Yumthai

Sure like everywhere there is a black economy but it's a minority (because of law enforcement and low corruption), unlike Thailand.

Totally agreed. In my homecountry they strictly enforce tax laws and most of residents declare their income. Also, I can't bargain with any public servant and if I hand over a brown envelope in order to "ease things" I'm the one who goes to jail.

https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Tax/Deposit-and-Transfer-Transactions-Reporting Each bank will report to the RD only if: - Depositing or accepting transfers of money in all bank accounts 3,000 times or more in the previous year. OR - Depositing or accepting transfers of money in all bank accounts 400 times or more, for a total amount of THB 2 million or more in the previous year. NB: you can hold accounts in multiple different banks.

While doing a bank transfer there's a description field. The gifter should simply writes: "Gift to Mr/Mrs X". Apart of that, any piece of paper or email will do. How could they challenge it?

Apples and oranges. The online lawyer just forgot that Thailand is not the West, Japan or Singapore. Law enforcement is way behind and corruption way higher. Having living in several countries of different cultures, the only sound advice is: "When in Rome, do as the Romans do". What are the huge majority of Thais doing? They don't declare nor pay tax as they should do. Sure it's better to be aware of the law/rules, that doesn't mean we need to change anything until real actions consistently and sustainably happen.

What's the point of the gift tax law then? It's nowhere mentioned they will or can potentially audit the gifters. How could they? Do you really think Thais declare and pay tax on gifts received on their bank account from their relatives or sponsors abroad? None declare and pay tax on that money and it's certainly much more important than all foreigners' remittances in Thailand.

It's called a bribe not a tax.

Yes, you should show any supporting documents indicating all transactions for the tax year: pension, bank statements ...

Tax officer is right if your income comes from pension. By deducting 100K expense in addition of your other allowances you will then have no tax to pay. You can deduct expense (50% but not exceeding 100K baht) on Assessable Income Under Section 40 (1) (2): salary, wage, per diem, bonus, bounty, gratuity, pension, rent allowance, employer-provided rent-free lodging, debt liability paid by your employer, and any money, property or benefit you received in connection to your employment. You can also deduct expense (50% but not exceeding 100K baht or you may choose to deduct the actual expenses) on Assessable Income Under Section 40 (3): income from annuity, or income derived from a will, juristic act, or court decision, income from royalties, copyright, goodwill or any other rights of similar nature

OK I get your point: it differs on the way it is formulated but at the end the calculation outcome comes back to a simple allowance deduction.

Why do you have to pay 4K if your tax rate is 0%? 100K expenses deduction is only if you have income from employment. Did you have the chance to ask the tax officer if you transfer as a gift up to 20M a year to your wife from abroad, it's tax-free? It seems you didn't understand my question.

I still don't get the difference in outcome. Could you please make 2 examples with numbers that show how the calculation results differ, whether using the described method or using the 190K exemption as a simple allowance deduction?

If the 190K "exemption" has the same impact on the calculation of the taxable income (being deducted before or after leads to the same result, doesn't it?) then it behaves like an allowance. So why TRD did not simply put it on the allowance list, even adding an extra form to fill? I'm wondering. Something doesn't add up here... or is it again a Thai logic mystery that we Farangs cannot comprehend?

It's more complicated than that. Refer to the comprehensive @Lorry post below for more detailed information:

It seems you are correct, the 190K should be deducted on the assessable income in the first place. I better understand now why PWC did not put up a clear explanation on this "exemption" as it's as unintelligible calculation as misleading wording. I never get why bureaucrats always make (what should be) simple things complex... oh yes they need to justify their job.

It cannot be "in addition", it's "either...or". PWC: "In order to support low income earners and the aged, the first THB 150,000 of net income is tax exempt. For a resident who is 65 years of age or older, an exemption is granted on income up to an amount not exceeding THB 190,000." https://taxsummaries.pwc.com/thailand/individual/income-determination moneymgmnt.com: "The first 150,000 THB of your net income is not taxed (this number is increased to 190,000 THB for residents aged 65 and older)." https://www.moneymgmnt.com/tax/personal-income-tax-rates-thailand/ Guide to Personal Income Tax Return 2021 (ภ.ง.ด.91) page 4: "A taxpayer who is 65 years of age or older is entitled up to 190,000 baht of income exemption from his/her total income" https://www.rd.go.th/fileadmin/download/english_form/030265guide91.pdf https://sherrings.com/personal-tax-deductions-allowances-thailand.html

The 190K are not a deduction, it's an exemption. People of 65 yo or older are entitled to an income exemption up to 190K instead of 150K Baht.

"guarantee" says who? Please provide source and references. A loan is a loan, a line of credit is a line of credit. Thailand cannot reinterpret global standard definitions. Now, if you mean you think that they will start taxing debts, this is a very speculative and unreal opinion.

You sell an asset be it property, car, gold, jewelry, watch, stock, bond, ... you name it. You get a sale receipt/certificate while holding LTR Visa. You transfer sale proceed to Thailand. TRD asks you where the money comes from. You show the sale receipt/certificate that indicates a year you were under LTR visa. Remittance is tax exempted. TRD will never ask you the full history of when/how did you buy the asset in the first place because it's a never-ending story. You could have made multiple trades of multiple assets with multiple accounts within the same calendar year.

About prior earnings/savings: you buy then sell any low volatility asset (transactions happen outside of Thailand) while holding LTR visa. Sale proceed can be remitted tax-free in Thailand because you have an evidence if asked that capital gain occurred while you were holding LTR visa.

You will pay tax if you remit the money directly to your Thai bank account. However, if you transfer money directly to your wife Thai bank account from your Swiss account as a gift, she won't pay tax up to 20M THB remitted in the same calendar year.

CRS reports information on account holders who are tax resident(s) outside of the country where they hold their accounts. No information is sent to the country of citizenship if not tax resident there (except countries that apply citizenship-based taxation).

Well, the answer @SHA 2 BKK received from BOI is rather clear: "We would like to address that for the LTR tax benefits: the revenue department has already announced a royal decree to exempt the LTR- Wealthy Global/ Wealthy Pension/ Work from Thailand from paying the income tax derived from oversea business/ work and assets. Therefore the change in conditions will not effect the exemption of the LTR mentioned group. Therefore, we can assure you that the incentive of the LTR visa is still the same. We also believe the revenue department will shortly give an official clarification also as it is their main responsibility and we will work with them to get the procedure for future assistance i.e. to address when you wire in the money that it is from the work remotely (same as in LTR application)- the revenue can cross check with us if they want, don't worry."

These people, if they wish so and because they can afford, can simply apply for a LTR visa and be tax exempted on their foreign money remittance.

It's not a deduction, people of 65 yo or older are exempted on income up to 190K THB instead of the usual 150K THB.