BaronTT Posted March 14, 2006 Report Share Posted March 14, 2006 ND, can you direct me to your source of this info? Our outside tax counsel (PWC) says housing is taxable income, unless it is considered a relocation, ie, temporary expense, like a hotel or temporary serviced apartment, until a permanent place is found. Our other "text book" sources confirm that. As for Transportation, similar. For it to be non-taxable, it needs to be directly related to the company's function, and it must be directly supported. For example, an allowance would be taxable income, but a direct expense with supporting receipts would not be taxable income. I'm very interested in getting support for having those expenses non taxable, so any references would be appreciated. Link to comment Share on other sites More sharing options...
ThaiHome Posted March 14, 2006 Report Share Posted March 14, 2006 BaronTT said:ND, can you direct me to your source of this info? Our outside tax counsel (PWC) says housing is taxable income, unless it is considered a relocation, ie, temporary expense, like a hotel or temporary serviced apartment, until a permanent place is found. Our other "text book" sources confirm that. As for Transportation, similar. For it to be non-taxable, it needs to be directly related to the company's function, and it must be directly supported. For example, an allowance would be taxable income, but a direct expense with supporting receipts would not be taxable income. I'm very interested in getting support for having those expenses non taxable, so any references would be appreciated. I have to agree, my housing and education allowance are included in my Thai income. My car and driver and are not, since that is directly provided and is not given as an allowance. TH Link to comment Share on other sites More sharing options...
Nervous_Dog Posted March 14, 2006 Report Share Posted March 14, 2006 Hmmm - I'll have to ask our accountant how they get around that! I think it's because (don;t quote me) the company pays, but need to be sure DOG Link to comment Share on other sites More sharing options...
BaronTT Posted March 15, 2006 Report Share Posted March 15, 2006 I specifically asked our in-house tax counsel about direct payment for housing, and they said that it was still considered to be taxable income to the employee. So I'm very interested in how your accountant got around that particular problem. Thanks. Link to comment Share on other sites More sharing options...
khwaimaisabai Posted March 15, 2006 Report Share Posted March 15, 2006 Hi guys, Just to add my two cents worth - most things are taxable, ime. The only exception I can think of from my time there was the car and driver. Even home leave fares - and the tax was deducted when the fare was paid so the regular monthly salary took a hit for 37%. Mekong has the best deal - be employed in S'pore/HK with minimal payment in Thailand but many multinationals will not do that on grounds of ethics. Khwai Link to comment Share on other sites More sharing options...
whosyourdaddy Posted March 15, 2006 Report Share Posted March 15, 2006 Not sure yet how much that is worth or whether it would be taxable As of 3 years ago yes housing is taxable at the reg. rate Link to comment Share on other sites More sharing options...
Mekong Posted March 15, 2006 Report Share Posted March 15, 2006 I reply to myself so that no individual suffers paranoia thinking that my comment is a reply to their own posting (Khun Sanuk Maybe New Board should show "Quick Reply" when we click quick reply), and also coz I am adding to my own previous posting. As was pointed out, benefits such as housing allowance, transportation, food allowance etc can only be deemed as tax exempt if one on a temporary posting away from your actual abode. Temporary is a variable all the way up to infinity, and since it is rather difficult to get Permanent Residanecy here they cannot tell you that Thailand is your home. Know the rules, Learn the Tricks, Play the Game! Link to comment Share on other sites More sharing options...
ThaiHome Posted March 15, 2006 Report Share Posted March 15, 2006 khwaimaisabai said:...but many multinationals will not do that on grounds of ethics. Khwai Got nothing to do with ethics, it got to do with something called "transfer pricing" which tax authorities throughout the world are increasingly on the lookout for. This how MNC move cost and revenue through various companies in various countries in order to avoid local taxes. TH Link to comment Share on other sites More sharing options...
.. Posted March 16, 2006 Report Share Posted March 16, 2006 Mekong said:Know the rules, Learn the Tricks, Play the Game! 55555 Well said Brother Mekong! That is what I was trying to communicate to the OP, but you did it so much better! Cheers, SD Link to comment Share on other sites More sharing options...
longwoodguy74 Posted March 16, 2006 Author Report Share Posted March 16, 2006 sage advice, to be sure. cheers, gentlemen! Link to comment Share on other sites More sharing options...
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