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Income Tax For Two Hypothetical Jobs

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Let's assume I've been offered 2 different jobs. One is teaching English at 50,000B a month, the other is a specialist IT job that pays 100,000 baht a month.

Both companies are based in Thailand, and I'm a UK national. Both jobs offer a work permit.

How much tax would I pay to the Thai government for each job?

Thank you!

first 150k free

150-500k = 10%

500K - 1 MIL = 20%

+1 MIL = 30%

* No need to go to the next tax bracket...

if single... 60k deduction + 30 Allowance

Teaching: 50k*12 = 600,000

taxable: 510k

tax: 35k+2k = 37k

IT: 100k*12 = 1,200,000

taxable: 1,110,000

tax: 35k+100k+33k = 168k

f course if you take the IT job, you would likely be able to have a provident fund offered by your employer which is not taxable. You could also have enough income to invest up to 15% of your income in long term equity funds tax free or up to 100k in insurance premiums tax free...

  • Author

Thank you very much, that is exactly what I needed to know!

The taxation in Thailand seems very reasonable compared to Western countries - if I end up getting a higher paying job, I will certainly look into the available tax breaks.

Of course, I may end up getting neither of the hypothetical jobs :)

first 150k free

150-500k = 10%

500K - 1 MIL = 20%

+1 MIL = 30%

* No need to go to the next tax bracket...

if single... 60k deduction + 30 Allowance

Teaching: 50k*12 = 600,000

taxable: 510k

tax: 35k+2k = 37k

IT: 100k*12 = 1,200,000

taxable: 1,110,000

tax: 35k+100k+33k = 168k

f course if you take the IT job, you would likely be able to have a provident fund offered by your employer which is not taxable. You could also have enough income to invest up to 15% of your income in long term equity funds tax free or up to 100k in insurance premiums tax free...

  • 3 weeks later...

first 150k free

150-500k = 10%

500K - 1 MIL = 20%

+1 MIL = 30%

* No need to go to the next tax bracket...

if single... 60k deduction + 30 Allowance

Teaching: 50k*12 = 600,000

taxable: 510k

tax: 35k+2k = 37k

IT: 100k*12 = 1,200,000

taxable: 1,110,000

tax: 35k+100k+33k = 168k

f course if you take the IT job, you would likely be able to have a provident fund offered by your employer which is not taxable. You could also have enough income to invest up to 15% of your income in long term equity funds tax free or up to 100k in insurance premiums tax free...

If you took the IT job you could structure your salary, for a start up to 30% tax free can go into a Provident fund combining Employer and Employee contributions; but there is a ceiling of 500,000 on Employee contributions.

It is far better to have a Salary Sacrifice arrangement with your employer so they will contribute 15% towards your Provident Fund - so you have 30% tax exempt invested instead of only 15%. That saves you another significant amount of tax!

The remainder of your salary could also be structured so that you would not pay any more tax than a school teacher on a lower salary. If you are serious about tax planning then it is nonsense doing the basic sums according to the maths done on here. You can pay the amount of tax in IT that you wish to pay!

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