Getting Comission Being Employed

[sanchobkk]

In order to avoid asking a lawyer _unless it's mandatory-, I' m going ask the thai visa foru, since I alomost always find an answer here.

I'm employed by a company, and every three months, in addition to my fixed salary, I got a bonus which is basically commission on stuffs exported by the company.

So i have to pay taxes on these commissions , which is quite high in my opinion (30%).

Anyone could advise a way of avoiding paying such taxes ? I thought about invoice my company through an other company which would be mine or wife's ?

A small company with small income (not over like 200K bhat I guess) would not pay taxes,

What do you think ?

Thanks for any opinions

[tombkk]

If they deduct taxes on these commissions, it will be the withholding tax on your salary. At the end of the year (or the beginning of the next year, to be realistic) you will receive a written statement from your company stating what your income over the year was (including these commissions) and how much withholding tax they have reduced. You have a right to this statement from your company.

This document is part of your yearly income tax declaration (PND 91), and you will get back any overpaid taxes. Especially if you are not in the 30%-bracket (depending on total taxable income per year). I know I'm not.... The refund of overpaid personal income taxes is pretty fast in Thailand.

I assume you are familiar with Thailand's personal income tax laws.

That said, most companies will deduct between 3% and 10%, so I don't know why ours deducts a heavy 30%. Is there anything you haven't told us yet?

If you want to use your own company, please be aware of the regulations covering this. In most cases it's not worth it. because the personal income taxes are lower than corporate income taxes - but again, it depend on your salary.

[sanchobkk]

Thanks TOm for your answer.

Yes I'm aware of witholding tax, and I should pay it (or rather the company I make the invoice will hold it).

If I got taxed 30%, it's because I'm in the 30% bracket on my income, and all extra income will be calculated on that bracket, that's why I said I have to pay 30% tax on it.

Does anyone know how much income max a thai company can have and not being taxed ?

Sorry for my poor english, it's not my native langage as you can notice !

[Pseudolus]

1) can they pay you commission offshore from outside Thailand?

2) Lots of ways your own company can minimise tax and be inside the law

3) As Tombkk says, get the clear submitted info from your company about what they have been paying.

I did some calculations and also came up with the same conclusion that as soon as your tax jumps into the 30% and 37% threshold it is cheaper to own your own business. In the 20% area it is more expensive. If like me you jump very quickly into the 30% at the start of the new year, it's a no brainer. If it's half way through the year, adding into the mix all the sundry expenses with running an SME, it's not worth it.

[sanchobkk]

YOu mean running an SME with a foreigner owner ? Because if it's thai, not much taxes I guess.. I can't find how much is the maximum income for a small thai business for not being taxed.

Anyway, thanks fot you time mate !

[raro]

YOu mean running an SME with a foreigner owner ? Because if it's thai, not much taxes I guess.. I can't find how much is the maximum income for a small thai business for not being taxed.

Anyway, thanks fot you time mate !

why does the ownership (foreign vs. Thai) has an effect on the tax rate?