Tax For Foreigner Working In Thailand

[bahnoo]

Hi bud

I need some help regarding about tax for foreigners working in thailand. I current talking to the company on a job offer. The MD have agree on the salary but i had to pay the tax myself. so i would like to know how much is the tax per month for 120k baht.

Cheers Mate

[monty]

Assuming you are not married and don't have children, your tax will calculate as follows:

120K/month is 1,440,000 Baht/year.

You are allowed a deduction of 60,000 Baht and an allowance of 30,000 Baht.

Remains 1,350,000 Baht taxable.

First 150,000 free

150,001 to 500,000 Baht taxed at 10% is 35,000 Baht

500,001 to 1,000,000 Baht taxed at 20% is 100,000 Baht

1,000,001 to 1,350,000 Baht taxed at 30% is 105,000 Baht

Total tax will be 240,000 Baht or exactly 20,000 Baht/month (just over 16% altogether).

There is also social security to be paid, normally you pay 750 Baht and your employer pays 750 Baht.

[thaiphoon]

Yup, agree with Monty's figures.

[bahnoo]

Thanks Monty

Can I check with you what if i married but no kids. Any tax rebate?

[thaiphoon]

There would be further allowance of 30k for spouse which would reduce taxable income to 1.320M. Total tax due 231,000/12 = 19,250 a month.

You can also claim allowance for life assurance premiums up to 100k if life policy is of a duration of 10 years or more.

[TerryLH]

You also get to deduct the money you pay for social security.

[thaiphoon]

Taken as read from first post

Employee pays 5% of gross monthly income in social tax, 750 baht maximum. Employer contributes the same.

[monty]

If you are here for the long run (contemplating marriage) you might also consider investing in Long Term Equity funds (LTE's) or a provident fund.

You can deduct the full amount of your investments (up to 15% of salary and capped at 500,000), so in your case you could invest up to about 200,000 Baht/year.

As this amount comes out of the highest tax level you pay (the 350,000 above 1 million), means that your tax burden will go down by 60,000 Baht.

Practically you get to invest 200,000 Baht at an actual cost to you of 140,000 Baht.

I forgot how long the investment has to be locked in for but I think 5 years. Maybe somebody else can confirm this.

It'll mean being frugal initially, but you'll be building a nice nest egg with the help of the revenue department

[samran]

If you are here for the long run (contemplating marriage) you might also consider investing in Long Term Equity funds (LTE's) or a provident fund.

You can deduct the full amount of your investments (up to 15% of salary and capped at 500,000), so in your case you could invest up to about 200,000 Baht/year.

As this amount comes out of the highest tax level you pay (the 350,000 above 1 million), means that your tax burden will go down by 60,000 Baht.

Practically you get to invest 200,000 Baht at an actual cost to you of 140,000 Baht.

I forgot how long the investment has to be locked in for but I think 5 years. Maybe somebody else can confirm this.

It'll mean being frugal initially, but you'll be building a nice nest egg with the help of the revenue department

5 years, but if you time it right, then it is three.

Invest on the 31st of Dec and by the 1st of Jan you have offically had it one year.

[bahnoo]

Hi Guys

Thanks for the info.

The HR have get back to me on the offer. They are offering me 100k baht instead of 120k baht per mth, this to reduce my tax. 20K balance will be use for my accommodation but I have to produce invoice… Which I think it kind of funny cos they suppose to give me back the 20k since my actual salary is 120k baht.

I just make a calculation in term of 100k baht per mth, please help to see whether I have calculated correctly.

100K/month is 1,200,000 Baht/year.

a deduction of 60,000 Baht and an allowance of 30,000 Baht.

Remains 1,110,000 Baht taxable.

First 150,000 free = 960,000 taxable

150,001 to 500,000 Baht taxed at 10% (Nil)

500,001 to 1,000,000 Baht taxed at 20% is 192,000 Baht

1,000,001 to 1,350,000 Baht taxed at 30% is (Nil)

Total tax will be 192,000 Baht = 16,000 Baht/month.

There is also social security 750 Baht.

All in all I had to pay tax 17k baht per mth.

Also need advice during my stay in bkk. If I stay in an apartment which cost me 5k a mth, estimate 5k uitility = 10k baht monthly.

Is the food and transportation costly in bkk? I am trying to estimate how much I need to spend per mth. Me and my gf will be staying together. Her allowance is about 10k baht for her and mom. Car petrol about 4k baht per mth.

We will registering our marriage soon and I will be asking another 30k per yr tax relief.

[thaiphoon]

Total tax on 1.11M earnings after allowances is 168,000 baht per annum = 14,000 per month (+750 pm social tax)

First 150,000 0% 0 baht tax

Next 350,000 10% 35,000 baht tax

Next 500,000 20% 100,000 baht tax

Next 110,000 30% 33,000 baht tax

Total 168,000 baht tax

168,000 /12 = 14,000 per month (+ social tax)

[monty]

First 150,000 free = 960,000 taxable

150,001 to 500,000 Baht taxed at 10% (Nil)

500,001 to 1,000,000 Baht taxed at 20% is 192,000 Baht

1,000,001 to 1,350,000 Baht taxed at 30% is (Nil)

Not correct! Not sure how you came up with that calculation!

So:

total taxable is 1,110,000 Baht.

0 to 150,000 Baht zero tax

150,001 to 500,000 Baht is 350,000 Baht taxed at 10% is 35,000 Baht

500,001 to 1,000,00 Baht is 500,000 Baht taxed at 20% is 100,000 Baht

1,000,001 to 1,110,000 Baht is 110,000 Baht taxed at 30% is 33,000 Baht

For a total of 168,000 Baht/year or 14,000 Baht/month!

[monty]

As for the rest, I seriously doubt you can find acceptable accommodation for 5,000 Baht/month in Bkk.

Your utilities are probably right, and this amount will can include internet access, electrics, water, mobile phone bills etc...

I reckon accommodation and utilities, if not too fancy should be doable between 15,000 and 20,000 Baht/month.

4K Baht for car petrol, then I think you're better of using public transport!

[bahnoo]

Hi Monty and all

Thanks for the advice. I rejected the offer in dec, 2 weeks ago they call me to reconsider.

currently talking on the last part of what i want.

Medical benefit : Hospitalization 200k baht/year, out patient is 50k baht/year.

Told them to increase my Transport allowance to 5k instead of 3k baht/mth.

If all ok, i will sign the contract.

For me staying a 5k baht/mth aprtment i fine with that. anyway im staying with my gf but going to work is a big headache from rangsit to bangna..... She's working at rangsit area so i had to find a way to go to work.

As for the rest, I seriously doubt you can find acceptable accommodation for 5,000 Baht/month in Bkk.

Your utilities are probably right, and this amount will can include internet access, electrics, water, mobile phone bills etc...

I reckon accommodation and utilities, if not too fancy should be doable between 15,000 and 20,000 Baht/month.

4K Baht for car petrol, then I think you're better of using public transport!

[thaihome]

The HR have get back to me on the offer. They are offering me 100k baht instead of 120k baht per mth, this to reduce my tax. 20K balance will be use for my accommodation but I have to produce invoice… Which I think it kind of funny cos they suppose to give me back the 20k since my actual salary is 120k baht.[/size]

The 20k housing allowance is taxable income, there will be no tax savings. They are feeding you a line in order to get you to take a smaller salary.

TH

[monty]

The HR have get back to me on the offer. They are offering me 100k baht instead of 120k baht per mth, this to reduce my tax. 20K balance will be use for my accommodation but I have to produce invoice… Which I think it kind of funny cos they suppose to give me back the 20k since my actual salary is 120k baht.[/size]

The 20k housing allowance is taxable income, there will be no tax savings. They are feeding you a line in order to get you to take a smaller salary.

TH

Depends if it gets declared!

Although if they require an invoice one can assume so!

[Soutpeel]

Medical benefit : Hospitalization 200k baht/year, out patient is 50k baht/year.

On your medical benefits - 200k/yr is way too little and so is the 50k/year out patient.

This is the cheapest medical scheme they can find...

[monty]

Medical benefit : Hospitalization 200k baht/year, out patient is 50k baht/year.

On your medical benefits - 200k/yr is way too little and so is the 50k/year out patient.

This is the cheapest medical scheme they can find...

Have to concur.

A simple broken leg will cost that much when going to a decent hospital.

Looks like the cheapest Bupa Crystal plan:

http://www.bupa.co.th/Files/Product/3_ATT_EN_1.pdf

Try them to get it at least jacked up to Crystal plan 2 or better yet plan 3.