Enzian Posted August 16, 2017 Share Posted August 16, 2017 Must relatively lower income Thai citizens pay a federal income tax on their earnings? Or: as a practical matter, do owners of small shops, cafes, and the like actually pay annual income taxes to the central government, or do they consider themselves exempt and not file? I've read that Thais must pay 5% on income over 150,000 baht a year, but do any of them that make just somewhat over that amount ever really do it? Link to comment Share on other sites More sharing options...
bkksteve123 Posted August 16, 2017 Share Posted August 16, 2017 Tax rates of the Personal Income Tax Taxable Income (baht) Tax Rate (%) 0-150,000 Exempt more than 150,000 but less than 300,000 5 more than 300,000 but less than 500,000 10 more than 500,000 but less than 750,000 15 more than 750,000 but less than 1,000,000 20 more than 1,000,000 but less than 2,000,000 25 more than 2,000,000 but less than 4,000,000 30 Over 4,000,000 35 Link to comment Share on other sites More sharing options...
PoorSucker Posted August 16, 2017 Share Posted August 16, 2017 SME that have less than 1 million baht in yearly revenue are tax exempt. So two books, one with real accounting and one if tax authorities comes by. Link to comment Share on other sites More sharing options...
PoorSucker Posted August 16, 2017 Share Posted August 16, 2017 The 150,000 baht a year has lots of deductions you can make. example: 30,000 baht for the taxpayer. 30,000 baht for the taxpayer’s spouse . 15,000 baht each child (limited to three children) 30,000 baht for each of taxpayer’s and spouse’s parents if such parent is above 60 years old and earns less than 30,000 baht Link to comment Share on other sites More sharing options...
Craig krup Posted August 16, 2017 Share Posted August 16, 2017 A tangent, but from an economics point of view income taxes are mad - you want to encourage people to work and produce output. That's why lots of economists favor a land value tax. Successful economies (like Singapore) don't tax things they want to encourage. Link to comment Share on other sites More sharing options...
tonray Posted August 16, 2017 Share Posted August 16, 2017 Income tax compliance is likely low for small sole proprietor type businesses, but that in large part is why Thailand has a VAT tax which ensures that consumption will bring in revenues needed to operate. Link to comment Share on other sites More sharing options...
jeab1980 Posted August 17, 2017 Share Posted August 17, 2017 Its called creative book work lol. As @PoorSucker says lots and lots of deductions to filter money away legally away from Tax man. Link to comment Share on other sites More sharing options...
FritsSikkink Posted August 17, 2017 Share Posted August 17, 2017 17 hours ago, Craig krup said: A tangent, but from an economics point of view income taxes are mad - you want to encourage people to work and produce output. That's why lots of economists favor a land value tax. Successful economies (like Singapore) don't tax things they want to encourage. Singapore income tax: https://www.iras.gov.sg/irashome/Individuals/Locals/Working-Out-Your-Taxes/Income-Tax-Rates/ Link to comment Share on other sites More sharing options...
bberrythailand Posted August 17, 2017 Share Posted August 17, 2017 Who is stupid enough to pay tax when it's so easy to evade ? Link to comment Share on other sites More sharing options...
Ace of Pop Posted August 17, 2017 Share Posted August 17, 2017 Who is stupid enough to pay tax when it's so easy to evade ? Claim VAT back, we all pay tax.!.Sent from my iPhone using Thailand Forum - Thaivisa mobile app Link to comment Share on other sites More sharing options...
Craig krup Posted August 17, 2017 Share Posted August 17, 2017 7 hours ago, FritsSikkink said: Singapore income tax: https://www.iras.gov.sg/irashome/Individuals/Locals/Working-Out-Your-Taxes/Income-Tax-Rates/ Exactly. Incredibly low, and very, very low for higher earners compared to other countries. Land value taxes - of various designs - mean that you attract people who can produce a lot in a small space and don't impose much cost on the state. http://www.rtpi.org.uk/briefing-room/rtpi-blog/lessons-from-singapore-about-land-value-capture/ Link to comment Share on other sites More sharing options...
blackcab Posted August 17, 2017 Share Posted August 17, 2017 10 hours ago, bberrythailand said: Who is stupid enough to pay tax when it's so easy to evade ? Everyone who has a work permit and wants a 1 year extension of stay. Link to comment Share on other sites More sharing options...
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