Do You Pay Tax In Thailand ?

[MrWorldwide]

OK - possibly a minefield - just looking to establish how many TV'ers get slugged with a tax bill in Thailand. I know Thailand has a VAT, and we've all paid 'Farang prices' for goodies at some stage or other, but I look at the massive 'black economy' in various Thai cities and wonder how the tax man can stand by and watch that income slide straight past his office. Not just talking about working girls - many Thais seem to prefer a 'cash in hand' approach to anything involving a receipt. I don't expect the guy selling me a pair of Levi's from a stall on Suk to have EFTPOS, but I've seen travel agents running a 'till' out of their trouser pocket. Maybe they figure that if the guy selling chicken-on-a-stick can do it, why not ?

I've never enjoyed paying tax in Oz, particularly when our idiot politicians get their grubby mitts on it, but it's up there with death as one of life's inevitabilities. I have no desire to transfer the Farangland nanny state to Thailand but someone has to pay for those immaculately maintained roads and footpaths all over Thailand

(if this thread makes you want to mash keys in a fit of righteous indignation, I get that - just try to keep the name-calling to 'mofo' and 'poopy pants', if possible)

[roamer]

Minimal welfare system=minimal need for taxes.

[Chittychangchang]

Good question, thinking about this the other day.

How does the Thai goverment pay for it's civil servants etc with hardly anyone contributing. I worked in Thailand for 2 years and paid nothing in to their system, i have friends who have worked there for a lot longer and made money paying zero tax. If the Thai goverment became more stricter on their tax collection maybe they could provide better services for their people. Maybe in 20/30 years time. Then all the cheap charlies will be across the borders in Burma andCambodia.

[David48]

Yep ... 10% withholding tax on my Share/Stock dividends

[Chittychangchang]

Mrworldwide you have poopypants!

[saakura]

Yes, tax deducted at source and paid to the govt for all employees in my company for salaries. Can claim back some part if we invest in govt approved ltf(long term mutual funds). And capital gains tax on dividends.

[MrWorldwide]

True, but who pays for the Army, Police and the people who issue licenses and registration ? I *get* that Thailand is very much a 'user pays' society, but someone has to pay for Yingluck to fly to Washington. Some might even argue that one of the reasons that Thai Police are so prone to corruption is that they are not paid a living wage - probably a debate best left for another thread, but I wouldnt be too keen to walk the streets of Bangkok if there were *no* Police. That said, I dont recall seeing a single cop on the streets of PP - I know they exist only because I've seen them in documentaries - and only one or two in VT. Thailand's boys in brown seem to believe in safety in numbers

Welfare state aside, I know I take our medical system for granted until it fails me. Sure, we pay anywhere from 1.5 to 3% of our income to prop up the Medicare system, but when I see what Americans have to pay to prop up ambulance chasing lawyers - let's just say I'm glad I live here.

[MrWorldwide]

Mrworldwide you have poopypants!

Harsh but fair - I shall work on a witty response and get back to you no later than midnight Sunday, AESDT.

[PaullyW]

Minimal welfare system=minimal need for taxes.

Actually, it's more like ..

minimal infrastructure development = minimal need for taxes

minimal police force funding = minimal need for taxes

minimal public education standards = minimal need for taxes

Cheers

[AyG]

Minimal welfare system=minimal need for taxes.

Actually, it's more like ..

minimal infrastructure development = minimal need for taxes

minimal police force funding = minimal need for taxes

minimal public education standards = minimal need for taxes

Cheers

Except it's not "minimal infrastructure development". The government is hell-bent on massive infrastructure development funded by shed loads of debt so that they can line their own pockets at the country's expense and to hell with the consequences. This debt will need to be serviced and it's inevitable that tax revenue will have to rise significantly.

And minimal police force funding also = maximal need for bribes

[elektrified]

Yep ... 10% withholding tax on my Share/Stock dividends

+1

[rattler]

I evade taxes at all times even in my own country, note I said evade not avoid................yes evasion is illegal, however when any govt spends the money sensibly they can have it.

[StreetCowboy]

I paid more tax in Thailand than anywhere else I ever worked.

Higher tax rates than Hong Kong, Singapore, Taiwan, Malaysia, Dubai.

My tax rate was lower in the UK because my salary was lower, and I did not need any taxable allowances to maintain my standard of living there.

Minimal need for welfare or education, but a very big need to line politicans' pockets

SC

[MrWorldwide]

^{Look onm the bright side, SC - you are paying those taxes so that the chicken-on-a-stick guy doesnt have to. I'd say that's one form of welfare state, albeit one where no-one gets to sit at home and watch re-runs of Neighbours ......}

[StreetCowboy]

^{Look onm the bright side, SC - you are paying those taxes so that the chicken-on-a-stick guy doesnt have to. I'd say that's one form of welfare state, albeit one where no-one gets to sit at home and watch re-runs of Neighbours ......}

The threshold to start paying tax is quite high; I have the tax bands from when I was last working in Thailand.

At that time, a married man with two kids would pay no income on salary up to THB 300K per year. Which is a lot in Thailand, but probably about the same start of the tax threshold as the UK at that time (>50 baht to the pound)

I've nothing against progressive taxation, and I prefer duty to taxation, but I wish they'd spent more on tax collection and less on funding wastefulness with subsidies for fuel or rice.

SC

[Semper]

Yes, 15% on my bank interest. After a bit of paper exercise , I get it back though.

[homeownership]

A paid "coffee money" to a Hua Hin Policeman, does that count ?

[samran]

Good question, thinking about this the other day.

How does the Thai goverment pay for it's civil servants etc with hardly anyone contributing. I worked in Thailand for 2 years and paid nothing in to their system, i have friends who have worked there for a lot longer and made money paying zero tax. If the Thai goverment became more stricter on their tax collection maybe they could provide better services for their people. Maybe in 20/30 years time. Then all the cheap charlies will be across the borders in Burma andCambodia.

See slide 3 of the following presentation:

http://www.imf.org/external/np/seminars/eng/2012/asiatax/pdf/warotai.pdf

Thailand historically collects around 16% of GDP as tax, which is lower than the 25% to 30% of GDP which makes your average western society tick.

Of this 16%, a vast bulk is collected from personal, corporate and VAT.

The only way out of this is for Thailand to get out of its current 'middle income trap', that is increase productivity, pull more income tax payers into the system (there are already plenty, but just don't earn enough) and for more companies to invest here with value adding production.

[CWMcMurray]

Yes... Every month taxes are taken out of my paycheck

Pretty much any foreigner working here legally with a work permit will be paying the tax man...

Sent from my iPhone using ThaiVisa app

Edited March 2, 2013 by CWMcMurray

[topt]

Good question, thinking about this the other day.

How does the Thai goverment pay for it's civil servants etc with hardly anyone contributing. I worked in Thailand for 2 years and paid nothing in to their system, i have friends who have worked there for a lot longer and made money paying zero tax. If the Thai goverment became more stricter on their tax collection maybe they could provide better services for their people. Maybe in 20/30 years time. Then all the cheap charlies will be across the borders in Burma andCambodia.

Yes... Every month taxes are taken out of my paycheck

Pretty much any foreigner working here legally with a work permit will be paying the tax man...

Sent from my iPhone using ThaiVisa app

Bit of a contrast here - unless Chitty and co were working/paid under the radar so to speak?

[up-country_sinclair]

Good luck getting a work permit renewed without showing the previous year's completed tax receipt.

[joepattaya1961]

Good luck getting a work permit renewed without showing the previous year's completed tax receipt.

Well you could work as a volonteer at Shell or Sony!

But you're right......no way to extend you stay based on a WP or extend your WP without showing the famous PorDor 91 and PorDor1

[MrWorldwide]

It's an old gag, but I'm an old fart.

What's the difference between tax avoidance and tax evasion ?

About ten years.

Not entirely without some basis in reality - the system jailed Wesley Snipes for three years for tax evasion (scheduled for release in July this year) while Michael Jackson and OJ got away with much more serious crimes (karma eventually got OJ). Granted, old Wes' should have had a better defence than 'I'm an alien, your honor !', but what's the point of having millions in unpaid taxes if it doesnt buy you a $1500-an-hour lawyers ? Faced with something like that in Thailand (!), I would just pay the 'fine' and cut my losses - I couldn't do a week in a Thai jail, much less 3 years.

http://en.wikipedia.org/wiki/Wesley_Snipes#Tax_conviction

[TommoPhysicist]

VAT plus import tax brings in plenty.

I also pay tax on my investments in Thailand.

[richard_smith237]

When working in Thailand, Yes... I pay full tax.

However, a lot of people I know work overseas on rotation. Tax is paid in the country they work in, they re-enter Thailand as a tourist and don't pay tax in Thailand. They do however spend some their overseas earnings in Thailand and as such still contribute something to the economy.

I believe one of the issues in Thailand is that too many people get away with not paying significant proportions of tax which the public coffers need for increased wages in the public sector which could go someway towards reducing corruption - Thats a for a different thread though.

[meatballs]

Taxes? Of course it's easier to dodge them when you're self employed. Getting a paycheck is a terrible way to earn a living because you're forced to report it.

Taxes are bad too. Most of it just goes to people who aren't doing any work anyways. Infrastructure my arse.

[CWMcMurray]

Only thing I can think of is maybe some are teaching making around 30k per month?

If so, this would put them right at the no tax upper limit... 360k per year

Based on single no defendants so deductions of 60 k and first 300k free ( no tax)

Sent from my iPhone using ThaiVisa app

[geriatrickid]

I evade taxes at all times even in my own country, note I said evade not avoid................yes evasion is illegal, however when any govt spends the money sensibly they can have it.

Any government that disburses funds for your benefit, such as for foreign affairs personnel that will respond in the event that you are in need, is not spending its money sensibly. My opinion of what is "sensible", just as you have an opinion of what is "sensible". I also do not think people like you should be able to avail yourself of medical care, legal protections, or any other assistance funded by your government. Again. just my interpretation of being "sensible".

[geriatrickid]

Anyone that is legally employed by a third party and earning a decent salary is mostly likely going to be subject to payroll witholding.i.e. comes of the pay.

[arthurwait]

Yes or I don't get my visa extension.