gejohesch

I have been living for nearly 20 years with a charming Thai woman. As I'm getting older (we all do!), I'm gradually getting concerned about the possibility that one day I will be gone, leaving her alone. She is 20 years younger than me, so that is quite a likely situation to happen some time in the future. I would like to find a way to put money away for her to secure her standards of living from that point in time onwards. Something like an in an investment or savings portfolio, say sthg in the order of 1-2 million THB, that she would know of but could only touch once I have disappeared. Why am I asking? Because, as sweet and lovely she is, I still cannot trust her entirely. I would not want to give her the opportunity to cash out while I'm still alive, me not knowing, and who knows what she would do with the money, what sort of silly "project" she would use the money for, "project" that would miserably fail? Most people on this forum know the Thais sufficiently to understand what I'm talking about. I'm aware that I could shop around the banks in Thailand and ask. However, if anyone in this forum could give me some appropriate advise, that would save me time and I would much appreciate it. By "appropriate advise", I mean that please, abstain from unnecessary comments on my personal relationship with my wife. That's not what I need!

You have summarised it well!

"Thai government intervening to help struggling expats is a welcome event" I guess that comment was with tongue in cheek!

Interesting comments

Thanks, I learnt sthg today!

That's pretty much what I do.

"Do many people live so near on the edge that 10% is lifestyle changing? " Seems to me that many do indeed, mate!

I have regular expenses in Thailand, where I spend several months a year, and I tend to exchange to THB more when I see good rates and less when I see poor ones. So, I'm not worried about periods of 2-3 months with less favourable rates. It's a different story if the "less favourable" rates keep on going for much longer. Even though I'm comfortable enough, financially speaking, and not usually stressed, I would join the crowd reducing time spent in Thailand and looking for options elsewhere. My wife who is Thai is very cool about spending several months outside Thailand, she is a good traveler!

Thanks, that clears it!

That would be 36 USD I guess, i.e. some sort of back where we were 6 months ago (or more)?

Thanks! What is "the 31 handle"?

I'm certainly not the first to wonder about the exchange rate THB against other currencies, but please bear with me! I see the current rates: 1 USD = 32.4 THB which is 9% down compared to 6 months ago 1 EUR = 36.2 THB which is 7% down compared to 6 months ago 1 GBP = 43.3 THB which is 5% down compared to 6 months ago That's quite a drop in purchasing power within a relatively short time for a lot of western residents in Thailand, and for a lot of potential western tourists! Can someone explain what is going on and give a view on how long this trend might hold in the near-mid term?

That would not come as a surprise!

Thanks!

Planning????? 😆

Thanks. Is it still a nice place to go in the late afternoon / early evening? It used to be quite a vibrant place some 10 years ago.

A few years back, I used to meet a group of friendly people in an open air area somewhere towards the Phra Khanong BTS station (I think), just 1 or 2 minutes walk from the station. I believe it's the W Market I can see on google map; Does anyone know about it? Is it still "alive"?

making things clear isn't exactly a thai strength so true

I was going to say!

I think I get your point re. pensions and tax evasion. It would probably be easy for (say) a Thai person having worked in (say) Germany) and receiving a pension there to not declare it to the Thai finances. Is that what you mean? One would then have to be sure that there is poor/insufficient communication between German and Thailand authorities!

Me : “I don't think it's that rare. It would be similar if I was resident in Portugal (past the 10 years "Residente Não Habitual" period), as my pension is from the private sector, paid in my home country, it would become entirely taxable in Portugal.” You: “Are you talking specifically pensions, or income in general? There's a big difference, pensions can't be readily abused for tax evasion. Washing money through a tax haven can.” In the example I was giving (if being “resident non habitual” in Portugal), I was focusing on pension as it's now my only income. The DTA (double tax agreement) between Portugal and my home country specifies that pensions from the private sector will be declared and taxed in Portugal, whereas pensions from the public sector (eg gvt administration, army, civil service and so on) remain to be declared and taxed in my home country. Btw, the DTA applies to whoever receives an income in/from my home country, regardless of his / her nationality. That’s an important point, often ignored, that could be found generally in many other DTA’s. Let’s make it clear with one example : imagine a citizen from Peru having worked in my home country and being now resident in Portugal. As that Peruvian person would receive a pension from my home country, the DTA between my home country and Portugal would apply. Possibly, the DTA between Peru and Portugal would also have to be checked (if there is one). It all depends (again) on how DTA’s are written. Everyone should do his / her homework and check what applies to his / her situation. There could be all sorts of bells and whistles in a DTA! I cannot comment on how pensions can be abused for tax evasion. I have no idea about that!

"There is a bi-lateral agreement between my home country and India, and it stipulates that if I'm resident in India, my pension income (sourced in my home country) becomes taxable in India and not in my home country." I don't think it's that rare. It would be similar if I was resident in Portugal (past the 10 years "Residente Não Habitual" period), as my pension is from the private sector, paid in my home country, it would become entirely taxable in Portugal. The point here is do not think that your own case is going to be the norm for citizens of other countries. Each one has to do his / her home work and check what a bilateral agreement with Thailand exactly says.

If the agreement states simply "income abroad is taxed abroad; income in Thailand is taxed in Thailand", that is not correct. There are indeed agreements that include an offset mechanism, but then that must be explicitly stated.

Yes, that sounds absolutely correct. For info, Thailand has currently 61 double-tax agreements, check the link here : Double Tax Agreements in Thailand, What you need to know. (belaws.com) Thailand may have the ambition to do what they like, but of there is a bilateral agreement between Country X and Thailand covering taxation, that sets the rules between Thailand and country X. Thailand cannot unilaterally change the rules. Renegotiation of up to 61 existing agreements look like a himalayan task to me, especially knowing that usually it would take years (rather than months) to renegotiate. Good luck with that!

"They can also ask to file a tax return, calculate the Thai tax amount and deduct what you pay abroad" Sure, they can ask for a tax return, that would be expected. But if you are citizen of a country that has a bi-lateral agreement with Thailand, and that agreement covers taxation (it would normally do), then Thailand just has to abide by the letter of that agreement, if not Thailand has a dispute not just with you, but with the government of the country of which you are a citizen. Period. Now, such agreements come in various forms and shades and you would have to check what your own situation is. Myself, I know exactly the following (Iwas resident and had been employed in Thailand for a few years, some time ago) : whatever income I get sourced in my home country is taxable in my home country + whatever income I get sourced in Thailand is taxable in Thailand. I went through a number of yearly exercices, so I know. Now, if I become resident in Thailand again and if Thailand want to tax me on whatever income I receive in my home country, Thaianld will pick up a fight with my home country because that would be simply illegal. Years ago, I checked what my tax situation would be if I became resident in India - sthg I contemplated for a while. There is a bi-lateral agreement between my home country and India, and it stipulates that if I'm resident in India, my pension income (sourced in my home country) becomes taxable in India and not in my home country. I write this at length and I'm aware of some repeats, but I wanted to make it clear : Thailand cannot do whatever they like to do wrt taxing citizens of countries with which Thailand has a bi-lateral agreement. Again, and for the last time : check if there is a bi-lateral agreement between your country and Thailand, check what it says wrt taxation, and in case of doubt consult your country diplomatic representation in Thailand, consulate or whatever.