stat

Glad we are on the same page now. Yes MY and TH will apparently start taxing remitted income only. So for remitted income there should "only" be the differnence in tax brackets. Glad you mentioned the 40 year old tax declarations. This of course would be a big plus.

There are expats with 7 figures investment income per year who are way better off traveling which will cost them 5K USD per year more instead of paying 300K USD in taxes. And now pls no comment if one would have that amount of income etc, thx!

https://www.ey.com/en_my/tax-alerts/tax-treatment-of-income-that-is-received-from-outside-malaysia#:~:text=With this development%2C a flat,in Malaysia by Malaysian residents. If you have a source stating that no foreign income will be taxed in MY pls let us know, thanks! My understanding is that MY will or has started to tax foreign income, but I am happy to learn otherwise.

To my understanding Malaysia will start to tax your pension as well... If possible just do not transfer your pension to Thailand and keep it offshore and transfer other monies.

According to several sources you would pay taxes on remittance in Malaysia then instead of Thailand. What is it you hope to gain? One tax year out of TH and then transfer 5 years worth of monies? I would rather spend 170 days in each country and the rest in a 3rd country. You do not need a tax certificate to circumvent TH taxes just staying below 180 is sufficient.

According to the current law (including the new directive from 01.01.2024) you are not a tax resident in TH if you are not in TH for more then 180 days in a calendar year, so no tax payment on remitted funds in that year and no payment on those transferred funds in any future year (if law will not be changed again in the future).

No, only income (cap gains, pensions, dividends, rental income etc)remitted to Thailand will be taxed!

Or they just wait and only tax those that submit a tax return... No one will know for sure before mid 2025 and then again for tax year 2025 it could all be different again.

Thanks for your post! I fully agree one has to follow the situation very closely as the Thais could come up with the "easy" solution that every penny is taxable that does not come with a translated certificate signed in person by Joe Biden and the Pope that Mr. Stat has paid withholding tax in the US. I very much doubt that Thai RD will provide anything remotely similar to the UK non-dom remittance rules if they provide any further explanation at all. My guess would be they leave the final decision to the individual RD inspector, which would a nightmare scenario.

It is a 180 day or 183 days, most people claim it is a 180 days.

Thanks a lot! Then I would be off the hook as I have a lot of dividends that come with withholding tax that are way more then what I will transmit to Thailand. I really hope that with suficient planing one will owe next to zero in thai income tax.

Maybe you will have to pay income on the monies you remit to Thailand if you stay more then 180 days in TH from Jan 1. 2024 onwards. Likely you will only have to pay income tax on the gains part you made that has not yet been taxed.

This is exactly the big question! Will thay go for 50% is cap gain or will it be fifo (first in first out) ie first 100K is notional.

Much obliged for your detailed answer! Are there any guidelines on mixed funds in the same account? Which money is already taxed and which is cap gain if I transfer 10K? Thanks! Malaysia or PH is my backup option however I have never been to the PH.

This confirms my stance that I would not invest a substantial part of money in Thailand. Even just 800K Baht for a visa: I lose out on interest and in addition I do have the risk to lose the principal because of some law change. I know never happened before, the risk is low but it could happen. So as long as possibe I go with OA visas.

Thanks for you article and the good info on Malysia! Do you have any further info on how the remittance tax will be implemented in Malaysia? However there seems to be a missunderstanding regarding the minium 15% tax. The supposedly "worldwide" minimum tax is for corporations only, it does not apply to individuals! It is not even close to ww even for corps. Even stated in the article you linked "for corps only" in the headline so fear not! CRS or the minimum tax is NOT a reason for a remittance tax. However some politicians try to frame it in this way.

The point I tried to make was that the Thai government will be putting their own people first which is quite usual in every country besides Germany on this planet. Pls read my post again: I was simply replying to some post claiming that the falangs will not pay taxes because the thais are not paying taxes. Just remember a police stop where only falangs pay for not wearing helmets.

I am saying that falangs will or could be targeted as they prove to be richer pickings. If you think everyone is treated equal in Thailand you have apparently never been to wonderful Thailand (police stops, park entry fee etc)

Yeah below 600 USD maybe it below a substantial threshhold. In the old world everything needs to be documented. But apparently you missed the whole point. The point is you have to prove to the THAI RD that your pension or any monies you transfered is exempted.

It is usually a hell of a lot of work to claim DTA tax credit even in Germany where they sometimes accept english documents, sometimes not. I would not bother if it is not 2000 USD or above in taxes owed.

I have about 10 credit and debit cards for this exact reason that banks tend to freeze your account or scammers get hold of you cc details🙂 You cannot have enough cards in my opinion...

Basically the same if you cash out of ATM for years or transfer money. ATM even more suspicious because you get cash in hand in Thailand IMHO. An international transfer is no red flag in itself, if it is not to a dubious country which Uncle Sam does not like. I got my german credit card frozen because I was withdrawing too much money and too often , but they were concerned that I do no longer live in Germany (which was correct at that time BTW):-)

Jim no offense you post about acc freezing and then divert to another topic like adress on account as reason for being frozen. What do you mean by adress on an account, the holders adress? I think you are confusing a lot of things here. If you take cash out of your thai account you have it already transferred to Thailand so not helpful.

What makes you think a rent payment will freeze an account? Why on earth should a german account be froozen by making a 1500€ transferral every month? This is ludicrous sorry.

Great post thanks a lot! So another good tax avoidance is to invest in the thai stock market, as the capital gains are excluded. As no one knows if US stocks or thai stocks will perform better in the future a small investment in SET index shares does make sense, at least for me. Can you advise on asean link? Is that a stock exchange or broker? Thanks!