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Nic
I don't know much about US taxes, other than they do need to file every year. There is a minimum amount they have to make overseas before they have to pay tax in the US. But, I don't remember what it is.
As far as Canada goes, I haven't filed since 1996, nor do I have to because I am not a resident. I pay taxes in Thailand and Thailand, only.
[QUOTE=Old Thai Hand]Nic
There is a minimum amount they have to make overseas before they have to pay tax in the US. But, I don't remember what it is.
[/QUOTE]
You are allowed to exclude about 80K a year of foreign earned income. That amount might have gone up in the past few years, as I don't study US tax anymore.
[QUOTE=NicFrenchy]Wow, I never realised that these Salaries were paid to the vast majority of Farangs. A lot of my thai employees make more than that.
Now, correct me if I am wrong but, no matter what Salary you earn (low level
5k to 50k) and declare, you need to pay taxes based on your home countrie's base minimum taxes right? isn't that what they ask you for during your visa claim? (before you start flaming me, it was just a question, I am not claiming to know this first hand)[/QUOTE]
NicFrenchy,
Most of my long term resident farang friends are English teachers. They are all in that range. Some work as foreign consultants for other industries and make a lot more (one mate of mine was on about 350k a month for his 2 year contract which was a very nice lifestyle for him indeed).
As for taxes - I am guessing you are American? I am not aware of the full ins and outs of it, but, American expats are massively disadvantaged compared to those from other countries. As I understand it, they are required to pay normal US income tax on any money they earn outside the country for as long as they are citizens (and for 10 years after they drop their citizenship I think - or that may just be for bequeathing stuff, not sure). I say 'normal' tax, but they are given tax credits for any local tax paid.... the thrust of this means that tax-wise, the very best deal you can get is to pay US level taxes. If local taxes are higher, then you have to pay them. If local taxes are lower, you pay them, then pay the difference to the US government. Other nations don't have these rules. If I were American, I would just not tell them about my foreign earnings in a foreign country that have absolutely nothing to do with the US government, and each night I would whisper very very quietly, stick that up your [b]festering clacker valve[/b] Mr Bush, then, I'd sleep very very well.
Short answer to your question: Yes if American, no if from anywhere else.
Actually, your literal question hasn't been answered at all. I've not heard of any country basing your tax liability on what your tax liability would be in your nation of citizenship, and, if you think it through, I doubt any country ever would:
a) it'd be a nightmare to administer and to keep up with all the foreign tax rates
b) tax law/rebates/what is taxable under what mechanism is complex enough in any one nation, can you imagine trying to effectively evaluate liability under individual foreign tax systems just to determine one individuals local liability.
c) Why would they care which country you are from unless there is a special trade agreement or something?
d) How would they deal with dual-citizenships? Charge you the average liability?
There are some countries that have different tax structures for non-citizens, but to my knowledge they are implemented across the board for all non-citizens irrespective of where they are from (with the exception of the aforementioned trade agreements and the like).
[QUOTE=Blunderer]NicFrenchy, As for taxes - I am guessing you are American? [/QUOTE]
Would that be the dumbest assumption ever?!
I think the UK also taxes expats too. Both the US and UK have tax treaties with many other countries for income taxes and a smaller number of countries for Social Security (NHS in the UK) taxes. You can find them on their respective web sites. Just google for them. I know that HK, the Phils and Thailand are included in the US list of tax treaties.
Some years ago I met this waitress in the 4-star fortune hotel BKK and had some ''nice experience'' with her. Just wandering if other people also had some nice moments with staff from this hotel?
[QUOTE=Finrod]I think the UK also taxes expats too.[/QUOTE]
OK, this one I know the answers to - but the question is a bit ambiguous.
The UK taxes expats within the UK exactly the same way as they tax citizens. Basically, the UK taxes residents regardless of their citizenship.
Tax treaties are a different kettle of fish altogether.. as far as I know they are designed to avoid double taxation. Say you own a house in Singapore that you decide to sell. You are in Australia working, but have been in the UK working earlier that same financial year. You were tax resident in the UK and are tax resident is Oz (tax residency is a funny subjective legal thing that is based around either your state of mind - ie, where you intend to live for the next three years, or, where you have lived for the past 3 years).
Now, you sell that house. As far as the UK government is concerned, you need to pay them tax for the money you made on the house because it is profit you realized whilst tax resident in the UK. The Australian government takes exactly the same position as the UK government. The tax treaty means that you can pay the British, then present a receipt for that payment to the Australians to have that amount deducted from your tax bill (only for that particular liability obviously). The same exact thing would happen if you worked half a year in Oz, then went to the UK and worked.. the UK would say, well, you earnt that this financial year, and so woult the Ozzies.
Tax treaties work in your favour in this respect. I think they work against you by allowing foreign powers to investigate you finances a bit more than they would otherwise be able to if you are doing something dodgy.
The situation with Americans is as far as I know unique. Say a German goes to the UAE - tax free earnings, laughing all the way to the bank. An American with the same job would need to pay tax to the IRS at the same rates as he would pay if the job were in America (? - I am not sure that the rates are the same, but it is something like that), even if he/she were to live in the UAE for 20 years.
Sorry to disappoint you all, but I am just a simple French guy, not American LOL.
My observation about taxes had nothing to do with a Foreign Government. I must have not been clear enough (English is my 3rd Language so vocabulary fails me Sometimes).
A friend of mine was in the Following Situation: He was applying for a non-immigrant Visa (B I think) in order to get his work permit and his Salary at the time was something around 20k per month. (He Is American).
Immigration told him that it was too low for taxes sake and that no matter what Salary he was getting, his company had to prove they could pay 50k taxes for him (which was the absolute minimum taxes to be paid to the Thai Government for a Person from his Country).
He did not go into much Details, but his company agreed to pay the minimum Taxes required (which were much higher than he would have had to pay if calculated on the Pro-rata of his Salary).
As far as I am concerned, I never really cared since my company pays my taxes, I get a fix Salary (after taxes). This is good for me because the day the Thai government decides to raise the Taxes Foreigners have to pay, I'll still have the same amount in my pocket.
[QUOTE=Blunderer]
.......................
The situation with Americans is as far as I know unique. Say a German goes to the UAE - tax free earnings, laughing all the way to the bank. An American with the same job would need to pay tax to the IRS at the same rates as he would pay if the job were in America (? - I am not sure that the rates are the same, but it is something like that), even if he/she were to live in the UAE for 20 years.[/QUOTE]
For US citizens the first $80K earned overseas is tax free. The balance is taxable. Any taxes paid to the local government is deductible.
1. Tuesday 1 January New Year Day
2. Thursday 21 February Makha Bucha Day
3. Monday 14 April Songkran Festival Day
4. Tuesday 15 April Songkran Festival Day
5. Wednesday 16 April Substitution for Songkran Festival Day
6. Thursday 1 May National Labour Day
7. Monday 5 May Coronation Day
8. Monday 19 May Visakha Bucha Day
9. Thursday 17 July Buddhist Lent Day
10.Tuesday 12 August H.M. the Queen's Birthday
11.Thursday 23 October Chulalongkorn Day
12.Friday 5 December H.M. the King's Birthday
13.Wednesday 31 December New Year Eve
Giotto
Giotto, if you do not mind some small amendments :-)
1. Tuesday 1 January New Year Day -
meaning Thai employees will not show for work on Monday.
2. Thursday 21 February Makha Bucha Day
meaning Thai employees will not show for work on Friday.
3. Monday 14 April Songkran Festival Day
4. Tuesday 15 April Songkran Festival Day
5. Wednesday 16 April Substitution for Songkran Festival Day
meaning Thai employees will not work the entire week.
6. Thursday 1 May National Labour Day
meaning Thai employees will not show for work on Friday
7. Monday 5 May Coronation Day
meaning Thai employees will take Friday off
8. Monday 19 May Visakha Bucha Day
meaning Thai employees will take Friday off
9. Thursday 17 July Buddhist Lent Day
meaning Thai employees will not show for work on Friday
10.Tuesday 12 August H.M. the Queen's Birthday
meaning Thai employees will not show for work on Monday
11.Thursday 23 October Chulalongkorn Day
meaning Thai employees will not show for work on Friday
12.Friday 5 December H.M. the King's Birthday
13.Wednesday 31 December New Year Eve
ok, forget Thursday.
By some strange coincidence Thai public holiday mostly fall on Tuesdays and Thursdays.
JB
[QUOTE=Jungle Bluebird]...11.Thursday 23 October Chulalongkorn Day
meaning Thai employees will not show for work on Friday
...[/QUOTE]I don't know what year you are in, but you are right, if it is not a thursday it must be a tuesday. And I enjoyed the ride from the airport downtown on monday in almost no traffic.
[QUOTE=Giotto]1. Tuesday 1 January New Year Day
2. Thursday 21 February Makha Bucha Day
3. Monday 14 April Songkran Festival Day
4. Tuesday 15 April Songkran Festival Day
5. Wednesday 16 April Substitution for Songkran Festival Day
6. Thursday 1 May National Labour Day
7. Monday 5 May Coronation Day
8. Monday 19 May Visakha Bucha Day
9. Thursday 17 July Buddhist Lent Day
10.Tuesday 12 August H.M. the Queen's Birthday
11.Thursday 23 October Chulalongkorn Day
12.Friday 5 December H.M. the King's Birthday
13.Wednesday 31 December New Year Eve
Giotto[/QUOTE]
Not a national holiday...but a good festival:
[url]http://www.loikrathong.net/EN/[/url]
[QUOTE=Duniawala]For US citizens the first $80K earned overseas is tax free. The balance is taxable. Any taxes paid to the local government is deductible.[/QUOTE]That's not quite how it works. Some details that need to be considered: US Citizens must spend 330 out of 365 in the calendar year outside the US for this to work. Under 330 days, it may be pro-rated. You will pay taxes on your salary, there is an 80K ADJUSTMENT to gross income made.
If you are in the tax bracket known as "highly compensated", your federal withholding will be significant.
I began working in Iraq the last week in March of this year. I will not reach 330 days out of country before the end of the calendar year, and will need to file an adjusted return to make use of this adjustment.
This exclusion or adjustment only applies to federal taxes, you will still be on the hook for your home state, check with a tax expert in your state to get the skinny.
Regards,
Matthew
Please forgive me gents for not RTFF about the following question:
A friend informed me you can purchase good custom made shoes in Bangkok. Can someone please provide some details and recommendations.