inquisitive lobster Posted February 24, 2015 Share Posted February 24, 2015 Hi, How do you calculate the social for employees? Do you base the calculation off of their gross salary (base salary) or off of the net salary (includes food allowance, housing allowance, travel, etc.)? Also what is the difference in percentage between those making above 15,000 Baht and those making below? Any answers pertaining to the above, will be highly appreciated. Link to comment Share on other sites More sharing options...
maisodni Posted February 24, 2015 Share Posted February 24, 2015 The answer is: Social Fund tax applies only to the first 15,000 baht per month of taxable income. 5% of monthly salary - up to a maximum amount of 750 baht - is witheld from each employee's salary, and the company must contribute a matching amount. Cheers!MS 1 Link to comment Share on other sites More sharing options...
inquisitive lobster Posted February 24, 2015 Author Share Posted February 24, 2015 The answer is: Social Fund tax applies only to the first 15,000 baht per month of taxable income. 5% of monthly salary - up to a maximum amount of 750 baht - is witheld from each employee's salary, and the company must contribute a matching amount. Cheers! MS Thanks for your answer MS, but does Food Allowance,Travel Allowance and Housing Allowance classify as "taxable income"? Link to comment Share on other sites More sharing options...
maisodni Posted February 26, 2015 Share Posted February 26, 2015 The answer is pretty much based on whether the allowance is paid to employee, along with salary, at a fixed rate, without receipts. If so, it is generally charged as taxable to employee. But - if allowances are reimbursed to employee, in return for receipts - or if payments are made directly from employer to vendor, they are generaly not taxable to employee. If the receipts are not valid tax receipts, and the cost is not decalred as income by the employee, then the expenses are generally not allowed as deductible buisness expenses for the employer. Employer-supplied housing is a special case - the extimated value is supposed to be declared as income by the employee. Business travel expenses such as airfare, hotel, rental car. and similar - even if in employee's name - can be reimbursed by employer and be deductible expenses for the company (and not charged as income to traveler), so long as there is a justifiable reason for the travel. There are special rules for certain types of employer-furnished employee health insurance, where costs are deductible to the company, without being taxable to the employee. There are special circumstances - such as expenses incurred in reacting to an emergency, where Revenue Department may garnt leniency. Cheers!MS Link to comment Share on other sites More sharing options...
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