5 Tax Saving Tips by Tax Experts in Thailand
When you are self-employed, you pay everything, from 12.4% of Social Security to 2.9% for Medicare. While employees pay 6.2% of their earnings for Social Security, the self-employed will pay more than 15%. And if your business earned more net profit, you owe Self Employment (SE) tax. In order to know whether you owe SE tax, you can subtract your business expenses from the business income. However, what I am trying to say here is there are ways you can save yourself from paying so much at a time.
Let’s see what some tax experts in Thailand have to say;
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Pay Quarterly Tax
Estimate how much you need to pay for Medicare, income tax and Social Security and then pay them in quarterly installments. Maintain a worksheet that will help you estimate everything you owe and vouchers in order to submit your tax payments.
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Sole Proprietorship
Tax-wise having a sole proprietorship is the easiest approach. And this is why most small businesses prefer a sole proprietorship. Well, you don’t need to go out of the way to do anything special in order to declare yourself as a sole proprietor as long as you are the owner.
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Charitable Donations
If you are itemizing deductions you will surely know that you can deduct your charitable contributions, including cash contributions as well as goods that are donated to a charity.
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Child or Dependent Care Credit
The commonest way to claim the Child and Dependent Care Credit is to use it for the daycare expenses for the kids who are younger than 12. The credit will help you to pay for your child’s care while you work or simply look for the one. In fact, you will be able to seek the credit for any summer day-camp costs for your kids.
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Adding Job Expenses
If your job expenses exceed 2% of the income, you can consider adding them to the itemized deductions. The expenses include professional dues, uniforms, safety equipment, protective gear, small tools and costs that are associated with job hunting. But, there are expenses that cannot be deducted like the cost of your daily lunch.
Keeping these few things in mind you can curtail your tax payment to a great extent.
