4myr

I am keeping a spreadsheet about the Thai tax rules. The status as of now as I see it

did you check 19 where civil service pensions can be exempted?

For anyone wanting confirmation from Central TRD Legal dept about DTA exemptions and tax credits, you can direct your specific questions to [email protected]. I got this email address by calling the Legal dept of Central TRD, that is published on the rd website.

Thanks for this English link! It answers my case clearly. According to this TRD leaflet, my case is the 2nd 1st of the table, so ANSWER should be NO YES! Unfortunately this leaflet is one-sided on the DTA: 1) does not mention exemptions, if permitted in DTA 2) only mention tax credits, if permitted in DTA On evidence of tax credits, "Tax Payment Certificate issued by foreign tax authority is recommended." I was not even aware that my country's RD issues such certificates.

because CC 1161 is in line with a written FAQ question 1 from TRD [only in Thai language available], I have to agree reluctantly with CC 1161. On the other hand the owner of the expat tax filing service company has very good contact with TRD people in Bangkok. I can't understand why he is wrong in this: "If you are in Thailand for under 180 days per calendar year, you are a non-tax resident and you do not have to file a Thai tax return for foreign-sourced income. If you have income within Thailand, you may need to still file a return." Above is in line with https://www.rd.go.th/english/6045.html - "A non-resident is, however, subject to tax only on income from sources in Thailand.” However this statement is more generic than the specific FAQ question 1 case.

Here an update of my discovery of what the new tax rules should be. I consulted TRD call center [1161 or 1111], Dutch tax experts and a new expat tax filing service company, with an excellent Q&A database. Case: In 2024 I am tax resident, and I earn 2M baht. In 2025, I am not tax resident, and I transfer the 2M baht, which was earned in 2024. Q1 - do I need to file tax for 2025? Answers: CC 1161 - yes | CC 1111 - no | expat filing service - no | Prachuap office - no Q2 - do I need to pay tax for 2025? Answers: CC 1161 - yes | CC 1111 - no | expat filing service - no | Prachuap office - no CC 1161 answers in accordance to FAQ question #1. What matters is whether the income was earned in a year that you were tax resident. If yes, then you need to file tax, even though you were not tax resident in the year you transferred the income. Double tax agreement [DTA] Netherlands. There are exemptions listed in clause 23.5, for which these income types are not taxable in Thailand. For example, capital gains on property in NL [14.1]. And director fees [16.2] Answer CC 1161: cannot answer. I am not a lawyer. Answer tax office: not exempted, only tax credit can be applied. Answer DTA expert: exempted, however [also stated in DTA 23.5], if you transfer other income sources in the same tax year that you transfer the exempted income [e.g. profit of the property], these other income sources will be put in a higher tax bracket. The tax bracket is calculated as if the profit is not being exempted. Bottom line - only transfer the profit then you don't need to pay tax The DTA also states/limits the tax credits that are allowed. For the NL DTA these are clauses 23.6 and 23.7. Answer tax office: payroll tax paid in NL, can be used as tax credit Answer DTA expert: Payroll tax is not stated in 23.6 or 23.7, so it cannot be used as tax credit

Well a tax expert of the Dutch DTA says that DTA should be leading [PWC's quote]. So this small provincial tax office of mine is wrong. As I read UK's DTA 23.3 it has a more open clause that any UK income source for which tax was paid, can be used as a tax credit. The Dutch clauses 23.6 and 23.7 limits/refers to only a few income sources as allowed to be used as a tax credit

On the topic of foreign tax credits, anyone can shine a light on these 2 quotes of two consulting firms I found. My question: what is common practice right now? Or are there different practices in the land? From my first visit at my local tax office in Prachuap, my local tax officer offered me foreign tax credit on paid payroll tax. While my country's DTA does not mention payroll tax for which a tax credit is permitted. Yes I understand that my local tax officer is hardly knowledgable of the contents of DTA, But I assume she got some general instruction from higher management, that already paid tax abroad, without any distinction, can be applied as a tax credit. https://www.lorenz-partners.com/taxation-on-foreign-dividend-under-thai-law/ https://taxsummaries.pwc.com/thailand/individual/foreign-tax-relief-and-tax-treaties "Foreign taxes cannot be taken as a credit against Thai taxes unless permitted under a double tax treaty (DTT)."

same thoughts here. If I do like this, I can stay away from TRD for 2-3 years without any foreseeable risks in case they audit me. During this period TRD staff hopefully will be better prepared with a uniform and documented way of taxing remittance income, including taking care of DTA exemptions. In this period Thailand will also likely sign the new 2023 Netherlands DTA.

thanks! I see that the Thai version of PND90 pdf form is different and has an extra category "Other" under item 3.6. I retrieved both English and Thai forms from the RD site. So only the online form has reference to RC 40(g). I searched the Revenue code for "tax credit". It only refers to the Thai context in Section 47Bis, and is not related to foreign paid taxes. I assume for 2024 they will update the forms.

Would like some feedback on my tax filing example according to the Simple Tax Guide. I am filing for tax resident year 2025 using this PD90 form. In 2024 I was not tax resident. I will remit all [assessable and exempted] income cases I can possibly have in 2025, just for the sake of this example. I never filed a tax return in Thailand before. Income Excluded from PD90 According to STG, I can exclude all exempted income of RD ruling P161/2566 and DTA exemptions as assessable income, so I will not declare them in PD90, but I will keep records for audit purposes: all earnings before 2024 all savings before 2024 I was not tax resident in 2024, so all earnings of 2024 I can exclude, i.e. capital gains on sold stocks in 2024, director’s fee 2024, state & company pension 2024, dividend 2024 my NL DTA exempted income from tax resident years, i.e.: director’s fee of 2024/2025 state pension of 2024/2025 sold property in NL with profit in 2025 and remitted principal and profit in 2025 Income declared in PD90 item 1 / salary, wage, pension: company pension 2025 [paid NL tax 30%] item 3.3 [dividend from foreign company] - dividend 2025 [paid NL tax 25%] item 3.x / capital gains sold stocks - where I can declare gains of sold stocks in 2025? [no NL tax paid] item 7 / income from business or sale property: not declared sold house 2025, because exempted item 8 / income from sale property: not declared sold house 2025, because exempted item 11 / tax computation 11.12 / total tax payable 11.13 / Less: is this the place where I can declare my total foreign tax credits from items 1 and 3.3? Record keeping for audit purposes Record keeping not described in STG. 2025 / all foreign sourced Wise transfers to my thai bank accounts. Wise also reports exchange rate pre-2023 / 2023 / 2024 / 2025 - all exempted earnings, e.g. director fee or state pension statement, deed transfer 2025 of sold house, company registry extract with names of directors, annual bank statements, buy / sale receipts on sold stocks in 2024 / spreadsheet profit calculation, dividend in 2024, optional tax assessments NL-RD 2023 / 2024 / 2025 non tax residency 2024: I will not use eGates of Suvarnabhumi so I collect all passport stamps, reminder emails 90-day reporting, 90-day reports, boarding passes exit /entry Thailand 2025 assessable income company pension statement of 2025 [tax credit] dividend statement of 2025 [tax credit] tax assessment NL-RD 2025 [accrued tax credits] buy / sale receipts on sold stocks in 2025, spreadsheet profit calculation

you missed my point. I agree with you, in most DTA's only the state funded pensions are exempt

Avoidance is I'm afraid not possible if you're a tax resident. However you can bring in money which are exempted in the P161/2566 ruling, e.g. earnings before 2024, or for which you have a tax credit evidence available. I was watching back a TRD legal expert called Khun Nathanan Junprateepchai talking to the Swiss ambassador that the Swiss pensioners should not worry, as he referred to the Swiss DTA that Swiss pensions will not be taxed in Thailand. Compare that to the position of his colleagues in my local office.

Recalling back to the meeting I tend to agree with you. All tax officers in the meeting were only referring stuff from the Revenue Code, as if an international agreement like a DTA does not have any meaning, even to the lawyer in the room, while it should supersede national law. Unfortunately for any law abiding tax resident, it's easier, cheaper and less frustrating not to escalate to RD headoffice/court, but to use the legit escape routes available in their tax rules, to achieve the same result as applying the DTA.

read my report on the tax office visit on this subject

From the FAQ of TRD case #1. As I understand it, income remitted is only assessable income, in case both conditions apply: [1] the income remitted was earned in a year that the person was tax resident [2] at the time the money is remitted, the person is also tax resident In case one of the 2 does not apply, that income remitted is not assessable income. The simplest case to check for any person from the tax office is when [2] does not apply. I can also stay less than 180 days when I sell my stocks with profit [1], however this situation gives me more headache. To file tax in the year that I transfer the money and be dependent on a tax officer who will apply this rule correctly

Well, almost 5 months after signing the PEA contract end of Nov last year, still no change in the situation. Our neighbour who hired an installer got his first electricity sale within 5 weeks. So we called the guy we met in Petchaburi when we signed the contract in Nov. He checked our queue number. He said that it will take another 1 month and 1 week before the contract will come back to his desk, after the different departments has signed off on our contract. Then a few weeks will pass before we get a final inspection of our solar system. So we should expect end of May that the contract can start. He also said that PEA has 270 days after signing the contract to finish the backoffice procedures. It never happen that they cross past these 270 days. Also he said, fortunately the 10 year duration of the contract will commence after the backoffice procedures finished, and not after signing the contract.

Here a short summary of the 2nd meeting at the tax office in Prachuap Khiri Khan. First I planned to go to the office in Hua Hin, however I found out, Hua Hin has a much smaller branch office. This time the topic is "exemptions" as specified in the Double Tax Agreement between NL and Thailand. Based on hardcopies in Thai and English. Both documents were retrieved from the Thai RD office. We made an appointment with a lawyer from the Legal dept of the tax office. He asked his colleagues to join, 2 colleagues from the operational department. His female boss and a junior colleague who were in the room also listened to the conversation. Focus of the meeting is the interpretation of Article 23.5 "exemptions" of the NL-Thai DTA from 1975: https://wetten-overheid-nl.translate.goog/BWBV0003872/1976-06-09?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=nl&_x_tr_pto=wapp "Where a resident of Thailand [i.e. tax resident] derives benefits and income or owns assets which are subject to the provisions of Articles 6, 7, 10(7), 11(5), 12(4), 14(1) and (2), 15(1) and (3) paragraphs, 16 , paragraphs 2, 17, 19 and 22, paragraphs 1 and 2, of this Agreement may be taxed in the Netherlands, Thailand shall exempt such benefits and income or those assets from tax, but may, in calculating the tax on the other income or capital of that resident, apply the tax rate that would have applied if the exempt income or capital had not been exempt." The wording "shall exempt" is very clear to me, and means no tax in Thailand, even if NL does not apply tax, for the following revenue items, which apply to me: 1) art 14.1 - in case I sell my house located in NL with profit and I remit this money. Capital gains are not taxed in NL. 2) art 16.2 - fees as a director of my company, which is based only in NL. Does not have a branch in Thailand 3) art 19 - when I retire in a couple of years, the state pension I will receive from government funds. Well in the meeting, the tax lawyer did not express his opinion. But his colleague from the operational dept was very clear and vocal. That in the history of tax filing cases, she did not come across exemptions being applied. Only tax credits are allowed. Well I told her politely that I disagree with her, as the English version of 23.5, which I downloaded from the TRD website is quite clear, and when a dispute arises, between NL and TH, the English language version will be leading. I also told her that the DTA is also clear about tax credits, which should be regarded differently than exemptions, in the subsequent article 23.6: "Thailand shall grant a reduction in the tax calculated in accordance ..." In case I do not agree with her answer, I can send the local tax office a written letter in Thai. Then they can open a case to request for advice to the head office in Bangkok. The officer said she will look into the matter again, if there were exemptions in the past, of tax not being applied in above mentioned cases. Unfortunately the lawyer in the room did not say anything different than repeat what his colleague has said. His female boss printed out a case of a Swedish guy who filed tax about capital gains on stocks, however this does not match my case. I understand that gains on stocks does not get exemptions, also according to NL Thai DTA, as it is not fixed to a country similar to a property or a company. At the end she had a simple advice, which will save time for me and the tax office. In the situation that I need to transfer sums of money, make sure I stay less than 180 days in that year in Thailand. I also had a question about record keeping, in case an audit will check my records as evidence. The officer said that the RD got a lot of questions on this matter. She said that the RD head office will come with a document which list all these record keeping requirements. She could not say when. For example, on the day that I transfer money to Thailand, I need to keep a record of the euro-baht exchange rate of that day. [PS. I assume to convert a tax credit in euro to thai baht]

Seems to me that above exemptions [I highlighted] are covered in my country's DTA including state pensions.

Agree. I'm in the process of discovery right now. Double tax treaty and remittance rules seems to be clear now. Only scare is if my local tax officer is willing to spend time to learn the exemptions from my country's DTA stated in non plain Thai language. Also in discovery with my tax office is to find out the specific records that need to be kept for each income type and whether credit can be obtained. For example dividend income from a company where I am a significant UBO is called in Dutch tax law "box 2" income tax: "Tax on substantial interests (box 2) In box 2, you pay tax on any substantial interests. You have a substantial interest if you, or you and a tax partner together, own at least 5% of the shares, options or profit-sharing certificates in a company. You pay 25% tax on income from substantial interests." Try to explain to a tax officer such a type of income. Because there is also dividend income from stocks under box 3, which is called the wealth tax.

Please read the FAQ question 1 https://www.expattaxthailand.com/thailand-revenue-department-foreign-sourced-income/ The year that you remit the money, 1) you are obliged to file tax, and 2) the income you remit was earned when you were tax resident. When do you need to file a tax return: 1) as tax resident and your remitted income & Thai income > 120K as a single, or 2) as non tax resident your Thai income > 60K as a single. However filing tax return in the 2) case, you don't need to file remitted money as assessable income. Something I have not asked the tax office yet, but I saw a foreigner tax lawyer speaking about this situation. In an audit, they can ask you whether the income you earned in case 2 has been tax filed in the country that you were tax resident at that time. So they can ask you for a tax assessment from the RD of that country. I don't know if this is correct. For example in my country I don't need to file capital gains, as they are not taxed.

To my understanding: if you remit > 150K you need to file tax if you're resident. Only savings prior to 2024 in fiat currency accounts are exempt from taxes, not investments stored in securities accounts or non fiat currencies.

This is the case I prepared to ask them: Case 4: In 2024 I am tax resident and in 2025 I have filed tax for 2024. In 2025 I need to be 8 months in NL to sell my house. I also intend to transfer all the income of my sold house to Thailand in 2025. In 2025 I am not a tax resident. Am I obliged to file my taxes for 2025? Will RD office send me a reminder to file taxes on tax year 2025? If so, do I need to come to the RD office to show that I am not a tax resident in 2025.

My opinion: I think they will try to catch the big remitters [known thru the bank reporting system] first who are also tax resident [for Thai citizens - 100%, and for foreigners - I think RD is not connected to the Immigration 90-day reporting system, which is also not yet adapted to this new tax rule, so difficult at the moment]. EDIT: unless you as a foreigner already has filed before, as you are obliged to if you remit more than 150K baht in a year that you are tax resident.

Yes it's my opinion. Next week I will report you my meeting with another tax office in the same province and will ask them the same questions and tax filing cases.