Miloki

Read the link you just sent. "When dual residency occurs..." The USA-Thai DTA has precedence over Thai tax laws and the tie-breaker in the DTA determines where you are a tax resident if you meet the qualifications for tax residency in both countries. This may be specific only to Americans and DTA's for other countries might have very different rules. The only question I think now is whether or not the Thai RD requires a letter of U.S. Residency Certification (IRS Form 6166 received my submitting Form 8802). Some countries do but I have not seen this requirement published anywhere in Thailand. Probably best to just follow the DTA and consider the remitted money not accessible, but produce a 6166 if asked. Not sure. Here is the exact provision... ARTICLE 4 Residence 1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, citizenship, place of management, place of incorporation, or any other criterion of a similar nature. The term also includes that State and any political subdivision or local authority thereof. The term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State. For purposes of this paragraph, an individual who is not a resident of Thailand under this paragraph, and who is a United States citizen or an alien admitted to the United States for permanent residence (a "green card" holder) is a resident of the United States only if the individual has a substantial presence, permanent home or habitual abode in the United States. If such individual is a resident of Thailand under this paragraph, he shall be considered a resident of both Contracting States and his residence for purposes of the Convention shall be determined under paragraph 2. 2. Where by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, then his status shall be determined as follows: a) he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (center of vital interests); b) if the State in which he has his center of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national; d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

"The determination of residence for treaty purposes looks first to a person's liability to tax as a resident under the respective taxation laws of the Contracting States. As a general matter, a person who, under those laws, is a resident of one Contracting State and not of the other need look no further. That person is a resident for purposes of the Convention of the State in which he is resident under internal law. If, however, a person is resident in both Contracting States under their respective taxation laws, the Article proceeds, where possible, to assign a single State of residence to such a person for purposes of the Convention through the use of tie-breaker rules." 180 days qualifies you Thai Tax Residence Fed/State/Property Taxes/Car Reg puts you under USA Tax Residence Tie breaker for determining Tax Residence is in this order: 1) Permanent Home available 2) Vital Interests 3) Habitual Abode 4) Citizenship Seems clear unless I am missing something?

My reading of the US-Thai DTA is that if I maintain my permanent home in the US (not rented out & continuously available to me) then I am a US Tax resident ONLY, even if I spend more than 180 days in Thailand. This is due to the 'tie-breaker' rule for those who might qualify as a tax resident in both jurisdictions. Assuming only US based income is brought into Thailand I see no reason to get a Thai Tax ID and file a Thai tax return as the DTA makes it clear I am not a Thai tax resident. Correct or does anyone disagree?