Mike Lister

The rules as of today are almost exactly what the rules have been for years, only one small aspect has changed. The problem here is that most foreigners are now beginning to understand that many of them should have filed tax returns in previous years but didn't. This means that everyone now has to learn all the rules, rather than just the one that has changed. Case in point, anyone who has lived here for a few years and has their pension remitted directly to their Thai bank account every month, probably should have been filing a return because in many cases, that pension was income that was not covered by a DTA and was remitted in the year it was earned. In this example, it's the people who rely on the income method that are the ones I refer to.

All foreigners have always been regarded exactly the same as Thais in that they are obliged/required to file a tax return every first quarter, of every year, provided they meet the criteria of being tax resident and having assessible income in excess of 60k Baht. That rule has existed since the the 1990's. The only thing that has changed now is that one specific aspect of funds transfer has now become changed, nothing else has. This years tax return, due to be filed before 31 March, looks at income earned or transferred in during the year it was earned, last year. That is exactly the same as all previous years. So when you ask, did the RD say they are expecting a tax return to be filed this year, the answer is that the RD has been expecting everyone to file a return, every year for the past XX number of years but of course, many have ignored the rule. This is the point in the proceedings where some posters will jump in and call me bad names, because I have filed a Thai tax return in previous years. I am a Brit, retired and my pensions are remitted to Thailand and paid directly into my Thai bank. I also have banks savings interest and other income that arise in Thailand hence my total assessible income is in excess of the threshold plus I am Thai tax resident. I also file a UK return and a US return, because I derive income from the US also. The net effect is that I pay no tax in Thailand because the deductions and allowances are what they are but I am still required to declare it and file the return.

Possibly so, but, I didn't want to get into a debate about the economic pro's and cons of who might win the election.

Tricky. The correct answer is that those funds should be tax free in Thailand but proving that chain, may be difficult and prove too much to easily explain to the Thai RD, should it ever become necessary to do so. I would worry about this downstream, this is because not enough is known yet about how the RD intends to proceed. There is a possibility that, in its simplest form, the RD may say that any funds remitted to Thailand from a country with which Thailand has a DTA, are not taxable in Thailand. On the opposite end of the spectrum the RD may chose to play things more precisely and demand all the paperwork and audit trails from the home country. But given the complexity involved, combined with the different languages and formats, this seems highly unlikely. The bottom line is we don't know yet, hence, playing a waiting game until more is known, may be the best approach. I understand that much of this is counter culture for many foreigners who expect Revenue Departments to have all the answer beforehand. Thailand however is very different in its operation than many of our home countries.

Only funds remitted to Thailand are liable to Thai tax, funds that remain overseas are not.

A SIMPLE GUIDE TO PERSONAL INCOME TAX IN THAILAND 8 January, 2024 Version 5, Rev B 1. This guide has been compiled in an attempt to provide readers with the simplest possible over view of Personal Income Tax (PIT) in Thailand. The scope of this document is limited to PIT. 2. You may have heard that new tax laws came into effect on 1 January this year, in fact, that is not true! The old tax rules still exist and remain valid, albeit just one minor change to them was made in November last year. Previously, anyone who earned money overseas and remitted it to Thailand in a different tax year, received that money free of Thai tax. That loop hole in the Revenue Department (RD) tax code has been extensively exploited by wealthy Thai’s and is now closed, hence, any money earned overseas and remitted to Thailand in any year, is now liable to Thai tax. The purpose of the new rule is to reduce tax avoidance. Unfortunately, it now means that overseas funds transfers by foreigners living in Thailand, also have an increased risk of being taxed. 3. This guide is an overview of the core parts of the PIT system. It is not designed to be exhaustive and it doesn’t cover all aspects of PIT, nor is it intended to override anything produced by the Thai Revenue or specialist tax companies such as Sherrings or Mazzars. This guide also does not address all types of income or the rules relevant to people from every country. What this guide will provide is a starting point for readers to manage their own tax affairs and it will also provide most of the answers for those with simple tax affairs, especially the average pensioner. 4. There are also certain types of visa that fall outside of the RD tax code. The LTR visa for example received its tax exempt status by royal decree hence visa holders will not to be assessed for Thai tax and they are specifically excluded from this explanation. 5. Terminology: this document uses the word “assessable” often. Assessable in the context of this document means income that is liable to tax and must be included on a Thai tax return. Not all income is assessable, some is excluded from tax assessment by its very nature or because of the terms of a specific tax agreement. 6. Dual Tax Agreement/Double Tax Agreement (DTA): is an agreement between two countries that sets out which of the two countries has the right to tax specific types of income and all the associated rules. It’s purpose, in part, is to ensure that the same funds are not taxed twice and provides a means by which tax that is paid twice, can be recovered, how and from where. Note: If the taxpayer income is sourced in one country but the tax payer is resident in a second country, use of a DTA can result in increased tax being paid, if the second country has a higher rate of tax on the type of income in question, than the other. 7. This document is being drafted in January 2024. Tax returns are due between now and 31 March 2024 which cover the period, 1 January 2023 and 31 December 2023. The tax changes affecting foreigners in Thailand came into effect 1 January 2024 which means this years income activity is not reportable until 181 days from the start of the year, for year round residents it will be due 1 January next year, 2025. 8. If you stay in Thailand for more than a cumulative 180 days, between 1 January and 31 December each year, you will be considered to be Tax Resident in Thailand during that year, regardless of the type of visa you have. It doesn’t matter that you may be Tax Resident in your home country or elsewhere or that you pay tax in those countries, Thailand will still regard you as Tax Resident. Tax Residency and Immigration status (and the visa you hold) are different things. Tax residency is based solely on the number of days you spend in Thailand and where you are at midnight on each day. 9. Because you are Tax Resident, YOU must review your income each year to determine if it is regarded as assessable to tax in Thailand, nobody else will do this for you. If your income does not exceed 120,000 baht per year, you do not need to file a tax return (60,000 baht if your only income is bank interest paid to you by a bank in Thailand). If your income is over 120,000 baht per year, you must file a Thai tax return between 1 January and 31 March. 10. Your income in Thailand is defined as any money paid to you inside Thailand, as well as, any money you receive from overseas, both types are potentially assessable income for Tax Residents. There are many types of income that can be classed as assessable, the Thai RD lists some of them and is linked below, however, the list is not exhaustive: https://sherrings.com/personal-income-tax-in-thailand.html#:~:text=Section%2040%20of%20Thailand's%20Revenue,Pensions%3B%20and 11. There are also classes or types of income that the RD does not regard as assessable and these are also linked below: https://www.rd.go.th/english/37749.html 12. Income that is derived from within Thailand is fairly clear, if you work and have a job and you are a Tax Resident, your income is assessable for tax. Interest that is paid to you on Thai bank accounts is regarded as income, as is income from investments such as stocks and bonds within Thailand. You should note that if you are generating income by working while staying in Thailand, it is (and has always been) irrelevant where that money is paid and whether you bring the money into the country or keep it offshore. That money arises in Thailand hence it is taxable here. 13. It is not possible to give the same blanket rule to everyone to determine whether income is assessable or not because of the variable factors involved. Overseas income has to pass several tests to determine if it is assessable to Thai tax or not. It is still early days and all the rules are not yet clear. It has been said that tax residents who import funds from countries that have a DTA with Thailand, will not be effected. Exactly how that will work leaves many questions unanswered hence this document attempts to look at only the most popular types of income based on what is known at present. This document does not speculate as to what may happen in the future, other than in the segment at the end concerning likely future Immigration rules. 14. If we take the simplest type of income and say that you transfer personal savings from overseas to Thailand and those savings were earned before 1 January 2024, those funds are not assessable. But savings earned after that date are, hence the date when the income is earned is extremely important. A word of caution, you may be asked to provide proof that savings were earned before 1 January 2024. 15. Another common type of income is pensions, which can be complicated, depending on the type of pension and the country that it comes from. The country of origin is important because there are over 60 different types of Dual Tax Agreements, sometimes called Double Taxation Agreements (DTA’s), between Thailand and those 60+ countries and each one is different. As a general rule, most private or company pensions from most countries appear to be assessable here but YOU will need to confirm that yours is or is not. If that is true, private and company pension income IS assessable income in Thailand. 16. US Social Security payments, a form of pension paid to some older people, can only be taxed by the US under DTA rules and Thailand is forbidden from taxing them, this means those payments are NOT assessable income. UK State pension on the other hand is not covered by a DTA so it is assessable income in Thailand whilst UK Government or Civil Service pensions are not! 17. The proceeds from the sale of a capital item such as overseas property, where funds are remitted to Thailand, is one popular source of funds, the sale of some investment products such as stocks, shares and bonds is another. Those proceeds typically comprise two parts, capital and profit. If the capital was acquired before 1 January 2024, it is free of Thai tax. One way to separate capital and profit may bee to have an official valuation or statement that is dated 1 January 2024 since anything earned before that date, is not assessable. Also, if the profit has been the subject of a Capital Gains return in the home country, that also may be free of Thai tax but this cannot be guaranteed at this time, until things are made more clear and are once again subject to the terms of any DTA. YOU will need to review the DTA between Thailand and your home country to fully understand what particular clauses affect you. 18. It appears as though most property rental income that is remitted to Thailand is considered to be assessable income and is taxable here, unless of course it has been taxed in the home country and/or the DTA prohibits its taxation (which seems unlikely). 19. YOU are responsible for determining if your assessable income in Thailand exceeds the threshold and means you must file a tax return. That assessable income might comprise, pension payments, investment income, rental income or any of the other types of income listed in the link above. If you have assessable income of over 120,000 baht per year, you must file a tax return (60,000 baht if your sole source of assessable income is bank interest paid in Thailand). 20. Before you can file a tax return in Thailand, you need to acquire a Tax Identification Number or TIN from the RD offices in your area. You will need your passport, a valid and current visa or extension and in many areas, a Certificate of Residency from the Immigration Department. 21. Completing a tax return is a simple affair for most people, if you have difficulty, the Revenue Department staff are extremely helpful. Tax returns must be filed between 1 January and 30 March each year, if you file later than that, penalties will apply. 22. Thai tax is layered in bands and is payable based on the amount of assessable income that falls within each band and are shown and linked below: Taxable Income per year(Baht) Tax rate 0 – 150,000 Exempt 150,000 – 300,000 5% 300,000 – 500,000 10% 500,000 – 750,000 15% 750,000 – 1,000,000 20% 1,000,000 – 2,000,000 25% 2,000,000 – 4,000,000 30% Over 4,000,000 35% https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax 23. The Thai tax system contains a series of Allowances, Deductions and Exemptions that will help you reduce your tax bill and they are very generous. It is easily possible for the average expat foreign retiree to reduce their taxable income by 500,000 baht or more each year. For example, a retiree aged 65 years of age, married and living here full time, supporting a Thai wife who has no income and doesn’t file tax return, is allowed the following: a. Personal Allowance for self - 60,000 b. Personal Allowance for wife - 60,000 c. Over age 65 years exemption - 190,000 d. 50% of pension income received, up to 100k - 100,000 e. In addition, the first 150,000 of assessable income is zero rated and free of tax 24. Additional deductions and allowances exist for health or life insurance premiums paid in Thailand. A complete list of deductions, allowances and exemptions can be found here https://www.rd.go.th/english/6045.html or from Sherrings below. https://sherrings.com/personal-tax-deductions-allowances-thailand.html 25. The Thai Revenue tax filing system is online but is only available in Thai language at present. The tax forms are however available in English and they can be downloaded from the link below. CAUTION, the forms are updated every year and the 2023/24 forms for full year PIT are NOT yet available: https://www.rd.go.th/english/63902.html 26. A simple sample completed tax form for a person aged over 65 years is shown below as a guide. 27. https://aseannow.com/topic/1312534-taxation-of-ex-pats-pensions-etc/?do=findComment&comment=18532562 28. Tax filing in Thailand is based on the honour system, it relies on you declaring all the right information every year and there are severe penalties for evading Thai tax. It would be foolish and a gross under estimation of RD capabilities to think that doing nothing and keeping a low profile means you should ignore Thai taxation. Very few sane people in the US and UK ignore the tax authorities who tend to have a long reach. It cannot be ruled out that at some point, a link may be established between tax filings and visa extensions. A law already exists that requires foreigners to apply for Tax Clearance Certificates before being allowed to depart the country but it is not being enforced currently. These things are possible because similar things have been adopted in several countries in the past, including the US. 29. The RD tax return requires taxpayers to report assessable income, the tax rules even list some types of income that are not assessable to help in this. In addition, some types of income, from some locations, for some nationalities, are also known to be not assessable. 30. If a taxpayer is certain that some of their income is not assessable, they may not want to declare it on their Thai tax return. Alternatively they may wish to ask the RD or employ specialist tax advisor's. It should go without saying that some taxpayers may try to suggest that some of their income is not assessable when really they don’t know for sure, or, they know that it is and say it that it isn’t, a sort of, chancing your arm and hoping you wont get found out. In that situation, the RD will not look favourably on such people and penalties are likely. 31. There are several sources of detailed tax information and these web sites are linked below: https://www.rd.go.th/english/6045.html https://sherrings.com/personal-income-tax-in-thailand.html https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax *** END ***

As a married over 65 year old, you are entitled to Thai exemptions and deductions of around 500,000 baht per year. You may find yourself needing to file a tax return at some point in the future, just because your income here exceeds the minimum but you will almost certainly not have to pay any tax, not at the levels you mention.

Aint that the truth, he's the source of a lot of the confusion and major reason for this thread going round in endless circles.

How do foreigners in Thailand find about any of the things that effect them here, this will be via the same mechanisms. The Thai RD will not figure out how much is owed for tax, the individual must complete a tax return and tell them. Have you even read the document at the start of the OP!

Thanks, yes, sorry, I got that back to front in my rush to go for dinner!

If you are non resident, none of this applies to you. All transfers are potentially income, it's up to the tax filer to distinguish and declare what is and what isn't, they are the only one to know,

Probably through the media or sites like this, I don't think there is a formal notification system.

When you receive your visa and enter the country, you are required to follow the laws of the country and Revenue Department rules are included in that. As for the rest of what you wrote, you need to read the document in the OP to answer your own questions, it is clear you have not thus far or that you have not understood..

That is correct, assessible income only. There are two tax forms, PND 90 and 91. PND 90 is for people with income from Thai bank savings only, PND 91 is fo0r those with bank savings and other income. The threshold for PND 90 is 60k Baht, and for PND 91, 120k Baht.

Sorry, no I don't. You have time on this, there is no need to panic like some are doing. A tax return is due this quarter for the previous tax year that ended 31 December 2023. But a tax return has been due every first quarter, for all the years that you've been here for as far back as you've been here so this quarter is no different from any previous first quarters. If you were tax resident last year and you had assessible income over 60k Baht, you should file a tax return, exactly the same as in previous years. If you haven't and didn't, oh well, that water under the bridge. The new tax rule started on 1 January this year, this means when you file a tax return Next first quarter, you will need to consider the new rule, but not until then.

Try asking the tax expert, poster stat, although I think that nobody can help you, you're beyond help.

Maybe if you are the expert tax consultant you say you are, you should answer concisely and precisely the questions raised by Cyclist and Jim Gant and put them out of their misery .

$40k per tax year in SSc income from the US would be zero tax in Thailand because all excluded by DTA - it's all excluded income (or so the experts on the US DTA have posted).

Yes

Nope, because you haven't paid into the social security system and neither will you, until you get a work permit and a job..

Formally requested, you mean like a state opening of Parliament type event! There is no connection (at present) between immigration affairs and tax affairs, they are different government departments that deal with totally different areas. I have news for you, you were given a formal request to file a tax return, the second you met the criteria for filing one, the fact that you didn't means you ignored that (implied) request. The criteria are: - You became tax resident - you had assessible income over 60k baht in the tax year.

Can't help you. Bye

It wasn't obvious from the answers in the past 200 pages.

Really strange behavior from the same four posters in this thread who seem completely unable to figure out whether they need to file a tax return or what to declare.

So you are expecting a personal invite from the government to apply for a TIN and file a tax return......that's interesting and also completely wrong! Why do you think you don't have to file taxes, if you are tax resident and meet the threshold for filing a return, just because nobody came and told you to.......jeeze?