Resources for Paying Taxes on Income Earned in Thailand
Paying taxes for the first time, as a non-Thai citizen living in Thailand, would make anyone nervous. However, if you keep accurate records and follow a few simple procedures, your taxes in Thailand shouldn't be any more of a hassle than they were at home.
The most reliable source on personal income tax is probably Thailand's revenue department. Even though its page is in English, you may need an interpreter for some of the legal language. There are eight categories of assessable income, such as income from construction and contracts, and income from letting property. Each of these categories has a different tax deduction percentage allowed for it. Tax deductions you can claim include deductions for child care, educating your children, and charitable contributions. The deadline for filing is at the end of March, a few weeks earlier than in the United States.
To legally pay taxes in Thailand, it is essential to have a tax ID card with a tax ID number on it, according to ThaiVisa.com. Your employer should provide you with this, along with the income statements you need in order to fill out your tax return.
You are only considered a tax resident in Thailand if you live there for more than half the year, according to CompanyVauban.com. However, if you don't owe taxes to the Thai government after having worked in Thailand for a brief period of time, you may owe taxes, in the form of foreign earned income, to your home country. In the United States, if you fall into one of several categories, you can enjoy a significant deduction from your foreign earned income, according to the Internal Revenue Service. Whatever amount you cannot deduct should be taxed as self-employment earnings.
That takes care of personal income taxes, but you will also be liable for corporate income taxes if you have come to Thailand in order to start or run a business. The government page on corporate income taxes says that both Thai companies and foreign companies deriving income from Thailand are liable for taxes. In order to lesson your company's tax burden, you may deduct taxes paid, normal wear and tear, and bad debts. You may also deduct 200 percent of special costs such as job training, research and development, and the provision of facilities for the disabled.
As a foreigner, make sure all your ducks are in a row when you fill out your return, but don't let tax worries scare you away from the great employment and investment opportunities that Thailand has to offer.