Yumthai
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Or ten million baht, for GF's. Nothing in this about how, why, or when taxation takes place for the amount gifted. Meaning, amounts of assessable income remitted to Thailand for the initial, or subsequent, purpose of being gifted -- are treated without consideration of their final gift purpose. To me, unless officially stated otherwise, gift prevails over remittance (if any). If gifter decides to give $1,000 (money abroad) to giftee, gift is acted then remittance (tax-free up to THB10M/20M since it's a gift) will occur for the giftee not the gifter.
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I don't believe that for one minute, they will do the same as a lot of us. It's trivially easy to lose that residency status due to the 180 day rule whether Thai or not. May 5 is just day 126 of 2024, day 180 is on June 28 this year. I don't believe that anything will change for the Thai fat cats, nor they will spend less time in Thailand. There will still be (new/legal) ways to enjoy in-country their foreign earned money. We should not forget who really rule Thailand.
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The people you mention are among those who are, presumably, filing and paying tax in Thailand for years. They may feel it's unfair and secretly hope that TRD will eventually come after the huge majority of non-filing non-paying Thai tax residents, applying to them harsh penalties nay jail/ban terms retroactively. Then, they could flood the tax threads with a big and deserved "I told you so!".
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The issue with this leaflet is they nowhere mention the tax residency status of the individual who remits the income, as if it does not matter. But it does. That is inconsistent and in contradiction with the current law: "A non-resident is, however, subject to tax only on income from sources in Thailand." However, the leaflet title may refer to Thai tax residents only: "HOW DO FOREIGNERS LIVING IN THAILAND PAY TAX?", implying that a foreigner who lives in Thailand spend de facto 180+ days in the country then is obviously tax resident.
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https://www.rd.go.th/fileadmin/user_upload/lorkhor/newspr/2024/FOREIGNERS_PAY_TAX2024.pdf Foreign-sourced income If a foreigner derives income from sources outside Thailand, such income is subject to income tax if the two following conditions are met: - such income has been earned in any tax year starting from 1 January 2024 onward by a foreigner who stays in Thailand for 180 days or more in a tax (calendar) year, and; - such income earned has been remitted to Thailand (wholly or partially), even if that remittance occurs in a later tax year. The second condition does not precise what the individual tax residency status is (or has to be) when the remittance occurs. Either it is interpreted like CC 1161 i.e.: tax residence does not matter, then this will override the current law stating "A non-resident is, however, subject to tax only on income from sources in Thailand.", OR it is interpreted like the tax filing service company, CC 1111, and Prachuap i.e.: Thai tax residence is implied when the remittance occurs, matching with the current law stating "A non-resident is, however, subject to tax only on income from sources in Thailand." Choose your side, I vote for the majority.
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"You must obey the law" in any country worldwide but here the interpretation and enforcement of the rules vary greatly depending on the location, time and, as you mentioned, the authority you deal with. I've learnt along the decades that sticking to the law and willing to anticipate any forthcoming rules is counterproductive to say the least, considering the unreliability and corruption level of the Thai system. Since then, I move with the crowd (locals), being flexible pragmatic rather than proactive, being aware of what rules are enforced/followed and what are not, and my life is way stress-less. I will never consider this.
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Absolutely. That's why I think we won't be able to articulate an accurate and reliable version of these equivocal rules. At the end of the day, the only law interpretation that matters is the official one coming directly from the horse's mouth. According to several reports, it seems that the general consensus from various RD offices is: "If you have no tax to pay you don't need to file a tax return", conversely to "You must file a tax return in any case even if eventually your tax burden is 0". For people who worry about enforcement the most relevant thing to do is to reach their local RD office in person to get proper (written if possible) answers about their tax situation.
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All these quotes refer to "taxpayer" which is an individual who effectively has tax to pay. By definition, people who assess (rightly or wrongly) that they are not liable to tax are not (yet) taxpayers. IMHO If TRD wanted to target a larger audience they would have used the wording "tax resident" or just "resident" (as it's usually used implying tax resident) rather than "taxpayer".
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https://www.rd.go.th/english/37745.html Section 17 In relation to tax return filing, it shall be filed within the time limit specified in the Chapters regarding taxes and in accordance with the form prescribed by the Director-General. https://www.rd.go.th/english/37746.html Section 35 Any person failing to comply with Sections 17, Sections 50 Bis, Sections 51 or Sections 69, unless in case of a force majeure, shall be subject to a fine not exceeding 2,000 Baht. IMHO, the Section 17 statement implies tax return shall be filed if there is taxable income. I can't find any reference of the 2,000 THB fine for not filing from the most prominent law firms. How come? Could the English version of the RD pages be mistranslated? If the fine for not filing statement is correct then all locals and foreigners must file, which is far from the case.
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What you quote refers to UK (tax) residents having domicile outside UK, not UK people being non-residents for tax purposes. I think all non-residents for tax purposes Brits as @topt mentioned can confirm that they do not pay tax on their foreign-sources income even remitted in UK. I get your point. Thailand will have to amend its current tax and residence law in order to tax non-residents for tax purposes on their foreign-sourced income. https://en.wikipedia.org/wiki/International_taxation#cite_note-tj1-129 When sorting by "Taxes foreign income of non-resident citizens" column, few countries appear to tax foreign income under certain specific conditions/exceptions.
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Source? Official information I can find online seems to indicate UK non-residents do not pay UK tax on their foreign-sourced income. Your UK residence status affects whether you need to pay tax in the UK on your foreign income. Non-residents only pay tax on their UK income - they do not pay UK tax on their foreign income. https://www.gov.uk/tax-foreign-income/residence
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Except that US 1040-NR is related to Income Effectively Connected With U.S. Trade or Business (i.e. local income). AFAIK non-residents for tax purposes worldwide are (potentially) taxed on local-sourced income only. Is there any country that taxes its non-residents on foreign-sourced remittances? If Thailand is trying to do that, it would be a premiere.