Yumthai

The current Head man of your Tax office is always right. The next one too.

Sure, we can speculate one side or another til the end of time... or just wait for tax rules clarification.

Probably not, as nobody will ask him anything more than usual when he'll renew his yearly extension at Sisaket Immigration. And if, most unlikely, the immigration officer mentions about new requirements Edgar cannot fulfill, a helpful workaround will be offered simultaneously.

https://sherrings.com/tax-evasion-in-thailand.html The 2,000 Baht fine you mention relates to tax evasion: "Filing false return to evade tax" or "Not filing return to evade tax". It is implied tax is due. How could you evade tax is no tax is owed? Official information from the Revenue Department: https://www.rd.go.th/english/37745.html I suggest researching (Ctrl+F) the terms "fine", "surcharge" on the page. Section 18 Ter Subject to Section 18 Bis, in the case where an assessment official has made tax assessment, a person liable to tax shall pay such tax with fine and surcharge under the provisions of this Chapter within 30 days from the date of receiving the assessment. Section 20 After proceeding with Section 19, an assessment official shall have the power to adjust an amount of assessed tax or an amount calculated in the tax return base on evidence and shall notify the amount of tax payable to the person liable to tax. In this case, after such person has been notified, the assessment may be appealed. Section 21 If a person liable to tax does not comply with the summons or order of an assessment official under Section 19 or does not answer questions without justifiable reason, an assessment official may assess the amount of tax to the best of his knowledge and notify the amount of tax payable to a person liable to tax. In this case, the assessment shall not be appealed. Section 22 In the assessment under Sections 20 or 21, a person liable to tax shall be liable to fine equal to the amount of tax payable. Section 26 Unless stated otherwise in this Title, in the case of an assessment under Sections 24 or 25, a person liable to tax shall be liable to fine double the amount of tax payable. Section 27 A person failing to pay or remit tax within the time limit prescribed in various Chapters of this Title regarding assessment of tax, shall pay surcharge of 1.5 per cent per month or part of a month of an amount of tax payable or remittable excluding fine. In the case where a Director-General extends the time limit for tax payment or tax remittance, and the tax is paid or remitted within the extended time, the surcharge under paragraph 1 shall be reduced to 0.75 per cent per month or part of a month. The calculation of surcharge under paragraphs 1 and 2 shall begin from the day after the last day of the time limit for tax return filing or tax remittance until the date of tax payment or remittance. However, the amount of surcharge shall not exceed the amount of tax payable or remittable whether or not the amount of tax payable or remittable arising from the assessment or order of an official or decision of Commission of Appeal or Court decision. Section 27 Bis Fine under Sections 22 and 26, and surcharge under Section 27 shall be deemed tax. Fine under paragraph 1 may be waived or reduced in accordance with the regulations prescribed by the Director-General with an approval from the Minister. Such regulations shall be published in the Royal Gazette. https://www.rd.go.th/english/23517.html A taxpayer has the duty to file his tax return and pay proper taxes on time. Should he fail to do so, he will be subject to fine and surcharge on top of the tax due. (It is implied tax is due.) A taxpayer has the following duties : File tax returns and pay proper tax. (It is implied tax is due.) https://www.thephoenixcapitalgroup.com/the-aftermath-of-not-paying-taxes-on-time/ Penalties and Surcharge for Personal Income Taxpayers There are two reasons for imposing penalty- filing of inaccurate return and failure to file a return. The penalty rates are as follows: 100% if tax return filed is inaccurate 200% if tax return is not filed The penalty rate may be reduced to 50% if the taxpayer submits a written request to consider and if the assessment officer deems that the taxpayer has no intention of evading tax liabilities and cooperated with the assessment officer during audit. In addition to the penalty, a person or individual who fails to remit tax payment within the specified time will be imposed a surcharge of 1.5% per month, or fraction thereof, of the taxable total amount subject to a maximum amount equal to the amount of tax to be paid. 100% of what? 200% of what? Answer: of the tax owed amount. My understanding is that fines/penalties arise when, and only when, tax is due as written or implied everywhere in the revenue code. I found nowhere any fine to pay for just not lodging a tax return when no tax is owed. Again, to each their own interpretation.

You can't be penalized for not lodging a tax return in Thailand. You will be fined only if tax was due and you didn't pay.

https://www.bot.or.th/en/our-roles/financial-markets/foreign-exchange-regulations/exchange-control-regulation.html#accordion-89d74b5d26-item-394b0956bc "Bringing into or taking out of Thailand baht banknotes in an amount exceeding THB 450,000 or foreign currency banknotes in an amount exceeding USD 15,000 or its equivalent requires a Customs declaration when entering or leaving the country."

Other example of RD exemption: Inheritance and gift remittances are exempt from PIT according to certain conditions/thresholds.

It has been the case for years dealing with Immigration offices all over the country. Why would it be different with RD?

Politically wise it's not that easy. Which countries dictatorships on Earth enforce ATM checks on their tax residents? I assume foreign banks will not give such information to Thai RD without an international warrant for criminal investigation.

Au contraire, I don't look down on Thai people I just quote their own law which I think was rightly thought, maybe IMHO not to close an existing tax loophole but to somehow legalize a common and necessary practice. On 1 Feb 2016 gift tax law was put into effect in perfect knowledge of what @jerrymahoney mentioned with reason: "before the SEP 2023 ruling, if one had earnings ex-Thailand that he/she wanted to bring to Thailand, they had to wait until the next year. If they wanted to bring the money in during the year earned, it would be taxable. However, as some would suggest above, if they DID want to bring it in during the year earned, all they would have to do would be structure the transfer up to 20 million baht as a gift to a spouse tax-free." Therefore, and I quote you appropriately: "It would be a serious mistake to under estimate the capability that exists here in many seemingly antiquated departments and institutions. Put more bluntly, the Revenue is not stupid!". I'll go beyond: People who think the Revenue Department put, in 2016, a law into effect without deeply knowing what was going on for years in their country and further consequences could be the ones who doubt on their capacities. Different angles, different interpretations, point of views may vary depending on the glasses one wears. Now, with the new Sep 2023 ruling, is the current wording of the gift law makes it a legal tax loophole? Yes, it does (and it was before as per Jerry quote). My opinion: If the purpose of the Thai government is to close all tax loopholes then they will have no choice but to amend the gift tax law (because it's a too strong argument before a court). In the meantime gift rules still apply.

This is your opinion. Gifting is perfectly legal in Thailand.

Are you saying that once a spouse has gifted his/her partner, the said partner can't gift his/her spouse anymore? Is there a waiting period? Should the partner wait for one week/month/year/decade before gifting again? Should they divorce and marry again? All this need way more clarity. There isn't. As for now, the law would have to be amended regarding "gifting back" in order to be enforced. Indeed, if you gift 100K to your spouse and she gifts you back 100K the next day, multiple times a year it will be clear and obvious that you want to use a tax loophole. Anyway, no need to gift back 100% of the amount right away, also money can be used to pay for stuff/services etc. Prerequisites: you trust your spouse.

The interpretation of any accountancy or tax law firm remains an interpretation of the law. I turn the question around: Can you find one instance in the Thai law that clearly states gift law is only related to gifts within Thailand and gifts coming from foreign sources are taxable? What matters is TRD point of view, and they are supposed to strictly apply what is written in the law, not what isn't.

As stated by Thai law: - You have the right to gift (wherever it comes from) your wife up to 20M THB per calendar year tax-free in Thailand (Tax may arise for the gifter from the country where the gift is originated though). - Your wife has the right to gift (wherever it comes from) you up to 20M THB per calendar year tax-free in Thailand. - There is no law/rule stating that a gift gifted back to the gifter becomes assessable income and, as such, has to be taxed.

Are you now practicing illeism? This is "your" understanding not "our" as you rightly wrote in another thread: "Not everyone agrees with the above interpretation and it has been the subject of much debate". My view along with many others' is that offshore sourced income derived by a Thai tax resident before 1 Jan 2024 is not subject to Thai personal income tax as per instruction No. Por. 162/2566. Therefore remitting this money into Thailand never requires, alone, to file a tax return.

I usually do not waste my time and energy trying to follow unenforced or unenforceable rules/law. To me, it does not make sense. To each their own.

If you read carefully your own quote, it is clearly implied that in this article tax is due. Just because the fine is applied on the amount of the tax due. Simple logic. In any case, if tax due is 0 then the fine for not filing would be ranging from 100% of the amount of the tax due (0) up to 200% of the amount of the tax due (0). Both calculations = 0. Simple math. @Sheryl mentioned the same - no penalty for failure to file - in her post below:

To bring more clarity about personal tax filing requirement in Thailand: - There is no "failure to file" personal tax penalty. - Fines arise only if tax is owed and/or "if someone intentionally provides false information, presents false evidence, or commits fraud to evade or attempt to evade taxes". So, if you correctly assess with no intention of fraud and it's clear for you that you don't owe any tax, there can't be any penalty (if ever audited) for not filing. There should be no fine for non-intentional mistakes, but only on the amount of tax due. Good readings: https://www.thailandlawonline.com/revenue-code/tax-law-revenue-code-general-provisions https://www.thailand.go.th/issue-focus-detail/007_057

We all understand that "more than a cumulative 180 days" means "181 days or more" but shhh, please don't be pedantic. The great Mike L. poster joined this forum on 07 Oct 2023, 94 days to date, and accounts 2,124 posts until now, that's an amazing average of 22+ posts per day. You can't reasonably contradict the voice of truth.

Rich Thais I know manage to either pay 0 tax or at a tiny rate compared to their income/net worth. Amazing Thailand.

The "Catch me if you can" attitude reflects the whole Thai population way of being/mindset. Most of foreign residents just adapt ; the others, who cognitively can't, suffer all along their journey desperately struggling to shove a square peg into the round hole.

Well a smart-ass RD officer could always argue that the money remitted in Thailand on January 3rd could have been earned on January 1st/2nd, kindly letting you know that if you disagree you'll have to provide legalized Thai translations of all supporting documentation.

Probably not as for big businesses BOI will likely get involved providing tax incentives/allowances. This is why rich get richer, big money has always legal ways to mitigate tax.

Will never happen although I would be ok for such rule, let's say 0.1% tax on each transaction, with no question asked. Then, Thailand will become the new tax heaven for all HNWIs and UHNWIs.