Accounting costs on Koh Samui

[AlfGarnett]

Hi,

Just had my end of year Accounting invoice presented to me ( rather early for December 2013 ? ) and thought I would throw the figures out there to see if the costs are similar to what others on the Island pay.

Monthly Tax and Insurance : 5660B

Year Audit : 18000B

Monthly tax and Insurance : 1500B

I was quite surprised at this monthly charge, as there is hardly any work involved, I was expecting a fee of around 500b per month

Not asked about work permit yet, but I may organise that myself anyway.

Thanks in advance

AG

[PoorSucker]

I was quite surprised at this monthly charge, as there is hardly any work involved, I was expecting a fee of around 500b per month

I guess your personal income tax is the major part.

I pay 500 baht / moth in fee for them handling my paperwork.

[saweden]

For someone who doesn't have a business on Samui (yet) could you please explain the numbers a bit? There are two monthly tax and insurance, is one for the business and the second one for the employees?

[PoorSucker]

For someone who doesn't have a business on Samui (yet) could you please explain the numbers a bit? There are two monthly tax and insurance, is one for the business and the second one for the employees?

Correct.

[Tropicalevo]

Difficult to tell without more info.

eg how many staff, salaries etc.

I have 7 staff and I pay more than that.

Annual fee for accounting is not too high either.

[samuibruno]

hi

what exactly are you paying tax and insurance for?[twice]

if its not your work permit ?

your company then must be making some great profits?

i pay approx 3000 per month

half is personal tax on salary@ 30,000

other half is accounting fee

yearly audit @ 15,000

no more tax as no profit this year

and i dont have any insurance

[PoorSucker]

i pay approx 3000 per month

half is personal tax on salary@ 30,000

other half is accounting fee

Wow, I have a real lawyer, not an accounting company and only pay 500/month in accounting fee

When I first moved here, I had a accounting company and paid 1000 / month in accounting fee, way to much

[BigC]

hi 

what exactly are you paying tax and insurance for?[twice]

if its not your work permit ?

your company then must be making some great profits?

i pay approx 3000 per month 

half is personal tax on salary@ 30,000 

other half is accounting fee

yearly audit @ 15,000

no more tax as no profit this year

and i dont have any insurance  

Having a business being a forang has all sorts of tax

Now the law changed where forang have to pay tax on minimum 50000 baht per month of salary tax

Then social securty for staff each company needs about minimum 3 thai staff all taxed on 9000 baht pm which is minimum wage or possibly more

Then you have accounting services which is up to the accountant

Then at the end of the year you have to show profit for your balance sheet

Pay tax on that

If you have a sign still above your shop then you have to pay tax depending on the size of the sign

Then balance sheet about 20 k per year

If you have land and house then you have that per year which is calculated on the amount of land and house you have

So if is expensive to have a business here and stay legal unless you have allot of income from your business

Then if you want business visa your company has to show 2 million baht of share capital per forang

Then you can have a work permit

Visa 1 years business about 20 k

Work permit about 10 k

Then do to forget to get your car tax and insurance

If you put the car on the company then the tax is sky high

If you put it in your name or is better

To say that forang don't do anything for thailand and we are all no good

If it was not for people owning land and house then the income to the revenue department shall drop big time

Sent from my iPhone using ThaiVisa app

[BigC]

hi 

what exactly are you paying tax and insurance for?[twice]

if its not your work permit ?

your company then must be making some great profits?

i pay approx 3000 per month 

half is personal tax on salary@ 30,000 

other half is accounting fee

yearly audit @ 15,000

no more tax as no profit this year

and i dont have any insurance  

Maybe he means social securtiy

Sent from my iPhone using ThaiVisa app

[AlfGarnett]

Yes I have to pay Insurance(social security ?) for the 3 Employees of my company every month, even though they never do anything !!!

My Salary is 50k per month, which I pay tax on monthly. That is the 5660baht per month I pay.

[PoorSucker]

That is the 5660baht per month I pay.

OK, shall we go through your taxes.

This is how your accountant calculate your taxes.

Taxable income per year 600.000

First 150.000 is tax free, left is 450.000 to pay taxes on.

Next 350.000 is taxed with 10%=35.000 in tax, left is 100.000 to pay taxes on.

Last 100.000 is taxed with 20%=20.000 in tax.

Total amount is 55.000 or 4583 / month.

--------------------------------------------------------------

This is the way I do it.

2.2 Deductions and Allowances

Certain deductions and allowances are allowed in the calculation of the taxable income. Taxpayer shall make deductions from assessable income before the allowances are granted. Therefore, taxable income is calculated by :

TAXABLE INCOME = Assessable Income - deductions - allowances

Lets say you have no wife or children or mortgage or......

600.000 - 60.000 - 30.000 = 510.000

Taxable income per year 510.000

First 150.000 is tax free, left is 450.000 to pay taxes on.

Next 350.000 is taxed with 10%=35.000 in tax, left is 10.000 to pay taxes on.

Last 10.000 is taxed with 20%=2.000 in tax.

Total amount is 37.000 or 3083 / month.

--------------------------------------------------------------

So, to your question.

Yes, you are paying to much.

You can give me the 2600 baht / month

Reference: http://www.rd.go.th/publish/6045.0.html

[brain150]

Personal Income Tax on a 50,000 THB salary per month is 29,000 THB per year or 2,416.67 THB per month !

The Government reduced the PIT for 2013 back in January !

[PoorSucker]

Personal Income Tax on a 50,000 THB salary per month is 29,000 THB per year or 2,416.67 THB per month !

The Government reduced the PIT for 2013 back in January !

That for next years taxation (march 2014).

Yes, it's for salaries earned in 2013.

[brain150]

Personal Income Tax [PIT]is calculated YEARLY but paid MONTHLY.

The Company deducts the PIT from the monthly salary payment and

submits the report [PND1] toghether with the tax-payment latest to the 7th of

the following month to the Revenue Department.

Might be interesting for some who pay every month [or year]

without knowing why or how much

Usually there are 2 monthly payments:
1. PIT

2. Social Security

Social Security:

Deducted from the salary on payment.

Usually 5% of the salary to a max of 15,000 THB salary [750.00 THB max payment from the employee]

The employer pays also 5%

Payment to social Security latest to the 28th each month.

For 2013 Social Security is reduced to 4% !!!
So, for MINIMUM wage of 9,000 THB per month it's 360.00 [4%employee]+360.00 [4%employer]=720.00 THB SoSe payment per month for the employer per month.

[For most this is what they pay for the thai staff they need for the extension of stay or "visa extension"]

Actually you need 4 thai staff for the visa extension so SoSe per month would be 2,880.00 THB

What ever your accountant charges is up to him.

It all depends if the money is well spent ... sometimes a bit more charge can save you quite a bit on what you pay in total.

Just thought this might be interesting to some here.

It is all much easier than most people think.

And, just by the way ... it's pretty straight forward.

End of accounting lesson for today

If I find the time I might write a short article on how the visa extension "really" works ... just for those who are interested.

Edited November 7, 2013 by brain150

[PoorSucker]

End of accounting lesson for today

New day tomorrow.

Tomorrow we will learn you how to form a 2 million company in Thailand with 25.000 baht in cash.

[AlfGarnett]

my monthly receipt reads

Salary Tax.........3500

Insurance...........2160

Insurance breaks down as 3 employees, with 9000b baht next to their names, then 360 baht in the next column, which totals 1080 baht. On the next page this gets doubled and becomes the 2160 baht.

3500 baht must be 7% of my salary, why 7 %?

Would be nice to know what the legal minimum figures are, as Accountants could easily be adding a few percent here and there and would hardly be noticeable.

[PoorSucker]

3500 baht must be 7% of my salary, why 7 %?

You did not read my post.

http://www.thaivisa.com/forum/topic/679346-accounting-costs-on-koh-samui/?p=7010993

[BigC]

my monthly receipt reads

Salary Tax.........3500

Insurance...........2160

Insurance breaks down as 3 employees, with 9000b baht next to their names, then 360 baht in the next column, which totals 1080 baht. On the next page this gets doubled and becomes the 2160 baht.

3500 baht must be 7% of my salary, why 7 %?

Would be nice to know what the legal minimum figures are, as Accountants could easily be adding a few percent here and there and would hardly be noticeable.

there should also be a service charge

mine is 2000 baht PM but it is important to have quality accounting in Thailand or your business could be in big trouble without you knowing,.

they need to be constantly informed of all new changes in the law and they should be able to explain all costs and reasons to the clients.

Some companies charge more fo more services. such as consultation and monthly phone calls to tell you what you need to prepaire each month.

Other companies just give you a bill and if you want it explained then the staff dont speak english which means waiting for the boss. Unless you are paying the boss consultion fees then you may have to hang around for a while.

If you have a thai partner or a secetary that can explain everything in English then this might save you time.

But if there is any mistake made such as a land and house tax bill that you have forgotten to pay a year ago. then it shall be your fault as they send the letter in the post and the tessabaan take a photo of your post box to prove it.

You need to take all letters that are delivered in Thai to a thai or your accountant these letters ae very important and could make the decission of a heavy fine. or an un vlaid visa, or even in some cases arrrest upon arrival into thailand due to the court sending multiple letters, the seizing the land and issuing an arrest warrant