| |
scobie
|
Does anyone have any experience of arranging the payment of a salary from two sources to avoid exposure to the taxman?
My story is this. When I transfer to Bkk to work later this year, the local office of my employer will be responsible for 40% of the salary which, of course, will be paid into a local bank account and taxed at source. Fair enough.
However, the regional HQ of my employer (based in Hong Kong) would pay the remaining 60%. They could pay it to Bangkok office who will then pass to me (as above). I'm thinking of setting up a HK bank account and having my 60% paid directly into that (HK salaries are paid gross) and then just drawing cash via global ATMs as I need to.
Has anyone got any experience of doing anything similar?
|
Thai Girls : Meet Sexy Thai Girls
Posted on: 2:01 am on July 29, 2004
|
|
Mr Alan
|
Are you saying that HK does not have a personal income tax, since they do not do withholding? Or are you just going to try to not pay taxes owed in HK, thinking that they cannot not prosecute you since you don't live there?
Since all the income is earned in BKK, I doubt that your company would agree to do that, but I guess if HK does not have an income tax it might be worth a try asking your employer if they would do that.
|
Bangkok Women : Meet Sensual Bangkok Women
Posted on: 2:10 am on July 29, 2004
|
|
Abrak
|
Most of my time in Bangkok has been under similar circumstances.
Theoretically, you should be declaring your offshore income to the Thai tax authorities but your company is leaving it 'up to you'. Most UK based companies will do this - most American will not.
You have to be a little careful because the Thai authorities do get a bit frisky if your local salary is too low (mine usually didnt cover my monthly rent) but in your case that doesnt seem to be the case. (I was investigated twice but with zero consequences.)
There is absolutely no problem with transfering monies into Thailand or out of Thailand and, of course, credit cards and atms are fine.
PM me if you have any specific questions...
(I assume you are not american or else there are other issues)
|
Thai Girls : Meet Sexy Thai Girls
Posted on: 2:21 am on July 29, 2004
|
|
Mr Alan
|
Sounds to me like all the income is earned in Thailand, so he is talking about which office pays for the salary, not where it is earned.
I did a quick check and found out that HK does have a personal income tax. I don't know which tax is more (Thai or HK). Depending on where your citizenship is, you may have to also file an income tax return in your home country (but taxes paid in foreign countries are usually deductible in your home country).
I doubt one could avoid paying the HK tax on income paid there. If you didn't file a return, they would probably go after your company and garnish wages.
But if the income was split among 2 countries (and you actually paid taxes in both countries), the combined tax might be lower if the countries had a graduated tax rate (higher incomes pay higher percent tax).
In HK the tax rate (after deducting from income deductible expense and allowances) is from 2% to 17% or a flat rate of 15% on incomes net of deductible expenses, whichever produces the lower tax liability.
|
Bangkok Girls : Meet Sexy Bangkok Girls
Posted on: 2:35 am on July 29, 2004
|
|
BKK Banger
|
If you are being paid by a HK based company or operating company then you could come under HK tax law which is fortunately lenient.
In HK you are only taxed on income EARNED IN HK. Offshore income is not taxable. Hence you can receive the offshore portion in HK, no problemo.
In Thailand under the Revenue Code if you are working here you must report all assessable income from employmnet or business in Thailand whether paid here or not if you are here for more than 180 days/year. Residents are also subjet to income tax on any income from foreign sources which is brought into Thailand.
If you are a non-resident working here then the employer or payer must withold income tax at source from the payment being made overseas which I believe is 15%.
You are also into all sorts of issues about transfers of costs etc.
Of course to be paid offshore without tax being deducted is illegal under the Revenue Code and you can end up in trouble...........................
There are of course Double Taxation Agreements in place but as you will be resident in Thailand you fall under the Revenue Code. Pay teh tax and make Toxin a happy man.
|
Thai Women : Meet Matured Thai Women
Posted on: 2:44 am on July 29, 2004
|
|
Mr Alan
|
Quote: from BKK Banger on 1:44 am on July 29, 2004
In HK you are only taxed on income EARNED IN HK. Offshore income is not taxable. Hence you can receive the offshore portion in HK, no problemo.
In Thailand under the Revenue Code if you are working here you must report all assessable income from employmnet or business in Thailand whether paid here or not if you are here for more than 180 days/year. Residents are also subjet to income tax on any income from foreign sources which is brought into Thailand.
I don't know the specific tax code in either Thailand or HK, but most countries (maybe all) allow one to deduct taxes paid in foreign countries if you have to report all your foreign income. This usually works out to be the same (or about the same) as a country who does not require one to declare foreign income.
|
Bangkok Women : Meet Beautiful Thai Girls
Posted on: 2:59 am on July 29, 2004
|
|
DrLove
|
Moral of the story.... splitting has no use.
Because all income is brought into Thailand and taxable here.... if you stay longer than 180 days and bkkbanger's info is correct.
Furthermore, in my own case I didn't get 1-2-3 out of the claws of the Dutch taxman. It takes a certain time before you lose your resident status in your own country.
|
Bangkok Girls : Meet Attractive Thai Girls
Posted on: 3:06 am on July 29, 2004
|
|
Crash999
|
Quote: from DrLove on 3:06 pm on July 29, 2004
Moral of the story.... splitting has no use.
Because all income is brought into Thailand and taxable here.... if you stay longer than 180 days and bkkbanger's info is correct.
Money brought into the country not directly related to one's Thai contract isn't subject to income tax. Splits do work and can be set up legally, provided one doesn't breach the terms of one's contact and work permit here.
Cheers!
|
Thai Girls : Meet Active Thai Girls
Posted on: 3:24 am on July 29, 2004
|
|
DrLove
|
My post was based on a phrase from bkkbanger:
------------------------------------------------------------------
In Thailand under the Revenue Code if you are working here you must report all assessable income from employmnet or business in Thailand whether paid here or not if you are here for more than 180 days/year. Residents are also subjet to income tax on any income from foreign sources which is brought into Thailand.
---------------------------------------------------------------------
I just drew a conclusion based on that phrase....
So, perhaps another hint to 'Scobie' to take care of solid contract.
|
Thai Women : Meet Matured Thai Women
Posted on: 3:40 am on July 29, 2004
|
|
Byron
|
As always things are not quite clear here in Thailand. According to my experience Crash is closest. You can split, just cover the trails.
DrLove, it does not take long to get out of the Dutch tax claws as long as you do it legal. You loose your resident status as soon as you formally inform them that you are leaving the country to live elswhere.
|
Bangkok Girls : Meet Attractive Thai Girls
Posted on: 3:44 am on July 29, 2004
|
|
| |
