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[Colabamumbai]

I have earned 150,000 Baht for 5 months teaching, June thru October. I will earn another 60,000 plus 6,000 housing allowance by the end of this year at a new school.

A total of 210,000 salary plus the housing allowance.

1. Approximately how much will I pay in taxes for the year?

2. Do I have to declare the 6,000 Baht housing allowance, is it taxable?

And any other information would be appreciated. Thanks.

[wayned]

The 6000 baht is taxable but you should not have to pay any taxes. You do need to file and get the receipt showing that the balance owed is zero. Your total income with the housing allowance is 216000 baht. The standard deduction is 40% or a maximum of 60000 baht. 40% of 216000 is 86400 baht so you deduct 60000 baht (the maximu) from 216000 to give you 156000 baht. There is an additional personal allowance deduction of 30000 baht. IF you are claiming a wife, children in school or support of your wife's family the allowance is more. If you subtract 30000 from the 156000 you have a taxable income of 126000 baht. You do not have to pay tax on anything less than 150000 baht. Make sure that you get the receipt you will/might need it to extend your visa.

[Colabamumbai]

The 6000 baht is taxable but you should not have to pay any taxes. You do need to file and get the receipt showing that the balance owed is zero. Your total income with the housing allowance is 216000 baht. The standard deduction is 40% or a maximum of 60000 baht. 40% of 216000 is 86400 baht so you deduct 60000 baht (the maximu) from 216000 to give you 156000 baht. There is an additional personal allowance deduction of 30000 baht. IF you are claiming a wife, children in school or support of your wife's family the allowance is more. If you subtract 30000 from the 156000 you have a taxable income of 126000 baht. You do not have to pay tax on anything less than 150000 baht. Make sure that you get the receipt you will/might need it to extend your visa.

Thanks Wayne, I appreciate your help. Can I pay this at any provincial tax office, as I have changed provinces? When should I visit the tax office, the first of next year, or do I have some leeway there?

[youreavinalaff]

You should get details of monies earned for the financial years from the schools where you worked this year.

Take that to the local tax office before end of March. They will sort it for you. I always take copies of my marriage cert, daughters birth cert and copy of house book, in order to claim as much allowance as I can.

[Tywais]

The 6000 baht is taxable but you should not have to pay any taxes.

Not taxable. I receive 8000 Baht housing allowance from the university and it is not taxed nor required to be declared.

[ljerams]

Wayned wrote "You do not have to pay tax on anything less than 150000 baht".

Are you sure your mechanics are correct? Previously it was Baht 150000 gross when you entered the tax system and if there was any money left after deducting all your allowances you paid tax on it according to the tax scales.

This was certainly correct during my 20 working years in Thailand. Unfortunately, these days I don't have a suitable contact to confirm it for the OP/

Edit: Just found some tax tables, first 100000

exempt and next 40000 is 10% Tax.

Edited November 7, 2011 by ljerams

[Tywais]

Wayned wrote "You do not have to pay tax on anything less than 150000 baht".

Are you sure your mechanics are correct? Previously it was Baht 150000 gross when you entered the tax system and if there was any money left after deducting all your allowances you paid tax on it according to the tax scales.

This was certainly correct during my 20 working years in Thailand. Unfortunately, these days I don't have a suitable contact to confirm it for the OP.

0-150,000 Baht is tax exempt. The below indicates at what point there is no tax liability.

Standard Deduction 40% but not exceeding 60,000

Allowances/Exemptions, Single 30,000

150,000 Tax exemption

--------------------------

240,000 for the year - no tax liability

Thailand Revenue Department

[Tywais]

Edit: Just found some tax tables, first 100000

exempt and next 40000 is 10% Tax.

That is an old tax table from a few years back. The current, as shown in my post and link to the tax site, is now 150,000

[ljerams]

Edit: Just found some tax tables, first 100000

exempt and next 40000 is 10% Tax.

That is an old tax table from a few years back. The current, as shown in my post and link to the tax site, is now 150,000

Thanks for linking to the current tax tables. Interesting how the rules have changed to a less hard regime

[KamnanT]

The 6000 baht is taxable but you should not have to pay any taxes.

Not taxable. I receive 8000 Baht housing allowance from the university and it is not taxed nor required to be declared.

As a general rule, payments made in cash, whether termed salary or allowances, are all considered taxable income. Even payments "in kind" (e.g. rent-free housing) are subject to income tax on their fair value.

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

2.1 Assessable Income

Income chargeable to the PIT is called “assessable income”. The term covers income both in cash and in kind. Therefore, any benefits provided by an employer or other persons, such as a rent-free house or the amount of tax paid by the employer on behalf of the employee, is also treated as assessable income of the employee for the purpose of PIT.

I received housing, transportation and child tuition allowances from my employer for many years - all were subject to personal income tax.

[Tywais]

[/font]I received housing, transportation and child tuition allowances from my employer for many years - all were subject to personal income tax.

I've also received housing allowance for nearly 20 years from the university and never required to declare it by either the revenue department, university HR, etc. The university does my taxes for me and would expect them to have it right. Perhaps exemption due to the class of position in the government I hold.

[wayned]

Again, it must be who you deal with and how the regs are inter[erted. When I worked the school added the allowance to the income statement and I was taxed.

The 6000 baht is taxable but you should not have to pay any taxes.

Not taxable. I receive 8000 Baht housing allowance from the university and it is not taxed nor required to be declared.