Three Questions...

[cmjc]

My savings have been in a Share Fund for decades, denominated in US$ and dividend re-invested, and since the post-Brexit fall in the GBP, I'm considering cashing some shares to finance the retirement extension of a Non-O visa.

I'll retain the redeemed funds as US$ in a Thai BKK Bank account, initially on call, later on fixed deposit, after I'm sorted and settled.

How do Thai tax rules apply to such fund movements? Specifically...

I read that funds sent to Thailand will be taxed if transferred "the same year they are earned".

1) In their terms; do my redeemed shares count as earned, or as my savings?

2) If I redeem the shares in mid December 2017, but wait for the change of calendar year before transferring the funds to Tld in January 2018, will they then be exempt Thai tax?

3) Complicating matters; to avoid excessive bank charges, I'm considering using Transferwise (Estonian start-up, backed by Richard Branson's cash) to make the transfer, if indeed they allow you to move large sums of US$ to Tld., and retain them as US$. (I've not asked yet).

Supposing they do; their system of 'fund movements' means the US$ will appear in my Thai US$ account as though sourced from Tld, so I'm concerned the transaction will appear suspicious to the Thai Revenue Department (either as 'earned locally', or as a 'laundering method'). How do I prove to the satisfaction of the Revenue Dept. the fund movement is of my own legitimate savings, and not taxable Thai earnings?

Sound advice is appreciated by all.

[topt]

This sort of question comes up often but in most cases there is no reason to involve the Thai Revenue Dept. or that they would get involved.

 

To be on the safe side

7 hours ago, cmjc said:

2) If I redeem the shares in mid December 2017, but wait for the change of calendar year before transferring the funds to Tld in January 2018, will they then be exempt Thai tax?

yes - not sure what Tld is however?

 

7 hours ago, cmjc said:

3) Complicating matters; to avoid excessive bank charges, I'm considering using Transferwise (Estonian start-up, backed by Richard Branson's cash) to make the transfer, if indeed they allow you to move large sums of US$ to Tld., and retain them as US$. (I've not asked yet).

Have you checked the cost of transferring the specific amount from your bank/broker direct to BKK Foreign Currency Account vs. Transferwise costs?

As you are not exchanging to baht I would be curious to see what the benefit is and, as you say, even if they will do it.

[cmjc]

Thank you topt, I appreciate your advice.

Apologies for the undefined acronym; Tld means Thailand.

In the adjacent thread, post #16

https://www.thaivisa.com/forum/topic/1002533-bangkok-bank-new-york/?do=findComment&comment=12279943

The poster confirms that for larger fund movements Bkk Bk cap their receiving fee at 500 baht, whereas Transferwise reap an uncapped percentage. So balance that fact with any benefit from Tw giving a better fx rate.

Regarding your first point:
I don't intend involving the Thai Revenue Dept, but I do want to make the transfer in the most tax efficient way, so that when I do register, I know that I owe no tax, and have the documents to prove it.

So if somebody can answer my question 1) ... about how Thai Revenue define "earnings" (ie. are the funds from my savings shares counted as savings or earnings?) I'd appreciate knowing that in advance.

Edited September 18, 2017 by cmjc
spelling

[cmjc]

Bumping in hope of an answer to my Qun. 1)

Meanwhile, I checked the Transferwise protocols, and decided to avoid it for the following reasons;

a) Despite it being a UK financial institution there's NO Financial Security Protection whatsoever. Unless you depend on Sir Richard's 'infallible' judgment :)

b) Transferwise Personal borderless accounts only allow movement of maxima; US$10,000 and US$20,000 for a Business account. So that would not even cover my 25K requirement.

Reminder: Answer Qun. 1) if you know the facts.

Edited September 19, 2017 by cmjc

[topt]

13 hours ago, cmjc said:

Reminder: Answer Qun. 1) if you know the facts.

No but if you do as you suggest and crystallise in one year but send the following year as you suggest then you know you are covered and you do not have to worry about someone's "interpretation".

[cmjc]

Thank you for your response topt, doubtless I'll do that, but I'd still like to know for sure, and with so many retired financial bods here, an definite answer will surface in due course.

In my experience the UK tax folks are very fair and approachable, and it'd be wonderful if that were true in SEAsia, but as the cub scouts chime... "Be prepared!"

C'Mon you lot...

[scoutman360]

First of all, stop the "click bait" in your subject matter. After that, I think you have nothing to worry about.

[cmjc]

All factual sensible replies appreciated, the rest are of no value to anyone.

[tonray]

You don't need to pay tax in Thailand on funds transferred since you were already taxed on earning it in the UK.

 

 

[cmjc]

Q/
You don't need to pay tax in Thailand on funds transferred since you were already taxed on earning it in the UK.
/Q

Thank you tonray:

Whilst that is plainly understood from the rd.go.th website, what is not yet answered is the question I have asked here, about what do the Thai Tax authorities regard as "earned"... specifically, for a Thai-tax resident, is the redemption of shares (in an investment fund) to cash reckoned as "earned", and therefore taxable?

We patently await a definite factual answer, over opinion.