How Much Tax Do I Pay?

[Marcorue1]

I have a question about tax and this may have been asked before but I could not find the answer I was looking for. I started work with my school last May on 35,000 per month. I have been paying 600 in SS each month and now someone has told me that I need to pay tax by the end of march 31.

So what I want to know is how much tax and why haven't I had any really info about this before. I work for a government school but have no idea how much they claim I earn and as they help with nothing. Should I go to the tax department to get this sorted out. What happens if I do nothing, will I get fined. Do I have to pay it now?

The thing is I have no idea and as its my first year in Thailand I'm still learning, please please can somebody help me out here.

[Marcorue1]

A guy at my work has just told me that he hasn't paid in 5 years. Is it that simple?

I don't understand why so many people are paying the tax if so many are still not.

I may as well save my money and not pay this year. I hope that's the right thing to do here.

Edited March 25, 2013 by Marcorue1

[teacherofwoe]

To get a work permit you need to produce a tax receipt from the previous year. I've only ever been asked once to provide this to Labour Department in many years, but one day you'll be asked.

[thaicbr]

Your school should give you the tax documents. If not just go to the tax office with your social security number they should be able to find the details. Tax would be in the region of 1,400 baht per month.

[Scott]

Never a good idea to cheat on taxes. Just ask Al Capone.

[TerryLH]

"A guy at my work has just told me that he hasn't paid in 5 years."

I didn't pay anything for a lot more years than that, but I always filed and got the receipt from the Revenue Office.

Exactly how much you will owe depends on several things. If you have lots of dependents, that helps at tax time.

Since you only worked 8 months, it shouldn't be too bad. I'd guess under 1k a month for last year.

Do you have a Tax ID number?

Your school is required to give you a form you need to file taxes. It shows all the income and deductions. If you haven't got it, ask the school or go to the Revenue Office as mentioned above.

[aidenai]

My iPhone tax calculator based on Single Taxpayer, no Spouse Allowance and no Other Deductions calculates:

Salary Income/ Year: 280,000 Baht

Deductions and others 39,000 Baht

Your Taxable income: 181,000 Baht

Tax for personal income tax per year: 3,100 Baht

Thailand Tax Calculator by Global IT World Co., Ltd. © Interactive Group Co., Ltd.

http://www.interactivethailand.com/

https://itunes.apple.com/us/app/thailand-tax-calculator/id495105655?mt=8

[wayned]

Correction to above post: Deductions and others: 34800, not 39000 ((30000 personal deduction + 4800 SS taxes (600 x 8 months = 4800))

Tax liability = 3520 Baht. ((280000 - 60000 (expenses) =220000; 220000 - 34800 (deduction) = 185200; 185200 - 150000 (non taxable income) = 35200; 35200 x 10% (tax rate) = 3520))

If the school was deducting SS weren't they also deducting taxes. If they were you should get everything back over 3520 baht. You need the paperwork from the school and go to the tax office and fill in a pnd1 form. Get a receipt from the tax office showing that you have settled your taxes, You will most likely need it when you go to extend your visa for the next year

[Marcorue1]

The school has never given me a tax form, I pay SS but the school never talks about this issue. How do you show the tax office how much you make if the school doesn't get involved. I will leave this school and start working at a new school in May. So does this mean all my tax issues will start all over again. I'm running out of time before this tax stuff has to be in but as seems like all the other teachers at my school are not paying tax I seem to be the only one who is questioning this.

[Tywais]

You should receive from the school a P.N.D 1 form or similar that shows your full salary and the taxes deducted. My form shows P.N.D. 1 Special. You can see the form here. They are required by law to supply it to you. Just ask the school for the P.N.D. 1 statement. But tax submission is due the 7th of next month not the 31st of March. It was extended this year. Perhaps the others are not making the same amount as making below 20,000/month there is no tax liability.

[Marcorue1]

I guess we pay tax to get into the system, if we don't we become a ghost.

I'm just using the word another teacher just said to me.

I don't need to be in the system yet but I think I will have to buy my way in soon.

[wayned]

If you start at the new school and you do not have a receipt from the tax office that shows that you have settled your 2012 taxes, you might not be able to extend your visa. You will also have to turn in your work permit and get a tor tor 10 form from the labor office.

[Marcorue1]

What about if you are leaving the school and will start at a new school. Does everything start all over again, I am starting to learn more from other teacher at my school. None have paid tax.

[Marcorue1]

Ok I'm going to the tax office. Where is it??

[gk10002000]

Just a friendly reminder to you if you are a citizen of the USA. Income earned worldwide is liable to be reported and possibly taxed by the USA Internal Revenue Service (IRS). So the bad news is you have to report income earned overseas. The good news is, the USA will not double tax you. So if you properly paid Thailand income taxes, there are several possible things you can do. The USA Tax options open to you when filing your 1040 form are: the Foreign Income exclusion, Foreign tax credit, itemize, foreign housing exclusion etc. Based on what I see and know of the Thai income taxes, I would almost certainly stare intensly at the USA Foreign Income exclusion provisions, and also the Foreign Housing exclusions. Some of these things over lap a bit and it may take you a few iterations to see what is best for you to file.

Thanks to the posters that put some of the informaion up about the Thai Income taxes.

[wayned]

Just a friendly reminder to you if you are a citizen of the USA. Income earned worldwide is liable to be reported and possibly taxed by the USA Internal Revenue Service (IRS). So the bad news is you have to report income earned overseas. The good news is, the USA will not double tax you. So if you properly paid Thailand income taxes, there are several possible things you can do. The USA Tax options open to you when filing your 1040 form are: the Foreign Income exclusion, Foreign tax credit, itemize, foreign housing exclusion etc. Based on what I see and know of the Thai income taxes, I would almost certainly stare intensly at the USA Foreign Income exclusion provisions, and also the Foreign Housing exclusions. Some of these things over lap a bit and it may take you a few iterations to see what is best for you to file.

Thanks to the posters that put some of the informaion up about the Thai Income taxes.

If he earned 280000 baht, at the current exchange rate that is less than $10000 and is not required to file a US tax return.

[Scott]

If you are a US citizen, you usually are required to file a tax return, even if you owe nothing.

[Tywais]

If you are a US citizen, you usually are required to file a tax return, even if you owe nothing.

That's my understanding also.

[wayned]

Depending on your filing statues, there are income thresholds that determine whether you have to file a tax return: See below:

Filing Status

AgeIncome Threshold

Single

under 65

65 or older

$9,500

$10,950

Married Filing Jointly

under 65 (both spouses)

65 or older (one spouse)

65 or older (both spouses)

$19,000

$20,150

$21,300

Married Filing Separately

any age

$3,700

Head of Household

under 65

65 or older

$12,200

$13,650

Qualifying Widow(er) with Dependent Child

under 65

65 or older

$15,300

$16,450

If your income is below the threshold listed in the right-hand column, you are not legally obligated to file a return.

But in certain situations it may be financially beneficial for you to file even if you don’t have to because you could get a refund.

Read more: http://www.priortax.com/filing-late-taxes/who-has-to-file-irs-form-1040/#ixzz2Oo1QmUA3

Sorry the table didn't download correctly and for some reason I can't delete it. Go to the website.

Edited March 28, 2013 by wayned

[gk10002000]

The additional posts about requirements to file US taxes are in general correct. However, my experience has been that it is almost always better to close the books and file a return every year. If nothing is owed, great. Filing documents your income and that may come in handy in the future if trying to show a work and wage history, maybe for loan or employment reasons. The 1040 would be an officially recognized source whereas showing some pay stubs from Thailand might not carry much weight in the USA.

[Scott]

I can give you a very good example of why it is good to file an income tax form, even if you do not owe income. In a previous life, I worked for an Embassy and we did processing of applications for visas. If you are sponsoring a fiance, wife, or family members, you will be asked to provide proof of income. Lots of people had all sorts of documents, but many officers simply didn't believe it and would request a certified copy of the income tax records for the past 3 years (these could be obtained from the IRS). Lots of people got to put their life on hold because they had not filed and could not prove their income satisfactorily.

[SlyAnimal]

You can goto the local Amphur to file your taxes. Take a friend who can speak Thai well to assist you.

As its your first time they will set you up with a tax number and probably help you to setup your tax so that you can file your return online instead next year, which makes things easier.

Once you have filed your tax return you can print it out and pay it at lotus express or half a dozen other stores.

As mentioned earlier, you'll have bugger all tax to pay, as you didn't work a full year. You will be asked for tax receipts on renewing your visa/work permit, although usually only if you stay at the same school. However you should file/pay your tax regardless.

[how241]

Never a good idea to cheat on taxes. Just ask Al Capone.

+1

[sirchai]

Not being married would put you on around 17,000 baht. If you don't go for it, you might not get a new visa/work permit.

The school has to issue a document and you'll have to submit it to the tax office. They'll assist you and give you a tax number, if you never had one.

But it seems you like it the hard way.

Edited March 31, 2013 by sirchai

[tolsti]

Just be careful in trusting the HR dept to deduct the correct amount each month. This last tax year I was happily having it deducted each month and then at submission time it all of a sudden seemed that I had a 36 K underpayment...... And of course it was no ones fault.... Everyone just smiled embarrassingly and looked away.

Thankfully you can make an arrangement to pay the areas monthly. Another burden ever month.

Edited March 31, 2013 by tolsti