Krit

I wonder if Thailand has wash sale rules that would apply. In the US, for example, one cannot rebuy the next second but would need to wait 30 days before buying back the same securities.

This informative video has been posted today, but when was it filmed? Order Paw. 162 issued by the Revenue Department on November 20 has already made most of this information obsolete by exempting foreign-sourced income earned before 1.1.2024.

I would not bet too many million dollars on this belief, when experts advise otherwise. Remittances do not generate income and are therefore not taxable. Bank transfers do not result in taxable income under Thai laws. The tax burden arises when income is paid to a foreign bank account of a Thai tax resident (national or not).

I now asked Baker MacKenzie for clarification about the text "Tax residency status in the year of remittance is irrelevant." "This has caused some confusion. Does it indeed mean that foreign-source income earned after 1.1.2024 (while being tax resident) will be taxable even if it is remitted in a later year of not being a tax resident?" Their reply: "Thai personal income tax is based on cash basis - receiving income. A year in which a person receives offshore income is relevant, saying that it must be a year that the person is a Thai tax resident. Whether that person is a Thai tax resident in a year in which he or she actually brings income into Thailand is not relevant."

Thank you for kindly correcting me. I was momentarily confused by the Baker McKenzie presentation that was linked here earlier:

Yes. Foreign income earned after 1.1.2024 (while tax resident) will be taxable even if it is remitted in a later year of not being a tax resident. Tax residency status in the year of remittance is irrelevant.

They have actually produced a detailed guide with examples on how to calculate cryptocurrency trading profits. https://www.rd.go.th/fileadmin/user_upload/lorkhor/newsbanner/2022/03/Instructions_for_paying_personal_income_tax.pdf Translation: "Use methods certified by accounting standards such as first-in, first-out (FIFO) or moving average cost methods." "Income earners can choose a method of payment. When choosing a method If you calculate costs using any method, you must use that method throughout the tax year." Hopefully there will be a similar guide for foreign-sourced income soon.

We now know that offshore income earned in 2023 and earlier will not be subject to personal income taxation when brought into Thailand in 2024 or later. One more link to confirm this: https://www.lexology.com/library/detail.aspx?g=017cd161-512b-4f56-94d3-3f942a23fc4d A hypothetical scenario: Let’s assume that a Thai tax resident has a foreign brokerage account and has bought Apple stock for $60,000 a few years ago. The value of that investment is now $100,000. It looks like it would make sense to sell the shares in 2023 to realise a non-taxable profit of $40,000. The whole amount can then be brought into Thailand in 2024 tax free. Correct? If this investment is only sold in 2024 and remitted to Thailand, the profit of $40,000 would be taxable as capital gains in 2024. Now let’s assume that the investment is sold in 2023 but the proceeds are left on a bank account abroad. The bank pays 4% interest and no withholding tax is deducted. For clarity, the account will not have any other transactions. By January 2025 the balance would have grown to $104,000, of which $100,000 is old capital from 2023 and $4,000 taxable income from 2024. A sum $100,000 is then remitted to Thailand, leaving $4,000 abroad. Is this amount of $100,000 considered to be a) entirely tax-free capital from 2023, b) $96,000 tax-free capital from 2023 + $4,000 taxable interest income from 2024, or c) 96.15% (100/104) tax-free capital and 3.85% (4/104) taxable income?

More mentions of the 20 November 2023 instruction: DFDL: "The Instruction gives guidance that foreign-sourced income earned before 1 Jan 2024 and remitted into Thailand will not be subject to income tax." https://www.dfdl.com/insights/legal-and-tax-updates/thai-revenue-department-issues-additional-guidance-on-foreign-sourced-income-rules/ Mazars: "By virtue of this DI Paw. 162, Thai tax residents will not be required to include their foreign-sourced income earned before 1 January 2024 in their personal income tax returns, even if such income will be brought into Thailand from 1 January 2024 onwards." https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Tax/Further-guidance-on-Foreign-Sourced-Income The order and its (probably unofficial) translation https://www.carlturnerfinancial.com/wp-content/uploads/2023/11/Revenue-Department-Order-No-P.162A-2023.pdf

Finally there is some clarity. Foreign-sourced income earned before January 1, 2024, will be exempt in the future, irrespective of when it’s brought into the country. https://sherrings.com/foreign-source-income-personal-tax-thailand.html

How can one obtain a Dividend Tax Voucher for US dividend income received while living in Thailand? My broker offers these vouchers for multiple countries and they show the amount of tax withheld at source. For example, dividends from Swedish public companies have already been taxed 30% in Sweden, so there should be nothing to pay in Thailand when that 30% is claimed as tax credit in Thailand against Thai income tax. US dividends paid to non-resident foreigners living in Thailand are subject to 15% withholding tax. But I cannot find info on how to prove these amounts, as similar Dividend Tax Vouchers do not seem to be available in the US. There is form 1042-S but that is a form, it's not signed by anyone. Is it necessary to file a tax return with the IRS to take advantage of the double tax agreement?