Told Not To Pay Tax Each Month By Income Office?

[zungmay]

Hi

4 months ago I started a very basic 1 person consulting company and have 1 work permit. I have not earned any Thai baht yet.

I went to the income tax office to pay my tax which I was told would be about 2000- 3000 baht per month. I would get a paper saying I paid then bring this in Sept 2011 when my Work permit expires to show proof I paid.

But when I went to the INcome office I told them I had a wife and 2 kids ( all 3 farong). They said because i have those deductions I did not have to pay the 3000 baht tax. They said I did not have to pay even after 30 minutes of me scratching my head. So now I have not paid any monthly tax for 4 months.

What happens in Sept 2011 when I go to get an extension on my work permit and I have not paid tax due to the income office saying I didn't have to?

I have one independant account person going to the income office with me but she does not know the answer either. We both walked away not paying tax. Surely there must be a better way to know what to do.

Can you help me with this issue? Do I pay tax or not , if so what is the amount? Other than the annual balance sheet due is there other paperwork needed?

Thank you

[Mario2008]

I'm not sure about the labour office wanting to see the tax papers or not, but if you go for an extension of stay from immigration they will normally want to see any tax papers.

I wonder how you can start a 1 person consulting company.

Your question about paying tax or not might be better answered in the business section.

[Soutpeel]

I wonder how you can start a 1 person consulting company.

Would be interested to see the answer to this one, cant see how this is possible, unless his work permit is tagged onto another company, and hence the reason for the tax query...

[opalhort]

WP renewal does require tax evidence on part of the company and the applicant.

Even if no tax is due (deductions etc.) papers have to be filed with the revenue department which will issue a 0.00 Baht receipt.

Since the WP is due in Sep.2011 the OP will need to show the PorNgorDor 91 form with receipt to be filed not later than 31.03.11 even if no tax is due and the receipt shows 0.00 Baht.

[zungmay]

WP renewal does require tax evidence on part of the company and the applicant.

Even if no tax is due (deductions etc.) papers have to be filed with the revenue department which will issue a 0.00 Baht receipt.

Since the WP is due in Sep.2011 the OP will need to show the PorNgorDor 91 form with receipt to be filed not later than 31.03.11 even if no tax is due and the receipt shows 0.00 Baht.

Just to clarify, the company has shareholders not 1 person.

Thank you for this response. So it appears this is possible and need to file the correct forms then bring the tax papers to renew the WP. I hope this is correct understanding.

[Mario2008]

Normally for a work permit there need to be 4 Thai employees to every 1 foreigner working there. But it seems you already have a work permit.

Yes you understood correctly. File the tax pappers, even if the amount is zero, you still need to show them.

[opalhort]

Normally for a work permit there need to be 4 Thai employees to every 1 foreigner working there. ....

Yes, but isn't there some sort of treaty for Americans regarding ownership and Thai employees requirement?

[Mario2008]

Normally for a work permit there need to be 4 Thai employees to every 1 foreigner working there. ....

Yes, but isn't there some sort of treaty for Americans regarding ownership and Thai employees requirement?

Yes, the amity treaty, which was why I said normally. I'm not sure about the OP's nationality.

[zungmay]

Normally for a work permit there need to be 4 Thai employees to every 1 foreigner working there. ....

Yes, but isn't there some sort of treaty for Americans regarding ownership and Thai employees requirement?

Yes, the amity treaty, which was why I said normally. I'm not sure about the OP's nationality.

Yes, correct an Amity company.

In summary, each month between the 1st and 7th go to reveune dept and pay tax or at least fill out papers , get a form that says 0 baht

Have accountant prepare balance sheet each year

Renew WP