Problems With Employer

[capitalinvestment]

I've barely just started and he's already started deducting tax from my monthly salary. I thought only after three months would an employer start deducting tax off the employee's salary. Can anyone enlighten me?

[dr_Pat_Pong]

When were you expecting him to deduct it ?

[Sunbelt Asia]

I take it you are making more than 80,000 Baht a year? :-)

Tax rates of the Personal Income Tax

Taxable Income Tax Rate (%)

0 - 80,000 ... Exempt

80,001 - 100,000 ... 5%

100,001 - 500,000 ...10%

500,001 - 1,000,000 ... 20%

1,000,001 - 4,000,000 ...30%

4,000,001 and over........ 37 %

[Bobcat]

Provided you earn more than 80,000 Baht per year, your employer shouls start deducting tax fro your first pay cheque. Nothing unusual or inappropriate about that at all.

[opalhort]

Don't forget the 5% social security payment an employee has to make once registered.

opalhort

[Axel]

When were you expecting him to deduct it ?

Hopefully never.

But then I do not understand the question.

Once you get a salary, your tax must be deducted.

I think I know, it is the same around the world.

Sorry mite.

[Crash999]

I've barely just started and he's already started deducting tax from my monthly salary. I thought only after three months would an employer start deducting tax off the employee's salary. Can anyone enlighten me?

The only thing that changes after 3 months is that you stop being on probation- meaning you are given one month severence should you be let go. You should be paying taxes from your first paycheck.

Cheers!

[dr_Pat_Pong]

I've barely just started and he's already started deducting tax from my monthly salary. I thought only after three months would an employer start deducting tax off the employee's salary. Can anyone enlighten me?

The only thing that changes after 3 months is that you stop being on probation- meaning you are given one month severence should you be let go. You should be paying taxes from your first paycheck.

Cheers!

Death and taxes remain the only certainties

[Zen]

Taxable Income Tax Rate (%)

0 - 80,000 ... Exempt

80,001 - 100,000 ... 5%

100,001 - 500,000 ...10%

500,001 - 1,000,000 ... 20%

1,000,001 - 4,000,000 ...30%

4,000,001 and over........ 37 %

A Thai friend who gets 10,000baht per month in salary didn't get any withholding tax deducted from her salary...Why is that so? At what income level does one's salary have to be deducted for withholding tax? At the end of the year does she have to pay a 10% tax based on the above rate?

If a person's salary has been deducted for withholding tax, then at the end of the year he/she just need to pay the difference (if any), right?

[lanny]

Taxable Income Tax Rate (%)

0 - 80,000 ... Exempt

80,001 - 100,000 ... 5%

100,001 - 500,000 ...10%

500,001 - 1,000,000 ... 20%

1,000,001 - 4,000,000 ...30%

4,000,001 and over........ 37 %

A Thai friend who gets 10,000baht per month in salary didn't get any withholding tax deducted from her salary...Why is that so? At what income level does one's salary have to be deducted for withholding tax? At the end of the year does she have to pay a 10% tax based on the above rate?

If a person's salary has been deducted for withholding tax, then at the end of the year he/she just need to pay the difference (if any), right?

These rates apply to TAXABLE income, not GROSS. As I understand, an individual gets 30,000 Baht personal allowance, 30,000 expense deduction and maybe some others. But, in any case, there is no income tax withholding until gross income is expected to be at least 140,000 Baht per year.

Thai withholding taxes are not taken from a table or a formula, like in the US. The person preparing the payroll is supposed to annualize the income, calculate the annual tax, and prorate that over the year. Theoretically, if this is done correctly, when the yearly personal tax return is filed, the employee will neither owe anything or be entitled to a refund.

Under this system, if an employer did not withhold for the first three months, the entire, cumulative amount would have to be withheld from the salary for the fourth month!