Income tax for expat employees

[Mekong]

OK Guys I may have misunderstood my own position, having dug out my contract and read the specific clauses ...

 

3 MONTHLY ASSIGNMENT SALARY

 

For the duration of the employment contract, you shall be paid a net monthly salary of GBPX,XXX. The salary will be paid into your preferred bank account outside Singapore.

 

 

 

12 PERSONAL INCOME TAX LIABILITY

 

The company will be responsible for the payment and administration of Thai tax (or tax in location of secondment if other than Thailand). In order to do this, you may be required to sign a form authorising the company, or it's agent, to act on your behalf. As the company will be responsible for the cost of tax, the company reserves the right to receive any amounts refunded from the Revenue authorities that relate to this contract. In the case of any monies paid directly to you this may be recovered via either the payroll or payment of Living Allowance.

 

So, basicaly I am on a NET salary and don't have to worry about Tax at all. Going back to the OP though, and subsequent replies made, it is all down to the contract that you undertake as to ones own liabilites.

 

I apologise if I caused any confusion, but at least I know I am 100% risk free :yay: :yay:

[SingaporeSteve]

So presumably Mekong, Tax aside - you do have a work permit (little blue book in your possession) allowing you to do this job in Thailand. If you dont you sure aint risk free - its you that will end up in the slammer not your employer.

 

Cheers

[Mekong]

I was issued with the Work Permit (lil blue Book) at DOE Chonburi, went to Sri Racha Immigration for WP Stamps in the passport, Have visa valid until same date as expiry date of WP and also a multi exit / re-entry that has been used on numerous occasions. No need to carry WP, just a photocopy keep the original in company safe.

[..]

Mekong said:

So, basically I am on a NET salary and don't have to worry about Tax at all. Going back to the OP though, and subsequent replies made, it is all down to the contract that you undertake as to ones own liabilites.

All of my expat contracts over the past 20 years have been exactly the same, no matter the country (Japan, HK, Sillypore, Malaysia or Thailand). That is what I meant in an earlier post when I said that my employer was responsible for the local taxes. When we negotiated remuneration package, the monthly $$ figure was what went into my pocket, as is Mekong's.

 

Back to earlier point I made about arming oneself with the knowledge of standard practice in expat contracts so they cannot take advantage of you.

 

Cheers,

SD

[whosyourdaddy]

But make sure you get the receipt to show that the taxes were paid in your name. There is a law on the books that you have to show it at the airport when you leave ( but nobody ever asks and assume you are a tourist) Also if you ever left jobs you also need proof of taxes were paid to get the new work permit.

 

One disadvantage is that you cant take advantage of LMF, RMF, providence funds, life insurance etc as tax write offs. If you were paid in gross you could be making 20-40% (depending on tax bracket) off these tax shelters on tax savings alone.