Yumthai

I think that Thai RD, unlike IRS, has no means nor power to enforce anything out of Thailand borders. Could you bring any case of Thai law being enforced abroad?

If she has declared and pays VAT then that means she generates an annual turnover exceeding THB 1.8 million.

Found this recent Thailand PIT memo that could be somehow useful: https://www.luther-lawfirm.com/fileadmin/user_upload/PDF/Broschueren/Geschaeftsaktivitaeten_im_Ausland/Thailand/Memo_Personal_Income_Tax_in_Thailand_V8_01.pdf

It's not much about the tax return form. Rather, the way foreign-sourced income and tax residence rules are currently formulated prevents foreign-sourced income remitted in a year one is not tax resident to be taxed. It would be nonsensical to think they could enforce tax without first amending their own law.

Is having a US address mandatory in order to get the ATM card?

Regarding individual tax enforcement, Thailand is no different than most if not all countries: - For each single tax year, tax office will evaluate individual tax residence first and foremost. Then, a different set of tax rules will be applied subsequently whether the individual is considered resident or non-resident for tax purposes. - Non-residents for tax purposes are only taxed on their local(Thai)-sourced income. - DTAs can be applied, if any, in case of multiple tax residences. - Tax return is filed for 1 (calendar) year at a time (income from year Y23 is filed in year Y24 and so on). I get your point on Thai PM "intention" to close all tax loopholes however Thai tax residence rules, as it is for now, do not strictly allow it. https://taxsummaries.pwc.com/thailand/individual/significant-developments PWC: On 15 September 2023 and 20 November 2023, The Revenue Department issued No. Paw. 161/2566 and Paw. 162/2566 regarding personal income tax (PIT) for a Thai resident who brings assessable income into Thailand from abroad. This order shall come into force for assessable income brought into Thailand from 1 January 2024 onwards. According to this order: A Thai resident means a person residing in Thailand at one or more times for a period equal to 180 days in any tax (calendar) year. If a Thai resident earns foreign-sourced income in 2024 and brings it into Thailand in any subsequent year in which they are resident in Thailand, they will be subject to PIT on the income. It is clearly stated that the new order targets only Thai residents (implied Thai tax residents). https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Tax/Thai-sourced-income-and-residence-rules Mazars: If such income is considered foreign sourced income (income derived from work performed outside of Thailand, business conducted outside of Thailand, or property situated outside of Thailand) it will be taxed in Thailand only if: i. an individual is a Thai tax resident; and ii. such individual brings such income into Thailand in the same calendar year that he receives it. Second condition is now obsolete but the individual still has to be Thai tax resident. Just my 2 cents quoting legal current information.

You declare only the year you are/were tax resident. If you ask RD they will tell you can't file a tax return for a year you are not tax resident unless you have local income. This is what all Thai people living/working abroad do. As non-residents they remit money into their Thai bank account or gift their relatives tax-free legally. If Thailand wants this to change, they will need to change tax residence rules. https://www.rd.go.th/english/6045.html "A non-resident is, however, subject to tax only on income from sources in Thailand."

Will be closed ... or not. Again, do not underestimate Thai RD lawyers and officials vision. My view is gift tax rules have been elaborated on purpose, allowing wealthy locals to avoid tax burden and keep money from overseas flowing into Thailand. Foreigner residents are just a tiny community collaterally and positively impacted by this. If ever they close this kind of tax loopholes, legal new ones will be implemented if they want to avoid an economical suicide.

https://sherrings.com/cryptocurrency-income-personal-tax-thailand.html "Personal tax on the amount of the proceeds that exceeds the costs of the investment (...), and tax credit against the amount of tax payable for the WHT deducted ..." "... crypto income from licensed exchanges in Thailand" "... crypto income outside Thailand and bringing it into Thailand"

15% WHT is a not a final tax. Crypto capital gains and interests should be declared and taxed under PIT rates (minus WHT deduction). In my opinion, it is implied Crypto held within Thailand. Crypto capital gains/interests held offshore should be taxed when remitted in Thailand.

If one is that wealthy I think it's better to buy a cheap Thai insurance for 1 year before LTR application (and 5 years term check) rather than park US$ 100K in a savings account at no or very low interest rate. For instance, Pacific Cross asks for less than THB 30K/year for a 60 yo male with no outpatient cover and a yearly deductible of THB 300K (Maxima Plan THB 5M annual limit). https://onlineapplication.pacificcrosshealth.com/

However, BOI mentions: Personal income under LTR : Wealthy Pensioners’ definition is “unearned income such as a pension, rental, capital gain, dividend, etc”. Earned income (salary) will not be considered eligible income for LTR: Wealthy Pensioners application. AFAIK capital gain is not income. BOI then mentions on their application form: Personal pension income and/or fixed income no less than 80,000 USD/year Income in current year (1)Total pension income (as of the submission date) (MM-YYYY to MM-YYYY) (2) Other Sources of fixed income Annuity life insurance Rents of property Salary/wage/allowance Interest on a bond, deposit Dividend, share of profits Other (Please specify) On this list, only Total pension income, Annuity life insurance and Interest on a bond, deposit offer, depending on term, a future income guarantee. Rents of property, salary/wage/allowance, dividend, share of profits offer no income guarantee and can be lowered and cut at any time in the future. Besides, BOI prior mentioned that Earned income (salary) will not be considered eligible income ??? Information is somewhat confusing.

OK, so what does BOI mean when they mention capital gain as unearned income? Could you make few examples of an asset capital gain that will be accepted by BOI?

If someone can show one or several stock sales totaling an amount of at least $80K in a calendar year during the past 2 years, will this individual meet the BOI LTR Wealthy Pensioners Visa income requirements?

To me, the risk is significantly lower than in the West and can be avoided. Why? Because of corruption. If you have the right connections or enough money you don't have to worry in Thailand. Sure it needs "some" money, but if your are poor the good news is you don't have to pay tax.

The way I see it: many foreigners live in Thailand for years getting yearly extensions of stay without actually meeting the financial requirements. Likewise, there will be many foreigners stating (if ever asked) that all the money they remit in Thailand are savings prior 1 Jan 2024, gift/inheritance or already taxed income without actually getting proper documentation. Thailand is unable to discern a genuine foreign document from an edited one. Thailand has 0 power to enforce its tax law offshore and certainly can't require any docs from third-parties abroad.

The issue @stat is highlighting is that you present your tax rates comparison table without precising what kind of income it is referring to. Any unaware reader can understand that all income falls under these rates, however it's not the case. As you may know, unlike most countries (including UK, US, ...), Thailand has no specific capital gains tax and CG are taxed as ordinary income falling under PIT rates.

Is this thread related to only UK residents in Thailand? Sometimes I'm wondering.

Plenty of countries (HK, SG, UK, US to name a few) do not tax or apply low tax rates on capital gains according to different rules, asset type, and taxpayer residence. Same for dividends. DTA rules will apply (if any) but will not exempt to pay tax in Thailand on remitted income if higher TH tax rates. https://en.wikipedia.org/wiki/List_of_countries_by_tax_rates

What will be extremely helpful to mention and quote are real-life examples of the average Joe expat being audited, fined and penalized for having not paid tax (i.e. Personal Income Tax) they owed. With such cases of individual tax law enforcement, everyone could evaluate real risks involved then decide accordingly. If it can't be found, then even real-life tax law enforcement examples on locals could at some extent be useful.

Amen.

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.