Tax residency in Thailand and taxing overseas income

[Dannie Boy]

The test will come early next year when the first expat goes to immigration to renew their extension to stay.

[Big Boy]

I honestly can't see what taxation will have to do with Immigration. Many retirees simply use money in the bank, so don't have to show any money brought into Thailand. If they use Immigration, the entire thing will be a farce. It has to be the revenue department in conjunction with banks. A few people declaring some of their income to Immigration will cover just a fraction of the problem, especially when many retirees are declaring a pension that is already taxed.

This goes well beyond Expats. I don't expect Immigration to play any part in this.

[Dannie Boy]

Well you’re probably and hopefully right, I was really only repeating what other “scare mongers” had mentioned, although it’s of course possible that immigration could say something like “have you got your clearance certificate from The Revenue” as part of the renewal process!!

[thecolonel]

It's been published in the Royal Gazette - you just need google and a thai speaker/reader to find the official document but it is also confirmed here

https://thailand.postsen.com/live-style ... -2024.html

Here is a calculator to tell you how much you will be liable to pay

https://www.uobam.co.th/en/tax-calculation

So essentially for retired chaps a ballpark figure for the 65k a month (and you're over 65) - will mean a tax bill of circa 18,000 a year. (I can imagine this is going to get very messy for anyone using agents money)

What is the basic rate of tax payable in percentage terms?

Thanks for all your great intel

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[Big Boy]

it’s of course possible that immigration could say something like “have you got your clearance certificate from The Revenue” as part of the renewal process!!

Yes, of course, and although I seem to be the only person in Thailand to be asked for it at renewal time, I am already regularly (not this year) asked for my P60.

[malcolminthemiddle]

Well you’re probably and hopefully right, I was really only repeating what other “scare mongers” had mentioned, although it’s of course possible that immigration could say something like “have you got your clearance certificate from The Revenue” as part of the renewal process!!

The tax department already co-ordinate with other government departments. An example is the Land Department collecting business tax on behalf of the revenue department at the time of ownership transfer.

[PET]

As my Marriage Visa ( Length of stay)expires in January I shall extent it for another year in December, and so will have 12 months to see what will happen.
I just hate all this scare mongering

[Dannie Boy]

As my Marriage Visa ( Length of stay)expires in January I shall extent it for another year in December, and so will have 12 months to see what will happen.
I just hate all this scare mongering

When renewing the extension is it 30 or 45 days before expiry - if it’s 45 I can just make it before the end of December?

[Big Boy]

I still don't believe it will be an Immigration job. Immigration are there to check on Immigration. The revenue department collect taxes. It's a bit like the bin men popping in to check your plumbing every time they collect bins.

This rule affects every person in Thailand, not just Expats. The Immigration department would have to expand vastly, and they will have to learn a completely different skillset.

Yes, as Expats, we are used to dealing with Immigration, but this, IMHO, is a completely different ball game.

At the moment, I think many of you guys are dancing to the scaremonger's tune.

[Dannie Boy]

I can’t argue with your logic BB, but I and I’m sure countless others, have experienced the somewhat perverted joy some of the IO’s seem to get from making us jump through hoops whenever they can, so I’m still cautious that this might be yet another one!!

[Robinhood]

UK Personal annual tax allowance - I perhaps mistakenly thought the annual allowance was automatic. However, I came across a HMRC webpage saying that only a few limited categories get the personal allowance automatically, and that most people who are non-resident need to claim this annually on a HMRC form R43.
Is anyone using this form to claim their UK tax personal allowance?

[Dannie Boy]

I’ve never knowingly used that form but have been asked to submit a tax return every year since I retired. As non-resident you are not allowed/supposed to use the HMRC website but have to use proprietary software that is readily available - I’ve always been granted my personal allowance to offset the tax liability on my private and state pension.


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[thecolonel]

We were discussing this yesterday and someone had been told that it's not the expats they are targeting, more Thais who work abroad and bring earned money into Thailand

We'll see...

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[Robinhood]

I’ve never knowingly used that form but have been asked to submit a tax return every year since I retired. As non-resident you are not allowed/supposed to use the HMRC website but have to use proprietary software that is readily available - I’ve always been granted my personal allowance to offset the tax liability on my private and state pension.

I also use a proprietary software package. I found through trial and error a box to tick, that applies a personal allowance.

My worry, is that if this for the small number of categories that do qualify automatically ( i.e. a Minister in the Church for example ) I may be using a personal allowance I'm not entitled to.

It would be expensive for me if HMRC retrospectively withdrew my Personal allowance.

Edit: This is the link that has got me thinking.

https://www.gov.uk/guidance/claim-perso ... ive-abroad

[STEVE G]

We were discussing this yesterday and someone had been told that it's not the expats they are targeting, more Thais who work abroad and bring earned money into Thailand

We'll see...

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That was why on Friday I quoted this from the ruling:

"...— from employment, a business carried on overseas, or property situated overseas — that is brought into Thailand should be subject to personal income tax...."

Because that does not say all money brought into Thailand.