longwoodguy74 Posted March 13, 2006 Report Share Posted March 13, 2006 I'm considering a potential expat position in thailand and was wondering if someone could clue me into the thai situation re: income tax for expats? How much tax should I expect to have to pay the Thai government? Any info greatly appreciated. Link to comment Share on other sites More sharing options...
.. Posted March 13, 2006 Report Share Posted March 13, 2006 A prgressive rate as follows: first B50K = Exempt, then next B50K - 100K = 5%, then next B100K - 500K = 10%, then next B500K - 1M = 20%, then next B1M - 4M = 30%, and anything over B4M = 37% Not many deductions. B30K for you, B30K for your spouse, B15K for each kid up to a max of three; charitable deductions up to 10% of income at face value. That's about it. EDIT: But if it is a proper expat package for a decent upper managerial job, then a negotiation point is that the local company pays your taxes. All of my positions were as such. But I have been self-employed for four years, so that perk may have dried up. You also need to look at compensation structure (% to housing and % to salary for example) to minimize your US tax burden. Cheers, SD Link to comment Share on other sites More sharing options...
longwoodguy74 Posted March 13, 2006 Author Report Share Posted March 13, 2006 Thanks, SD. That's very useful. The offer includes free housing. Not sure yet how much that is worth or whether it would be taxable. Will have to inquire further... Link to comment Share on other sites More sharing options...
.. Posted March 13, 2006 Report Share Posted March 13, 2006 Have you been an expat before? If not, there are a lot of gotchas. PM me with some more details and I can give some negotiation tips. Or consult with a tax attorney with a background in expat issues (that last bit is most important and generally hard to find in your home country). Cheers, SD Link to comment Share on other sites More sharing options...
Mekong Posted March 13, 2006 Report Share Posted March 13, 2006 It also depends on if you are working for a Thai Company or a Multinational. In my position I am employed by the Regional office in Singapore and "on assignment" to Thailand Operations. In Thailand I am paid 50,000 Baht / month living allowance which is tax free and the actualy salary is paid out of Singapore where I have no tax liabilities to my offshore account in Isle of Man. As far as Tax Excemption in home country is concerned I can only state what applies to the UK where I am from, in 1988 when I started working overseas I went to the local Tax Office and simply filled in the paperwork declaring myself "Non-UK Resident". The only downside was that my private pension was frozen since under UK law Non-UK residents cannot have a private pension in the country, but I managed to find better alternatives. Good Luck Link to comment Share on other sites More sharing options...
longwoodguy74 Posted March 13, 2006 Author Report Share Posted March 13, 2006 Thanks for the info. I've worked as an expat in several different asian countries before. I'm less familiar with the tax laws in thailand. It is with a multi-national. cheers, LWG Link to comment Share on other sites More sharing options...
Nervous_Dog Posted March 13, 2006 Report Share Posted March 13, 2006 Local housing herre is tax free, as are car etc if paid by the company. Suggest you contact a local accountant, good one, advertisers here also good DOG Link to comment Share on other sites More sharing options...
Mekong Posted March 13, 2006 Report Share Posted March 13, 2006 longwoodguy74 said:Thanks for the info. I've worked as an expat in several different asian countries before. I'm less familiar with the tax laws in thailand. It is with a multi-national. cheers, LWG If with a Multi-National then you should be able to play it the same as my deal, sign contract / work for an office in a country where you don't have tax liabilities and be seconded to Thailand. As ND points out, Housing and Car allowance are Tax free, and the 50K / month I get is just that tax free per diem paid monthly, I don't know what the maximum is or maybe each company negotiates its own levels with BOI. Link to comment Share on other sites More sharing options...
MadStockBroker Posted March 13, 2006 Report Share Posted March 13, 2006 A good tax deduction which is often over looked by ex pats here is an investmnet into a Long Term Equity Fund. You can only put up to Bt300K per year (but may go up to 500K) but it is 100% deductable against income tax. Also charity donations are good. My gf and her family gives to a temple but the head monk gave a receipt in my name. It too is 100% deductable. There is an excel file you can download that you input your salary and deductions and it work out your tax for you. I can't find the link but i think it is some where on this site http://www.aberdeen-asset.co.th/aam.nsf/thailand/home MSB Link to comment Share on other sites More sharing options...
.. Posted March 13, 2006 Report Share Posted March 13, 2006 LW, that kind of thing that Mekong was talking about is exactly what I meant. Sounds like you are on a good track now. Cheers, SD Link to comment Share on other sites More sharing options...
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