Thailand to tax residents’ foreign income irrespective of remittance

[arminbkk]

Hi all,

A question concerning PI tax for foreigners: I work on a contract for an all Thai company.

My office manager has filed my taxes for me.

I hadn't done that, and was too late, but when applying for wp renewal she was advised

that I still had to do that.

So she filled it all in for me, I signed, and it was sent to Revenue Department.

Now my question is rather general: are there any special circumstances for foreigners

as far as income tax in Thailand is concerned?

What I mean is: does it take extra long, are there more forms needed, etc.?

Background on my tax situation: I only included the spousal and child deduction. Nothing else (house or investments or whatever).

The tax was filed late May, although it should have been late March of course.

My OM calculated a tax return for me and said I would eventually receive a

cheque in the mail from the Revenue Department. She cannot say how long it will take.

Any ideas?

Thanks

[Soutpeel]

There are no special provisions

[Tywais]

No distinction between a foreigner or a Thai for tax filing, exactly the same handling and paper work.

[arminbkk]

Thanks for the replies guys!!

Anyone know what the normal waiting period is for a tax return, when submitted on time

and when 2 months late??

Thanks

[wayned]

My last one was submitted on time and the refund took about two months.

[KamnanT]

Small refunds normally come pretty quickly - 4 to 8 weeks. For a large refund, expect:

1. repeated requests for additional information and evidence to support deductions, received one at a time and spaced a month apart,

2. your file to be passed from the tax office for your residential address to the tax office for your employer's address and then back again, and

3. the auditor handling your case to avoid your phone calls in the hope that you will forget about your refund and go away.

At least that's been my experience. Most salaried employees have tax deducted at source, with a balancing deduction in December calculated to ensure the total withholding exactly equals your tax liability, therefore no balance to pay or refund to receive in March. In 2008, they temporarily increased the LTF contribution limit to THB 700,000 so I went in on December 30th and contributed the full amount, meaning I was due a large refund. All of the above happened and by July 2009 it was clear that this was a battle of attrition - they were hoping I would give up. Fortunately, I had a great PA who kept calling the Revenue Department every day, often switching mobile phones because the auditor stopped answering calls from the numbers she had already seen. Finally, in September, I got a cheque.

It might be a myth, but someone did tell me years ago the Revenue Department auditors have a "budget amount" they have to collect in additional tax each year and any refunds they authorise are deducted from their takings.

[steveromagnino]

I also got a refund from putting money into LTF/RMF/12 year life insurance which I presume is a common way people end up earning refunds (and should be done pretty much by everyone as it is an extremely good deal tax wise if you are paying 30% tax).

Cheque the last couple of years around 1xx,xxx baht refund paid out around 2 months after filing last year and 10 weeks after filing this year; so not so bad.

I would imagine next year when it may be quite a bit more than this (as i will put in the full amounts legally allowed, 15% 15% 100k) that the delay may be more.

Kamnan T you must be well happy you flicked the full amount in 2008...that's a big gain since then!!!