anrcaccount

Correct. This thread should be taken down as it adds nothing to the discussion and just creates more confusion.

This example shows why remittance taxation is an absolute joke, and why almost nowhere in the world has it. It's unworkable in the real world. In your example, the 110 remittance wouldn't be liable for any thai tax under the proposed reinterpretation of the foreign income exemption.

https://library.siam-legal.com/thai-law/revenue-code-assessable-income-and-income-tax-sections-40-64/ It is there in black and white, I have even made it bold for you. Non assessable / exempt income remitted is not required to be listed on a Thai tax return. This includes UK Government Pensions and US Social Security. You suggesting otherwise is plain wrong.

Thanks for posting but the article only refers to remitted income. Not ALL income worldwide. It's just a slightly clearer version of the one posted yesterday. Suggest you change the title of the topic as it doesn't reflect the content of the article.

Deflecting, irrelevant comments. Non assessable / exempt income remitted is not required to be listed on a Thai tax return. Even the predatory "expat" tax agencies agree with this, and that's saying something.

I'm only dealing pensions here. A Pension over 60k / 120k / 220k a year is assessable income according to Section 40 ( 1 ) of the Thai Revenue Code. And as a Thai Tax Resident I should file a tax return. Agreed ? So I file Tax Return as required by Law and then claim a Tax Exemption by providing the evidence that it is a Government Pension, and is only taxable in the UK according to the UK - Thai DTA. No, you're completely incorrect. A UK Government Pension, as with US Social security, is non-assessable / exempt and is not required to be listed/declared at all in a Thai tax return. If it was, the TRD would have been requiring this for many years, and they never have. The POR internal directives released in 2023 are unrelated to this.

Correct Correct These people are completely misinformed. The TRD has no interest in receiving tax returns declaring non assessable/exempt foreign income. To explain further- If the TRD did want this - they would have been requiring it for many years already, as exempt income ( one example being US SSC) is commonly remitted same year earned.

Correct on all counts, you're clear.

Spot on, well said. Assuming this change is implemented as written, this thread will be of little to no use. It wasn't necessary before the internal directive changed, and it won't be once it changes again. Happy Days, indeed. I too have sympathy for the individuals, especially those who were frightened enough to leave the country etc, a massive overreaction IMO, but given the hysteria, understandable for some. I have no sympathy however, for the predatory 'tax agencies' who have been responsible for much of the 'conning' , who will need to find a new business model, as (assuming this goes through) processing tax returns for expats will be close to non-existent.

Absolutely spot on, you hit the nail on the head. Very well said.

Well I was planning on it in 2026 and I was only planning on remitting the minimum amount to live on. This opens the door to spending a lot more. And that is exactly the intent of them changing the guidelines, maybe, just maybe, they are actually on to something sensible this time!

As written, yes, that's exactly what it will mean. But really, has anyone really ever paid any significant thai tax on foreign remitted capital gains income? Doubt it.

Typical weasel words from this 'agency' - trying to create doubt that these changes may not apply to expats. Thai taxation does not discriminate on nationality between citizens and foreigners, in case you were in any doubt. Didn't see the same doubt, when the TRD foreign income remittance year internal directive POR's were issued back in 2023. This agency and others, jumped on them to create themselves a predatory business opportunity, which looks like will soon, (IMO gladly), be ending.

Read the article again This looks like a tax free ( 18 month window ) for rich Thais to repatriate their money into Thailand before global taxation kicks in, in 2027. I think it is you, that should read the article again. Firstly, there is no mention at all of global taxation. Secondly, there is no distinction between Thai citizens and foreigners who reside in Thailand, as it relates to taxation. There is nothing in this article that suggest that is changing. Thirdly, there's nothing to suggest this is just an 18 month window. The principle refereed to is- foreign income remitted same year earned and year following is exempt. Quote below: "Under the new guidelines, Thais with foreign income will not be taxed if they remit that income in the year it was earned or the following year. For example, if income is earned in 2025 and brought into Thailand in 2025 or 2026, it is not subject to tax."

Thanks for sharing. Not only is this the flip flop many expected, it actually looks like it goes further and specifically exempts foreign income earned from being taxed - not only in the year earned but also the one following. And of course, if all income is exempt, there's no need for a tax return to be filed at all. Good riddance to the predatory tax firms who had sprung up. They got one year of business out of of the hysteria! For any of those worried foreigners who had been hand wringing about tax or leaving the country for 180 days to avoid it, time to relax and stop worrying!

Absolutely nothing has changed, 99%+ of expats don't pay tax, no new enforcement, status quo , relax, sabai sabai.

You made 2 mistakes. The first was bothering to file for thai tax at all. The second was once you decided to file, you tried to do it yourself instead of using an accountant accustomed to dealing with the TRD Anyway, if you do nothing there'll be no consequences. No need to do anything as drastic as spending less than 180 days a year in Thailand. Relax.

Says me, but I would also term this the reality, vs the law, which like many others in Thailand, ain't enforced. It hasn't been enforced for the many years Thais and foreigners have been remitting billions of baht in technically assessable 'same year earned foreign income', and there is no sign this has changed, now that 'post 2023 year earned foreign income' is technically assessable.

I doubt even 1% of people in your situation have actually paid tax in Thailand. Despite all the chatter on here (most of which has ended now) , the status quo of many years remains: Thai TRD is only interested in taxing those who work for a Thai employer or run a business in Thailand. A very minimal amount of 'technically assessable' remitted foreign income is actually taxed. That's the reality. If you want a bank account, an agent can open you one, for a fee. Just pay it and get it done, don't waste your time traipsing around branches.

Spot on. You know, every single Makro staff member takes off the mask as soon as they leave Makro. It has nothing to do with their health, 100% compliance only.

IMO “several millions” will be completely under the radar. Even 50-100M remitted unlikely to raise any serious flags IMO. Thousands of properties are purchased by foreigners ( and many more by Thais) every year for 30M+, never heard of a single audit due to foreign remittance.

Much more trouble than it’s worth, for a mere 2600 THB. Stop, think and you’ll know what to do next.

Have, but not wukking naaaaaaaaa

Thanks for the report, I can follow your reasoning, and good example provided of regular transfer of income, yet remain no tax payable. You could also use other planning strategies such s gifts or remittance of original capital to achieve the same or arguably more optimal result. Anyway, thanks again for providing your logic, although I don't share your perspective. I cannot agree with you having to inform/educate a Thai official of the 'rules' in order to proactively file. Additionally as another comment states, Thailand doesn't reward proactive compliance/doing things 'by the book', as you know the reality is often very different to the theory. I'm interested, did you file previous years ( if you remitted your pension directly it was also technically assessable then) ? If not, why this year?

I haven't been back since and don't have a tax number. I am under the impression that the TRD's new interpretation of the tax laws concerning expats doesn't require a change of law and that we are tax liable. My pension comes from Germany, it isn't taxed there as they assume I am taxed in Thailand, as far as I can make out German pensions aren't covered under the DTA. I have worked out that I would be liable to pay 28 - 30 k in tax. The thing is, if you think you're liable this year, you were liable every other previous year your pension was remitted directly to Thailand. All those years you did nothing, right, and no consequences. On a practical and operational level there has been no change from the TRD and the "new interpretation" is simply theory at this point. Status quo remains.