Misty

I think we're saying the same things, but just to be clear in this context: * Thai-sourced income is income earned from/while working in Thailand. Doesn't matter if it's paid into a foreign bank account. * Foreign sourced income would be dividends/interest/capital gains. Not from working Lots of moving parts here so not sure of the full details in the quotations in your post above. I've talked to KPMG (and others) about this subject.

Agreed, hopefully FAQs are in the works as the LTR program gets rolled out. I've heard the BoI, as a professionally-run Thai institution, was some what reluctantly roped into overseeing the new program. No doubt some toes were stepped on in doing so. And although the program itself was announced as much as a year ago, the rules & regulations supporting it were only very recently approved. To me it looks like the BoI is was dealt a difficult hand and is doing pretty well with it. Let's hope things improve from here.

BOI has explained that the annual report is the same as the 90 day report, only the reporting is done annually. No other documentation required. And if you leave the country during the 1 year period, the clock resets and you have another year before making an annual report (also similar to 90 day report, just longer time frame). Doesn't sound like much of a landmine.

I think the answer may lie in the definition of "income earned overseas" - if it is earned by someone working in Thailand, it is considered "Thai sourced income," or "Thai earned income." It isn't "income earned overseas." Overseas income would be passive in nature - such as dividends or interest received. At least that's how it's been explained to me by Thai tax professionals. And again, I am not a tax professional and would welcome one to jump on here.

I agree, all great questions. I'd welcome a tax professional to answer them (I'm not in that category). Just passing on what the professionals have told me Thai law says. Practically speaking, I've heard that answering emails on a vacation or visiting Thailand for a business meeting isn't really an issue. On the other hand, you'll see people living in Thailand and working online or paid offshore claiming the Thai tax code says their income is only taxable if they bring the funds into Thailand in the year it's earned. Tax professionals say that's wrong.

That's what I've always been told by tax professionals. Income from working ("active") is classified differently from income from other activities such as investing ("passive"). And taxation works differently for active versus passive income. As you say, income from working while physically located in Thailand is considered "Thai-sourced" and subject to Thai tax. It doesn't matter if the income is paid into an offshore bank account, the employer/customer is offshore, you leave the funds offshore for more than a year, etc Double taxation agreements help for those who also are subject to tax elsewhere, for example US citizens. But US tax can be substantially reduced or eliminated with the use of foreign tax exclusions and credits. Also, other nationalities who can claim tax residency in Thailand may not owe tax elsewhere.

Agreed that they need to rethink this. My guess is this program may get off to a slow start, but will evolve overtime. For me the attraction is the length of the visa/work permit combination and the removal of all the hassles and changeable, seemingly arbitrary requirements needed for NonB visa, and separate work permit, annual extensions. Also as bonuses it's great there's no need for 90 day reporting or re-entry permits, and airport hassle is supposed to be minimalized too.

Hi Michael, best bet would be to ask the LTR unit directly. Since this option is so new there isn't yet outside knowledge on how different situations might be viewed by the LTR unit. The LTR unit says they're pretty busy ahead of the 1 Sep start date, so you may have to wait a bit before getting an answer. But they have been answering emails and FB messages, and they seem to be active on Line. They've also done online seminars with Q&A and maybe there will be more.

Maybe get a second opinion from an actual tax lawyer. The tax dude's interpretation could hit the fan as the IRS ramps up with new funding....

Some good news - I received a similar email yesterday saying the pre-screening documents are acceptable, and to submit them online on 1 Sep.

No hard feelings. It's a case of choosing your poison, as it were. The NonB/work permit system for small business owners has become increasingly dysfunctional over the years. In comparison this new system is relatively painless.

You bet. All the other programs seem to be still in place, travesties that some of those are. So you can suit yourself too.

Done that past 15 years. this is obviously better, for those who qualify. What problem do you have with it?

I own and operate my own company. I don't think I can do that with a simple Non O and Bt800k in a bank.

Yes, definitely for some. Unfortunately not for all.

Yes, further clarification will be helpful in some areas. If you get anything in writing, please let us know. At least 3 of the categories of the LTR visas comes with a special "digital work permit" which can be granted for periods up to 5 years and does not require 4 Thai employees per foreigner. But it's conceivable that an LTR visa recipient could apply for a normal work permit, I suppose. In that case would the normal rules apply - i.e., renew every year with tons of paperwork, and require 4 Thai employees. I have that already. The digital version sounds much better to me. The written Thai has been translated both as "retiree" and "pensioner". If this category is more or less identical to the "Global Wealthy Citizen" program except for under 50s, that would be good to know. Might defeat the purpose of trying to attract investment, though. It's hard to see why someone aged 50 or over would invest anything at all if they qualify for both and can also get a digital work permit as well, but as a retiree/pensioner.

Can Thailand help but be involved? From the FT's "Go to south-east Asia, young one" by Janan Ganesh (shared with permission): "With its ambiguous geopolitical posture, this region (ASEAN) is going to be what The Economist calls the “main zone of contention” between the US and China. Each superpower will deluge it for decades with investment and official attention." https://on.ft.com/3wnyqCR

Yup. Ever wonder why that is?

Does seem like the effort is real. Thank heavens there may soon be alternatives to the existing problematic system. This new program isn't perfect, but many issues are addressed. Should attract new folks who qualify. Also great news for existing visa/work permit holders - those who have been above board, i.e., never fed the wolves, but the wolves come sniffing nevertheless. Great to get away from them.

Many thanks, guess that option is now off the table. Maybe they're overwhelmed with lots of enquiries. In that case, planning to call next week to make sure all looks good with our pre-screen email and documents.

I listened to the Zoom call and there were two sections of the call where it did sound like the presenter was either saying explicity, or otherwise implying, that a Wealthy Pensioners could work. One was an explicit statement in the beginning of her presentation, and then indirectly during the Q&A, the second questioner. I had raised my hand at the beginning of Q&A to ask a couple of questions including about this, but unfortunately didn't get called on. It could be a misunderstanding, or that the presenter misspoke. It's hard for me to see how someone could be a "retiree," but also be granted a digital work permit. Will try to get clarification on this point from the BOI directly. And if anyone else gets clarification, please post.

Many thanks for your updates on this. May I ask how the BOI communicated that it could take up to 20 days to review? Asking because we submitted the required prescreening documents last Monday. Haven't yet received a BOI response to the email, such as a verification or an estimated of time to review.

The link from expattaxes confuses tax residency (a tax status) with permanent residency (an immigration status). An expat in Thailand can easily be a tax resident without ever getting permanent residency. From KPMG Thailand's website: "A resident of Thailand for tax purposes refers to an individual who is present in Thailand for a total of at least 180 days in a given tax year (being the calendar year)." https://home.kpmg/xx/en/home/insights/2021/08/thailand-thinking-beyond-borders.html

How do you know Jesse isn't on Asean Now

We've had legal and tax consultation on this topic, and always been told that officially work done in Thailand is work in Thailand, no matter where the employer is or the salary is paid. But my understanding is that if a foreigner is here for a shorter period of time - say on vacation or a business trip, there should be no problem with working online, sending emails, etc. However, for longer periods - say more than 183 days in a calendar year - a work permit is in fact required by law. In that case it wouldn't matter that the work is done online or that the employer is overseas. Be happy if any legal or tax adviser could jump on and clarify.