chiang mai

If the gifter uses non-assessable funds, there is no issue. But if tax assessable income is remitted from the home country account, gifting the income overseas does not allow the gifter to escape tax. Tax still has to be paid on that income, in either the home country or in Thailand.

If the gifter of the funds is tax resident in Thailand and gifts funds from overseas, to another person who also tax resident here, that action does not exempt the gifter from assessment or tax. I do not think there is a tax exemption allowed for giving gifts, only receiving them.

I suspect there may be members who think that gifting funds to another person, allows the person who gifts the funds, to escape tax, which of course is not necessarily true. Remitting funds to another person does not mean the remitter escapes tax, if those funds are assessable. The person who receives the funds (the gift) may well escape tax, if all the planets align and all the rules are followed. But the person who does the giving, still has to contend with the issue of assessability of those funds, just as if they were remitted to their own account.

If it is a genuine gift that meets all the requirements, it is not income to the recipient. But if the Gifter has gifted assessable income it must be declared on the gifter tax return, subject to tax residency, TEDA and thresholds etc.

I don't think the penalty change s based on nationality, why would it. But none of us know the details about this so no point debating

So why even read them, let alone participate!

Only where no tax is owed. If tax is owed, it increases to 200k and one year inside.

It's Sunday, they're closed! 🙂 As I recall, jail time is not uncommon if evasion is suspected.

I don't mean to frighten anyone but the penalties for not filing, when taxes are owed, are draconian.

Statute of limitations for back audits is 3 years, 10 years where no return was filed and evasion is detected.

A DTA does not ensure that funds are not taxed twice. The purpose of a DTA is to identiify primary responsibility for the collection of tax and where appropriate, the secondary also. It is entirely feasible that funds arising in country A my be taxed at X percent. The DTA may then assign the right to tax those funds to country B, at Y percent. If Y percent is higher and country A does not issue a tax credit, or the tax credit is not usable for whatever reason, or the tax credit cannot be carried forward to a subsequent year (where tax years do not align) the funds will not only be taxed at a higher rate but potentially also taxed twice. I understand from past conversations that issuance of tax credits and carry forwards in Thailand is an issue where the way forward is unclear.

Maybe: GIFT TAX 67) First and foremost, our confidence levels that we understand all the Gift Tax rules is not high. What the Rules Say 68) The TRD does not consider what the purpose is of remitted funds, only whether they are assessable or not. If a foreigner remits non-assessable funds and then gifts them in Thailand, that is the end of the matter for the gifter. 69) If however the foreigner remits assessable funds to Thailand and then gifts them inside Thailand, those funds must be reported as assessable income on the foreigners tax return, no matter that they are later gifted. 70) The third scenario is not agreed by everyone and is contingent upon further input from the TRD. It suggests that if the foreigner gifts offshore assessable income, direct to a Thai resident, the foreigner must report that income as if they themselves had received it directly. 71) "PIT is levied on gifts given by persons who are still alive. The tax is collected on the assets or the amount given to parents, ascendants, descendants, spouse, or others based on the value of the gift that exceeds a prescribed threshold, which depends on the type of gift and donor. Assets or amounts given that do not exceed the threshold are exempt from tax. 72) The following gifts are exempt from PIT: a) Income derived by a parent from the transfer of ownership or possessory right in an immovable property without any consideration to a legitimate child, excluding an adopted child, in the amount not exceeding THB 20 million throughout a tax year in respect of each child. b) Maintenance income or gifts from ascendants, descendants, or spouse, in the amount not exceeding THB 20 million throughout a tax year. c) Maintenance income derived under a moral obligation or gifts made in a ceremony or on occasions in accordance with established custom from persons who are not ascendants, descendants, or spouse, in the amount not exceeding THB 10 million throughout a tax year. d) Income from gifts in the case where the person who receives the gifts will use them for religious, educational, or public benefit purposes according to the intention of the donors under the criteria and conditions referred to in the Ministerial Regulations. 73) Gifts in excess of the above thresholds will be subject to PIT at the rate of 5% and will not need to be included together with other income when computing the annual PIT liability. 74) For ascendants/descendants the threshold is THB 20 mill, nor non-ascendants and descendants, it's THB 10 mill". What Some Members Think: 75) The following summary points compiled by a member may help guide readers in the use of Gift Tax: a) Gifts must be traditional gifts based around a fixed date or occasion. b) Traditional gifts include supporting the spouse or other persons, mainly family, based on a moral obligation. c) Gifts to non-family members are more likely not to meet the moral obligation criterion. d) A ceremonial act may be required, in particular for non-spouses. e) Gifts must not be returned to the donor and used as a way to avoid income taxes, except under very specific Gift Tax rules which are likely to void the earlier tax advantage. f) Moral obligation is subject to interpretation, there is no single definition. g) TRD may apply additional criteria. h) TRD assessment may differ from self-assessment which risk must be evaluated in each case individually. 76) Additional points on this subject are: a) Funds that are gifted, must be for the use of the person to whom they are gifted. b) Gifts can be revoked later and reclaimed, under specific circumstances, such as if the receiver of the gift defames the Gifter or fails to take care of their serious medical needs. c) Gifts to a spouse become Sin Suan Tua or the sole property of the spouse, under marital law the gift is not regarded as conjugal property. d) Gifts made outside Thailand appear to be safe. e) The Gift must be formally documented and recorded, the more documentation the better. f) No more than THB 20 mill should be remitted to Thailand per year, unless 5% Gift Tax is paid on the balance. 77) Until the circumstances surrounding Gift Tax and all it entails, becomes more clear,, it is critical that anyone wishing to use Gift Tax, seeks professional advice.Note: Because Gift Tax is predominantly a domain of the wealthy and depends to a large extent on local practice, there is a shortage of confirmed information on this subject. One field of thought is that Gift Tax cannot be used to escape Thai tax by Gifting untaxed money from overseas. On the other hand, many Western countries, including the UK, do not tax gifts from overseas. Members wishing to exercise this option should seek qualified advice before using this option to Gift untaxed funds.

The Gift Tax rules seem complex, somebody wrote them up in the following link and they are complicated, maybe worth a read.

Double Tax Agreement

I had one done last November at Sriphat hospital, part of Suan Dok/Maharaj, Chiang Mai, same day/walk in, about 2,800. Any endocrinologist at Sriphat can arrange. But any large hospital should be able to do it, I had one done at Bumrungrad many years ago, it's called an FNA (fine needle aspiration). BTW it's totally painless and only takes a couple of minutes.

From what you have written, I strongly suspect you will find that 15 minutes effort today will avoid many hours inconvenience later, but each to their own. My experience of righteous indignation and cast iron principles is that they are usually misplaced. Good luck regardless whatever you decide to do.

You would do well to read the following, instead of wasting your time posting sad emojis!

Whoosh!

Thai Gift Tax rules don't apply only to wives but to all relatives and others also. https://sherrings.com/gift-tax-law-in-thailand.html

What you don't appear to understand is that the rule change has already been implemented and the clock is now ticking, since 1 January. The change that was made was so small as to be almost imperceptible to most people but it has significant impact on the minority, that means implementation was/is only a trivial event. The onus is now on everyone to abide by the rules, including the minor rule change which potentially will snare many foreigners. So yes, everything has been confirmed. The onus was always on everyone to abide by the rules previously but most foreigners believed they were exempt or had been given a pass and didn't have to file a tax return. You can continue to believe those things if you wish but the odds are now that not playing by the rules will come back and bite you at some point. The TRD is very serious about wanting to increase the size of the tax net, if and when foreigners will be a part of that is debatable but there is no legal reason why they wont and all the indicators are that they will.

The rules for company deductions are different from the TEDA (deductions) permitted for personal income tax, be careful not to confuse the two.

The current system of taxation is based on remittance, ie, when the income is remitted to Thailand it becomes taxable. Worldwide taxation is something very different, it taxes income as it arises, even if it is not remitted. I have tried to explain this to you several times but you persist in ignoring the truth. You are spreading false rumours which is against forum rules. Either post a link that confirms Thailand is now operating a system of worldwide taxation or retract your statement.

Well, regardless of what you watched, let's be perfectly clear that Thailand TRD is not implementing worldwide taxation, neither has it been agreed that they will do so, nor is there any law that permits them to do so. What has been implemented is a rule change to existing TRD Tax Code governing remittances, that is all.

If you listen to or watch one of them, you'll realise they are not what you think they are and are not about tax on worldwide income..

The reinterpretation of the remittance rules, Por 161 was confirmed in September last year, Por 162 was introduced in November to mitigate that change. Since then, there has only been a single statement from the Head of the TRD expressing an interest in pursuing worldwide income for tax, that's it. Those webinars you refer to are discussing the reinterpreted rule, NOT worldwide tax on income, if you were to watch/listen to one of them you'd understand that.