If an American teacher is exempt from taxes for the first 2 years (I think this is the case), do they have to pay taxes for the exempt years if they continue to work in Year 3? I know they would pay taxes on Year 3 income but not sure about the tax exempt years.
Thanks in advance!
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Do Teachers Have To Pay Back Taxes After 2 Years?
Started by Paterno, 2011-09-11 19:35
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5 replies to this topic
#2
Ijustwannateach
Star Member Posted 2011-09-12 02:40:56
Since the taxes are exempt they are exempted. There are no back taxes for those years because they have been exempted.
#3
Paterno
Advanced Member Posted 2011-09-12 07:20:56
Thanks! I thought the taxes could have been a special case exemption with the treaty with the expectation the employee would return back to the States.
#4
Thormaturge
Advanced Member Posted 2011-12-16 08:49:34
The exemption contained within the Thailand-US tax treaty relates to teachers who resided in the USA...not to American nationals.
The Canadian and South African treaties, for example, do not contain exemptions for teachers, and therefore American teachers who lived in those (and many other countries) prior to Thailand are not entitled to an exemption. Many schools, including the British Council, are getting this hopelessly wrong and failing to deduct tax from teachers who should be paying. Insofar as what happens in the third year, where a school applies the exemption by not deducting tax it does so subject to Thai regulations in addition to the treaty, in which case a teacher who did not have tax deducted from his salary for the initial two-year visit will have to pay tax for those first two years if he remains at the school for a third year, since the exemption is for a maximum two-year visit. If the visit is for three years then the entire visit becomes taxable. #5
Paterno
Advanced Member Posted 2012-01-22 16:16:58
Does anyone know of someone having to pay back taxes? What happens if the teacher changes schools after year 1?
Year 1=No tax at school Year 2=No tax at new school Year 3=??????????? #6
Phatcharanan
Global Hammer and back where we belong!! Posted 2012-01-22 22:18:48
The exemption contained within the Thailand-US tax treaty relates to teachers who resided in the USA...not to American nationals. The Canadian and South African treaties, for example, do not contain exemptions for teachers, and therefore American teachers who lived in those (and many other countries) prior to Thailand are not entitled to an exemption. Many schools, including the British Council, are getting this hopelessly wrong and failing to deduct tax from teachers who should be paying. Insofar as what happens in the third year, where a school applies the exemption by not deducting tax it does so subject to Thai regulations in addition to the treaty, in which case a teacher who did not have tax deducted from his salary for the initial two-year visit will have to pay tax for those first two years if he remains at the school for a third year, since the exemption is for a maximum two-year visit. If the visit is for three years then the entire visit becomes taxable. Absolutely incorrect. Regardless of how long a teacher works here, that teacher is exempt from income taxes for a maximum 2 year period providing that he came to Thailand from a country that has the tax treaties in force. Should that teacher stay for a 3rd year............there is NO requirement to pay back taxes for the initial 2 year tax exempt period. Claim for tax refunds through the Revenue Department. http://www.rd.go.th/publish/21973.0.html |
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