Tax residency in Thailand and taxing overseas income

[Martinoo]

Good news for expats and tax residents as Revenue gives update on new law taxing foreign remittances
The Revenue Department on Wednesday issued further guidance on its new tax remittance exemption for funds transferred to Thailand within two years. The exemption will apply to all tax residents in Thailand, including foreigners. However, it will not be retroactive. The government aims to enact the new rule as a royal decree before the end of the year. As a result, only foreign income remitted in 2024 will remain taxable. From this year onward, tax residents will be able to benefit from the new regime, which extends into 2026 and beyond. This reform is part of Thailand’s broader effort to align with OECD standards while keeping the country competitive for investors.

https://www.thaiexaminer.com/thai-news- ... mittances/

Fingers crossed

[buksida]

Its an improvement but essentially a stay of execution as the taxman will have his hand out again once the two-year period has elapsed ... unless I'm reading it wrong and its a rolling two-year period, which brings up the difficulties of accounting and providing proof of earnings to inconsistent tax offices.

[Big Boy]

Personally, I think its a realisation by the Gov't that they have shot themselves in the foot, again. Every action has a reaction. Unfortunately, the Gov't thinks jump, and everbody will jump, and all will be well.

• People like me (covered by a tax treaty) are afraid to bring money into Thailand for fear of their legitimate evidence not being accepted. Don't forget, they wanted £1.7K tax off me this year until I found an around the houses type of way to prove the legitimacy of my documentation.

• We most likely all know people who are now ensuring they don't exceed 180 days in Thailand, who before the law were here full time, and spending money 365 days a year.

• There are many thousands who have simply ignored the law, by not reporting. Seeing how strapped the tax office is for staff, they certainly don't have any resource to enforce the law.

IMHO this about turn is a strategic withdrawal whilst they find a way to introduce and enforce the law properly, whilst at the same time trying to reduce the impact the law has had on the economy.

Basically, the cash cow was barren.

[STEVE G]

Its an improvement but essentially a stay of execution as the taxman will have his hand out again once the two-year period has elapsed ... unless I'm reading it wrong and its a rolling two-year period, which brings up the difficulties of accounting and providing proof of earnings to inconsistent tax offices.

From the way I’m looking at it, they’re talking about a rolling two year period but I might be wrong.
It’s certainly interesting because I could potentially live off European dividends in Thailand after retirement if they’re exempt from taxation.

[Martinoo]

Its an improvement but essentially a stay of execution as the taxman will have his hand out again once the two-year period has elapsed ... unless I'm reading it wrong and its a rolling two-year period, which brings up the difficulties of accounting and providing proof of earnings to inconsistent tax offices.

From the way I’m looking at it, they’re talking about a rolling two year period but I might be wrong.
It’s certainly interesting because I could potentially live off European dividends in Thailand after retirement if they’re exempt from taxation.

Dividends are not exempt...
google personal income tax Thailand for all information

The disadvantage for us who submit in the term as proposed, is that afterwards, when it is rolled back, the RD knows exactly who, where and what....

@Big Boy
You can find away around it, as others staying here based in income, up to the moment that the RD connects with immigration......which it seems is not done yet for the exact reason as you mention as is always the case in Thailand when it comes to new legislation; they do not have the manpower to enforce the law.......
But immigration has some historical information on income from Visa holders and a link between these 2 departments could be a problem if you do not give them the same information on income....

[Big Boy]

@Big Boy
You can find away around it, as others staying here based in income, up to the moment that the RD connects with immigration......which it seems is not done yet for the exact reason as you mention as is always the case in Thailand when it comes to new legislation; they do not have the manpower to enforce the law.......
But immigration has some historical information on income from Visa holders and a link between these 2 departments could be a problem if you do not give them the same information on income....

That is it, I had no way but to find a way through the system. When the British Embassy in Bangkok proved to be useless, I found certification by the Thai Embassy in London would be accepted.

Yes, an unbelievable situation, but that is what the Hua Hin Tax Office required. I find it stupid, but when in Thailand you have to jump through their hoops.

I have absolutely nothing to hide, as my tax bill being reduced from £1,700 to 0฿ proves. The difficult part is getting the Hua Hin Tax Office to accept official documents.

[dundrillin]

My bank in the UK insisted that i get a TIN (tax identification number) called PIN in Thailand. The offical at the Buriram office said i did not need one as i was not liable for tax in Thailand! Anyway she humoured me and gave me a PIN and this kept my bank happy. BTW my bank were very insistant that i gave them this number.

[Dannie Boy]

I had the same issue back in 2016 or 17 - (it was HSBC by the way) back then I was told by the tax office in Cha Am that I didn’t need a TIN so I gave HSBC my pink ID number which at the time was told the numbers were the same - I know since that BB has got his TIN and it’s different than his ID number, but HSBC were happy and haven’t been back since, so I’m happy too!!

[STEVE G]

Its an improvement but essentially a stay of execution as the taxman will have his hand out again once the two-year period has elapsed ... unless I'm reading it wrong and its a rolling two-year period, which brings up the difficulties of accounting and providing proof of earnings to inconsistent tax offices.

From the way I’m looking at it, they’re talking about a rolling two year period but I might be wrong.
It’s certainly interesting because I could potentially live off European dividends in Thailand after retirement if they’re exempt from taxation.

Dividends are not exempt...
google personal income tax Thailand for all information

I was just going on these two lines from the posted article:

“The new draft regulation would exempt foreign income from personal income tax if repatriated within two years.”

“The new rule applies only to foreign income, not capital transfers. That means only interest, dividends, gains and similar returns are included.“

[Martinoo]

I have absolutely nothing to hide, as my tax bill being reduced from £1,700 to 0฿ proves. The difficult part is getting the Hua Hin Tax Office to accept official documents.

Ah right, I deal with the Phetchaburi tax office, always online, never had to visit them
That is also a difference between us, I live on border Cha am/ Hua Hin.... nowhere land

[Martinoo]

And some more info
https://www.lexology.com/library/detail ... 7cbadbbbb0

[Big Boy]

Firstly a disclaimer, this is a video by a 'tax expert' organisation, offering to help people out (looking for customers). However, it has input from the Royal Thai Police and the Thai Immigration Department.

A lot of people aren't going to like this, but they state from next year the groups who will have to submit a tax return as part of their visa application. I am in the need to submit bracket. Basically, anybody using monthly income.

It also says it will be backdated to this previous years tax returns and states the fines/punishments applicable, which includes deportation for the worst cases.

It looks quite authentic to me, but I'll be interested to hear the views of others.

[Martinoo]

I would call it utter, utter BS
Below the case in summary, the contents of the decree, andI highlighted the part that confirms that undermines the "backdated to this previous years tax returns"

Current Rule (since Jan 1, 2024): If you are a Thai tax resident and remit foreign income earned from January 1, 2024, onwards into Thailand, it is generally taxable.
Proposed Change: A new Royal Decree is being drafted that aims to provide a tax exemption for foreign income remitted within a specific "safe window" (likely 1-2 years from the year it was earned). This is not yet law.

Exceptions:
Foreign income earned before January 1, 2024, remains exempt if remitted after the year it was earned.
Holders of certain Long-Term Resident (LTR) visas (Wealthy Global Citizen, Wealthy Pensioner, Work From Thailand Professional) are eligible for an exemption on overseas income remitted to Thailand under Royal Decree No. 743.
Double Tax Treaties (DTAs) between Thailand and other countries can also provide relief from double taxation.

However the threat for deportation is real if one for consecutive years on filing becomes a 'undesireable person..
As I think I mentioned earlier or in another thread, "waiting for the RD to come" will be a not so very smart decision, especially if your country has a DTA, as per above expemtion

[Dannie Boy]

To me it didn’t sound like utter BS - the two key issues seem to be that the monthly income route is going to mean a visit to the tax office whereas the 400/800k in the bank route doesn’t. There’s obviously more to it than that but they were the two key issues that I picked up.


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[Big Boy]

That's the way I understood it.