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The process for starting to pay tax?

Discussion in 'Tax issues' started by Mr Pete, 23 Oct 2012.

  1. Mr Pete

    Mr Pete Thread Starter Active Member

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    Hi everyone,

    I was wondering if anyone could advise me on the process I need to go down in order to start paying tax.

    I began working in August, but only obtained my WP last week, so have been unable to pay tax.

    Now I have my WP, what do I need to do next regarding tax. From what I have gathered, I can't imagine my school getting anything sorted for a long time, so I want to get it sorted myself.

    One teacher who I spoke to said that the first thing I would need to do is to go down to the Tax Office and get myself a Tax number. Then I would need to go to the department at my school that deals with wages (until now I have been getting paid in cash). He said to inform them that I would now like my wages to be paid into my bank account, give them my bank details along with my Tax number. Is this correct?

    If this is correct? what would usually happen next? I guess I would need to keep all of my wage slips that show deductions for Tax, what other forms, documents would I need to get from the school for when it comes to the end of the tax year?

    Thanks in advance for any help.

    Cheers
     
  2. Wangsuda

    Wangsuda Nonentity Staff Member

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  3. THX 1133

    THX 1133 Active Member

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    Just wait until the tax due date; fill out the tax form (from the local tax office) which should guide you to the tax owed column and pay the tax.
    You will then be issued a tax number. The tax is about 10% with generous personal deductions and nets under ฿10,000/year in most cases.
     
  4. luibkk

    luibkk Well-Known Member

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    Yep, just go to your local revenue office in March and declare your income of this calendar year. If you haven't worked before August and don't make more than 48,000 THB a month, you'll have to pay zero tax.

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  5. Mr Pete

    Mr Pete Thread Starter Active Member

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    Ok, that's great. Thanks for the replies.

    How would I actually prove what my income is? At the moment I have been getting paid in cash in an envelope, with no tax deducted.. Just a plain white envelope. The only thing I have with my salary is my contract. When I go back to school next week I will ask to start getting paid into my bank account.

    Cheers.
     
  6. ramses

    ramses Well-Known Member

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    Are you paid according to the terms of your contract? more? less? Have you been paid since getting a WP? Generally speaking, most folks do not pay tax on income earned prior to obtaining a work permit - as it is technically not legal to work without one. Have you gotten your visa extended yet? Do you have a tax ID card yet? If not, will you have one soon? I think these are all things you should be talking to your school about. If you like working there, you may inadvertently get in the school trouble. If the school will be deducting tax, and will be providing you with a tax ID card, then I would let them handle the tax owed to date. If you get paid the same amount every month, your tax will not be hard to calculate.

    The school may well file the taxes for you (and might start deducting tax and paying your salary into your account), or they may require you to file yourself, but if they do, they are obligated to provide you with the necessary paperwork to get it done. I have worked here 7 years, and the school has always filed for me. However, I do know those that file their own tax. If you have to file your own tax, you may do so online, and if you file early and are due a refund you will get it back quicker than if you file at the deadline.
     
  7. THX 1133

    THX 1133 Active Member

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    That's not technically correct; one is legal as long as the process is intended/started. One with a tourist visa is hired, signs a contract and then goes for the non-im B. This starts the "process" and continues through the application for a work permit. If one is working and no application for a work permit or a non-im B is in process; then one is illegal.

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    This however will probably apply.
     
  8. luibkk

    luibkk Well-Known Member

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    Getting paid by bank transfer or in cash doesn't matter at all, afaik. I get paid in cash for example and didn't have a problem getting my tax return. Your school needs to provide a form sheet with the totals of your salary and tax paid for that year. They usually do it for Thai teachers so it shouldn't be a problem.

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    Last edited: 24 Oct 2012
  9. ramses

    ramses Well-Known Member

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    Is this why it is stated on your TR-60 (tourist visa) that employment is prohibited?:confused:
     
  10. Mr Pete

    Mr Pete Thread Starter Active Member

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    Thanks for you reply mate.

    In answer to your questions. Yes, I have been getting paid in accordance with my contract. No more and no less. No have not been paid since I got my work permit. I got my WP last week, and am due to get paid again next week. Do not have a tax I.D yet. I was asking in my first post if that is what I should do next. I do not have my Visa extended yet, it expires 19th November.

    I do like working at my school. The reason I am keen to get it sorted out myself though, is that I have heard from a couple of teachers who have said "don't need to pay tax in your first year"..which I believe is wrong. Not sure what the schools attitude on this is. Just wondering, how would the school get into trouble?

    Thanks for your help with this mate.. It's a pain, when all i want to do is pay taxes, even that is a drama hahha
     
  11. ramses

    ramses Well-Known Member

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    I would think that with having a work permit, you will be getting a tax I.d. While it is true here in the LOS that the right hand knoweth not what the left hand does, it seems to me if a school gets yu a WP, they will start deducting taxes at that point. If you get your salary at the end of this month and no tax is taken out, I would ask someone at the school as to why. If they tell you that your tax liability for the year will be zero, then nothing to worry about.

    I think you are in good shape, and do not need to go to the revenue department. If you like the school, and they will - as I suspect - not report your income prior to obtaining a WP for you, then you go to the revenue dept, it may raise concerns at the revenue department that your school is not properly reporting teachers wages. However, I think the likely scenario would be the revenue department will tell you not to worry about wages earned prior to getting the WP.

    Of greater concern would be the school withholding tax prior you being issued a work permit and pocketing the money. This is not the case here, and I don't see cause for alarm yet. However, I do agree that teachers saying not to worry about tax the first year is a bit worrisome. See what happens when you get paid next week.
     
  12. Mr Pete

    Mr Pete Thread Starter Active Member

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    That's great Ramses. Thank you for this. It's a great help. I can not imagine tax being deducted from my wage next week. The reason being is, I have not been into the school since I got my WP last week. The day I applied for it, I was at the school to collect the required documents from an admin assistant. I have not been back to the school since as it has been holidays. Would the labour department have contacted them that I now have the WP?

    So, with this in mind, would you advise that when I get paid next week, if no tax has been deducted, then to go and see the department at my school who deals with wages, inform them that I now have a WP and need to start payment tax? And of course I will be very insistent on this. And then wait until I get paid in November to see if tax has been deducted.

    Thanks again for your help mate, I appreciate it.

    Oh, just to add. If the tax year ends in Dec, then I will have earned over the 150,000 Baht threshold, so I would be liable to tax..
     
  13. ramses

    ramses Well-Known Member

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    If and only if your employer reports your earnings before and after you received your WP. If they do not report your income from prior to your being issued a WP, then I am not sure you will be liable for tax. Make sure you talk to someone there to make sure you are on the same page.
     
  14. Mr Pete

    Mr Pete Thread Starter Active Member

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    Ah that makes sense. Thanks for that mate
     
  15. luibkk

    luibkk Well-Known Member

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    Hi Mr Pete,
    yes and no at the same time because you have to pay personal income tax only for your taxable income, i.e. TAXABLE INCOME = Assessable Income - deductions - allowances.
    In your case, the assessable income will be 150,000 THB but you get a deduction for income from employment of 40% but not exceeding 60,000 THB and a personal allowance as a single taxpayer of 30,000 THB. That means you don't have to pay any income tax if your yearly income is less than 240,000 THB.
    It's a good idea to file for tax return personally. When I did this for the first time some years ago, I found out that my employer had paid only 3% tax but deducted 10% from my salary resulting in a tax debt of almost 15,000 THB which I had to pay immediately. I got the difference paid in cash by my employer so I could pay my income tax for that year.

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    Last edited: 26 Oct 2012

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