When the government of Mr. Anand Panyarachun announced a high rate reduction Of personal income tax from 50% to 37% in 1992. Most people feel they have received a substantial tax break, which is also a big part. But the inflation rate The increase in the past 10 years caused the general public to have a lower purchasing power. So the amount to be paid As a tax, it is not something that should be overlooked.
For example, if you buy a Mercedes-Benz E 220 for about 3.5 million baht, while the CIF landed cost without tax is one million baht, that means you have to pay 5.5 million baht and pay 37% tax to 3.5 million baht for Come to buy a car for one million baht. The government will tax you up to 550%, or simply put, every 100 baht you earn will be worth only 18.18 baht.
Therefore, all high-income people Should consider the burden In paying income tax thoroughly Many executives are proud. When saving corporate tax on a company, but he is happier If you reduce the tax to yourself Here is a tax plan. Worth considering
1. Tax-exempt income
There are certain types of income that are “Tax exemption”, which can be seen from the Revenue Code, Section 42 and Ministerial Regulation No. 126, which is important to profit from the sale of shares in the stock market.
However, an investor has the opportunity to make a profit on the stock as well as a loss, which if he loses it cannot be used as an expense. In the way of tax as well During the stock market volatility It is difficult to be profitable, one option is to invest in funds. To wait to receive the results in the picture Of price increases Of investment units The sale of units in the market for a profit is not subject to tax.
Government bond interest These bonds issued before February 1, 1986 are also tax exempt. It has reached the full redemption period, so looking for income that is tax-exempt It is difficult from government bonds.
2. Income that receives a tax reduction
Even though the personal income tax rate It starts at 5% when your income exceeds 50,000 baht and increases to 37% when it exceeds 4 million baht, but there are two types of income that are tax deductible by the government.
(1) Only 10% taxable dividends.Also, if you are in the non-37% tax group, you can apply for a 3/7 tax credit on the dividends and apply another 10% withholding tax to cover your income tax. In this case, if you are filing a tax refund. Will receive a substantial refund, but how to request credit And claim this tax refund Will not work When you pay the tax rate of 37%
(2) Interest which has been paid 15% withholding tax and the rest (balance) is income that is not subject to tax. The withholding tax refund is worth it only if you Have an income of not more than 600,000 baht per year if the deduction from tax rates in such cases Wealthy person Have to pay tax Much of the interest income
in the US, municipal bonds are not taxable. Therefore getting very popular Because Americans pay normal taxes on interest income. If you have to pay taxes at 37% and earn interest That exempts income tax, for example at 8%, it means You have rewards Before tax is approximately 12.7% (calculated by taking 8 sets and dividing by 63%)
3. Income deducting high expenses
Revenue Code Personal income is classified into 8 categories which you can Choose what kind of income to make and how to make money. But the best way is Avoid earning Salary type And wages as Employee Because the measure with a 40% tax, but not more than 60,000 baht per year, it is a disadvantage to yourself if you have a career in service. Try to vary yourself To be among the freelance professionals are doctors, engineers, accountants, architects, lawyers and fine arts. Important “stay away from the regular salaryman”
Let’s look at an example of an engineer if he earns 400,000 baht per month or 4.8 million baht per year if he receives a salary. A regular employee He will receive a reduction of only 60,000 baht per year, so he will pay a total of 1.3 million baht or about 110,000 baht per month, leaving him with his salary Actually, only 290,000 baht,
but if he changes his status Become an engineering consultant He will deduct 30% of his expenses.
Without advanced limit Equal to deducting an additional 1.44 million baht, causing him to pay income tax of only 841,500 baht, which means that the tax is reduced to 458,500 baht per year or equal to 38,200 baht per month. The advantage of this method is You will save taxes every month. As long as it is working Not just a month saving
4. Actual expense deduction instead of contracting
If you are an engineer And still not satisfied With a 30% discount, you will deduct expenses. Actually Instead of taking a Mao deduction, that is, increase your expenses a lot and you will get a bigger deduction.
For example, you may invest in an office condominium. By setting up a company Which interest payments Paid to the bank No matter how much Will receive a tax deduction Which is compared with Buying a house that the government allows you to deduct 50,000 baht per year.
You can also deduct the condominium depreciation. Office equipment And furniture, along with various amenities Including maintenance costs To reduce income tax Then you still enjoy the condo that may cost more. If located in a good location
Moreover You can rent Or buy a beautiful car and deduct the expense, interest burden, depreciation of not more than 1 million baht per car, insurance and fuel costs of the company, which items like this Help you pay taxes even less. But you have to be diligent Keep your receipts, keep your accounts, and keep the numbers handy to use as proof of deductions, so you need to learn the art. Filing documents and accounts, but if you can’t, hire someone to make it safer.
5. Income distribution
Thai law classifies 8 types of personal income, so you can earn more than one type of income each year. Of a pediatrician Which normally work Stay in the hospital during the day By receiving regular salary In the evening He went to open a private clinic. And have additional income as a doctor With independent professions If he opened a shop Groceries to sell snacks and Toys to customers and patients will also earn income. From trade entering as well Some pediatricians work hard and earn a lot. But they rarely have time to spend, so their savings are increasing. Up to the point That can buy a house And rent to receive rent payment
As a result, this pediatrician earns 4-5 types of income. He may pay taxes at 5% on his salary. Hospital receipts are taxed at 20% on clinic income, 30% on commercial income and 37% on rental income. If he is planning a tax cut It may be done as follows
(1) Find a friend and form a group of people. By allowing a friend to hold a small amount of shares In the grocery store Which income tax from trading will be paid by this group of persons Which began to tax at a low rate of 5% according to the individual tax rate And share of profits Received by the doctor From the group of people also get the right Tax exemption as well
(2) Put the name of the child on the title deed of the house so that the rent becomes the child’s income because he has no other income. Therefore is among the lowest taxing groups And children can also Tax deduction can be another 30,000 baht instead of registering a house in his own name. And request a child tax deduction Which will get only 15,000 baht per year
If he wants to have a name The next homeowner without a child name in the deed. This pediatrician Can register the usufruct So the rent will be the child’s income while he is still the owner of the house. Usufruct It can be registered from 1 to 30 years or throughout the life of the child.The beneficiary of this method is This pediatrician Still owning the house Which will sell the house at any time Because if he gave a young child Owning the title deed must be approved. From the family court first Which is a hassle
There are still many methods. To save tax money This means that if you consult a tax professional He can recommend About how to save on taxes Legally It is similar to buying software. Everyone can pay 200 baht to buy 1 law, but the heart is important. Is the way to bring the law Come and apply it to get the most benefit
This is how Bill Gates of Microsoft made wealth. Billions of dollars to myself