SirToad
Crazy Mango Extraordinaire
Vigilante
MIA - CME
Posts: 2,542 
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Post by SirToad on Apr 8, 2015 18:57:38 GMT 7
I know there are a few good lads on here that know a thing ir two, so I am looking at some good advice on reducing my income tax, and which are the best options.
Which are the best products to look at?
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ATF
Crazy Mango
Posts: 624
Likes: 363
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Post by ATF on Apr 8, 2015 19:08:59 GMT 7
You can get your salary paid to you wife/gf or even better get a bonus paid every month to your wife/gf. I know it sounds crazy but it's true.
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Post by Fletchsmile on Apr 27, 2015 10:05:25 GMT 7
For personal income tax (PIT) one of the key things to be aware of are the deductions and allowances you can claim to reduce your taxable income. Make sure you claim all the deductions and allowances you are entitled to, and that your HR department have them There is a list on the Thai revenue website under section 2.2 www.rd.go.th/publish/6045.0.htmlFirst up deductions and allowances- The most common for generally for all people are: - Up to 60k deduction for income from employment - 30k allowance for the tax payer - 30k allowance more for your spouse if they don't file their own tax (i.e you work, they don't) Most people's HR departments pick up the THB 120k total automatically, but occasionally the spouse one gets missed Plus you can then claim an allowance for any national insurance (NI) paid up to a max of 750 baht a month or 9,000 a year, (based on 15,000 monthly wage cap on NI @ 5% NI rate = 750 per month), and again most people's HR department pick that up automatically Cheers Fletch  |
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Post by Fletchsmile on Apr 27, 2015 10:14:54 GMT 7
After that there are family related allowances you can claim to reduce your taxable income, as follows: - 15k per child (max 3 children, so 45k max) - extra 2k per child if they are in education (so 6k max) Again HR departments usually pick these up and usually get it right at 15k per child(without education) or 17k (with education), as they usually have your personal details and those of next of kin. One that commonly gets missed though as your HR department will not always have the details is claiming 30k each as a (Thai) parents allowance. If you are married to a Thai you can claim an additional 30k for each of your father-in-law and mother-in-law that is over 60. You will probably need a copy of their tabian bahn (house registration document) or at least their Thai ID number, their ID number links to their date of birth over 60. For a 35% tax payer, that is worth 30k x 35% = 10,500 a year in your salary per parent, so as much as 21k total depending on your tax rate and number of in-laws and age Cheers Fletch |
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Post by Fletchsmile on Apr 27, 2015 10:27:44 GMT 7
So, as an example for me, working, as a married guy with 2 kids in education, with one in-law over 60, I get the following annual deductions and allowances: General deduction from income: 60k Personal allowance: 30k Spouse allowance: 30k Children allowances: 34k (2 x 17k as in education) NI contributions: 9k Parental allowance: 30k (one in-law over 60) Total = 193k of deductions and allowances. Meaning if I earned say THB 1million I could deduct 193k and only 807,000 is classified as taxable income, then taxed at tiered rate. The one that gets missed for most people is the parental allowance. For once you can get money as a result of having Thai in-laws |
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Post by Fletchsmile on Apr 27, 2015 10:38:39 GMT 7
Once you've sorted out the basic and family allowances - should just be a case of checking with HR they have everything included. There are then various other allowances you can claim. The most common are financial investment/ product allowance: Up to 100k a year for qualifying life insurance premium payments Up to 500k a year in Long Term Equity Funds (LTFs) Up to 500k a year in pension fund contributions and Retirement Mutual Funds (RMFs) Up to 100k a year in mortgage interest (most likely the mortgage is in your Thai spouse's name as banks usually don't lend to foreigners - but may be guaranteed by you) For LTFs and pensions/RMFs, the allowance is the lower of 15% of your income or 500k each Most of the big accounting firms publish tax guides, such as the PWC one below www.pwc.com/th/en/publications/2014/2014-thai-tax-booklet-web.pdfThe replies above would cover the main stuff for most people, remembering 3 key levels" (1) General deductions and allowances for you (2) Allowances for family (3) Allowances for financial investments/ products Cheers Fletch |
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scooter
Crazy Mango
Posts: 9
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Post by scooter on Dec 26, 2015 15:12:53 GMT 7
Great stuff, thanks! But how about the retirees (non-working, naturally)? Yep, I guess they're all paying tax at source (home country), so no probs there (I think). These guys would often not normally have a tax number in Thailand.
Some of these guys & gals are maybe also using their pensions/capital to stick in the bank, invest in the SE - or other such fun (for them, that is!).
Some (the lucky ones) can haul in a nice return on their investments. Even putting 400/800K for Immigration purposes(for example) in a time account can theoretically bring in a fair amount of baht in interest.
How do THEY stand, I wonder - taxwise? And how about any good tax reduction possibilities, if that's applicable for these guys?
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Post by rgs2001uk on Dec 26, 2015 22:26:31 GMT 7
^^^ Fletch will be along later to give an in depth answer.
From what I remember you have a threshold of 20,000 baht per year, tax is paid on 15% of the interest.
So 400,000 in the bank giving you lets say 3% will give 12,000 baht interest, tax would be 1,800, so well below the threshold.
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