Income Tax Percentage, Minimum Salary Confusion

[Thanh-BKK]

Hi.

I tried to search for this but get a ton of rather conflicting information.

What is the minimum salary for a GERMAN citizen to get a work permit in Thailand?

What is the income tax percentage?

Are there other costs involved on a monthly basis?

Because right now my boss thinks we are being taken for a ride from this lawyer/accountant. She says minimum salary is 50,000 Baht and i'd have to pay 5,000 Baht (10%) tax PER MONTH and on top of that a "security insurance" for 900 Baht, again per month, and health insurance on top of that (the latter not being mandatory).

However i know people working legally as teachers, making 30,000 Baht or less. Does it depend on job type? I'm not a teacher if that matters.

Please someone enlighten me here, thanks in advance.

Kind regards

Thanh

[monty]

It indeed depends on job.

Teachers and journalists are exempt from the minimum salary rule.

Indeed, for Germans the minimum salary is 50,000 Baht. This is basically a requirement from immigration, for you to qualify for a 1 year extension based on your employment.

If you'll give me a second I'll calculate your exact tax...

[torrenova]

You have allowances so you don't pay 10% on the whole 50k though your marginal rate is 10% up to 1m per year.

50k per month is for extension based upon work. If you were married that would fall to 40k per month. Certain professions and certain nationalities can have lower amounts.

Taxes and details here

http://www.rd.go.th/publish/6045.0.html

http://www.taxrates.cc/html/thailand-tax-rates.html

Not quite sure where you think you are being ripped off ?

[Thanh-BKK]

Hi.

This is not for an extension but for first application for work permit. I have a non-B multiple entry visa that is still good for two more entries of 90 days each. I don't mind getting a new visa every year so i don't necessarily need the extension from immigration (or do i??)

The tax table confuses even more - ok i can see i'm in the 10% level however what does it mean "tax amount" and "accumulated tax" which are both at 35,000 Baht..? That would work out to just over 2,900 per month, not 5,000 as that lady told us.

And what is that with the "teachers are exempt from minimum salary", does that also work for Germans? If so, easy to change position After all we DO teach, just i don't.

Best regards.....

Thanh

[monty]

12 X 50,000 = 600,000 Baht/year income.

Maximum deduction: 60,000 Baht

Maximum allowance: 30,000 Baht

This leaves you with 510,000 Baht taxable income.

first 150,000 Baht at 0% is 0 Baht

151,000 to 500,000 Baht at 10% is 35,000 Baht

501,000 to 510,000 Baht at 20% is 2,000 Baht

Total yearly tax is 37,000 Baht or 3080 Baht/month.

Social security 3%/month but limited at 750 Baht/month. However, both employee and employer have to pay this amount.

[monty]

Just to confirm, the 50,000 is only needed if you want to extend your visa based on employment.

However many labor offices are now following immigration requirements to issue work permits. It's a bit up to them.

I do know people holding a work permit with only 30,000 Baht salary, but they do not extend their visa based on that employment.

You can change your job description to teacher, however then the only thing you're allowed to do is teach. Additionally before they issue you with a work permit to teach you'll need to have the proper qualifications and paperwork as well!

[Thanh-BKK]

PS

And to add to the confusion - 10% yes or no? As 50,000 per month would mean 600,000 per year which, according to that list, puts me even in the 20% bracket. Or is that per month..? If so, i'd be exempt (0-150,000).

Thanh

[monty]

PS

And to add to the confusion - 10% yes or no? As 50,000 per month would mean 600,000 per year which, according to that list, puts me even in the 20% bracket. Or is that per month..? If so, i'd be exempt (0-150,000).

Thanh

Just look at my calculation. You are allowed to deduct 90,000 Baht from your salary, so that only leaves 510,000 Baht. You're allowed to deduct more if you are married, have children, support parents, pay a mortgage, pretty much as in Germany! But the basic everybody is allowed is 90,000 Baht...

[thaiphoon]

Agree Monty's figures 37,000 annual = 3,083 monthly.

Social tax is additional at 5% of monthly gross salary, paid by both employer and employee

Tax is paid on NET income (after allowances), and tax is paid on a progressive basis.

[monty]

I actually made a small mistake, the 750 Baht/month you pay is also deductible, so total taxable comes down to just 501,000 Baht.

So you only have 1000 Baht in the 20% bracket, which will cost you 200 Baht in tax.

Total will be 35200 Baht/year or 2933 Baht/month

[monty]

Social tax is 5% of monthly gross salary, paid by both employer and employee

Ouch, that's mistake nr. 2, they brough it up to 5% from 3%.

But the 750 Baht ceiling (each, for employee and employer) still stands i think.

[Thanh-BKK]

Ok.

Hope i don't post at the same time as you again..... 3,080 per month is a lot less than 5,000. How did she get to that figure (the accountant who handles these things)? I don't have the qualifications to teach and i don't actually teach so let's forget about that bit.

How can i apply for a work permit with less income? I do earn 40k/month. Any possibility (tea money??) I got a visa already and see no problem getting my own new one (specially not when i already hold a work permit).

Many thanks for help.

Thanh

[thaiphoon]

Yup, ceiling on social tax is 750 a month.

Social tax is additional to income tax, and is not netted off afaik (not with my tax office anyway).

So should be 3,083pm income tax plus 750pm social tax.

[monty]

Social tax is additional to income tax, and is not netted off afaik (not with my tax office anyway).

So should be 3,083pm income tax plus 750pm social tax.

Gets deducted by my accountant!

Is also clearly indicated on the revenue department's website under allowances (http://www.rd.go.th/publish/6045.0.html) :

Social insurance contributions paid by taxpayer or spouse ---- Amount actually paid

So obviously only the part paid by employee, not the part paid by employer.

[thaiphoon]

Thanks Monty. Looks like I need to talk to my bookkeeper, but is small beer.

[monty]

Thanks Monty. Looks like I need to talk to my bookkeeper, but is small beer.

Sure thing.

Giving away money to the taxman when you don't have to I consider a cardinal sin :D

[mallyrd]

Ok.

Hope i don't post at the same time as you again..... 3,080 per month is a lot less than 5,000. How did she get to that figure (the accountant who handles these things)? I don't have the qualifications to teach and i don't actually teach so let's forget about that bit.

How can i apply for a work permit with less income? I do earn 40k/month. Any possibility (tea money??) I got a visa already and see no problem getting my own new one (specially not when i already hold a work permit).

Many thanks for help.

Thanh

I don't know about the other forum members but I am totally confused as to what it is you are exactly looking for. First off it was a tax issue, then work permits and then other types of permits. You keep alluding to what other people you know are getting paid and what their taxes are. In my book these other people's buisiness is not your buisiness.

Stick to the point of what it is you are interested in.

[Thanh-BKK]

Hi.

Well if you can't read then there's nothing i can do. I'm pretty clear.....

I want a work permit. Accountant says i need minimum salary of 50,000 per month and need to pay 5,000 Baht tax plus 900 Baht "security insurance" per month. So 5,900 Baht cost every month.

According to other sources (such as here) these requirements apply only for "extension of stay based on work permit" which i don't need - i want the work permit, full stop.

Problem is - i don't have high enough income according to that accountant, and her tax figures are way too high. My feeling (as everything will have to be paid to her!) is that she would pocket the rest.

Best regards

Thanh

[PoorSucker]

Here you go:

Personel income tax in Thailand.

I'm on extension based on marriage.

I report a salary of 30.000 baht / month as "general manager"

[Spoonman]

According to other sources (such as here) these requirements apply only for "extension of stay based on work permit" which i don't need - i want the work permit, full stop.

So you have a Visa that covers the employment (WP) period or will you need it extended to be inline with the WP ??

[Thanh-BKK]

Hi.

My visa is still good for another about 7 months. I think a WP will only be valid as long as the visa, right? So i'll need to get a new visa once it's finished and then extend the work permit. I have no idea, never had one before and now know why, with this confusion here no ordinary person can understand how it all pieces together, ask three different people and get three entirely different sets of information...... and the only always-right solution - "throw money at the problem until it goes away" - won't work for me for lack of, well, money to throw away.

Best regards....

Thanh

PS no i'm not married and can't marry either - i'm gay and they don't allow same-sex marriage here yet. And i'm too young (34) to go for "retirement" kind of extensions.

[PoorSucker]

It used to be a timelink between visa and WP, no more.

Me and my friend renewed our WP for one year 2 weeks before permission to stay expired.