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Not paying tax - No Tax ID number

Discussion in 'Tax issues' started by morganpchai, 4 Oct 2012.

  1. morganpchai

    morganpchai Thread Starter New Member

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    I'm in my second year at this school. The employment document the school provided to the Labour Office states my salary at 15,000 Baht. It's not true but the school did it to avoid paying tax. I signed the document too. Having looked at the Tax office website it says that earning below 150,000 Baht is tax exempt but if I am earning exactly 150,000 Baht I ought to be paying tax? Bear in mind it is a ten month contract.

    I am worried that it will all catch up with me in a bad way. Real salary is 27,000 Baht btw. I don't know why the school is so keen to avoid the small amount of tax, but they are.
     
  2. dave123

    dave123 Smurf Diver

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    How did you manage to get your visa extended without a tax paid cert?

    we have to produce a cert from the tax office to prove we have paid.
     
  3. morganpchai

    morganpchai Thread Starter New Member

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    Oh, that makes sense. Perhaps it was in the pile of documents and I didn't notice it? If that's the case then the school might have taken care of it on my behalf... if that's even possible. I'll ask if they have my Tax Id and any documents on Monday.
     
  4. dave123

    dave123 Smurf Diver

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    yes as long as you signed the proxy form for them (i think that's what it's called) I guess they then helped you with your visa extension?
     
  5. MisterStretch

    MisterStretch Guru di guru-guru Ingeris

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    I'm wondering if, because his "salary" falls below the taxable rate, that a tax card isn't required. Not sure, but maybe.

    Personally, I think you are putting yourself in a very hard position, morgan. You are colluding to defraud the government.
     
  6. magnumforce

    magnumforce Active Member

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    Even if your 'salary' falls below the taxable rate, you should still get a certificate from the tax office stating zero tax liability.

    I don't understand why your school decided to declare your 'salary' as only 15,000THB. They aren't paying the tax. You are and you should have insisted on paying it. At 27,000THB, it wouldn't amount to much, especially over 10 months as opposed to 12. As MisterStretch said "you are colluding to defraud the government" and be sure, that if it's exposed, it won't be the school's ass on the line, it'll be yours. Be careful.
     
  7. morganpchai

    morganpchai Thread Starter New Member

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    I don't get it either, I didn't want to sign it --they insisted on it in order to for me to start working there.

    There's not too many schools that can afford an English teacher around here, so I felt pressured to take the job (and feel a bit stuck right now).
     
  8. luibkk

    luibkk Well-Known Member

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    Something smells fishy here. As said before, it isn't the school that pays the tax, it's you. It comes out of your salary. The school will normally deduct it and transfer the amount to the revenue office. The tax is calculated from your taxable income in the current fiscal year which is the calendar year. I assume you started working just a few months ago, so your taxable income is calculated from the day you started working until the end of the year, let's say 4 months, i.e. 4 months times 27,000 baht will result in a taxable income of 108,000 baht for 2012 which is below the tax limit of 150,000 baht. Take note that this limit is for your taxable income, not your real income as there are deductions possible. Normally you can earn up to 240,000 baht per year without paying any tax, even more if you're married and have kids. Next year will be the same story if your contract ends in March or April. You will have only 3 or 4 months with income for the whole year of 2013 unless you sign a new contract for the rest of the year. then it's a different story.

    So, in short, even if you work for ten months in one fiscal (calendar year) and your salary is 27,000 baht per month, it adds up to 270,000 baht. You have to pay income tax for the excessive 30,000 baht at a tax rate of 10%, that is 3,000 baht. It doesn't really hurt and you're on the right side of the law. If the school doesn't go for it, there's another way for you to get legal. If you are interested, pm me and I can tell you how to do it.
     
  9. slamb

    slamb Active Member

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    Our school deducts 500B 'tax' per month per teacher which was reimbursed to us at the end of April last year. People have tried in vain to get their tax number & even had their Thai wives call the school, only to have the phone slammed down on them. Apparently our school employs 'creative accountants' & it won't surprise you to hear that we're paid in a brown envelope; no paper trail except that our full salary is stated in the contract.

    As for what's in it for the school I have no idea. :confused:
     
  10. luibkk

    luibkk Well-Known Member

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    :chinrub: Maybe avoiding to register you with the SSO, just thinking.
     
  11. slamb

    slamb Active Member

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    No, private schools are exempt from the SS although they are partial to cancelling your BUPA during the floods & making false promises every week about it's reinstatement.
     
  12. hhiser

    hhiser New Member

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    I would think that even if you were not making enough to pay taxes, you should have a tax id anyway. It is a little slip of paper that looks like a receipt from a cashier.
     
  13. luibkk

    luibkk Well-Known Member

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    Actually, that's the tax receipt that you get after filing for tax return in March. I'm not sure whether you should have a tax ID too or not. I've got one a long time ago and hardly ever needed it.

    Tax ID receipt, no name.jpg

    Tax ID receipt, no name.jpg
     
    Last edited by a moderator: 26 Apr 2015
  14. Jocool140

    Jocool140 New Member

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    You need to go into the local tax office and state your name and where you work and then they will tell you your tax number

    - - - Updated - - -

    Whether you pay tax or not every foreign teacher should have a tax number -

     

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