Klonko

Very clear before my post. Exclusively recommending professional advice for any gifts is a restrictive approach. It is your tax guide and your choice not to elaborate on publicly known parameters. Based on my experience with a reputable Thai tax consulting firm last year, which did not provide specific answers to specific questions, I would not expect too much clarification beyond the known parameters (traditional gift) and each one has to make his or her own assessment. Given the Ferrari example it is not necessarily a domain of the wealthy.

Although I consider Mike's approach to gifts as too restrictive and have set up a structure with a gift component for myself, IMO your structure is tax evasion.

The THB 1m gift is not subject to tax if it can be classified as traditional gift. In your example, it depends on the circumstances if it is a traditional gift. AFAIK inheritances are taxable regardless of remittance to Thailand.

As regards tax exempt gifts, I start with the most recent TRD statement known to me (video). Key requirement for tax exemption is traditional support i.e. gift given as moral obligation, regardless if remitted from a foreign or Thai bank account. It may be that support for the spouse is assumed to be a moral obligation without further scrutiny. Remitting money to a child for buying a Ferrari is not a tax exempt gift. Mike is correct that gifts are not a general remedy for tax optimisation. In my case I have been supporting my wife with THB 40k monthly from my Thai account until last year. She used the money for joint expenses, personal expenses and family support. Since this year, I am remitting the equivalent of THB 60k monthly to my wife from my foreign income account. I still contribute more to our joint expenses from my Thai account. There is a risk that the remittances to my wife are not (fully) considered as gift but as her tax assessable income. Worst case THB 34k taxes. However, given the information available, I consider this risk as low and would not expect substantial fines as IMO I have classified the remittances to my wife as gift in good faith. I could remit to my wife from my foreign savings but, as long as TRD does not apply stricter standards, I will keep the savings for future remittances to my Thai account, which protects me from taxes for many years without recourse to a non-Thai tax resident year. Tax planning regularly requires a risk based approach, because the eventual tax rules are not known.

The Deputy Director of the Legal Affairs Division of the TRD (Swiss Embassy Townhall February 27, 2024): Gift tax.mov

AFAIK Thai tax residents are subject to inheritance tax on inheritances received regardless of the domicile of the testator, the country of inherited real estate (often not protected by DTA), and the remittance of inherited funds to Thailand. However, exemption thresholds are high and inheritance tax rates low. Better to file for inheritance taxes if necessary, at least when you plan to remit inherited funds to Thailand.

There are a some people who think that the gift tax rules may only apply to gifts from funds which have been subject to Thai income tax assessment. TRD has publicly stated that, while foreign income of a Thai tax resident remitted to himself is tax assessable, traditional gifts [remitted from the benefactor's foreign account to the beneficiary's Thai account] are not subject to income tax. To date, I have not seen any official statement to the contrary. In my case, I now support my wife directly from my foreign account, after having used my Thai account until 2023. "Traditional gift" usually derives from a moral obligation.

TRD will probably set up a system to tap the broader tax base after the the following year remittance loophole has been closed. I do not expect strict enforcement because the cost outweighs the benefits for TRD. I consider a THB 220k remittance hurdle not to be efficient. A non tax paying Thai tax resident remitting THB ≥ 1m per year could be a promising target and better does some tax planning. May be the retirees with the minimum required income will fall out of scope, but nothing is granted.

Nice if the TRD officer is lazy from a tax collection point of view. Less nice if the TRD officer chooses the accounting method which is maximising tax collection. I do not expect TRD to establish consistent rules on accounting and DTA. I would be happy to be proven wrong.

Given your general cautious approach for example as regards gifts, I consider it quite aggressive to recommend the keeping records option even with the hope caveat. I would recommend keeping detailed records in order to be able to use the TRD accepted accounting method once, if ever, TRD has made up its mind, but in the meantime, segregated accounts are the only valid option.

There are quite a few people on this forum and many elsewhere who could benefit from a lifetime Elite Membership. However, such people are likely to have already Elite or LTR visa. Further, a prospective buyer needs to play golf and live in the right area for the perks. BTW, the new point system is rather a sales strategy for cheap charlies than for wealthy people.

Crossing the intersections on this dual carriageway not being able to stop under the assumption cross traffic has to give way is, as said, recipe for disaster. You have a "stop" line on the dual carriageway way, a minor cross road, left (car) before right (tricycle) and the tricycle on the intersection before the car. There is no common understanding of the applicable traffic rule among the drivers using sich crossings The discussion of the right of way is interesting to allocate responsibility after an accident. Else, common sense rules, and you better not drive in Thailand if you do not get accustomed to.

Better than new privilege memberships but expensive compared with LTR.

Insisting on the official traffic rules is a recipe for a disaster especially in Thailand. Both drivers were driving recklessly. I have driven both roads by car and motorcycle and never would drive across this intersection from either side without looking for other vehicles and being prepared and able to give way even if it's my right of way. Anticipating the Thai style behaviour of other drivers, I feel as comfortable as driving in Europe.

From my experience: air transport of (at least larger) motorcycles is limited to cargo planes. You need a box or a platform. Battery must be disconnected and fuel tank (almost) empty. It cost me >USD 4000 for Stuttgart - New York and Denver - Stuttgart in 2005. USD 50 may be for a small pocket bike. AN still preferable to AI.

I plan to import front and rear shocks for my motorcycle which parts are not available in Thailand, value < THB 100'000. I would prefer to use a shipping company such as DHL if the customs clearance can be handled by them or an agent and I do not have to travel to customs. Else I could bring the shocks with me when my wife and myself will return from Switzerland. Our main domicile is Thailand. What is your recommendation (I will not gamble on the green customs channel).

It shows that record keeping and respective potential discussions with Thai RD will be cumbersome. I have remitted a large amount in my non-tax resident year 2023. keep some existing savings on a non-interest bearing account for later tax free remittance, and I will use remittances with DTA credits only as last resort.

Your statement re Swiss pensions is not correct. There are two type of pensions in Switzerland, the federal first pillar pension and the second pillar pension from employment. If the employer was the state, a public subdivision, or a local authority thereof, the respective second tier pension is taxed in Switzerland and exempt from Thai taxes. All other pensions are not taxed in Switzerland and constitute assessable income if remitted to Thailand.

Where do I get a decent espresso or ristretto like in almost every bar in Italy?

LTR is also for true millionaires which do not need to show off and can still walk to the fast track line. I expect many existing Privilege holders to switch to LTR upon membership expiry. You do not become and stay millionaire wasting money.

Two years ago 5 years DL at Banglamung and 3 years IDP at Chonburi. 2 year extension may be a problem because AFAIK IDP requires for 5 years DL.

(1) Accounting method for commingled funds (no clue at all). (2) Gifts from untaxed foreign income (though I feel rather comfortable with my modus operandi). (3) Tax filing if no taxes due (bureaucratic hassle). For

This was also my initial thought, but not (cost) efficient for my actively managed investment portfolio. I now work with funds remitted to Thailand in my non-Thai tax resident 2023, funds on a foreign non-interest bearing account, gifts to my wife and the possibility of DTA eligible income, ensuring a favourable tax situation for many years.

Assuming pre-Thai tax residence savings of EUR 1m generate EUR 50k annual income and remitting EUR 50k = THB 1.9m every year. TRD has not confirmed the applicable accounting method(s) for traditional savings. Applying FIFO, no assessable income and no tax due for 20 years. Hurray, but good luck if TRD will not accept FIFO and taxes are due. In my situation I would love FIFO, but I will never risk it given the current state of information.

Nobody knows if TRD will apply FIFO, LIFO, poisoned account or another method, consistent across TRD offices, or leave the choice to you. IMHO only valid recommendation is to keep savings and DTA eligible income on separate non-interest bearing accounts for later tax-free remittance to Thailand. Choosing a specific accounting method now may burn you.