Mike Lister

Educational fees are, I don't believe Gifts are or even should be.

I suggest you start by reading the following:

OK so there's an issue for those who don't file a home country return but that is noted and being researched, for anyone else it's straight forward and simple.

There is no economic crisis, it's scaremongering tactics. Factory production is down true, but factory production is dependent on overseas demand and the Chinese economy hasn't recovered. "Thailand's tourism industry saw a strong start to 2024 with nearly 4 million foreign arrivals in January, the government’s spokesperson Chai Wacharonke said on Feb. 10. Thailand welcomed 128,969 foreign visitors on Feb. 8, two days ahead of the Lunar New Year. As of the same day, visitors from China topped the list with 730,747, followed by travelers from Malaysia (419,116), Russia (275,641), India (209,431) and Laos (130,551)". https://e.vnexpress.net/news/travel/thailand-welcomes-nearly-4-million-foreigners-in-january-4711026.html#:~:text=Thailand's tourism industry saw a,Wacharonke said on Feb. 10. "Thailand's exports rose for a fifth straight month in December but at a slower pace and less than analysts' forecasts, and the commerce ministry said on Friday that it expected small export growth in 2024 after a slight drop last year. Customs-based exports (THCEX=ECI), opens new tab rose 4.7% in December from a year earlier, compared with a forecast for a 6.0% year-on-year increase in a Reuters poll, and following November's 4.9% rise". https://www.reuters.com/markets/asia/thai-export-growth-misses-forecast-dec-small-rise-seen-2024-2024-01-26/

The Thai tax filing system is no different to that of the UK or US. Taxpayers fill out the forms, sign them and submit them, if there are no issues or you're not selected for audit, refunds are issued or tax is paid. There are no verbal depositions or needing to file supporting documentation, it's a simple tax return form.

One slight change: "as of 01/01/2024 all interest/dividends/capital gains arising from those savings would now be assessable if subsequently brought into Thailand in my name". If tax is paid in the home country, on that income, it can be used to offset any tax that arises in the Thai assessment. If that income is taxed at source (as it is in the UK), that means there may be no Thai tax to pay.

Flame posts removed....stop it!

I have added another point at the end of the document. L) - Capital Gains rules overseas vs CG rules Thailand. (an all encompassing point that involves real estate and investments) NOTE: It is clear from the Sherings Q&A that CG resulting from the sale of foreign assets, whilst not resident in Thailand, are free of Thai tax. As a stop gap measure and for planning purposes, selling the assets before moving to Thailand would appear tax efficient.

I have some sympathies with these posts but the reality is quite different from what you think. If anything, I am the one who should be fed up with the repetition because I'm the one who has to moderate all the issues and answer the questions. The fact is that repeat threads such as this introduce new questions and issues that haven't been identified thus far and that require further research and an answer. This morning alone, I added four new unknows/unclear points to the end of the simple tax guide, issues that need answers. That is excellent, it means we are finding gaps and plugging them. We've also seen in this thread that several people have asked questions for the first time and have started to think about their own personal circumstances, that was the objective in all of this at the outset. There are still lots of people out there who haven't even looked at the tax issue or who haven't made a decision about what they need to do. So whilst you, and I, may be tired of the repetition, please understand that you are not typical of everyone out there, you know and understand, many don't. Threads like this are really useful in helping those people to become aware and understand what's involved. If you think these threads only increase stress levels, you must have a very short line of sight, perhaps what you really mean is, they increase your stress levels because you're trying to ignore the subject!

I will add the property purchase issue and the unclear way in which inbound funds might be taxed, to the list of unclear/unknowns at the end of the document.

I'm going to add this to the list of unclear issues, you raise a very relevant point. The US is not alone in not requiring certain sectors or classes of people to not file a tax return, even though they have tax paid income, the UK does exactly the same. The question is, how will these classes be able to prove their income is already taxed?

I've updated Point C at the end of the document - this point remains unclear C. International Gift Tax rules - need clarity regarding tax liabilities on the gifter and the receiver.

I recommend we park the Gift Tax questions and place it back on the list of unknows at the end of the document. The issue wont be forgotten or overlooked but it's in the same camp as the UK Personal Allowance issue in that we don't have enough information available to understand it and it requires clarification by the RD.

A fair and balanced post that is accurate and which I mostly agree with. I think your friend is absolutely correct, many people in these threads ignore that fact. I have said repeatedly that I don't believe the government would deliberately harm the Thai property sector, there will not be a financial penalty for importing funds to buy property here. I don't know at this stage how it will work in practise but there will not be additional tax to pay on those funds. Lastly, I think the government is slowly making matters more clear via the tax consultancies who appear to be drip feeding information via Q&A sessions that they publish. That makes sense and of course by not making direct announcements, leaves them able to back track later, should they change their mind on any aspect.

I think that this type of interpretation is way beyond our remit and the scope of our work, it's fun and interesting to theorise but we need to be very careful in case such speculation is taken as fact by some people. I think we simply recognise this is in the "far too difficult" camp and place it on the list of unknows/unclears at the end of the document, which is what I've done.

@UKresonant has showed up, he knows what he's talking about, I'm going for dinner.

By threshold I believe he refers to 20 million baht! That's the threshold for the gift tax rule.

The basic principle is that everyone pays tax somewhere so as long as you've done that and you try to import funds into Thailand where tax has already been paid in the home country, Thailand is unlikely to make any further tax demand on you. That said, there will almost certainly be examples where the difference in the tax rates between the two countries, COULD lead to additional tax being due here but for the most part, those will be anomalies. The target for this tax rule is people who invest offshore and repatriate their earnings without paying tax anywhere. Another group is those who work here online and because they are remote workers, get paid in Thailand but are untaxed....and similar. Everyday people with savings and a home and a few investments, are not the target and are not going to be of interest to the RD.

Even savings earned post 1 January 2024 will be OK, if overseas tax was paid on them.

Sure, we've had to make some assumptions along the way which I think is only reasonable but there's also a large helping of fact that underpins that and it is growing every week. Reading the following link, may help, if you haven't already done so, That Q&A made life a lot easier. https://sherrings.com/foreign-source-income-personal-tax-thailand.html

I'm pretty sure they will allow the UK PA and other countries personal allowances and exemptions, otherwise it becomes too complex given the various tax bodies, forms and rules involved. The Thai RD wants to be sure the money you import isn't illegally sourced and that it has been declared somewhere, drilling down to exemptions and allowance is unlikely to be part of their agenda.

No sooner do I try and wrap things up when another point arises, which has been added to the end of the document: I) - Does the Thai RD consider remitted funds to Thailand that have been through the overseas tax process, to be tax free in Thailand. Or is it the case that overseas tax must be paid on every Pound or Baht that is remitted. In other words, will the Thai RD allow the UK Personal Allowance and other countries exemptions, to be part of the tax paid process.

That is the big question currently. I believe it is a case of the overseas funds having been subject to the overseas tax process rather than actual tax having been paid on every pound or baht that is remitted. But the RD need to confirm this is the case and that they will allow the UK PA.

True

As for the first point, hardly anyone does pay tax here, that's the big problem! But it's almost certainly not because of Gift Tax. If you look at the link below and read the para, "Assessible (Taxable) Gift Income" and scroll down to part that reads, "for a gift received by...a spouse", the rules state that up to 20 mill. is tax free. If not a spouse etc, it's 10 mill. One of us appears to be missing something here on this point, I hope it isn't me. So if you can tell me where you think what I have said above is incorrect, please do. https://sherrings.com/gift-tax-law-in-thailand.html#:~:text=tradition or custom-,Subject to tax on the amount of the gift received,baht in a tax year.&text=Exemption from tax as per the rules specified by Ministerial Regulation.&text=an adopted child)-,On the amount of the gift received in excess of,transfer of the immovable property.