Personal income tax question

[Jinjo14]

Just checking if I did my research correctly.

In order to apply for an extension of stay based on working you have to declare you are earning 50000฿ (European) if based on marriage 40000฿ monthly.

40000฿ x 12 = 480000฿ yearly so tax exempt (under 500000฿)

Am I correct?

Also if you state 50000฿ on your work permit do you get taxed on that or on the actual payslip you get. Ie if you earn less or more money you would be calculate tax accordingly?

Many thanks for your input

[Gulfsailor]

Exempt threshold is 150,000 per annum. 150k-300k is 5%, 300k-500k is 10%. You do get some deductibles though.

For an extension of stay immigration does not look at the actual salary that is paid out, but that the accounting shows 50,000 (for non married western) being the monthly salary to the foreigner plus minimum 4 x 9000 for Thai employees. What they will check if tax and social security is paid on these amounts. Monthly cost for tax and SS would be around 5,000 baht per month to follow minimum requirements.

[Thanet]

It's all here:

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

[Jinjo14]

Cheers for that link very useful. So if I earns say 40000 monthly - 480000 yearly

480000 -

60000 (deduction) -

60000 (allowance me and spouse) -

60000 (both parents of spouse over 60)

= 300000฿ taxable income

First 150000 exempt 2nd 150000 @ 5%= 7500฿ yearly or 650฿ monthly.

Sorry was always shit at maths

[wayned]

Three things:

1. To claim your wife's mother and father there is a form that must be filled in and signed by them. They can only be claimed by one child. IE. your wife's brother can not claim them also.

2. If you are contributing to Social Security each month, your contribution is also deductible.

3. If you have children in school you can deduct an additional 15k for each one.

You are taxed on the salary that you are paid for the calendar year and should receive a statement from your employer sometime in January.

Edited September 15, 2014 by wayned

[Jinjo14]

Many thanks for your reply!

[TerryLH]

"To claim your wife's mother and father there is a form that must be filled in and signed by them."

Is that something new?

It's been a couple of years, but I just had to put their name and ID number on the regular form.

[wayned]

Parent Support Form.tif

I haven't done it in years either. Here's a copy of the form that I had to fill out and have signed. I think it's a "I'm still alive" form. Although we had an agreement, one year my wife's brother claimed them also and created an incredible mess with the Revenue Department.

The form might not be required anymore or it might depend on the office that you use.

[Yme]

You are also entitled to a general deduction of Bt30,000 on your personal income tax

[mahjongguy]

In the OP's second post, where he provided the math, he included the general deduction using the term "allowance".

For the basic situation of an unmarried person with no dependents, the first baht of tax owed begins at 240,000 baht. 150,000 + 60,000 + 30,000

[Jinjo14]

Yes as per link provided above

60000 deduction

30000 personal taxpayer's allowance

Who provided the form for the parents much appreciated.

Cheers to all

[TerryLH]

"The form might not be required anymore or it might depend on the office that you use."

Thanks

Terry

[Yme]

In the OP's second post, where he provided the math, he included the general deduction using the term "allowance".

For the basic situation of an unmarried person with no dependents, the first baht of tax owed begins at 240,000 baht. 150,000 + 60,000 + 30,000

That was correct-- until a couple of nights ago when the NLA passed the tax rate for 2014.

Last year the first Bt150,000 of income was tax free. The tax rate for 2014 only grants exemption on the first Bt100,000 of income according to Thai media reports.

In The Nation's report it totally ignored the tax free threshold making it look like it had been removed entirely, and as per usual for that publication got the headline wrong as well: Income tax to drop

So rather than people earning Bt20,000/ year being the entry point for paying personal income tax it has now dropped to those earning Bt 15,833 per month ( Bt100,000 + Bt90,000 in deductions) - if single and without deductions for children, parents or paying insurance, etc.

The new tax rates, if they are being reported accurately by the Thai media will considerably broaden the tax base and generate a huge amount of additional revenue for the government.

[Spoonman]

In the OP's second post, where he provided the math, he included the general deduction using the term "allowance".

For the basic situation of an unmarried person with no dependents, the first baht of tax owed begins at 240,000 baht. 150,000 + 60,000 + 30,000

That was correct-- until a couple of nights ago when the NLA passed the tax rate for 2014.

Last year the first Bt150,000 of income was tax free. The tax rate for 2014 only grants exemption on the first Bt100,000 of income according to Thai media reports.

In The Nation's report it totally ignored the tax free threshold making it look like it had been removed entirely, and as per usual for that publication got the headline wrong as well: Income tax to drop

So rather than people earning Bt20,000/ year being the entry point for paying personal income tax it has now dropped to those earning Bt 15,833 per month ( Bt100,000 + Bt90,000 in deductions) - if single and without deductions for children, parents or paying insurance, etc.

The new tax rates, if they are being reported accurately by the Thai media will considerably broaden the tax base and generate a huge amount of additional revenue for the government.

The new rates will be put into effect once the date is announced in the Royal Gazette.

[Jinjo14]

Hi when applying for the extension next year, I will show proof of income from this salary.

My question is - does the amount earned stated on the work permit have to match the payslips exactly? Or do I just present the payslips and the tax amount paid?

Don't know if that makes sense