Pay Tax on Income from Teaching

[ctbeemer]

Helloooo

So, we've been teaching in Thailand for a year through one of those unscrupulous agent. (Yeah seriously, I know agents are usually upfront, honest, and reliable). LOL

I just heart that we need to pay tax on our income of the past year. Shocker! I thought that would have been deducted from our salary every month.

Does anyone have some info on this? What percentage tax do we pay and which income brackets apply?

Thanks and tata.

[lostinisaan]

If they'd tax deducted of your monthly salary, then you'd also have received a document stating the amount that was deducted.

If you were completely legal and held a work permit, then you'll have to make your tax declaration. The dead line was March, 31st.

You'll pay a I think 500 baht fine for being so late.

Even when they deduct tax from your salary, you're the one who has to make the tax declaration. Just go to the tax department of the province, where you'd worked and explain your situation.

If the "company" didn't pay tax for you, they'll have huge problems. It's usually 4% of your salary, but it was changed this year that you'll even pay less than the year before.

I know of two people who wanted to fly back home, when Immigration checked and found out that they didn't pay their tax, they were sent back to the place where they'd worked to clear their tax first. Then you'll lose your ticket, if it's not extendable......

Good luck!-

Edited May 13, 2014 by lostinisaan

[zeichen]

Taxes very greatly on your salary. The good thing is that you don't pay any taxes on your first ?100k? (not sure the exact amount) So if you only worked a few months in 2013, then perhaps you are ok. The school should have deducted your taxes each month, but if not you might be screwed. If you had a work permit, and the proper visa, go see a tax lawyer. If you don't have those, then don't worry because you were hired illegally and there will be no records.

I do wonder why it took you 1 year to ask about this. This is something I ask the first paycheck. Also make sure from now on that you get pay stubs.

[lostinisaan]

Taxes very greatly on your salary. The good thing is that you don't pay any taxes on your first ?100k? (not sure the exact amount) So if you only worked a few months in 2013, then perhaps you are ok. The school should have deducted your taxes each month, but if not you might be screwed. If you had a work permit, and the proper visa, go see a tax lawyer. If you don't have those, then don't worry because you were hired illegally and there will be no records. I do wonder why it took you 1 year to ask about this. This is something I ask the first paycheck. Also make sure from now on that you get pay stubs.

So, we've been teaching in Thailand for a year through one of those unscrupulous agent

It seems that the agent screwed them. Did the salary come directly from the school, or from an agency/agent?

I worked for an agency and they deducted tax monthly, but sent me the slip how much they paid. I do not think that OP has to see a tax lawyer, much better to go to the tax department, once he's got the right information.

Take a Thai speaking person with you and find out if your name exists. If you were without work permit, there's a high possibility that you're not registered.

You usually receive your tax card after a few months working. Have you ever received one?

[Neeranam]

http://www.rd.go.th/publish/index_eng.html

Go to the office, it's only 100 baht fine for being late.

I did mine online and basically I pay no tax as I can claim allowances for my wife, kids, wife's parents, mortgage etc.

The agent will be ripping you off, find a real job.

[ctbeemer]

Thank you for the information everyone.

Yes, we're perfectly legal, Teaching License, Work Permit, Visa, and Social Security.

We get paid by our Agent, not our schools. But she's such a f@#%-up. We and our schools unanimously decided to ditch her ass and are signing contract directly with the schools. We cannot rely on her for anything and have to bed for her to pay our salary every month. She told us nothing about taxes and in all honesty we never thought of asking.

We never received or even hear of an tax card. I'll check out the link provided by Neeranam and have my boss start setting the wheels in motion for us to pay our tax.

Thanks again.

[SlyAnimal]

Your tax will be easy to sort out just take a Thai person with you down to the local tax office (For us it's in the Amphur building). The staff there are really helpful (Or in our town they are at least lol) and can help you to sort it out.

So long as you are trying to pay tax, they love you. It's just if they catch you out for not paying that you get into trouble (same as in western countries).

Also the amount you'll pay will be minimal anyway (If you're on 30-35k and worked 12 months, it'll probably be near 10k for the year, give or take a little)

Sent from my iPhone using Thaivisa Connect Thailand

[somchaismith]

I once worked for a well known langauge school. They deducted tax, but never submitted it to the tax office - thieving gits!

The only way out of it is to pay the tax owed, if any. out of your own pocket.

[culicine]

http://www.rd.go.th/publish/index_eng.html

Go to the office, it's only 100 baht fine for being late.

I did mine online and basically I pay no tax as I can claim allowances for my wife, kids, wife's parents, mortgage etc.

The agent will be ripping you off, find a real job.

You can still claim for mortgage? Is your name also on the loan? I could claim the year before (split between me and my wife), but the law changed t state only the person's name the loan is in can claim the tax reduction.

To the OP, you need to sort this out. If you have a visa/wp, then when you renew, you will need a copy of the tax receipt and also a copy of the tax form that has been filled in, when you next apply for the new visa/wp (not sure which one, as my school does this). No tax = no renewal.

[culicine]

Thank you for the information everyone.

Yes, we're perfectly legal, Teaching License, Work Permit, Visa, and Social Security.

We get paid by our Agent, not our schools. But she's such a f@#%-up. We and our schools unanimously decided to ditch her ass and are signing contract directly with the schools. We cannot rely on her for anything and have to bed for her to pay our salary every month. She told us nothing about taxes and in all honesty we never thought of asking.

We never received or even hear of an tax card. I'll check out the link provided by Neeranam and have my boss start setting the wheels in motion for us to pay our tax.

Thanks again.

Some agencies take quite a large cut of your salary. If this is the case, your salary should increase. As an example, I know a school that pays 50K to the agency - the teacher gets 35K. A nice little earner for the agency for doing very little.

[TerryLH]

"Some agencies take quite a large cut of your salary. If this is the case, your salary should increase. As an example, I know a school that pays 50K to the agency - the teacher gets 35K. A nice little earner for the agency for doing very little."

So, if the employees salary is 35K, how much of a cut out of that is the agency taking?

[lostinisaan]

"Some agencies take quite a large cut of your salary. If this is the case, your salary should increase. As an example, I know a school that pays 50K to the agency - the teacher gets 35K. A nice little earner for the agency for doing very little."

So, if the employees salary is 35K, how much of a cut out of that is the agency taking?

Schools that "use" agencies usually pay 55 K/month, per head. The agencies receive the money for 12 months, while the employees sometimes get only 10, or 11 months paid.

Do the math.

[ctbeemer]

Thanks again for all the info Everyone. I'm busy taking care of my tax now.

I always knew that my spouse and I earn little here where we are but as I read more of your replies I realize just how much other people are earning. When we arrived here last year and worked through our agent (terrible agent) I earned 20 000k while my school paid our agent 25 000k. My spouse also earned 20 000k while her school paid the same agent 35 000k. This has been more than enough for us as we live in the South where the cost of living is very cheap, we have a free 2 bedroom apartment on my school's premises, my school provides us both with 3 free cooked meals each day (even during holidays) though we don't make use of all those meals, my school's Muay Thai coach teaches me an hour of kick boxing one-on-one every day, and our agent gave us a scooter to use. All in all we're able to save more than 3/4 of our salary every month for going away on holidays.

Now that we ditched the agent and are in the process of signing contract with our schools directly. My school dropped my salary to 15 000k which I'm not too happy about but I guess it's fare since I only teach 12 hours a week and I'm free to come and go as I want in between and do private lessons elsewhere to supplement my income. My spouse's school now pays her 25 000k but she teaches 25 hours a week. So after ditching our agent our combined income is still 40 000k with all the benefits I mentioned above - less the agent's scooter which I'm sure she'll come fetch soon.

We're happy about our deal given all the benefits. Especially our air conditioned apartment as its clean and safe in a really nice surrounding and I love my classroom which they spent 750 000k Baht on audio and video equipment alone just as I arrived. Though, I wouldn't say no to similar benefits with a higher salary so we can save money to buy a house.

Your input will be welcome...

[lostinisaan]

Thanks again for all the info Everyone. I'm busy taking care of my tax now.

I always knew that my spouse and I earn little here where we are but as I read more of your replies I realize just how much other people are earning. When we arrived here last year and worked through our agent (terrible agent) I earned 20 000k while my school paid our agent 25 000k. My spouse also earned 20 000k while her school paid the same agent 35 000k. This has been more than enough for us as we live in the South where the cost of living is very cheap, we have a free 2 bedroom apartment on my school's premises, my school provides us both with 3 free cooked meals each day (even during holidays) though we don't make use of all those meals, my school's Muay Thai coach teaches me an hour of kick boxing one-on-one every day, and our agent gave us a scooter to use. All in all we're able to save more than 3/4 of our salary every month for going away on holidays.

Now that we ditched the agent and are in the process of signing contract with our schools directly. My school dropped my salary to 15 000k which I'm not too happy about but I guess it's fare since I only teach 12 hours a week and I'm free to come and go as I want in between and do private lessons elsewhere to supplement my income. My spouse's school now pays her 25 000k but she teaches 25 hours a week. So after ditching our agent our combined income is still 40 000k with all the benefits I mentioned above - less the agent's scooter which I'm sure she'll come fetch soon.

We're happy about our deal given all the benefits. Especially our air conditioned apartment as its clean and safe in a really nice surrounding and I love my classroom which they spent 750 000k Baht on audio and video equipment alone just as I arrived. Though, I wouldn't say no to similar benefits with a higher salary so we can save money to buy a house.

Your input will be welcome...

Why would they pay both of you less money, if they paid the "agent" before? I wouldn't say yes to 15 K. Good luck saving money for your house.

[ctbeemer]

Why would they pay both of you less money, if they paid the "agent" before? I wouldn't say yes to 15 K. Good luck saving money for your house.

I guess they want to save/pocket money.

Like I said, we're happy with with what we have for now. "Though, I won't say no to more money so that we could save for a house".

[culicine]

Why would they pay both of you less money, if they paid the "agent" before? I wouldn't say yes to 15 K. Good luck saving money for your house.

I guess they want to save/pocket money.

Like I said, we're happy with with what we have for now. "Though, I won't say no to more money so that we could save for a house".

15K is pretty low (should get at least 20-25K actually), but put into perspective with your benefits and all, it's not too bad. Your wife has income so that makes up for it a bit. I got 25K in Ratchaburi in 2000-01. Salaries haven't changed much in 15 years, but living costs have probably tripled in that time frame. There's no surprise western teachers are not coming here in their droves now.

You can double your salary if you pick up private classes. Unfortunately, many can be unreliable so it won't be consistent income.

On a side note: some agencies have in their contract that you can't work directly for the (same) school for 2 years after leaving the agency. Does your school have that? if so, maybe they have had to pay a penalty to the agent and that means you are getting a bit less now. The school is now saving 10K a month.

Edited May 17, 2014 by culicine

[ctbeemer]

No, I know nothing of such clause. We had a meeting with our agent (ex agent) just last night and she wished us well with our new contracts.

Private lessons is definitely a way to go in order to supplement my income. But I'm having difficulty finding them. I have 3 regular students but that's it. I want more. Any ideas where to look? I'm always so afraid of overstepping. I don't want to infringe on another teacher's 'territory'. Also, people around here don't have much money (it's just a bunch of villages) so the only way that it will be affordable to them AND beneficial to me is if I teach groups of minimum 3 students at a time.

[attrayant]

Doesn't the school need to show tax receipts before they can get my work permit extended? I thought I had read that here. My pay stub is no help; it only shows one number at the bottom: my net pay. Gross pay isn't shown so I have no idea how much is being withheld, if any.

[TerryLH]

" Schools that "use" agencies usually pay 55 K/month, per head. The agencies receive the money for 12 months, while the employees sometimes get only 10, or 11 months paid."

It doesn't matter what the school pays the agency. That's of no concern to the teacher.

A teacher agrees to work for a certain salary.

If the school pays the agency more than that it's for the service that the agency is supposed to be providing.

[somchaismith]

" Schools that "use" agencies usually pay 55 K/month, per head. The agencies receive the money for 12 months, while the employees sometimes get only 10, or 11 months paid."

It doesn't matter what the school pays the agency. That's of no concern to the teacher.

A teacher agrees to work for a certain salary.

If the school pays the agency more than that it's for the service that the agency is supposed to be providing.

I know the type to which you are referring.

They use the agent to set them up in Thailand. After they arrive here and get settled in, they start looking around and apply for better paying jobs. Next, to justify getting released from their current contract with the agency, they cry, 'scam'!

Pathetic, and thay're no better than the agency which fails to pay them their last month's salary.

Edited May 18, 2014 by somchaismith

[ctbeemer]

@ At somchaismith. If you are referring to us leaving our agent then - for a Senior Member - your assumption is offensively off target. I really don't care how much profit our ex-agent makes off our contracts. My only concern is getting the amount which we agreed to as per our contract.

Unfortunately, with the exception of 2 months, we've had to beg and fight for our salary to be paid at the end of every month. One month such begging lasted to the 18th of the next month (17 days after our pay day as per contract). When writing our TOEIC she sent us on an 11 hour bus ride to Bangkok to the testing center where she said she booked our seats at the university. When we got there we were told that she never booked our seats. We had to pay for the whole 3-day trip ourselves and lost 3 day's income due to her lying. And she lies constantly about things being done. We've needed her so many times - from a bad motorcycle accident on the highway to my school needing documents to file for our work permit (something she was supposed to do anyway) but neither us nor my school can get a hold of her. She's forged documents and signatures which I'm afraid might get us into trouble. I've accepted a 25% salary reduction on my new contract directly with my school rather than sign with her again - that should tell you just how unhappy we are with her lack of service. Out of the 17 foreigners who started working for her along with us, none of us have signed with her again.

*Defamatory remark edited out*

Edited May 19, 2014 by Scott