JJ-Thailand

Thailand is no longer what it used to be.

58% sounds high to me. I guess many will change their mind and file when we get closer to the deadline. Who in his right mind wants to have potential future problems with TRD or Imm? On the other hand, many foreigners not filing will send a message to the Thai government that taxing foreigners is not a good idea.

That's what it looks like at the moment, latest update was 23 Nov. 2020. Unfortunately, it could change overnight, who knows what they will come up with next.

We never had this kind of <deleted> happen in Thailand in the old days, we only enjoyed our stay here and had fun. Now we see foreigners fighting and murdering each other, foreigners robbing banks, breaking into cars, scamming ATM users and all kind of weird <deleted>.

Official information from TRD on tax clearance certificate: Who is required to acquire a Tax Clearance Certificate? Section 4 quarter of the Revenue Code stipulates that a foreigner departing shall apply for a Tax Clearance Certificate in the form prescribed by the Director-General within 15 days before leaving the country, whether or not there is any tax payable. A foreigner departing Thailand is required to file an application for Tax Clearance Certificate (Form P.1) and supporting documents if: He is liable to payment of tax or tax arrears before departing Thailand He has duty to file a tax return and pay tax on behalf of a company or juristic partnership incorporated under foreign laws and has been carrying on business in Thailand He has taxable income, whether or not in Thailand, from being a public performer in Thailand. The word "public performer" means a drama, movie film, radio and television performer, singer, musician, professional sportsperson or performer for any kind of entertainment. Penalty A foreigner departing or attempting to depart Thailand without a Tax Clearance Certificate shall pay a surcharge at the rate of 20% of the tax amount. In addition he shall be subject to a fine not exceeding 1,000 Baht or an imprisonment not more than 1 month, or both. Read more here: https://www.rd.go.th/english/23518.html

Not everybody understands that to file or not to file has nothing to do with if you need to pay tax or not. 1. Most foreigners will have to file their tax return in Thailand if they send over an assessable income above 60,000 or 120,000 Baht. 2. Most foreigners won't need to pay a penny in taxes due to a double tax agreement or due to the full use of allowances and deductions, but they still need to file.

Correct, the tax code hasn't changed, only the definition.

We know that Imm and TRD are sharing data, anybody that has been in Thailand for 180 days or more might be audited.

The Thai government wants to attract more foreigners to Thailand by imposing taxes on us. Brilliant idea! 😂😂😂

Don't buy the house!

Unfortunately, the Tax Clearance Certificate already exists but hopefully we will never have to use it. More to read about it at TRD official website: https://www.rd.go.th/english/23518.html

Many people have this problem, but most local TRD would still not issue a TIN unless you need it to file your tax return in Thailand.

I agree, they might eventually implement a tax clearance certificate required for visa extension. Last time I was on a job in Panama I was not allowed to leave the country without a tax clearance certificate issued by the revenue department in Panama City, it stated that I had fulfilled my tax obligations to the country. I just checked if Thailand has something similar and they have but it is not used for people in our situation, yet.

It is correct, they are not supposed to issue a TIN unless you need to file a tax return.

The way I understand it, only valid for cash proven to be in a foreign bank account in your name on 31 December 2023. I could be wrong, but it makes sense.

Fully agree with you. What an unnecessary mess! I think the whole thing is a terrible mistake and still hope for a U-turn by the government, even if it is a bit late. However, I have already prepared the paperwork and will hand in my tax return (with zero tax) by end of March if there are no changes, the last thing I need now or in the future is any problem with the Revenue department of Thailand.

Correct, a transaction can be taxable but in the case of using my foreign credit card in Thailand, the capital is never transferred into my Thai bank account but into the seller's bank account. Right?

Guess who will own the casino? 😇

Thailand purchase submarines from China to protect the country from China?

Two different things.

Is the use of a foreign credit card in Thailand taxable? This is a question I can't find an answer to. Anybody? If I use my foreign credit card to pay for items in Thailand, do I have to declare this as an assessable income in my Thai tax return? - It is a transaction of capital to Thailand (a transaction is not taxable). - It is basically a loan, credit (credit is not taxable). - It will be paid off using foreign funds (foreign funds could be taxable).

There are other penalties as well.

As I understand it, to file or not to file has nothing to do with if you need to pay tax or not. 1. If you live in Thailand for 180 days or more in one calendar year AND your assessable income sent over to Thailand is above a certain level, you should file your tax return here. 2. If your assessable income sent over is less than 150,000 Baht after allowances and deductions, no tax to be paid.

It is No. 11 item 22. Add surcharge (if any) Enter the amount of surcharge (if any) of 1.5% per month (fraction of a month equals a month) of the total tax due. This is for late filing only, there are other penalties as well.

If I have a foreign assessable income sent over to Thailand that I have already paid tax for at source I would not worry not to file my tax return for this income as there is nowhere on the form to claim tax credit and the reason for this is that the revenue department has not yet updated the forms. The important part is that I have paid tax at source and would most likely not be fined. E.g. pensions and dividends. However, if I have a foreign assessable income sent over to Thailand that I have not paid tax for I would file my tax return for this income as it does not require a tax credit claim and could be considered to be tax evasion which could result in penalties. Form PND90 has not yet been updated by the authorities to include foreign capital gains but in PND90, No. 7 Assessable Income Under Section 49 (8) any assessable income can be inserted, e.g. capital gains from sales of foreign stock. I would also make sure to use all available allowances and deductions in order to avoid or minimize any Thai tax.