Tutoring schools ordered to pay tax

[webfact]

TAXATION
Tutoring schools ordered to pay tax

BANGKOK: -- The Cabinet on Tuesday agreed to tax tutoring schools which is considered profit making operations.

Education Minister Narong Pipatanasai revealed after the Cabinet meeting that therefore their income should be taxed.

An agency will be given the task of regulating and approving tutoring fees to prevent tutoring schools from raising their rates in response to the new tax.

Regarding universities requesting self-administration independent of the state, the Education Minister said the decision depends on the willingness of each university.

Source: http://www.nationmultimedia.com/national/Tutoring-schools-ordered-to-pay-tax-30255714.html

-- The Nation 2015-03-10

[greenchair]

These tutor centers are absolutely vital for the education of failing students that the schools keep churning out. Most of them are making a few thousand bahts a month. Compared to the billions that the private schools are making.

The private schools are money making machines with not a care about these kids education. Goodness help Thailand if these tutor centers are forced to close because of the extra burden of taxes.

Once again squeezing more out of the poor ,while the wealthy avoid another tax collector.

Shameful.

Edited March 10, 2015 by greenchair

[Paulc01]

Whatever happened to Mac Walen, btw. Haven't seen him or mention of his school on this board in a long time.

[Artisi]

Whatever happened to Mac Walen, btw. Haven't seen him or mention of his school on this board in a long time.

Don't see any knock-on effect with it's absence.

[falkan]

Whatever happened to Mac Walen, btw. Haven't seen him or mention of his school on this board in a long time.

His price went up double after the new visa rules kicked in..ED visa market is d.e.a.d...

[webfact]

FEE HIKE?
Tax axe to fall on tutorial schools
Chularat Saengpassa,
Kawin Praneetlekha
The Nation



When tax exemption ends, 'cram' school bosses say they will raise course fees

BANGKOK: -- THE MULTIBILLION-BAHT business of cram schools will no longer enjoy tax exemptions once new regulations go into effect.

The Cabinet gave a green light yesterday to the plan to impose tax on all tutorial schools.

Currently, 2,379 cram schools are registered with the Education Ministry and together, they deal with some 200,000 students. So far, none of these schools have ever paid taxes thanks to a privilege granted to them under the Private Education Act.

Under that law, these schools are recognised as operating for the sake of education, which benefits children, provided they do not register themselves under the name of a company. It is very likely that thanks to this, some 90 per cent of Thailand's cram schools register their operations as being run by individuals, not companies.

"Now, the Cabinet has decided to tax all cram schools, because clearly they provide tutorial services for commercial purposes. They are seeking profits," Education Minister Narong Pipatanasai said yesterday.

'Fee hike cannot be arbitrary'

He added that students should not be affected by the Cabinet's decision given that cram schools could not arbitrarily increase their fees.

"We have an agency to govern their fees and profits," Narong said.

Dr Bundit Sriputtangul, secretary-general of the Office of the Private Education Commission (OPEC), said cram schools' profits could not go beyond an amount equivalent to 20 per cent of their expenses. In addition, all such schools are required to display their course/class fees clearly at their facilities.

Most of cram schools help students prepare for highly competitive entrance examinations to well-known schools and universities.

The cram-school business in Thailand is worth nearly Bt10 billion a year. Each student using the tutorial services in Bangkok pays an average of about Bt5,700 per year on average, while elsewhere in the country the service costs about Bt3,900 a year.

According to Bundit, private institutes offering language courses and music classes will continue to enjoy tax exemption because their services are supplementary to the Education Ministry's curriculum.

Late last month, the Revenue Department also made it clear that private schools at both primary and secondary levels that offer tutorial classes would get tax exemptions.

Anusorn Siwakul, president of the Tutorial Schools Executives and Teachers Association, described the new regulation as unfair.

"How can you exempt language institutes that charge expensive fees from tax, but slap the tax on general tutorial schools?" he said.

Anusorn owns Wannasorn School, widely known as Pure Chem Centre (Chem Ou). His school has 29 branches and generates profits of up to Bt60 million a year. He said parents would be affected because his cram school will increase its fees because of the proposed tax.

Werachai Lertluckprecha, the owner of Excellent Centre in Bangkok's Bang Na area, said he would definitely have to raise the course fees. At present, his school offers courses on 20 subjects at the rate of Bt2,400 per course.

"The fees have to be raised because we will have a higher cost. We will have to pay taxes and have additional expense of arranging accounting work like auditing," he said.

Prime Minister General Prayut Chan-o-cha said cram schools should not pass on their tax duty to parents. "You have earned income and profits. You should start paying taxes," he said. The Revenue Department has estimated that cram schools will generate about Bt2 billion in tax revenue for the country each year.

Source: http://www.nationmultimedia.com/national/Tax-axe-to-fall-on-tutorial-schools-30255747.html


-- The Nation 2015-03-11

[samjaidee]

Wouldn't it be a novel idea in Government schools taught properly in the first place.

[NickJ]

A business will only need to pay taxes on profit. Thats why so many company cars and properties. Plus cooked books........not hard to hide money here, from both sides.

[andrewrooney]

Wouldn't it be a novel idea in Government schools taught properly in the first place.

Fantastic idea!

Not going to happen, of course, but fantastic idea!

[bigwhitewarrior]

Whatever happened to Mac Walen, btw. Haven't seen him or mention of his school on this board in a long time.

His price went up double after the new visa rules kicked in..ED visa market is d.e.a.d...

I don't think so . There has been a special offer if you buy 400 hours. Why not check out the website first before making false statement ?

[Benmart]

Whatever happened to Mac Walen, btw. Haven't seen him or mention of his school on this board in a long time.

His price went up double after the new visa rules kicked in..ED visa market is d.e.a.d...

I don't think so . There has been a special offer if you buy 400 hours. Why not check out the website first before making false statement ?

I found the first, two sentences to be of interest. The third, not so much as it didn't add anything of informational value.

[casualbiker]

These tutor centers are absolutely vital for the education of failing students that the schools keep churning out. Most of them are making a few thousand bahts a month. Compared to the billions that the private schools are making.

The private schools are money making machines with not a care about these kids education. Goodness help Thailand if these tutor centers are forced to close because of the extra burden of taxes.

Once again squeezing more out of the poor ,while the wealthy avoid another tax collector.

Shameful.

Who teaches at these tutorial centres? Usually the self same teachers from the government and private schools. If you honestly think that tutorial schools are making only " few thousand bahts a month" you're seriously deluded.

[mango66]

tax or VAT ??

tax you pay only on profit !

So why they fear when they say they dont have any profit ??

[Loaded]

Whatever happened to Mac Walen, btw. Haven't seen him or mention of his school on this board in a long time.

His price went up double after the new visa rules kicked in..ED visa market is d.e.a.d...

I don't think so . There has been a special offer if you buy 400 hours. Why not check out the website first before making false statement ?

Also, taxing tutorial schools will not affect him. He owns a language school. Both are non-formal schools but have different licensing requirements.

I love the way these types of threads normally shrivel into 'Thai business people are all rich and greedy'. Sweeping generalizations can also be made about middle-aged white teachers.

[bangon04]

tax or VAT ??

tax you pay only on profit !

So why they fear when they say they dont have any profit ??

" said cram schools' profits could not go beyond an amount equivalent to 20 per cent of their expenses"

Market Forces at their finest....

still as long as they make sure they do not make any "profits"

[LuckyLew]

These tutor centers are absolutely vital for the education of failing students that the schools keep churning out. Most of them are making a few thousand bahts a month. Compared to the billions that the private schools are making.

The private schools are money making machines with not a care about these kids education. Goodness help Thailand if these tutor centers are forced to close because of the extra burden of taxes.

Once again squeezing more out of the poor ,while the wealthy avoid another tax collector.

Shameful.

Are the private schools paying taxes? serious question

[Squeegee]

This isn't news.

If your name's not Dan you're not coming in.

Edited March 12, 2015 by Squeegee

[casualbiker]

These tutor centers are absolutely vital for the education of failing students that the schools keep churning out. Most of them are making a few thousand bahts a month. Compared to the billions that the private schools are making.

The private schools are money making machines with not a care about these kids education. Goodness help Thailand if these tutor centers are forced to close because of the extra burden of taxes.

Once again squeezing more out of the poor ,while the wealthy avoid another tax collector.

Shameful.

Are the private schools paying taxes? serious question

The staff are, presuming they are paid above the threshold. The schools, not sure!