Mike Lister

If you are over age 65 for example, your TEDA is circa 350k baht which can effectively be added to the 150k zero rated tax band giving you around 500k baht tax free in Thailand every year. Add to that the fact that any income that is remitted where tax has already been paid in the home country, will not be taxed again and that tax will be credited against any Thai tax that is due. ASSUMING, that the Thai RD allows the UK PA, for example, to remain, and that pensions are taxed in the UK, that means that almost no Thai tax will be due on a pension of an average size and where tax is due, the TEDA relieves most of the tax stress. If the example is a single person under age 65, the picture changes but still the fact that the money coming from the UK is taxed there, should mean virtually no tax is payable in Thailand because UK tax tables are higher than the Thai tax tables.

I don't think so. The transfer between gifter and receiver has to be made at some point, that transfer either takes place from a Thailand account to another Thailand account or from a UK account (say) to a Thailand account. The way in which the transfer is made and where it is made, doesn't change the nature of the transaction which is a gift.

Surely you can import the funds and Gift them in the same tax year, that way they represent non-assessable income on your part and don't need to be reported.

Another unnecessarily argumentative and off topic post has been removed. The source of news articles has been explained in an earlier post, as has the role played by moderation in those articles. I have removed argumentative posts relating to this subject, any further posts along the same lines will result in formal warnings being issued. 9. You will not post disruptive or inflammatory messages. You will respect other members and post in a civil manner. 10. You will not post troll messages. Trolling is the act of purposefully antagonizing forum members by posting controversial, inflammatory, irrelevant or off-topic messages with the primary intent of provoking other members into an emotional response or to generally disrupt normal on-topic discussion.

If your math is correct I can agree but honestly, you need to make a table out of it so that people can read and understand it easily, as it stands I don't have time to try to work out what you've written to see if it is correct. But at a quick glance, you appear to have left out Thai TEDA, tax deductions, exemptions, allowances. .

Do not confuse use of the word "income", as in payment received for something, with, "income", as in funds received from overseas.

Please see Q&A Q6 in the link for the definition. https://sherrings.com/foreign-source-income-personal-tax-thailand.html

The point is moot. Pensions, in fact all income, that has already been the subject of tax in the home country will not be taxed again here, that much has been confirmed. Tax paid on any income in the home country can be used to offset any Thai tax liability, if one should arise.

Agreed re. 1 & 2. Point 3. The article uses imprecise language which does not reflect the Thai Revenue Code, you can safety ignore the terms used. Question and Answer 6 in the link following defines income: https://sherrings.com/foreign-source-income-personal-tax-thailand.html Point 4 - agreed, only UK Government pensions are described in the DTA and excluded. Point 5 - the combination of the zero rated tax band of the first 150k, and, the TEDA (Tax Exemptions Deductions Allowances) for an over 65 year old person, equal an amount very close to that of the UK personal Allowance.

Two off topic posts removed, the subject is Thai taxation, not the US. And now a third post hidden, the topic is still Thai tax, it hasn't changed! The thread has nothing whatsoever to do with the USA.,

The ASEAN Now News Team works very hard and selects articles it thinks are noteworthy, for a variety of reasons, Moderators play no role in their selection whatsoever. The other point to make here is that even in this thread, there are several people who are asking first timer questions about this subject and asking where the rules can be found. I rather think therefore that it is not yet time to sit back and relax, not if we are to make most people aware.

I strongly suspect from what you have written that you do not understand the new ruling. Very very few people will find themselves paying 35% tax here, unless they are extremely wealthy, have no TEDA and import substantial amount of money each year. Even then!!!

Un-necessarily argumentative and off topic post removed. The topic is the new tax laws in Thailand, not the quality of the article.

Statement dated end of year. And if you can't prove it, that means you're telling porkies and should reconsider

Articles such as these help raise awareness and help educate many, we've seen ample evidence of that, that's why they are posted. If people panic it's probably because they are not informed, reading these threads helps change that.

Where will you deliver the services from, inside Thailand?

OK, now it's more clear.

If you are regarded as a consultant or contractor, you can specify how you will be paid and where, the issue will then be, the jurisdiction where the services were delivered and how. If for example, you are a UK citizen whose client is an onshore Thai company but you own an offshore company registered in say Samoa and your services are delivered in say the PI, the scenario will look like this: You are not liable to Thai tax because no services are delivered in Thailand and you are not Thai, assuming also you own an offshore company. The UK will not have any claim to tax, as long as you remain ex-UK for tax purposes for the tax year and your company is in offshore UK. The PI may levy a tax obligation because you are delivering services in the PI. Samoa is completely out of the loop. An offshore umbrella company would relieve some of that stress and you could always claim to be a tourist in the PI, using the example above. I did the same thing for many many years.

Which probably sounds idyllic to some who have been working hard for the past 40/50 years but the novelty will wear off very quickly.

As of writing, I am unsure, this issue has arisen a number of times so we're trying to understand it completely. There are a number of aspects. If the sale was concluded prior to 1 January 2024, the provides are free of Thai tax, that is certain. If the sale was concluded after that date and was subject to Capital Gains, it also is likely to be free of Thai tax with any tax paid in the home country offsetting any tax liability in Thailand. BUT, if the sale was concluded after 1 January and was free of tax in the home country, it is unclear if the Thai Revenue will regard that as non-taxable income or not. Much will depend on the contents of the DTA, the rest will depend on the Thai RD treatment of that gain. What we do know is that CG in Thailand is taxed at PIT rates.

All DTA's are linked and available for download via a single link in the document below in Para 8.

The Capital Gains issue has appeared a number of times but we still don't have a conclusive answer. One potential answer is that the gain is pro-rata with any part of it being tax free if earned prior to 1 January 2024 and the remainder, taxable. That approach would require an accurate valuation at 1 January 2024 which may be problematic if you try to get one retrospectively.

I edited my post before you posted your reply so you may not have seen that I acknowledge there are CG exclusions in some countries. The key issue is whether Thailand is obliged to accept those exclusions and regard that income as free of tax, the answer to which I do not know.

I agree, without the gym, the garden, DIY and shopping, life in Thailand would be stark. I don't know how single guys who rent a condo do it, unless they spend as you say, all their time in the bars, in which case life is short.

You can disagree all you want but Capital Gains are taxable in Thailand, albeit at the PIT rates, just as they are in any country. EDIT TO ADD: There are capital gains exclusion rules that exist in one country and which may or may not be accepted in another, that is one of the key issues at the heart of this property sale question that many have asked. We don't know enough yet about the rules that the Thai RD will apply to overseas CG transactions so it needs more research.