Income Management

[JaseTheBass]

Hopefully someone can offer some advice on how best to manage my income so I am 'efficient' with regard to paying tax.

Currently, my salary is 50,000THB a month and I pay the standard rate of income tax with an alteration due to me having a private healthcare plan. That's fine and I see no need to change it.

My wife gets a salary of 62,000THB a month (from my earnings) and also pays the standard rate of income tax but also has hers altered due to our 2 kids. I set her salary at this amount as from what I could work out the tax level threshold is about 65,000THB a month, but I wanted to make sure she was under it.

My overall income fluctuates each month as it is based upon hours billed to our clients. The remaining amount gets paid to my sister-in-law (although, of course, she has no access to it) and pays witholding tax at 3% flat.

All our monies are checked by the Tax office and rebates are paid annually.

What I want to know is, is there a better way of doing this? I have tried to ask our company 'lawyer/accountant', but got the usual blank stares.

One small issue that has arisen recently, is that my sister-in-law is no longer entitled to her 'poor person rebate' on certain goods and services. It's not a major issue, but I feel a bit guilty that she has to pay the going rate for some things that before she would get cheaper.

Happy to take solicitations!

[chickenslegs]

The remaining amount gets paid to my sister-in-law (although, of course, she has no access to it) and pays witholding tax at 3% flat.

Sounds like you should move your finances offshore. I hear that Mossack Fonseca, Panama are the experts in tax avoidance.

[Crossy]

Apart from the Panama connection I agree with the above, are your clients in Thailand or overseas?

Like you, I and my wife draw local salaries (100k and 50k) with the balance paid out of our Hong Kong office to my Luxembourg bank. No tax on the offshore chunk as I'm non-resident in HK.

[JaseTheBass]

Currently, income is derived from the UK and is transferred over to the Thai company. From there I get paid.

There is talk of our company structure changing which means that I will have control of the income from the UK source, not from the Thai company as per now. Of course, that then makes life easier and I can park up the excess somewhere 'tax friendly' like Singapore.

But, until that happens (and there is always a chance that it will not), my income will continue to be paid from the Thai company.

Another thing to consider is that if Sterling tanks, then I'd actually be protected by the Baht and it would remain in my interests to be paid in Baht. I'm pretty sure my boss is aware of this which is why he wants to shift the exchange rate risk onto my shoulders.

Edited April 7, 2016 by JaseTheBass