangkok regarding reciprocal tax agreement."

Do not forget you will also have to pay 'Social Security' deductions as well. They are a fixed rate, but capped at a low'ish level. For your own confidence I believe you need to find these things out for yourself, and not rely on second hand information in a Forum. Many of these topics change, as anywhere else, so you need to double check everything.

Whatever your deductions are you will be 'well off' in some sense, but there will always be other Expats with far higher incomes of course. Anyway 'Welcome to The Land of Smiles'

PS - just found this >> http://www.rd.go.th/publish/1715.0.html

Briefly it says: "ARTICLE 22

Elimination of Double Taxation

Double taxation shall be eliminated as follows:

1. In South Africa, taxes paid by residents of South Africa in respect of income taxable in Thailand, in accordance with the provisions of this Convention, shall be deducted from the taxes due according to South African fiscal law. Such deduction shall not, however, exceed an amount which bears to the total South African tax payable the same ratio as the income concerned bears to the total income.

2. In Thailand, South African tax payable in respect of income derived from South Africa shall be allowed as a credit against Thai tax payable in respect of that income. The credit shall not, however, exceed that part of the Thai tax, as computed before the credit is given, which is appropriate to such item of income."

It seems clear enough

[monty]

Easy to calculate.

Your fiance's income will be 1,2 million/year.

She is allowed a 60,000 Baht deduction and a 30,000 Baht allowance.

There are other allowances you can deduct, for example 15,000 Baht/child, payments towards life insurance etc. This obviously will have to reflect the reality in your/her case.

Assuming she doesn't qualify for those extra allowances, she will be taxed on 1,110,000 Baht.

From 0 to 150,000 Baht is tax free

From 150,001 to 500,000 Baht you pay 10% (35,000 Baht)

From 500,001 to 1,000,000 Baht you pay 20% (100,000 Baht)

From 1,000,001 to 1,110,000 Baht you pay 30% (33,000 Baht)

The total tax adds up to 168,000 Baht.

So her yearly nett income will be 1,032,000 Baht, or 86,000 Baht/month, a total tax level of 14%.

She will also have to pay 1500 Baht/month towards the social security fund.

You can do the exact same calculation for your 35,000 Baht/month salary.

[Junglejumbo]

I am a bit confused by your request for tax allowance. Perhaps you're not in Bangkok or the rule's different for English teachers but I thought that the minimum salary for a work permit is 60,000 baht per month.

If you don't have a work permit then it might be problematic if you feel you should pay a contribution to the revenue department for your use of roads and services, etc. However, I would say make sure you get a work permit first.