Spreaders of Conspiracy Theories: Unmasking the Motivations Behind the Lies

[capeforever]

Hi, I have a few simple questions (i hope) about the rules for personal tax in thailand.

Hope someone here can anwer as they seem to straight forward to be worth a trip to the accountant.

I have been working here on a contract and now have been offered a permanent role with the company (MNC).

As I'll be here for at least five years I want to take full advantage of the pre-tax investment options as much as possible - whatever pre-tax income I can invest in provident fund or long-term managed funds, I will.

But i can't tell what the maximum alllowbale amounts are: eg if i am on 3.5M p/a, can I elect to pay all of the following pre-tax:

* 500,000 investment in Provident Fund (on top of my employer's 450,000 contribution)

AND

* 500,000 investment in Long term managed funds

ie 1M Bt pre-tax??

What is also unclear form the tax office information is:

* For provident fund and long term funds, are the capital gains or dividends taxable?

* After how long for each option can funds be drawn without any tax penalty?

Any little traps to watch out for in either of these options? They seem a little too generous to be true, to me!

Thanks in advance for your help

[dfp]

Since it is a MNC you are working for then their HR department should be able to clarify all issues related to taxation.

[capeforever]

Since it is a MNC you are working for then their HR department should be able to clarify all issues related to taxation.

I wish! HR's role at my company is cost management above all else. Getting useful information out of them is almost impossible.

Getting information which could be seen legally as 'advice'? Forget it.

[chiangmaibruce]

You are quite right, it IS difficult to find good clear up-to-date info on these issues - at least in English-language anyway. ING Funds (Thailand) web site is perhaps worth taking a look at.

You haven't mentioned Retirement Mutual Funds so I'll put them to one side.

For long term equity funds (LTF) you can invest up to 15%of annual taxable income up to a maximum of 500,000baht excluding any amount invested in a provident fund. Some LTF offer a dividend stream, in which case tax is payable on the dividends @10%. Otherwise nil tax provided you invest across 5 calendar years (can be reduced to three years and a few days either side). You can only invest income earned in Thailand.

More detailed discussion in section 10.5 in the book "Your Investment Guide to Thailand" (www.burning-bison.com)

[capeforever]

Thanks chiangmaibruce, that's helpful. I bought that book at Kinokuniya. It does answer my immediate questions and looks very useful generally; but I will need an accountant to help me through the possible scenarios - I don't suppose you can recommend one in Bangkok?

[Soutpeel]

Since it is a MNC you are working for then their HR department should be able to clarify all issues related to taxation.

I wish! HR's role at my company is cost management above all else. Getting useful information out of them is almost impossible.

Getting information which could be seen legally as 'advice'? Forget it.

Is there no way you can get a "preferentional tax deal" with your company AKA "a double contract"...some companies will do it for you others not, If you can go this route....you will be paying minimum tax

[chiangmaibruce]

I don't suppose you can recommend one in Bangkok?

Sorry, I can't recommend anyone personally. I would suggest using the Thaivisa search facility, searching just this (business) forum and the bangkok forum for the recommendations of others. Just search (thread titles only) using the words "best good accountant bangkok" or similar, and see what you turn up.

If you get stuck then there is another contributor to this forum who I could ask, and who would almost certainly know someone good.

[capeforever]

I don't suppose you can recommend one in Bangkok?

Sorry, I can't recommend anyone personally. I would suggest using the Thaivisa search facility, searching just this (business) forum and the bangkok forum for the recommendations of others. Just search (thread titles only) using the words "best good accountant bangkok" or similar, and see what you turn up.

If you get stuck then there is another contributor to this forum who I could ask, and who would almost certainly know someone good.

Hi, if you wouldn't mind asking the other contributor that would be great, I have looked through this forum several times but have been unable to find any accountant recommendations and a few posts about company accountants - and a lot of rants against financial advisors

By the way I assume you are the author of the book - congratulations, I have been reading more of it and it's a great resource and fantastic to have something so up to date.

[chiangmaibruce]

Hi, if you wouldn't mind asking the other contributor that would be great

Noted with thanks and I will now ask this fellow to recommend someone, then either him or I will contact you via pm. Cheers. CB

[aussiebebe]

Hi, I had similar questions to the OP of this thread and wondered if anyone could help.

I am similarly interested in the long term equity funds (LTF) you can invest up to 15%of annual taxable income up to a maximum of 500,000baht excluding any amount invested in a provident fund.

Q1. I am working in Bangkok on a 1-year contract - are LTF suitable for me? I notice the 3-5years time - can I buy and still hold if I have to leave the country?

Q2. I see, for example, Bangkok Bank, offers customers to invest on their website - do all banks offer this? is there a 'Best Buy' table anyone could link me to, which reccommends funds to buy? or details about performance of LTF avaliable.

Q3. For the past four years, the HR department at my company has helped me file tax returns; before I ask them, if I purchased LTF would this require an accountant or is the 'evidence' required by the tax dept straightforward?