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nicknbg1981

Do Teachers Pay Taxes?

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This thread is getting complicated. Paying and filing are two different things. I know of no treaty the gets you out of taxes. Taxes paid in a foreign country are deductible off your US taxes.

How many people do we have who are earning over $90,000 per year (as teachers, as this is a teaching forum) solely from their Thai teaching income?

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Can anyone give me a percentage of what would be taken out? I am american, and im expecting a salary of around 30,000 bhat

If you are a single guy with no children then your tax will work out like this:

60,000 baht allowable deduction on income from employment

30,000 baht personal exemption

150,000 baht exempt

TOTAL 240,000 non taxable, leaving 120,000 taxable.

Tax rate for income from 150,001 to 500,000 pa is 10%

Tax therefore equals 12,000 pa or 1,000 baht per month.

If you are married, have kids, elderly parents in law etc you can claim further allowances. Bear in mind the tax year here runs the same as the calendar year, so in your scenario if you started working in May you wouldn't be liable for any tax as your income in the tax year would only be 240,000.

You also will have to pay 750 per month social security, although this is discounted at the moment to 450 per month.

For those earning more Western type salaries here the tax regime is somewhat more punitive, with a top rate of 37% for income over 4 million baht, but for those on Thai type salaries the tax regime is fairly lenient. Most Thais have never heard of income tax as they do not earn 20k per month, or run their own businesses and avoid taxes altogether, so getting advice from Thais on the matter is usually a fruitless task.

When I started working here my tax was over 60k per month, and my g/f at the time was convinced that the company were stealing the money from me, she just couldn't grasp the principle of income tax as most have never encountered it before. God knows where they think the money to run the country comes from.

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Im so confused.....I have no idea on whats going on! I dont pay taxes for the first two years,..correct? But then after 2 years I pay 1K bhat taxes a month, while i file my taxes in america which I wont owe because I dont make more then 90,000 USD...right? Did I get that? :-D

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Im so confused.....I have no idea on whats going on! I dont pay taxes for the first two years,..correct? But then after 2 years I pay 1K bhat taxes a month, while i file my taxes in america which I wont owe because I dont make more then 90,000 USD...right? Did I get that? :-D

ARTICLE VI

1. Nationals and companies of either Party shall not be subject to the payment of taxes, fees or charges within the territories of the other Party, or to requirements with respect to the levy and collection thereof, more burdensome than those borne by nationals, residents and companies of any third country. In the case of nationals of either Party residing within the territories of the other Party, and of companies of either Party engaged in trade or other gainful pursuit or in non-profit activities therein, such taxes,

fees, charges and requirements shall not be more burdensome than those borne by nationals and companies of such other Party.

2. Each Party, however, reserves the right to: (a) extend specific tax advantages only on the basis of reciprocity, or pursuant to agreements for the avoidance of double taxation or the mutual protection of revenue: and (:) apply special provisions in extending advantages to its nationals and residents in connection with joint returns by husband and wife, and as to the exemptions of a personal nature allowed to non-residents in connection with income and inheritance taxes.

3. Companies of either Party shall not be subject, within the territories of the other Party, to the payment of taxes upon income not attributable to sources within such territories, or upon transactions or capital not attributable to the operations and investments thereof within such territories

4. The foregoing provisions shall not prevent the levying, in appropriate cases, of fees relating to the accomplishment of police and other formalities, if these fees are also levied on nationals of all third countries. The rates for such fees shall not exceed those charged such nationals of any third country.

OK, let me confuse you a little more. This is Article 6 which explains the tax agreement under the Treaty of Amity between Thailand and the US.Not sure about what treaties or agreement other counties have with Thailand, but since you are American this should apply to you. If you would like a copy of the full treaty please PM me.

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Im so confused.....I have no idea on whats going on! I dont pay taxes for the first two years,..correct? But then after 2 years I pay 1K bhat taxes a month, while i file my taxes in america which I wont owe because I dont make more then 90,000 USD...right? Did I get that? :-D

OK, let me confuse you a little more. This is Article 6 which explains the tax agreement under the Treaty of Amity between Thailand and the US.Not sure about what treaties or agreement other counties have with Thailand, but since you are American this should apply to you. If you would like a copy of the full treaty please PM me.

ARTICLE VI

1. Nationals and companies of either Party shall not be subject to the payment of taxes, fees or charges within the territories of the other Party, or to requirements with respect to the levy and collection thereof, more burdensome than those borne by nationals, residents and companies of any third country. In the case of nationals of either Party residing within the territories of the other Party, and of companies of either Party engaged in trade or other gainful pursuit or in non-profit activities therein, such taxes,

fees, charges and requirements shall not be more burdensome than those borne by nationals and companies of such other Party.

2. Each Party, however, reserves the right to: (a) extend specific tax advantages only on the basis of reciprocity, or pursuant to agreements for the avoidance of double taxation or the mutual protection of revenue: and ( :) apply special provisions in extending advantages to its nationals and residents in connection with joint returns by husband and wife, and as to the exemptions of a personal nature allowed to non-residents in connection with income and inheritance taxes.

3. Companies of either Party shall not be subject, within the territories of the other Party, to the payment of taxes upon income not attributable to sources within such territories, or upon transactions or capital not attributable to the operations and investments thereof within such territories

4. The foregoing provisions shall not prevent the levying, in appropriate cases, of fees relating to the accomplishment of police and other formalities, if these fees are also levied on nationals of all third countries. The rates for such fees shall not exceed those charged such nationals of any third country.

Edited by mizzi39

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Suffice to say: if you are working in Thailand, you are subject to Thai law and therefore you will pay taxes according to Thai law- lower salaries aren't taxed highly; most teachers will pay barely 10% or so- EXCEPT with the potential for a period of exception according to the treaty above.

If you are a US citizen, you are bound by US laws, which require you to file and to show evidence of your eligibility for a foreign tax exclusion of nearly $100k dollars. If you earn in excess of that, it is taxable by US law. Please go to the business forum (or a US tax forum) if you wish to protest this; it's not an issue of being a teacher in a foreign country but one of being a US citizen.

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Suffice to say: if you are working in Thailand, you are subject to Thai law and therefore you will pay taxes according to Thai law- lower salaries aren't taxed highly; most teachers will pay barely 10% or so- EXCEPT with the potential for a period of exception according to the treaty above.

If you are a US citizen, you are bound by US laws, which require you to file and to show evidence of your eligibility for a foreign tax exclusion of nearly $100k dollars. If you earn in excess of that, it is taxable by US law. Please go to the business forum (or a US tax forum) if you wish to protest this; it's not an issue of being a teacher in a foreign country but one of being a US citizen.

I think i get it! I pay 10% and i just prove to the US government i dont make more then 100K usd :) Yes!!

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Suffice to say: if you are working in Thailand, you are subject to Thai law and therefore you will pay taxes according to Thai law- lower salaries aren't taxed highly; most teachers will pay barely 10% or so- EXCEPT with the potential for a period of exception according to the treaty above.

If you are a US citizen, you are bound by US laws, which require you to file and to show evidence of your eligibility for a foreign tax exclusion of nearly $100k dollars. If you earn in excess of that, it is taxable by US law. Please go to the business forum (or a US tax forum) if you wish to protest this; it's not an issue of being a teacher in a foreign country but one of being a US citizen.

I think i get it! I pay 10% and i just prove to the US government i dont make more then 100K usd :) Yes!!

Yes. You can be assured that you will never even come close to making 100K USD in a year (or many years) teaching English in Thailand, so no worries. :D

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