Did I pay too much Income Tax over 2012?

[arminbkk]

Following a news article about the tax rates being lowered for fiscal year 2013, I decided to go ahead and calculate my probable tax liability for 2013 (I know the year is not over yet, but I had no work to do so to kill time….).

I also posted in this current thread: http://www.thaivisa.com/forum/topic/682769-individual-income-tax-structure-changed-thailand/

Following a bit of research I then checked my tax declaration over 2012 and now think the income tax was calculated wrong and I paid too much. The mistake made was: the tax rate of 10% (2012) was applied to the entire amount of taxable income, without accounting for exemption of first THB 150,000.

It was calculated like this (not my actual figures but close):

Taxable income (after all deductions and allowances): Baht 250,000.00

Payable tax: 10% x Baht 250,000.00 = Baht 25,000.

(Taxable income between income bracket 150,000 and 500,000 was 10% for year 2012)

Withheld tax = Baht 12,000 (does not include Social Security Fund)

Total tax: Baht 25,000 minus Baht 12,000 (withheld) = Baht 13,000 to be paid.

How it should have been calculated:

Payable tax: 10% x Baht 100,000 (i.e. Baht 250,000 – Baht 150,000 exemption) = Baht 10,000

Total tax: Baht 10,000 – Baht 12,000 (i.e. withheld tax) = Baht 2,000 to be refunded.

So I paid Baht 13,000 when I should have been refunded Baht 2,000 therefore my refund should be Baht 15,000.

Can anyone confirm the above is correct?

And if yes, how do I go about getting the Baht 15,000 refunded to me still?

[isawasnake]

The way it was calculated was wrong, assuming you reported it correctly. The first 150k is supposed to be tax free.

All the advice I can give is for people to go do their tax themselves. Did you do it yourself, workplace did it, or tax office. Think about it, the tax office is probably not going to screw you, but who knows what an unsavory employer may be doing. I take my slips in, file myself, and the people are always very nice at the tax office. I would go to that office if I were you with all the paperwork.... I think each area has an office, and you will have to find where it is. Some of your coworkers should know.

[arminbkk]

Thanks isawasnake.

I came to the same conclusion and will go to a RD office to seek a refund.

I've asked some Thai people and one of them called the RD call center and was told it was possible to apply for a refund.

I'll just bring with me copies of the submitted tax form with attachments, tax payment receipt and a calculation summary.

Will post later how it works out.

[isawasnake]

Yeah, just go in there calm, and I bet it will work out good if you are in the right.

[Time Traveller]

All the advice I can give is for people to go do their tax themselves.

Excellent advice. And this is about the most simple kind of tax return you could get. It's impossible the tax people at the Revenue Dept or a private account would get that wrong. I'm guessing it's some clueless HR department employee that did that.