KhunHeineken

I addressed this myth some time ago on the pension thread. Basically, currently, all that pension money goes to support a foreign country's economy. In this case, Thailand's economy. The Australian government would like that money circulating inside the Australian economy, after all, it's their money. The two main reasons for this is the Australian government/s gets a lot of it back in fees, GST, excise, car rego, licensing, insurance, stamp duties, council rates etc etc. It also creates employment, and what do employees pay, income tax, so there is a flow on effect throughout the Australian economy to have more people spending money in it. Medical is the one issue most rely on for this argument. The myth that it's cheaper for the Australian government to have the elderly living overseas. The Australian government isn't going to recruit and pay an extra 1000 doctors to cater for returning expats. All that will happen is the Medicare waiting list will get longer. They have to pay for Medicare anyway, and couldn't care less how long the list is, history has shown this. In the same way Thailand wants that pension money inside its economy, so does Australia, and if they can't have it al inside Australia, at least they can get 30% of it.

World wide income is a a global tax policy, not just a Thai tax policy. Thailand is falling into line with global tax standards. For tourists, and expats for that matter, bringing in cash, it will not be able to be tracked and taxed, unless it's over the declared amount when bringing it in, hence my F1 / cash run to Singapore. For anyone transferring funds into a Thai bank account, once Thailand get their ducks in a row, how do you propose they avoid paying tax? The money goes through a central banking system and makes its way to the retail banking system. Source, amounts, dates, rates, and deposit is tracked all along the money's journey. Your assessment is because it may force some expats to leave Thailand for 6 months a year, the Thai's will not implement it, but world wide income is a global policy, spreading across many countries. What they may lose in expats leaving for 6 months they can pick up in taxing the expats that remain.

How old is the laptop? What processor does it have?

Who said the sky is falling? It's Thai tax policy. It's the law. Why do you think you can stand outside of it? True, but in my opinion, that really would push the boundaries of Thailand's capabilities, especially when you consider the amount of tourism here. That said, banks, through various tax departments in different countries, are now communicating. Why is it so difficult for people to accept that the days of tax havens, tax free residency, and hiding money, are slowly coming to an end? As norbra said, it will still be a cheap party for many here, just no longer a free party. Just like many western countries, you can't keep the tax man at bay for ever.

I agree, but it's just interesting that quite a few members have the believe that it will not happen, can not happen, is impossible to collect, is not enforceable, Thailand is incapable of doing it, it's scaremongering etc etc etc etc. Yet, they paid tax in their home country since they started working in their mid to late teens, but no way could Thailand have a similar tax policy.

Sure, but no harm in considering all scenarios, good and bad, right? Panicking, or preparing? There is a difference. As I have said before, I consider best case scenario, worse case scenario, and every scenario in between. Like most on this forum, I am already a tax resident of Thailand because I have been here more than 180 days this calendar year. So, I am in the game. This was by choice. I decided to stay and let Thailand get me this first time around, but I am minimizing my cash remits and topping up with ATM withdrawals with my home country Visa card. I will also do a cash run when in Singapore for the F1. If I feel the tax is an amount I do not wish to pay in 2026, I will spend 179 days in Thailand next year, and the rest in Vietnam. So, nonsense or fact, that's my plan. In my opinion, some of the "facts" put forward have some nonsense in them, and some of the "nonsense" put forward has some facts in them. We must also remember "TIT" and on that basis, anything is possible. The only way to prepare for TIT is to consider all scenarios, even the ridiculous, because that's Thailand. So, you have no skin in the game. Taking active steps to ensure one does not become a tax resident of Thailand may be the way to go for some, possibly many. We just don't know at this stage what the Thai authorities will do between the 1st Jan and 31st March 2025. Until then, I'll continue to consider all "nonsense" and all "fact" put forward by all members. Some I will dismiss quickly, some I will give consideration to. As I have said before, I just can't see all of this going away, but I hope I am wrong and it basically becomes non existent for the majority of expat retirees. Time will tell.

Why would it be so surprising to see Thailand go down the same tax path as many western countries who chase every dollar of tax from their middle class? The wealthy don't pay, the poor can't pay, so they squeeze the middle class. Certain classes of countries are designated as "developing nations." As the country "develops" they build a middle class, and the country's tax system develops with it. It was only a matter of time before Thailand started to track, trace, and tax funds. Perhaps 2024 / 25 is that year. Thailand has followed western countries in many ways, why wouldn't they adopt similar tax policies?

I agree, but if that's the case, why did they return the documents in previous years, but kept them this year? Could it be they are under new instructions? Makes you wonder if they will be requesting such documents at renewal time next year. Best to be prepared for the possibility.

The price of "peace" in Thailand went up in 2024.

An extension look near impossible then.

Apply again next week and you'll probably be issued one.

Since when did you think, as a farang, you have the same right to pay no tax as a Thai?

Not cringing. I had to refer back to your post with their rates, because the Local Phone website is down. So much for reliability. Now, can you tell me, EXACTLY, how much AUD will be withdrawn from my Aussie bank account when I pay the $10USD from my Aussie Visa / MasterCard? No, I didn't think so. How about calling 13 and 1300 numbers. You didn't answer my question. Could it be, you can't even call 13 and 1300 numbers with Local Phone? How would one call their bank, insurance company, utility companies, Super company etc etc? I really do "cringe" at the thought of not being able to call 13 and 1300 numbers with Local Phone. No problem calling these numbers with Skype. Why is Local Phone charging to call a Toll Free 1800 number? What a rip off. They are free to call with Skype. Looking at the entire packages from both companies on offer, Skype PAYG outperforms Local Phone on reliability and price. Simple as that.

You are correct, I had a VPN on that gave me US Skype prices in the post I worked the maths. In previous posts, the posts with the "AU" in front of the $10, those are the figures I should have worked. I see calls to landlines are about the same, but Local Phone is cheaper when you take into account the connection fee. I see Local Phone is slightly cheaper for mobiles. The thing is, when an Aussie customer buys $10AUD of PAYG credit with Skype, using an Aussie Visa or MasterCard, exactly $10AUD comes off the card. With Local Phone, you don't know how much money will come out. YOU can't guarantee the final price, can you? Banks take a conversion fee, even for a small amount like $10USD, then you get a lousy currency conversion rate. So, well over $10AUD is withdrawn from your account. On that basis, Skype may very well be cheaper.

I see you are hiding behind the OP. I am directing my post at YOU. It's YOU that is embarrassing yourself. YOU put forward both GBP and USD prices for local phone. Both currencies are subject to conversion rates from AUD. Thus, at the mercy of Visa and MasterCard conversion rates, and possible fees for converting. Skype PAYG deal in AUD, so you know exactly what you get, paying AUD, with a Visa or MastyerCard that is in AUD, unless one used their Thai Visa or MasterCard. You are dribbling now, because you can't even guarantee what the Local Phone customer gets in "credit" because it's up to Visa and MasterCard what rate they wish to give. If only Local Phone dealt in Aussie Dollars like Skype PAYG does.

As I just posted, so in 2024 they have decided the time has come. Why is it such a surprise? The party could last forever.

True, but in 2024 they have decided to pull the trigger. Why is it such a surprise? It's easy, untapped money, just sitting there.

True. It remains to be seen how many may move to the LTR, as they see a financial benefit to do so. It would be interesting to see some accurate stats next year.

Many countries will become cashless in the future, some of them maybe in my lifetime. When that time comes, how do you propose anyone with a bank account being able to escape the notice of their tax department?

I've said it from Day 1. All this discussion about what's assessable, what was savings before 2024, thresholds, gifts, allowances, deductions, using ATM's etc etc etc etc etc etc etc etc. I have said we all may just have to pay "something" and that "something" may not actually be the correct amount of tax you must pay as per the law, but it earns for the TRD, either legit or otherwise, and appears to developed western countries that Thailand is implementing tax residency policy, and world wide taxation, in an efficient manner.

Happy to hear why YOU think nothing will happen, especially considering easy MONEY is involved.

So, it's all fake news, is it?

I think you will find it's the more wealthy expats that will spend 6 months outside of Thailand, and that's because they stand to pay a considerable amount of tax in Thailand, yet receive zero for the money. I don't blame them for leaving. One must assess whether Thailand still remains a value for money retirement destination when compared to other locations. As for the average expat pensioner, there will be little tax to pay, but a little of a little may still have an impact on their lifestyle. There is some truth to what you say, the wealthy will reconsider investing, and possibly relocate, thus, leaving behind the not so wealthy. The opposite to what any country would want. I can't see it being swept under the carpet because this is global, and not just confined to Thailand. In the future, many more countries will implement the same tax policies. The days of tax havens, through tax residency, are slowly coming to an end.

Fair point. I think I have that the wrong way around then. If your extension is due between 1st January and 31st March you may sail through. After 31st March you MAY be required to product some type of tax document at extension time. So, we may have to wait until the 1st April 2025 to see what happens. This question may have been asked before, but with so many posts and threads I may have missed it, but can you apply for a tax return extension here? In other words, can you apply to submit your tax after the 31st March? If so, that might be a good idea so one can sit back, legally, and watch what unfolds after the 31st March 2025.

Can you tell me what "benefit" you got for paying tax here? Most, including myself, have paid zero tax whilst living here, VAT aside. Why do you proudly post that you have paid money for nothing here?