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Phuket business: Tax filing deadline approaches

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Phuket business: Tax filing deadline approaches | The Thaiger

PHUKET: For anybody who generated income in Thailand last year – regardless of where or how they were paid – the personal income tax filing deadline is March 31.

In this two-part series, the Phuket Gazette will outline the need-to-know basics for filing personal income tax in Thailand.

First, we will cover taxable income, deductions and tax certificates. In the next part, we will go over tax allowances, and how to apply progressive tax rates.

When it comes to taxes, many residents prefer to let a trusted partner or certified accountant on the payroll take care of everything.

In this case, it is important for whoever calculates your taxes to be aware of all your traceable income sources. This will ensure that they calculate and withhold the correct amount of tax, otherwise you may find yourself with an unexpected bill.

For those with multiple income sources, and those who are required to file a tax return with their respective home country, Americans for instance, it’s a good idea to have a good grasp on your finances, so you can benefit from tax treaty benefits.

Thailand has tax treaties with at least 55 countries, with 10 more on the table for negotiations.

Contrary to common office talk, luck has nothing to do with determining whether one will receive a bill or a check from Thailand’s revenue department. With a basic understanding of the system, filing procedures and regulations, tax payers can determine pretty easily before filing if they are owed or will owe.

The value of taxable income (Ti) will determine one’s income bracket and thus the tax rate they should have paid.

Before you can determine your income bracket rate, you have to determine how much of your income is actually taxable. The government overlooks a certain amount of your earnings to compensate for living expenses.

To calculate Ti, the formula is Ai – (D +A), where Ai is Accessible income, D is Deductions and A is Allowances.

Ai is your gross income, not necessarily how much you actually got paid.

The value of D accounts for basic living costs and depends on the category of income(s).

The Revenue Department identifies six categories of income including regular employment, copyright, property rental (with five subcategories), liberal professions, contracted work and a broad “other” category.

Most regular employees fit into the first category and are thus allowed to deduct a maximum of 60,000 baht for living expenses which is applied to the entire tax year, regardless of how much they actually spent on rent, food and other necessities.

Those who had gross income of less than 150,000 baht (US$ 5,000) can only deduct 40% of all wages, however.

For example, if last year you only made 100,000 baht (US$ 3300), you would be entitled to deduct 40,000 baht for living expenses, not 60,000 baht.

Income from contracted jobs, rental income, and dividends may also allow for certain deductions.

Whether you can actually claim these extra deductions will depend on the category identified on the withholding tax certificate.

This certificate is an official receipt of tax paid and is known as the PND Form.

PND is a transliterated acronym from “Por Ngor Dor” which stands for Pasee Ngoen Deuan, or literally, “tax income”.

If an employer withheld tax, then they must issue a PND to show it was paid. For fixed salaries, the company will issue a single PND summary of the tax year, but for other, irregular income sources, a separate PND for each payment should be issued.

Whether you’re filing the PNDs yourself or someone else does so on your behalf, all liability and responsibility for erroneous calculations and owed payments will ultimately fall on the employee.

Every source of income requires its own PND. There are at least 8 different PND forms (1a, 1a special, 2, 3, 2a, 3a, 53, and 54) which vary depending on the category of income and tax payer’s resident status.

In conclusion, use the PND to determine D.

In the next issue, we will cover Allowances (A) and how to apply and calculate Thailand’s progressive income rates.

Disclaimer: The information provided in this article is based on the personal experience of the author and direct inquiries with the Revenue Department. The Phuket Gazette will not be held liable for damages caused by misuse, misinformation or misunderstanding. All specific tax issues should be directly addressed with the Revenue Department. For more information, see W: rd.go.th, or T: 1161.

— Steven Layne

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Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

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Governments & old media versus social media – who will win? | VIDEO

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Governments & old media versus social media – who will win? | VIDEO | The Thaiger

We look at the recent changes made by the Australian and Indian governments to except control over the world’s biggest social media platforms. India has issued strict new rules for Facebook, Twitter and other social media platforms just weeks after the Indian government attempted to pressure Twitter to take down social media accounts it deemed, well, anti social. There is now an open battle between the rise of social media platforms and the governments and ‘old’ media that have been able to maintain a certain level of control over the ‘message’ for the last century. Who will win?

The rules require any social media company to create three roles within India… a “compliance officer” who ensures they follow local laws; a “grievance officer” who addresses complaints from Indian social media users; and a “contact person” who can actually be contacted by lawyers and other aggrieved Indian parties… 24/7.

The democratisation of the news model, with social media as its catalyst, will continue to baffle traditional media and governments who used to enjoy a level of control over what stories get told. The battles of Google and Facebook, with the governments of India and Australia will be followed in plenty of other countries as well.

At the root of all discussions will be the difference between what governments THINK social media is all about and the reality about how quickly the media landscape has changed. You’ll get to read about it first, on a social media platform… probably on the screen you’re watching this news story right now.

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The social media giants in battle with ‘old’ media and world governments | VIDEO

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The social media giants in battle with ‘old’ media and world governments | VIDEO | The Thaiger

“The rules signal greater willingness by countries around the world to rein in big tech firms such as Google, Facebook and Twitter that the governments fear have become too powerful with little accountability.”

India has issued strict new rules for Facebook, Twitter and other social media platforms just weeks after the Indian government attempted to pressure Twitter to take down social media accounts it deemed, well, anti social.

The rules require any social media company to create three roles within India… a “compliance officer” who ensures they follow local laws; a “grievance officer” who addresses complaints from Indian social media users; and a “contact person” who can actually be contacted by lawyers and other aggrieved Indian parties… 24/7.

The companies are also being made to publish a compliance report each month with details about how many complaints they’ve received and the action they took.

They’ll also be required to remove ‘some’ types of content including “full or partial nudity,” any “sexual act” or “impersonations including morphed images”

The democratisation of the news model, with social media as its catalyst, will continue to baffle traditional media and governments who used to enjoy a level of control over what stories get told.

The battles of Google and Facebook, with the governments of India and Australia will be followed in plenty of other countries as well.

At the root of all discussions will be the difference between what governments THINK social media is all about and the reality about how quickly the media landscape has changed. You’ll get to read about it first, on a social media platform… probably on the screen you’re watching this news story right now.

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Turbulence ahead for Thailand’s aviation industry | VIDEO

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When the airlines, in particular, were asking the government to put their hands in their pockets for some relief funding in August last year, it was genuinely thought that international tourists would be coming back for the high season in December and January. At the very least local tourists and expats would head back to the skies over the traditional holiday break. And surely the Chinese would be back for Chinese New Year?

As we know now, none of that happened. A resurge in cases started just south of Bangkok on December 20 last year, just before Christmas, kicking off another round of restrictions, pretty much killing off any possibility of a high season ‘bump’ for the tourist industry. Airlines slashed flights from their schedule, and hotels, which had dusted off their reception desks for the surge of tourists, shut their doors again.

Domestically, the hotel business saw 6 million room nights in the government’s latest stimulus campaign fully redeemed. But the air ticket quota of 2 million seats still has over 1.3 million seats unused. Local tourists mostly skipped flights and opted for destinations within driving distance of their homes.

As for international tourism… well that still seems months or years away, even now.

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