chiang mai

Now reduce the 1 million remittance by the amount of savings you remit and reduce the annual amount.

Your table shows you're calculating tax on 1 mill, not on 485k

TEDA = Tax Exemptions Deductions and Exemptions, it's the 515K allowances you listed. Take 1 million, minus 515k TEDA, leaves 485K, that's your taxable amount. Apply the tables to the 485k and you get something like 45k ish

I deducted your TEDA......were you not going to.

I hear the airport is heaving with farangs desperate to leave, do you suppose the home governments will consider an airlift!

I just did a quick mental calc and tax on 485K comes to around 47k baht, I suggest you run your numbers again. Plus, if some of your income is from savings, the taxable amount will be much less.

What is the source of the funds, savings, Governement pension, state pension, SSc, investments etc etc ?

We'll certainly try hard to find something to annoy everyone. :))

I continue to think that most people in the average income category will pay little or no additional income tax in Thailand.....have you run the numbers to see what your position looks like?

Or you could meet under a bridge at midnight wearing raincoats with the collar turned up and hat pulled down over the eyes. You both carry identical brown paper bags, one containing money, the other containing bologna sandwiches. Then, just as you pass each other you could exchange bags and nobody will be the wiser. Sorry, couldn't resist. 🙂 Whatever floats your boat.

You wouldn't file your US return here, you ether file a US return or you do not, based on your level of assessible Thai income. You also don't have to prove anything until/unless asked.

Yes, similar, about 15 minutes.

I would prefer not to comment on complex tax avoidance schemes because they nearly always cross the line into what is tax avoidance. A couple of things I learned years ago as an audit senior with the firm and their interactions with HMRC include the following: 1) the more complex the avoidance measures appears to be, the closer it will be inspected. 2) any loan arrangement involving relatives that results in a reduction of tax paid, is akin to putting up a sign to attract attention of the Revenue Department.

The gift tax is payable by the receiver of the gift, above the threshold level. Let me just state the obvious here and add that if the gifter is not tax resident in Thailand, the assessability issue doesn't arise.

Or there again they may just want you to file your tax return and there will be no paid for alternative. My guess is that TRD will not follow the Immigration model, I'm betting this one is strictly above board.

Tax returns can be in English, forms are available. My guess is it varies massively, based on location and whether you just want form filling or form filling and advice. Expect say 7k to 30k. The staff at the TRD are very good and will do it for you for free.

I saw this in the pinned document: THE TAX IMPLICATIONS OF REMITTANCES 22) If you receive funds in Thailand, you must determine whether they represent assessable income or not. If they are assessable and they exceed the reporting threshold, you must report them on a tax return. You are the only person who can do this because you are the only person who knows. 23) Similarly, if you remit funds to Thailand from overseas, to someone other than yourself, you must also determine if those funds are assessable and if they are, declare them on your tax return, subject to threshold amounts. Just because you remit funds to another person in Thailand and the money does not enter your bank account, does not mean those funds escape your tax assessment. 24) For example, a remittance from your overseas account, to a Thai property developer, in order to buy property in Thailand, must still be assessed for Thai tax. If that remittance comprises exempt income, it does not need to be declared, but if it comprises taxable income, the money must be declared.

Tax audits globally are somewhat unique, taxpayers must prove innocence rather than the Revenue proving guilt.

A ten year old blog from World Bank still relevant today. Note what is written about taxing inward remittances. https://blogs.worldbank.org/en/peoplemove/why-taxing-remittances-bad-idea

Of course they do, that's precisely the model I was following. Remitting funds from overseas, directly to a third party account in order to pay a bill or pay for a purchase, perhaps the purchase of real estate, paying for medical services, doesn't negate the assessability of those funds, at least it didn't when I worked for PWC.

I'm not going to debate this with you any more, your remarks are becoming silly plus you are twisting words to suit. I have said repeatedly that the only issue is with assessable funds so of course it doesn't matter if they weren't earned. Perhaps you ought to think about what happens when somebody remits assessable income to Thailand, directly to a developers account, to pay for the condo he's buying. Those are funds that never hit the remniters Thai bank account so I suppose he doesn't need to file a Thai tax return there either! Too silly for words really. Good bye

What nonsense you write sometimes! Prove what is not being done? That people are escaping tax by gifting, along the lines I described with Person X? And the trusting spouses nonsense, what's all that about for gods sake! The entire point here is that neither you nor I have the full picture of what happens with gifting under TRD rules, as we have both said many times. So stop challenging me and trying to win every encounter you engage in and accept there are things we don't know that need clarification.

I said that gifting funds does not allow them to escape tax. If the funds have been taxed in the country of origin then they have been taxed, if they have not, there is an issue that neither one of us fully understands how it is addressed..

Stupid word game on your part, you omitted the last part of my quote which reads, "if those funds are assessable"!!

Person X works as a contractor and his fees are paid into HSBC UK. Twice a year he remits the balance of that account to his Thai wife as a gift. He cannot escape tax on that income, just by gifting, if he could, everyone would be doing it.