Yumthai

190K and 60K allowances are for different purposes and should add up. What makes sense or not to you is not relevant here, this is Thailand. If you want a definitive answer, just hop to your Revenue Department branch and ask if you can deduct expense on your declared foreign pensions as described in the tax return form adding up all other allowances. I don't see why you could not do it as it's not written otherwise.

Check 2022 Personal Income Tax Return form page 2 "No. 1 Assessable Income Under Section 40 (1) (2)" along with the Guide to Personal Income Tax Return 2022 page 7 You declare the pension you received (remitted into Thailand) the same way as a salary. Then you can enter allowable deductible expenses equal to 50% of the amount stated in item 4 (Balance).

Expense (50% but not exceeding 100K baht) deduction can be applied on Assessable Income Under Section 40 (1) Salary, wage, pension, etc. ; Section 40 (2) Meeting allowances, commissions, etc. ; Section 40 (3) Annuities from wills, other juristic act or court order, etc., Royalties, Goodwill, other rights I understand it's max 100K deduction for Section 40 (1) (2) and again 100K for Section 40 (3) as per Personal Income Tax Return ภ.ง.ด.90 writing.

This is your interpretation or can you provide a legal source? AFAIK tax liability is on the person who receives the gift not the gifter (Anyway gifter can be totally out of reach from TRD).

Is it income earned prior to becoming a Thai tax resident or income earned during a year one was not resident for tax purposes (meaning being in Thailand less than 180 days in that calendar year)? Meaning is slightly different because one could be tax resident in Thailand every other year. Would each non-tax resident year clear all tax on savings/income earned prior that year?

Speculating about laws/rules changes and implications is entertaining however the only key and relevant official statement that we should all wait for is: "From (date) TRD will strictly start enforcing its own laws." Until then, it's business as usual.

Most sheep are always ready and even obediently ask to be sheared.

If Al Capone was Thai Capone and things had happened in Thailand at that time, I suspect he will have never been to jail enjoying an easy and long life.

That is not the point. Their issue is law enforcement and corruption. Until proven otherwise, numbers speak for themselves: Thailand is still not able to enforce tax laws nor get rid of "workarounds". Anyone can speculate this will change in the coming years, Thailand becoming Singapore. Choose your side and plan accordingly.

Some data: https://www.worldeconomics.com/National-Statistics/Informal-Economy/United Kingdom.aspx The size of United Kingdom's informal economy is estimated to be 10.3% which represents approximatly $358 billion at GDP PPP levels. The size of Thailand's informal economy is estimated to be 46.2%.

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.