Guavaman

Here is an example of a potential issue: Claiming the foreign earned income exclusion for a U.S. citizen working abroad due to physical presence or bona fide residence in Thailand might be negated if the U.S. citizen is treated as a U.S. resident due to election of treating one's Thai wife as a resident alien, since that election results in both husband and wife being deemed as U.S. tax residents.

Regarding house sale for married filing jointly and U.S. income tax: If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Publication 523, Selling Your Home provides rules and worksheets. Topic no. 409 covers general capital gain and loss information. Qualifying for the exclusion In general, to qualify for the Section 121 exclusion, you must meet both the ownership test and the use test. You're eligible for the exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. You can meet the ownership and use tests during different 2-year periods. However, you must meet both tests during the 5-year period ending on the date of the sale. Generally, you're not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. Refer to Publication 523 for the complete eligibility requirements, limitations on the exclusion amount, and exceptions to the two-year rule. https://www.irs.gov/taxtopics/tc701 In this case (house sale), MFJ has a big upside = up to $500,000 tax-free gain under U.S. tax law; however, it appears that she would not be able to claim foreign tax credit for the Thai transfer tax paid to the Land Department due to her election to be treated as a U.S. resident alien, which negates relief under the DTA, similar to the example provided by the IRS regarding interest income. Note: I have enjoyed the upside of 30 years of reduced U.S. income taxes due to electing to treat my non-resident Thai wife as a resident alien and I expect to enjoy tax-free sale of our house in the future; however, I have never considered the implications of this with regard to the DTA until recently. In practice, this appears to be a gray area that the average junior IRS worker would not be able to deal with involving the DTA and issues of non-resident aliens treated as resident aliens. Other issues with upside/downside may be identified if one conducted deep research into the implications of this election, including the fact that not only one's Thai wife but the U.S. citizen husband is also treated as a U.S. resident while also being a Thai tax resident and how that impacts upon relief provided to U.S. citizens under the DTA.

If you choose Married Filing Jointly with a nonresident alien spouse, you must elect to treat your spouse as a U.S. resident alien for tax purposes. You’ll need to include all of your spouse's income, which might only be the interest income from her savings accounts in Thailand. There are some issues related to the DTA and election of this treatment under 26 CFR § 1.6013-6. 26 CFR § 1.6013-6 - Election to treat nonresident alien individual as resident of the United States. § 1.6013-6 Election to treat nonresident alien individual as resident of the United States. (a) Election for special treatment—(1) In general. Two individuals who are husband and wife at the close of a taxable year ending on or after December 31, 1975, may make an election under this section for that taxable year if, at the close of that year, one spouse is a citizen or resident of the United States and the other spouse is a nonresident alien. The effect of the election is that each spouse is treated as a resident of the United States for purposes of chapters 1, 5, and 24 and sections 6012, 6013, 6072, and 6091 of the Code for the entire taxable year. (2) Particular rules. (v) An individual who makes an election under this section may not, for United States income tax purposes, claim under any United States income tax treaty not to be a U.S. resident. The relationship of U.S. income tax treaties and the election under this section is illustrated by the following example. Example. H, a U.S. citizen, is married to W, a nonresident alien of the United States and a domiciliary of country X. H and W maintain their only permanent home in country X. W receives both U.S. source and country X source interest during the taxable year. The interest is not effectively connected with a permanent establishment or a fixed base in any country. H and W make the section 6013 (g) election. Under article ii (1) of the United States—country X Income Tax Convention interest derived and beneficially owned by a resident of one contracting state is exempt from tax in the other contracting state. Article 4 (1) of the treaty provides that an individual is a resident of a contracting state if subject to tax in that country by reason of the individual's domicile, residence, or citizenship. Under article 4 (1) of the treaty, W is a resident of country X by virtue of her domicile in country X and also of the United States by virtue of the section 6013 (g) election. Article 4 (2) of the treaty provides that if an individual is a resident of both the United States and country X by reason of article 4 (1), the individual shall be deemed to be a resident of the contracting state in which he or she has a permanent home available. Because W's sole permanent home is in country X, under article 4 (2) of the treaty W is treated as a resident of country X for purposes of the treaty. Because W has elected under section 6013(g) to be treated as a U.S. resident (and thus to be taxed on worldwide income), W may not, for U.S. income tax purposes, claim under the treaty not to be a U.S. resident. W, therefore, is subject to U.S. income tax on the interest. For purposes of country X income tax, W is considered a resident of country X under the treaty. https://www.law.cornell.edu/cfr/text/26/1.6013-6 One can imagine some of the other implications of the relationship of DTA and the election under this section; for example: If your non-resident alien wife (treated as a U.S. tax resident alien) owns land and sells the land resulting in capital gains, that income would be subject to interpretation of the DTA and election under section 6013(g) to determine how to apply U.S. tax laws.

Sorry, it appears that one needs a MyTax Account to enter the system to reach this webpage.

TRD form ค.10 is a request for refund of tax. On the (old) form provided, the data fields are as follows: 1. Name and TIN (below and not filled in); to the right is the Thai National ID No., filled in by hand starting with 0 99 ...... The English "TIN No." is misplaced over the field for the Thai ID No.

Posters on this thread and its' predecessor have stated that there is no mention of DTAs in the Thai Tax Code. Here is a TRD reference to the Royal Decree No. 18 on DTAs from 1962: ROYAL DECREE Issued under the Revenue Code Regarding Revenue Tax Exemption (No. 18), B.E. 2505 (1962) Section 3 Taxes and duties under the Revenue Code shall be exempted for persons in accordance with the agreements on avoidance of double taxation which the government of Thailand has entered into or shall enter into with the governments of foreign countries. Remarks :- The reason for the promulgation of this Royal Decree is that the government of Thailand has executed the agreements with the governments of foreign countries for the avoidance of double taxation for persons who are residents of one country but earn incomes or have properties in another country. Without such agreements, those persons may be obliged to pay taxes to both countries at the full rates which causes onerous burden to them. Hence, it is deemed expedient to alleviate burden of those persons in order to promote international investment and economic relations. (Government Gazette, Volume 78, Part 69, dated 31st July B.E. 2505 (1962)) Source: https://www.rd.go.th/fileadmin/user_upload/kormor/eng/RD_18.pdf

Here are links to the 2 sample living will formats developed by the Thailand Office of the National Health Commission: English versions https://www.thailivingwill.in.th/sites/default/files/Living_Will_Samples_1_2_Final_1.pdf Thai versions matching the English versions https://www.nationalhealth.or.th/th/node/4004 ตัวอย่างหนังสือแสดงเจตนา แบบที่ 1 รูปแบบ DOC File ตัวอย่างหนังสือแสดงเจตนา แบบที่ 2 รูปแบบ DOC File

It is the vowels that are long or short. า in ยาก is long vowel, the o sound for the missing vowel in มด is a short vowel. For example: look at มาก and ยก.

Actually, on the Income Exemption Entitlement Form to be used with ภ.ง.ด.90, the form is set up so that “… the taxpayer can elect to apply the exemption to any categories of income from 40 (1) – (8), but the aggregated exempted amount cannot exceed 190,000 baht. If the exemption applies, fill in the information in ภ.ง.ด.90.” Note the double asterisks ** No. 2-9 Assessable Income Exempted Income* Income after deduction** of exemption to be filled in ภ.ง.ด.90

This only comes into play when a taxpayer receives gifts exceeding 10m or 20m during the tax year. Revenue Code Chapter 3 Income Tax (26) Income derived from the transfer of ownership or possessory right in an immovable property, … but only for the portion not exceeding twenty million baht per a legitimate child throughout the tax year (27) Income derived from maintenance and support or gifts from ascendants, descendants or spouse, but only for the portion not exceeding twenty million Baht throughout the tax year. (28) Income derived from maintenances and support under moral purposes or gifts received … but only for the portion not exceeding ten million baht throughout the tax year. The tax on this is reported further down on Form PND 90: 17. Plus additional tax payable (from No. 9 (if any))

Regarding applying the income exemption of 190,000 baht for taxpayers 65 years of age or older to categories of income in preparing a personal income tax return, it depends upon whether one is using Personal Income Tax Return Form PND 90 or PND 91. Personal Income Tax Return Form PND 91 is used by taxpayers who received income from employment only. What does that include? Section 40 Assessable income is income of the following categories including any amount of tax paid by the payer of income or by any other person on behalf of a taxpayer. (1) Income derived from employment, whether in the form of salary, wage, per diem, bonus, bounty, gratuity, pension, house rent allowance, monetary value of rent-free residence provided by an employer, payment of debt liability of an employee made by an employer, or any money, property or benefit derived from employment. In this case, the full 190,000 is applied to income category 1, since that is the only category on this form. An example of the PND 91 is attached. In the other case, Personal Income Tax Return Form PND 90 is used by taxpayers who received income not only from employment. This includes all categories of income from 40 (1) – (8). Guide to Personal Income Tax Return 2023 (ภ.ง.ด.90) For taxpayers who received incomes not only from employment Page 2-4 of ภ.ง.ด.90 – Assessable Income Notes: ▪ A taxpayer who is 65 years of age or older is entitled up to 190,000 baht of income exemption from his/her total income. ▪ If you are qualified for the exemption mentioned above, please fill out the “Income Exemption Entitlement Form” and deduct an income exemption amount from income calculated in that form as your assessable income on ภ.ง.ด.90. ▪ The taxpayer can elect to apply the exemption to any categories of income from 40 (1) – (8), but the aggregated exempted amount cannot exceed 190,000 baht. If the exemption applies, fill in the information in ภ.ง.ด.90.

The TRD terms define how and where to enter the numbers into the tax form. For example, the 190,000 income exemption is subtracted from pension income before the calculation of the amount of expenses deducted @50% up to 100,000. If we use our own terms, it becomes a cause of confusion in communications, as we have seen in these threads.

We need to use the TRD terms to avoid confusion. Me: 60k = personal allowance Wife: 60k = personal allowance Over 65: 190k = income exemption 50% of pension 100k = deduction of expenses Ist 150k earnings before any tax is paid. = income taxed at 0% Plus wife's medical insurance. = allowance

These are standard deduction amounts with no need to provide details. Guide to Personal Income Tax Return 2023 (ภ.ง.ด.90) For taxpayers who received incomes not only from employment No. 1 item 5. Enter allowable expense equal to 50% of the amount stated in item 4. but not exceeding 100,000 baht. If you and your spouse both have income and you are filing jointly, you and your spouse can each deduct expense as stated above. Thus, the maximum allowable expense is 200,000 baht in this case. See https://sherrings.com/personal-tax-deductions-allowances-thailand.html

Here is the link to the forms for 2023 on the RD site, including the guides in English. https://www.rd.go.th/english/65308.html