Mike Lister

Please do not PM me and ask me to tell other posters not to interact with you, this is not pre-school! There is an ignore function, please use it or find another thread that better suits your taste.

A post in large bold font has been removed. A name calling post has been removed. Bickering posts have been removed. This exchange ends here and now!

In the West they would have killed the snake and taken the dog to the vet, here they do the opposite.

And finally this morning: "Cryptocurrencies and digital tokens Share of profits or any benefits from holding or possessing digital tokens or gains from the transfer of cryptocurrencies or digital tokens are subject to a WHT at the flat rate of 15%." https://taxsummaries.pwc.com/thailand/individual/income-determination

The following is the current proposals for Capital Gains, within the document. Comments? "Capital gains Most types of capital gains are taxable as ordinary income. However, the following capital gains are exempt from tax: Capital gains on the sale of shares in a company listed on the Stock Exchange of Thailand, provided that the sale is made on the Stock Exchange of Thailand, and on the sale of investment units in a mutual fund. Gains on the sale of non-interest bearing debentures, bills, or debt instruments issued by a corporate entity, except in the case where the bonds or debt instruments were sold for the first time at a price lower than their redemption price to an individual. Gains on the sale of securities listed on stock exchanges in the Association of Southeast Asian Nations (ASEAN) member countries and traded through the ASEAN Link, excluding securities in the form of treasury bills, bonds, bills, or debentures. Capital gains and investment income earned by a resident from sources outside Thailand are not taxable unless remitted to Thailand in the year of receipt. (this clause will have been changed, in line with the rule change) Capital losses may not be offset against capital gains. Dividend income Dividends received from a company incorporated in Thailand are subject to withholding tax (WHT) at a flat rate of 10%. A resident of Thailand receiving dividends from companies incorporated in Thailand may elect to exclude this income from the computation of income tax and waive the tax credit referred to in the Other tax credits and incentives section. https://taxsummaries.pwc.com/thailand/individual/income-determination

I have updated Para 24 in the document regarding Gifts and Inheritance Tax: 24. - Gifts and Inheritances Tax Gifts Tax - "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. The following gifts are exempt from PIT: 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. Maintenance income or gifts from ascendants, descendants, or spouse, in the amount not exceeding THB 20 million throughout a tax year. 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. 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. 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. For ascendants/dependents the threshold is THB 20 mill, nor non-ascendants/dependents it's THB 10 mill". https://taxsummaries.pwc.com/thailand/individual/income-determination Inheritance Tax - "Heirs are subject to the inheritance tax only on the value of a legacy that exceeds THB 100 million obtained from each testator together either once or on several occasions. The inheritance tax rate is 10%, except in the case of heirs who are ascendants or descendants of the testator, where the rate is 5%. Legacies received by the spouse of a testator are exempt from the tax". https://taxsummaries.pwc.com/thailand/individual/other-taxes#:~:text=The inheritance tax rate is,are exempt from the tax.

"Inheritance tax A legacy received by an individual or a corporate entity, regardless of nationality, from a testator who has died is exempt from PIT under the Revenue Code but is subject to inheritance tax. Heirs are subject to the inheritance tax only on the value of a legacy that exceeds THB 100 million obtained from each testator together either once or on several occasions. The inheritance tax rate is 10%, except in the case of heirs who are ascendants or descendants of the testator, where the rate is 5%. Legacies received by the spouse of a testator are exempt from the tax. Property subject to the inheritance tax comprises immovable property, securities according to the law, bank deposit accounts or other money of a similar nature that the testators have the right to call back or claim from financial institutions or persons who hold such money, registered vehicles, and financial assets to be prescribed in royal decrees". https://taxsummaries.pwc.com/thailand/individual/other-taxes#:~:text=The inheritance tax rate is,are exempt from the tax.

I cant prove that there's some smoke and mirrors involved in the inflation estimate but all my senses tell me there are and they are supported by lots of anecdotal evidence! Regardless......the economy can absorb some inflation, as you correctly say, the question is whether it can absorb 15% of GDP, injected in cash form directly into the hands of the consumer at a time when global recovery is still not complete.

Yes, that's exactly the case, you should think in terms of transferred or remitted funds, assessable income and taxable income. Transferred or remitted funds includes everything you receive, assessible is what is subject to a tax return and taxable, is what's left after you've taken all your TEDA. Ah, we didn't talk about TEDA! Your state pension and private pensions are UK taxable because they arise there, that means there wont be much Thai tax to pay on what is regarded as assessable income once it's received here. But by the time you deduct TEDA (Tax Exemptions, Deductions and Allowances), and apply the zero rated tax band, the average UK pensioner will get the first 500k of assessible income tax free. The net of all that is that Thai tax due will be quite small, unless you have a very large pension income.

There's ample evidence that QE causes inflation and that's effectively what the 560 bill digi wallet giveaway is. https://www.investopedia.com/articles/investing/022615/why-didnt-quantitative-easing-lead-hyperinflation.asp

The OP has his answers, this thread is closed, we don't need yet another thread about Thai tax and the new law. Any further questions about taxation and the law change can be asked in the thread linked below:

Please read this:

They don't ask for proof when you file your tax return, the same as the tax people in the UK and US don't ask for proof when you file. You file the return and make the declaration, if they become suspicious or audit you that's when you need the proof. If they should ask for proof, a statement at year will suffice.

Section 2.1 of the following link defines assessible income, as far as the Thai Revenue jargon goes. https://www.rd.go.th/english/6045.html If I can try to put it in simpler terms: As far as YOU and the Thai Revenue are concerned, your assessible income is any money you remit to Thailand, minus excluded income and minus anything specifically excluded by the DTA or Thai Revenue rules. Excluded income includes anything earned before 1 January 2024. And, any income that has already been taxed in the home country, before it is remitted to Thailand, can use the tax already paid to offset any tax liability in Thailand, potentially to zero. If you sell your overseas property and the sale proceeds are taxed in the home country, the proceeds SHOULD BE free of Thai tax. If your property sale is subject to tax in the home country, it almost certainly will be free of Thai tax. If you buy a watch and bring it to Thailand, you're over thinking things! No, paying Thai Income Tax does not infer the right to Thai Social Security benefits. That's not a complete picture by any means but I hope it's a useful snapshot.

The only way is up!

Agreed. The other point to remember is that Thai GDP is twice that of Vietnam, FDI's in SE Asia will probably be looking more for embryonic growth to invest in rather than established markets, which is what Thailand has become.

Um, not if that 1 mill was earned before 1 January 2024.

Yes indeed, Singapore does own 99.6% of the shares. But this is the issue is not, they are 100% Thai companies in Thailand but their shareholding is almost 100% overseas ownership. Does that make them foreign owned companies or Thai companies? A UOB Thai customer has no recourse to Singapore and cannot use the UOB brand outside Thailand. UOB Thai creates it's own products, determines it's own strategy and branch network in Thailand and is not reliant on anything from Singapore other than the brand name.

Correct. But you need to read the document, fair warning, there will be a quiz later. :))

You may well be correct, I'm just trying to understand it all. Take UOB (Thai) for example: https://www.uob.co.th/investor-en/aboutUOB/about-us-uob-corporate-profile.page UOB Thai is a 100% Thai company with a Thai Board, even UOB banks in other countries don't recognise Thai customers as their customers. Yet the info on their web page suggests otherwise. "As part of UOB, United Overseas Bank (Thai) PCL (“UOB (Thai)”) is a regional bank rooted in Thailand that brings financial expertise and connectivity to its customers".

agreed

It was the OP who asked the question initially then later, you posted a list of companies you believe are foreign owned. I continue to think that list comprises foreign company names but in Thailand they are Thai companies that are 51% owned by Thai's, albeit the shareholding may favor the parent overseas. At this point it's just curiosity.

There is one exception to the above which is shown in the link below but it is very limited and very restrictive. https://thailand.acclime.com/formation/foreign-business-license/

See {Page 10 from your link: Criteria for foreign shareholding The Board stipulates the following criteria for foreign shareholding in projects that apply for investment promotion: 1. For projects in activities under List One annexed to the Foreign Business Act, B.E. 2542, Thai nationals must hold shares totaling not less than 51% of the registered capital.

I just picked one at random, I think they are all mostly the same or very similar: Thailand Mitsubishi Company (Thailand) Ltd. / Thai-MC ... Mitsubishi Corporation https://www.mitsubishicorp.com › ... Mitsubishi Company (Thailand) Ltd. is a wholly-owned Thai subsidiary of Mitsubishi Corporation, a general trading company of Japan. Thai-MC Company Limited, ... ‎Contact Us · ‎About Us · ‎Career · ‎Locations I think that company is 51% Thai owned but is a subsidiary of its parent in Japan. The same is true of CIMB bank which is a Thai company, ditto UOB.