Schuimpge

Hopefully it will go the same way as the Crypto-Tax 2yrs ago. Memo out from Revenue Department: Starting 2022, everyone need to report their income from Crypto trading and pay 15% withholding tax on that. Crypto Exchanges: Mr. Revenue, how do you want our customers to calculate the income? Revenue Department: Errmm, we don't know. They just report income to us. Crypto Exchanges: Here's a list of possible ways to calculate, and by the way, by law we are not required to provide you any info on our customer's trades, just to note.. Revenue Department: Hmmmm that's going to be very difficult..we'll get back to you. Revenue Department: Ok, we've decided to delay the tax for 2 years. In January 2024 everyone has to report their crypto-income in their Personal Income Tax. But, there's still no clear directions on how to calculate that income.

Check the Dutch taxes: They'll tax your savings based on an ASSUMED ROI! Yes, you read that correct. They assume you could make 5% on your savings and that's your tax-rate on it.

Thanks for the detailed breakdown. Yep, indeed with more allowances and exemptions, tax becomes very reasonable in Thailand. My calculation was based on 65k p/month with no deductions as a maximum tax payment example. I divert some of my monthly income between my wife and myself, so that I stay in a lower tax-bracket for example. if there's parents or grandparents, that would also give you deductibles, but only for one child (if there's more than one that pay tax). Put some money in an RMF or SFF. Not the highest returns, but it's a maximum of 600k THB that you don't give to the tax-man, instead you create a nice savings account. Do that for a couple years and you don't have to worry about health-insurance so much, instead consider paying cash if anything happens and maybe use the cheapest health-insurance available.

Your Calculation is correct, but you forget the 60,000 taxpayer allowance deduction. So the taxable income would be 720,000 THB.

Guess not, it's money that's not taxed before.. but that situation would likely mean that you're also in the tax-exempt bracket over here, assuming that you're from a low-income country in such situation and working here to support your family at home.

No, it would put you in the 15% bracket, which puts your monthly tax at 145 USD. example tax.xlsx

Thai Tax is dead-simple. Attached a calculation sheet that my accountant uses for Personal Income Tax for me and the wife. I filled it in with no deductions or savings, just basic 12 month salary of 100k/month as an example. To use it: Empty Cells B3 to B5, Cells D14 to D17 and Cells E21 to E28. Let's start with assumption that your salary is 50,000 Baht per month. Step 1: Fill in Cell B3, basic income p/month (50,000) Step 2: Fill in B4 all the way to B17 if applicable (more later). Step 3: you see a number appearing in Cell E31. In this example, if you put 50,000 in Step 1, the amount should be 540,000..The dark blue cells E21-E28 should be empty. Now, start with Cell E21, your first tax bracket. Put 150,000 there. You will see that cell E30 shows 150,000, Cell E31 now shows 390,000 Go to Cell E22, next tax bracket, fill in 150,000. E31 now shows 240,000. Continue with the next cell until E31 shows zero. Step 4: Cell H29 shows your tax to be paid. (there's a number below it which is a quick USD calculation. Forgot to delete that.). Deductions: Cell D9, prefilled and already included in Cell E30 calcultation Cell D10, expense allowance. I get 100k allowance deductions. Company expenses basically. Check for yourself. Cell D11, each child (under 18) gets a deduction of 30,000 THB, but only for you or for your wife, not both. Cell D14 to D17: putting money in various savings can basically reduce your tax by up to 600,000 THB combined. Basic idea is, Not more than 30% of income can go into savings for tax-deduction and the total deductions combined can not be more than 600,000 THB. All these deductions will show up automatically in cell E31 when you fill them out. You can choose monthly tax payments if you want (assuming you're employed). Or pay at tax-submission. Column K to do a quick calculation for that. That's basically it! Can't explain it any more simple. TaxCalculationThailand.xlsx

Using an excel file. My accountant uses that to prepare my taxes. Will drop an empty version here tomorrow. Thai taxes are dead-simple. Literally 10 minutes

Thanks for that info. Very useful. Question: Let's say I apply and be granted an LTR Visa in 2024. I have my savings/investments from working, it's outside Thailand. I put my savings in Fixed Deposits and they start generating interest. Would the generated interest then be considered Tax Exempt?

What I'm really curious about is: With an offshore account, using a debit or credit card, how will they track/tax that? Speculating here, if I pull cash from an ATM with a foreign debit-card, pretty sure that banks can only track transactions linked to their customer's accounts because of security measures around ATM card use. So when a foreigner using an ATM card from a foreign bank gets cash from say BBL ATM, then the ATM establishes a link with the foreigner's bank and only records the cash withdrawal, but not the account-details from the foreigner. Credit-cards are even worse I guess...

You're right..I copied that info from the links given by the OP. They used LTR-visa, which I copied, and I assume (from their wording), that they mean elite-visa.. but it's 2 different visa.

Sorry, read your post again, it's the opposite from what I understood at first. Lowering the starting bracket for income tax you mean if I read correctly. That would be really messy with very little extra revenue I think. Let's assume very generously that you'd get 10 million people to pay the lowest tax-rate. 10m x 33,500 THB ~ THB 29 billion. Attack the top 5% richest people in Thailand. That would instantly solve financial problems for the next 10 years..lol. Another source would be non-registered businesses. There's hardly any person that sells stuff in markets and along the street that pays tax. Plenty of them make a decent living from that. Why do I have to register my business and they do not?

Lol, yep.. as clear as mud, since LTR tax rules are now basically void given 'Foreign Source Income' instruction No. Por 161/2566 item number 2: "All rules, regulations, orders, responses to consultations or practices that are contrary to or inconsistent with this Instruction are cancelled;" So any 'wealthy citizen or retiree or work-from-Thailand' person who just invested a million baht in an LTR on the basis of zero tax now needs to pay tax on funds brought into Thailand if not under double tax agreements. I see some nice mess coming up. Sure will kill off the elite visa scheme.

It already works that way. First 150k is tax free, then up to 300k is 5% etc. 35% tax applies only to income above 5m THB. So for a foreigner living off a pension, if you'd spend 100k THB/month, you would pay zero tax if your country has a double-tax agreement, if not, then your tax (without deductibles) would be 150,000 THB/year. (GBP 282.00 p/month) If you're living of 50,000 THB p/month and you had to pay full tax, then your tax p/year would be 33,500 THB (GBP 63.00 per month).

To end all confusion, the correct interpretation is: "The law is aimed at all Thai tax-residents with overseas funds/income/earnings". (A Thai tax-resident is anyone residing in Thailand for more than 180 days per 1 calendar year.) You could be Santa from the North-Pole, you're a tax resident if you stay here for more than 180 days in one year...