Thai gov. to tax (remitted) income from abroad for tax residents starting 2024 - Part II

[RBrown]

Greetings. It seems the forum is populated by experts, so I hope your insights can answer my question. In January, my monthly salary was 80,000 baht from which 8,040 baht were deducted for taxes. Net salary was 71,960 baht.

Starting in February, my salary increased to 90,000 baht. Upon receiving my pay slip, I discovered that 12,850 baht were deducted for taxes. Net salary was a meager 77,150 baht. This represents a roughly 60% percent increase in my monthly tax rate for a mere 10,000 baht, or 12.5%, increase in salary. Is this possible, or is my employer, who was very reluctant to extend me the raise, withholding extra cash they should not be?

Thanks in advance for your ideas!

[Mario2008]

Moved to the business section, as people their tend to have more knowledge of taxes.

[PoorSucker]

Seems you hit the threshold of 1.000.000 baht / year.

Personal Income Tax (PIT)

[thaiphoon]

This information is provided assuming you are on standard/basic tax allowances.

Even though earnings are over 1M tax threshold, taxable income after standard allowances is only 971,000. What is important to recognise is that there are no 'new' allowances to use against the extra 10k monthly income which will effectively be taxed at full 20% band rate. It also appears that you underpaid tax by around 1300 baht in Jan (8,040 paid v 9,350 due), so comparable Jan figure is circa 70.6k. Not certain either you have allowed for social tax deduction in your quoted net salary figure, which would drop true comparable figure down to just under 70k.

Jan attachment: income tax based on 0.96M earnings for the year = 9,350 pm + 750 pm social tax

Feb attachment: income tax based on new 1.07M earnings for Jan-Dec and Jan tax paid = 11,469 pm + 750 pm social tax

Total income tax due Jan and Feb = 20,819 (9,350 + 11,469) plus 1,500 social tax

Actual income tax paid Jan & Feb = 20,890 (8,040 + 12,850) plus 1,500 social tax - as should be

Therefore for Jan/Feb total slight overpayment in income tax of 71 baht. Jan under payment of tax has been corrected in Feb salary.

Mar attachment: monthly income tax Mar-Dec based on new 1.07M earnings for Jan-Dec plus actual Jan/Feb tax paid = 11,331pm (+ 750 pm social tax) = 77,919 net pm. Say 78k, less 70k previous comparable figure above = 8k extra take home pay after paying additional 2k in tax (11,331 in Mar v correct due figure of 9,350 in Jan)

Note: social tax calculated at 5% of gross monthly salary, maximum 750 baht per month.

Jan.htm

Feb.htm

Mar.htm

[RBrown]

Thaiphoon: I am speechless: your explanation and attachments are unexpectedly thorough. Thank you for your time. I failed to include a couple of minor details - I was never expecting to receive such a salient response - such as a bonus of 70,000 in January (total January income of 150,000 less 10,100 WHT and 750 SSF, which is less tax than I paid on my February-earned 90,000), but I do not think my exclusion significantly alters your response to my question of whether I should have paid that much tax.

Thank you again for you time.