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BANGKOK 16 February 2019 02:59
Stevemercer

New Income method - Gross or net income?

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I looked through the current threads on the new income method for retirement/marriage extensions, but couldn't find an answer to the above.

 

Under the old method (statement from embassy) one could use one's gross income (before tax). The new method (monthly bank deposits) seems to rely on net (after tax) income.

 

For example, my gross income exceeds the monthly income requirements. However, my net income (after paying 33% tax at the overseas rate) is below the monthly income requirements. Tax is automatically deducted from my income before it is deposited in my bank account.

 

Does anyone know if it is still possible to rely on gross income (this would mean using my yearly tax statement to this effect)?

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Difficult to answer as nationality would change situation, believe under Visa section there is a pinned article with requested info.

Sent from my SM-G950F using Tapatalk

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15 minutes ago, Jingthing said:

Supposedly the combination method can still be used under the new police order, but it's not mentioned, and I'll believe it when I see it.

It is not a new police order it is only amending police order 138/2557 sections 2.18 and 2.22 to detail the proof of income. The combination option was never mentioned in clause 2.22 in that police order.

The combination option is shown in clause  2.22 of police order 327/2557.

"(5) Must have an annual earning and funds deposited with a bank totaling no less than Baht 800,0000 as of the filing date."

 

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1 minute ago, ubonjoe said:

It is not a new police order it is only amending police order 138/2557 sections 2.18 and 2.22 to detail the proof of income. The combination option was never mention in that police order.

The combination option is shown in clause  2.22 of police order 327/2557.

"(5) Must have an annual earning and funds deposited with a bank totaling no less than Baht 800,0000 as of the filing date."

 

You're right and I was already aware but I'm talking about real life future enforcement in the various offices and honestly you don't know exactly how that is going to shake out, indeed nobody does.

For example consider exchange rates, there are so many possible complications. Someone doing a full 65K suppose one month it dips to 63K, but the total of the 12 tops 12 x 65. Then what? Automatic combo method only, or not? There are scads of potential enforcement complications with this new system. 

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16 minutes ago, Jingthing said:

You're right and I was already aware but I'm talking about real life future enforcement in the various offices and honestly you don't know exactly how that is going to shake out, indeed nobody does.

For example consider exchange rates, there are so many possible complications. Someone doing a full 65K suppose one month it dips to 63K, but the total of the 12 tops 12 x 65. Then what? Automatic combo method only, or not? There are scads of potential enforcement complications with this new system. 

You did write this which indicated to me you thought it was no longer available.

35 minutes ago, Jingthing said:

Supposedly the combination method can still be used under the new police order, but it's not mentioned, and I'll believe it when I see it.

The complications of doing the combination option is an individual problem that should be planned if they only had a fixed amount of income that was close to the 65k baht income. I might only require putting 2 or 3k baht in the bank monthly to save some for the money in the bank side of the combination option plus the extra 20k baht needed above the annual income of 780k baht.

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31 minutes ago, Jingthing said:

If you're a national what has an embassy that still issues income letters, there is no change.

If you've been using gross income and you can get an embassy letter showing that amount, then gross is still OK.

Is there many countries who use/used Gross income ?

Seems to me - from previous discussions on this forum - these were mainly "English countries" (UK, USA, AU?...) doing so.

Seems also that most European countries are doing embassy letters on Net income.

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4 hours ago, Pattaya46 said:

Is there many countries who use/used Gross income ?

Seems to me - from previous discussions on this forum - these were mainly "English countries" (UK, USA, AU?...) doing so.

 Seems also that most European countries are doing embassy letters on Net income.

I am not 100% sure but I believe the Dutch Embassy office did gross income. They ask for tax forms and these show gross income. BUT I havent done it for years so I can't be sure.

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1 hour ago, jackdd said:

Am i the only person who would have never thought that you you are supposed to write the gross income on the income affidavit? //

No, surely not the only one.

Several threads on this subject on this forum in the past. A part of members thinking it was cheating while the other group affirming that as "net" was not mentioned, "gross" was acceptable. :ermm:

Happen that most members on this forum are from UK and USA, so the conclusion was always seriously biased :whistling: 

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13 hours ago, Stevemercer said:

Under the old method (statement from embassy) one could use one's gross income (before tax). The new method (monthly bank deposits) seems to rely on net (after tax) income.

You were never supposed to declare gross income, that was a loophole.

 

13 hours ago, Stevemercer said:

Does anyone know if it is still possible to rely on gross income (this would mean using my yearly tax statement to this effect)?

No. They aren’t interested in what is on paper, but what is received by your bank. They will want to see the minimum of 40/65K transferred to your bank in Thailand. If you’re applying as a retiree you could cover the shortfall by depositing a lump sum in you Thai bank for 3 months before you apply.

 

e.g. If you’re transferring 50K pm that equates to 600K pa. and you could deposit 200K in your bank to cover the shortfall.

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8 hours ago, jackdd said:

Am i the only person who would have never thought that you you are supposed to write the gross income on the income affidavit?

It doesn't say it explicitly, but imho writing the gross income on never made sense because everybody has different tax rates, and Thai immigration want to see that you have enough money to spend.

So everybody who used to write his gross income on the form probably did it wrong. Is there any country which explicitly said gross income?

 

Now with changes the situation is clear anyway, you need to transfer 65k per month into Thailand so you need to have at least 65k net income.

No you’re not. I argued that point for years. It was a convenient, for some, loophole that is now closed to anyone not using the embassy certification.

 

 

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