Thai Tax - When do you get taxed at what rate?

[positiveaction]

Hi,

 

I have worked and lived here a few years, but was not here last year and have forgotten how the following works.

 

Let's say you earned 300,000 in the month of January 2017 for a Thai employer amd was paid this with income tax deducted at source.  Would you be taxed as if you earned 3,600,000 thb for the year or would you get taxed in this month on 0-150,000 0 % and then 150-300,000 @ 5% and then the next month move into the higher bracket (assuming you again earned income from employer) OR do you get hit at 30% as if they are assuming you will earn 12 x 300,000 for the year and have to reclaim if you didn't.  The tax will be deducted by my employer and I just want to budget in advance.

 

Thanks.

[Savilesghost]

Its a sliding scale, same as other countries and varying amounts of tax apply dependent on which bracket you fall, so your progress example is correct 

[chiang mai]

If you have income tax deducted at source it must mean you are an employee hence the sliding scale will apply to the first 300k and subsequent earnings from the same employer will be banded accordingly - a tax return filing in January will resolve any discrepancies.

[KamnanT]

My experience has always been that your employer will extrapolate your monthly earnings to an annual amount and base your tax withholding on that amount.  So, your 300,000 baht monthly gross salary would have tax withheld based on total annual earnings of 3,600,000.  In practice, they use printed tables from the tax department to determine the withholding for each level of monthly earnings and these tables are calculated as described.  If your employer is on-the-ball, the will ask you about your deductions (personal, spouse, kids, LTF, RMF, etc.) around late-November and will adjust your December withholding to leave you with nothing to pay and no refund to receive.  I've had only one on-the-ball employer in 16 years.

[natway09]

Your tax liability is based over 12 months, in Thailand 1 January to 31  December.

You have until about mid April to settle last years tax return.

If your only income is in Thailand sliding scale of tax payable applies.

If you have income generated outside Thailand (tax unpaid) suggest go see an accountant

[Arkady]

Employers are obliged to deduct tax on the assumption that the same salary will be earned for the rest of the calendar year.  If you stop working during the year, or take a lower paid job, you will have to claim back the difference via your tax return by 31 March the following year. 

[positiveaction]

Hmm thanks for the replies, but not sure what the outcome will be as a the way i have read them, some are saying it will be as you progress through the year (ie first few months you would pay less tax as you went through the lower tax rate bandings) and others are saying they will assume you will earn the same for every future month (as I think it is in the UK)??

 

Edited December 23, 2016 by positiveaction