37% Tax - Any Ways Around It?

[ninjat]

Hi,

I have read the Thai tax laws and it looks like you have to pay 37% tax for income above 4,000,000 baht - and 30% tax for income between 1,000,000 and 4,000,000 baht.

I can't image rich Thais like Thaksin and friends paying 37% tax, but how do they do it? How do you avoid the 37% tax if you income is relatively high?

Thanks,

Ninjat

[SunbeltAsiaExpert]

No capital gains tax on profits from trading stocks or futures in Thailand.

On income, work for a company that has a qualifying Regional Office Headquarters in Thailand. As an expat you would pay only 15% tax for eight years.

Working for a normal Thai company, as an individual earning income in Thailand, that foreigner would be taxed on the following rates

Net income (after personal deductions) Rate

From 1 to 150,000 Baht waived

From 150,001 to 500,000 Baht 10%

From 500,001 to 1,000,000 Baht 20%

From 1,000,001 to 4,000,000 Baht 30%

Over 4,000,001 37%

The government has establish tax reduction programs to encourage by healthcares, savings & investments, and social support. Such could be in the forms of either buying long term health insurance policy, investing in LTF or RMF, or provide charity support (with official receipts) with charitable foundations e.g. United Nations etc.

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