Tax Rates On Thai Salary

[MrNeilThai]

I earn 55,000 baht a month working as a teacher. I have worked for a year and paid no taxes. Now I am told we have to start paying taxes. I have heard people talk about tax tables that are broken down by

salary with the highest rate being about 25 percent for those earning over 150,000 B. Does anyone know what the proper amount of taxes is on my salary?? I would like to have some good info

before dealing with my accounting department.

Thanks

[Richard4849]

Straight from the horse's mouth (the Revenue Department website). The amounts they are mentioning are ANNUAL, by the way -- not monthly.

http://www.rd.go.th/publish/6045.0.html

3.1 Progressive Tax Rates

Personal income tax rates applicable to taxable income are as follows.

Tax rates of the Personal Income Tax

Taxable Income

(baht)arginal Taxable income

(baht)Tax Rate (%)0 - 150,000 (2008 onwards) 150,000Exempt150,001 - 500,000350,00010500,001 - 1,000,000500,000201,000,001 - 4,000,0003,000,000304,000,001 and over

37

In the case where income categories (2) - (8) mentioned in 2.1 are earned more than 60,000 Baht per annum, taxpayer has to calculate the amount of tax by multiplying 0.5% to the assessable income and compare with the amount of tax calculated by progressive tax rates. Taxpayer is liable to pay tax at the amount whichever is greater.

[Richard4849]

Sorry, the table doesn't come through.

Click on the link to see it.

[KamnanT]

Assuming you are i) single, ii) paying the maximum 750 baht/month into the Social Security Fund, and iii) have no other deductions, you would have a taxable income of 591,000 and be liable for personal income tax of 53,200 per year or 4,434 per month.

[MrNeilThai]

Thanks, I have a few deductions including 1)child 2)non working spouse. This only adds up to about 40,000 per year for the deduction.

My idea is to ask the employer to lower my income by taking 9000 baht per month as a housing allowance. Then we could report income at 46,000 per month and thus a lower bracket.

I just want to make sure I know what I am talking about this website helps.

Thanks

Sorry, the table doesn't come through.

Click on the link to see it.

[Spoonman]

Thanks, I have a few deductions including 1)child 2)non working spouse. This only adds up to about 40,000 per year for the deduction.

My idea is to ask the employer to lower my income by taking 9000 baht per month as a housing allowance. Then we could report income at 46,000 per month and thus a lower bracket.

I just want to make sure I know what I am talking about this website helps.

Thanks

Are you on a visa or permission to stay extension ?

[PoorSucker]

55.000*12=660.000

Deduction for income from employment

40% but not exceeding 60,000 baht

Personal allowances

30,000 baht for the taxpayer

30,000 baht for spouse allowance

15,000 baht each child (limited to three children)

9.000 baht for social insurance contributions

Taxable income 516.000.

0 - 150,000 Exempt from tax

150,001 - 500,000 tax payable 10 %, in your case 35.000 baht

500,001 - 1,000,000 tax payable by 20% in your case 3.200 baht

38.200/12=3.183

Total tax for you 3183 baht per month.

Then we could report income at 46,000 per month and thus a lower bracket.

You only pay taxes on 1.333 baht in the higher tax bracket.

[KamnanT]

My idea is to ask the employer to lower my income by taking 9000 baht per month as a housing allowance. Then we could report income at 46,000 per month and thus a lower bracket.

Housing allowances are considered taxable income, so this wouldn't lower your tax bill.

[Richard4849]

Correct. All benefits are taxable.