What Department Of Thai Government Should I Report Cash Paid To Thai Citizen?

[StevenHeidbriderSr]

Just wondering if i need to ( I may want to) report cash paid to a contractor in thailand? They do have income Tax and i am fairly certain the substantial amounts will not be reported by the contractor.

Edited January 20, 2013 by StevenHeidbriderSr

[Satcommlee]

You need to contact the office of the prime minister immediately.

That is bang out of order!

[hazman]

You need to contact the office of the prime minister immediately.

That is bang out of order!

or the department of we dont give a rats

[hazman]

You need to contact the office of the prime minister immediately.

That is bang out of order!

or the department of we dont give a rats

Seriously though Steven pursuing this would be a waste of time and money and I doubt that there is anyone who would who would recommend that you should do it

[beano2274]

Where is the contractor from? They should have a Management company that would pay their taxes in their own country, then send the rest of their salary into their bank.

[whybother]

I think you would report it to the same people that you report your 7/11 purchases to.

[blue eyes]

Why?Is it because you wish to cause a problem if they are not reporting it?This could end up causing you some very big problems with the Thai contractors in the future.Even after you part ways with them.

[jamescollister]

OP will presume you are building a house and need to pay the builder. Builder is responsible for his own tax affairs. Jim

[MobileContent]

If you buy the building material by your own you can always ask for the correct invoice. I bought most of the material at Global House or Home Pro and they all issue correct invoices. I would never ask the builder to buy the materials as they get a markup of 10% with the supplier.

If you are now not happy about your builder, I wouldn't go after him as this can backfire.

[swissie]

The reporting of Tax-Evasion and Corruption should be done by Thais, not Farangs. If word gets around, that you (as a Farang) acts as the big "whistleblower", there might soon be a few people that have ways and means to make your life miserable. Be careful !

Cheers.

[krisb]

Mate thats how the building industry works throughout the world. Ive been paid in cash a gazillion times.

Here in Australia we also use beer as currency to pay for building work and building favors!....bet that made you crap ya dacks sunshine!

If I was you I would turn a blind eye cause if he finds out it may turn black.

[krisb]

If you buy the building material by your own you can always ask for the correct invoice. I bought most of the material at Global House or Home Pro and they all issue correct invoices. I would never ask the builder to buy the materials as they get a markup of 10% with the supplier.

If you are now not happy about your builder, I wouldn't go after him as this can backfire.

Why never? A good builder can get prices better than you and I because he knows the suppliers well. Get your price from the shop and compare with the builders. Never assume in construction.

[MobileContent]

If you buy the building material by your own you can always ask for the correct invoice. I bought most of the material at Global House or Home Pro and they all issue correct invoices. I would never ask the builder to buy the materials as they get a markup of 10% with the supplier.

If you are now not happy about your builder, I wouldn't go after him as this can backfire.

Why never? A good builder can get prices better than you and I because he knows the suppliers well. Get your price from the shop and compare with the builders. Never assume in construction.

We actually compared the prices with builders and with the shops in both Udon and Sakon Nakhon and the builders in Sawang and Phang Khon were far higher then in Sakon and Udon.

Global House was on many materials even the cheapest and we could pick up the material the same day. On 80x80cm ceramic tiles the shops in Phang Khon quoted 30% higher, cement prices were up by the builders. They had a markup for every item and my FIL told me to go to the cities as he is a builder and wanted to make sure we can build the house for a budget of 800-900k.

[SlyAnimal]

Just as a quick 2c, most of the Thai people who don't pay income tax, aren't avoiding tax, but rather the government has setup income tax to not tax most people.

e.g. You only pay tax after 150,000 THB, but you also get around 90,000 - 280,000 THB in taxable income deductions, with potentially another maybe 1,000,000 if you purchase lots of life insurance + have a home loan + charity/temple donations + long term equity + retirement schemes. After which they only pay 10% anyway (until they hit the next bracket)

So depending on their situation, people need to earn a minimum 240,000 THB a year (20k per month), before they even need to file a tax return (and if they have a spouse/parents/children then they need to earn closer to around 30-40k per month before they need to pay tax. Most Thai people earn a lot less than this, and the ones who earn over, will likely buy some life insurance etc to ensure that they don't need to pay tax either).

[jamescollister]

Just as a quick 2c, most of the Thai people who don't pay income tax, aren't avoiding tax, but rather the government has setup income tax to not tax most people.

e.g. You only pay tax after 150,000 THB, but you also get around 90,000 - 280,000 THB in taxable income deductions, with potentially another maybe 1,000,000 if you purchase lots of life insurance + have a home loan + charity/temple donations + long term equity + retirement schemes. After which they only pay 10% anyway (until they hit the next bracket)

So depending on their situation, people need to earn a minimum 240,000 THB a year (20k per month), before they even need to file a tax return (and if they have a spouse/parents/children then they need to earn closer to around 30-40k per month before they need to pay tax. Most Thai people earn a lot less than this, and the ones who earn over, will likely buy some life insurance etc to ensure that they don't need to pay tax either).

Same goes for farming income no tax and judging by the amount of new cars out here many are not just poor rice farmers.

We pay tax/VAT etc for the factory, but the rubber plantations are separate, no tax. Things will change one day. Jim

[IsaanAussie]

Building suppliers operate on a tiered discount system. Their best customers receive the highest level. I used the contact of a friend once and saved around 30% over the best prices I could get. His supplier had a seven step discount system.....

Taxation depends on corporate status, a partnership or individual doesnt pay but a company must. Payments are taken out for income tax and for social security payments of behalf of the employee. The universal tax is excise or VAT, everyone pays on everything. If you add value and pass the cost on then you can claimthe VAT back. Do not mess with the Wee-A-Tee police.

For a company to claim costs of employing an individual service or goods supplier as part of their return, they must withhold tax from the payment. The individual must supply an invoice and copies of their ID card.

Edited January 27, 2013 by IsaanAussie

[endure]

Thaivsa isn't the forum for personal vendettas.