Misty

Thanks for the excellent post and suggestions from your tax adviser. Since you had worked for a multinational previously, does the tax adviser think that you also produce PND90/91s establishing that you have paid Thai tax and are simply remitting that principle at this time?

Yes, I'm interested in the link to the new rules that state this: Quote: "The new rules state that if you spend more than 180 days in Thailand per year, you will be required to declare all of your foreign income, regardless of when it was earned or whether it was remitted to Thailand. Where and how was this stated?

Interesting. Could you post a link to the new rules stating this please?

Agreed that that would be a nonstarter. It'll be interesting to see if this ruling holds whether there may be exemptions. Still, if I understand correctly, the tax if only for tax residents who haven't already paid tax on the income to a country where there's a DTA. So if you aren't a tax resident yet (for example, you don't yet have an LTR), then no tax. Or if you have tax reporting records showing your $500k has already been taxed, then no tax.

If a Thai retired to America, they almost certainly would be a US tax resident, and also a tax resident in an individual state. They may owe US and especially state income tax on income generated by their global assets. Unless they only have cash stuffed in a mattress they will be receiving interest, dividends, capital gains - all taxable. In some cases they may also have to pay income tax to an individual city. And if they purchase a property (as many do) they will also owe property tax.

It depends. If the income is wages Americans can chose to exclude up to $120k in 2023 from their tax calculation. However, they'll still owe tax on other types of income, such as capital gains, interest, dividends. Or if it makes more sense, they choose not to exclude $120k, but instead take a foreign tax credit against any US tax owed. The latter can work out better in cases where Americans earn and pay foreign tax on substantially more than $120k in non-US wages.

Rhetorical questions

MistyBlue, there is some disinformation circulating that is confusing savings with return on assets. I've been sent it a couple of times now. Like your name btw.

Interesting. I was forwarded an email with nearly identical wording from a completely separate, non Thai government, entity. So I wonder who really originated this verbage - was it Thailand Privilege, the sender of the email I received, or someone else? Especially the bit that is highlighted which seems pretty much nonsensical.

What if they earn all that before they became a Thai tax resident. Or as in my case if they earned all that and paid Thai tax on it already as a tax resident, but before getting an LTR visa.

Hi K2938 I emailed and received that response yesterday, 26 Sep. Cheers.

It's online.

AMCHAM Thailand's excellent Tax committee has a seminar on this subject on 4 October.

Text from an email from the BOI LTR Unit: "Please be informed that normally, your overseas income will be subject to Thai personal income tax only when you are a tax resident (staying in Thailand 180 days or more in a tax year) and have brought such overseas income into Thailand in the same tax year that you are a tax resident and have received such overseas income. Please refer to Section 41 of the Revenue Code. If the aforementioned conditions aren’t all met, your overseas income won’t be subject to Thai personal income tax and you won’t need personal income tax exemption under Royal Decree No. 743. If those conditions are all met and you have been granted a Long-Term Resident Visa for Wealthy Global Citizens, Wealthy Pensioners, or Work-from-Thailand Professionals, you will receive personal income tax exemption on your overseas income under such Royal Decree even if you have brought overseas income into Thailand in the same tax year. Royal Decree No.427 Link (Thai): https://www.rd.go.th/fileadmin/user_upload/kormor/newlaw/dg427KA.pdf Royal Decree No.743 Link (Thai): https://www.rd.go.th/fileadmin/user_upload/kormor/newlaw/dc743.pdf"

Martin my experience with Immigration and the increasing difficultly and requirements of renewing a NonB visa was similar to yours. One difference was that I own a Thai company, and therefore had a binding commitment of sorts. I switched to the LTR visa and have been very happy with the BoI. They are a pleasure to deal with, and the LTR visa itself is a real breath of fresh air. It's interesting to me now that the Royal Decree granting LTR tax privileges seemed to be specifically intended to thwart any change in interpretation of the Thai Revenue Department's Resolution No 2/2528. It's almost as if the change in interpretation we see now was known, and expected, when the LTR visa system was set up.

I have asked the BoI explicity on income remitted, and they have answered me. Why they answer me and not you I do not understand. Do you have an LTR visa? Please post links to your 14 advisors who all agree that this could change everything for LTR visa holders.

No, every tax advisor is definitely not saying that. And neither is the BoI. Before you post again here, perhaps you can write and ask them as so many of us LTR visa holders already have?

Can a directive override a Royal Decree?

Who was the tax expert?

Confirmation today from LTR unit by email. I haven't seen a new tax law only a Thai internal RD directive. Can you post a link to the new law?

I received written confirmation from the LTR unit by email today. However, you can also check out this English translation of Royal Decree No. 743) B.E. 2565 (2022). See Section 5. https://ltr.boi.go.th/documents/Royal-Decree-743.pdf Section 5 Income tax under Part 2 of Chapter 3 in Title 2 of the Revenue Code shall be exempted for a foreigner categorised as Wealthy Global Citizen, Wealthy Pensioner, or Work-from-Thailand Professional who is granted a Long-Term Resident Visa under immigration law for assessable income under section 40 of the Revenue Code derived in the previous tax year from an employment, or from business carried on abroad, or from a property situated abroad, and brought into Thailand.

No, sorry but that is not correct. Three of the LTR visas DO exempt foreign income transferred into Thailand from Thai tax. Only one visa does not: LTR HSP.

There are different types of residency - for example "legal residency" (which in Thailand might be considered Permanent Residency (PR) status, or perhaps Long Term Residency (LTR) visa status). Separately, there is "tax residency" which is not related and often is simply based on number of days spent in a tax jurisdiction. So you could be a tax resident, but not a legal resident.

Yes, my LTR e-visa said the visa must be used 10 years from the issue date.

It doesn't avoid Thai income tax on all income. LTR visa tax benefits include exclusion from Thai tax on foreign source income only. But you're still taxed on local source income, including work, local dividends & interest.