How do foreign workers pay taxes in Thailand?

Question

Is it different that Thai workers? How? Please advice.

It would be great if you can tell me the procedure or privide some links.

Thank you very much.

Answer 1

In most cases, it's the same as Thai workers in that income tax is withheld by the employer (all foreign workers should have a tax ID number for this reason) and payed to the tax department on behalf of the employee. Check with your employer to make sure this is the case. At the end of the year, you'll need to hire an accountant to coordinate between you and your employer to determine how much in taxes you still owe or if you are entitled to a tax refund. Some companies may provide an accountant for you. The cost of such services runs between 1,000 - 5,000 baht depending on whether you use an independent accountant or a large consulting firm, respectively.

It's also important to know that citizens of certain countries are required to make higher salaries in order to remain in the country. This is simply a non-direct way of saying that citizens of certain countries are required to pay higher taxes. US & Canadian citizens, for example, must pay taxes based on a minimum of 60,000 Baht/month salary even if they only make 30,000. Citizens of the UK must pay taxes based upon a minimum of 50,000 Baht, etc.

In addition, US citizens who earn more than US$80,000/year in Thailand my also be required to pay taxes in the USA. You'll need an accountant in the US to determine that.

You can find books at Asia Books outlets that will go into greater detail on working in Thailand as a foreigner. Many of the books are written by foreign legal experts living in Thailand.

Answer 2

The Lord of W is correct. The tax will be deducted from you pay at the end of the month. If you're talking about paying tax in the US as you may also be holding US Citizenship, there's a law saying if you're not living in the US more than 6 months in a year, your're exempted. Similarly to Thai law, if you don't live in Thailand more than 180 days, you're exempted from Thai tax. Also, I believe there's an Agreement on the Avoidance of Double Taxation between US and Thailand.

If you're talking plain Thai tax, not to worry, they deducted right way. The trick is how to get them back! Buy, LTF, RMF and life insurances, you'd probably end up not paying tax at all with your pay scale. Good luck.

Answer 3

I don't pay taxes in Thailand but I hate to see you not get at least one answer.  I think if you are a US citizen and stay in Thailand 330 day the first $87,600  is exempt from taxes.  You just get the tax forms from the IRS website and take the exclusion.

For you (for example) at the end of the year you'd get your forms and the amount would be prorated from the date you entered the country (there's a formula in the tax book) But say you arrived in Thailand July 1 you could only exempt $43,800 or half of the total. See the IRS website especially http://www.irs.ustreas.gov/faqs/faq13.ht...

Edit:  The U.S. government by law taxes its citizens wherever they live, sharing this characteristic only with the Philippines.  All U.S. citizens and residents who earn more than $8,450 (single) or $16,900 (married filing joint) in a year must file a U.S. personal income tax return - no matter where you live.  There are criminal penalties for not filing a tax return when that is required by law, and these penalties apply to all U.S. citizens and resident aliens wherever they reside.

If you fail to file that return for any tax year (whether a return is required or not), the statute of limitations on tax assessments for that year will never run out.  Therefore, if you live abroad for 10 years, and then return to the United States, the IRS may question your failure to file returns for those ten years and later make assessments based on their best estimate you're your income.

If you paid taxes to a foreign country and are subject to U.S. tax on the same income, you can take either a credit or an itemized deduction for those taxes. It does not matter how long you have been outside the U.S. or whether you are an bona fide expatriate for the foreign tax credit.

The answer to Hopes question requires the knowledge of the citizenship and the domicile of the person in question as different laws apply in different situations.

If you are talking about withholdings, your employer should be withholding 3-37% from your salary for taxes automatically same as in the U.S.  

Here is info on taxes in Thailand

http://www.ethailand.com/index.php?taxat...

Answer 4

I think she talking about a Expat paying taxes in Thailand.  If she means filing with the IRS you got until next April to figure it out so don't sweat it.   If it was me and I owed the USA taxes and I didn't plan on living there.  I would forget it.