Someone asked me for my opinion on tax on income from translation received from companies registered overseas.
Previously, I declared all income from translation in my name which was then combined with income Iearned from my full-time job for an employer whose business was not related to translation. Three years ago, I started to invoice my customer in the name of an entity that I set up for translation purpose. I believe it is more appropriate to separate the two types of income. The result was that my tax rate for my personal income was lower while the tax rate on the entity was none for the first year.
Now that I have all income from translation recorded under the entity, the next question is Do I declare income received from companies registered in other countries? I asked an accountant friend this question. She told me that if I chose not to declare income received from companies registered in other countries (in order to reduce the tax rate), it would be unlikely for the tax authority to find out because there was no trace in their system. Also my income from translation is not very high and the authority would rather spend time, investigating millions Baht cases. Hmm, it made sense.
However, I thought that in the future I might need a record to prove that I have been in translation business for some time. So I decided to declare all income paid by local companies registered in Thailand and companies registered in other countries such as Australia, America and England when I filed an annual income tax. As expected, from paying zero tax on the entity, I (under the entity name)became subject to tax. I paid according to the calculation. No problem.
The good deed paid off. I quit my full-time job in December last year and since then I have been doing translation on a freelance basis. Later on in March, I was organizing a visa application for my trip to Japan and one document required by the Embassy of Japan was a proof of income. I had no employer to confirm my income but because I have been filing my tax forms properly for the past three years, I was able to produce a confirmation from the tax authority to prove that I have monthly income (under the entity name). The visa was granted. I also used this record for a visa application for my trip to England in June and to Australia in August.
My purpose of this blog is to share with you a benefit when you declare your income correctly and pay at the right rate regardless of where the income comes from.
Sawaddee ka. My name is Nat. I am a certified translator. I have been in the translation industry since 2004.
I graduated a master degree in English-Thai translation from Chulalongkorn University, Thailand.
I have the following accreditation: - NAATI Accreditation for EN < > TH translation (Australia) - Court Expert Registration for EN < > TH translation (Thailand) - Member (MCIL), Chartered Institute of Linguists (U.K.)
See details about my services here https://www.nctranslation.net https://www.expertthai.net
For a quick quote, email your document to email@example.com.