180 day rule

[Coconut007]

3 hours ago, crazykopite said:

How many Thai’s pay tax ? Very few I would imagine ?

But you are farang... you must support the great legal system, education, police, ambulances, and couple of submarines now and then

[MadMuhammad]

Question. I have a substantial share portfolio in a discretionary trust in Australia. I receive distributions and dividends from this monthly. 

I pay tax on this to The Australian government as the trust company is registered with ASIC in Australia. 

From what I can gather the funds I transfer to my KBank account, if ‘earned’ in the same financial year, I can be liable to pay tax to the Thai government as well?

Will it ever be scrutinised and what would stop me from stating it comes from savings anyway. Thanks for replies...

Edited December 5, 2017 by MadMuhammad

[MadMuhammad]

Although Article 7 seems to relate to profit earnt in a different country and not related to Thailand would he exempt.

[glegolo]

7 hours ago, MadMuhammad said:

Although Article 7 seems to relate to profit earnt in a different country and not related to Thailand would he exempt.

Is this above quoted by me for the Asean-countries? In that case forget what you have quoted as being an australian.......

 

Find out yourself if Australia have a taxagreement like Sweden have, i.e. "where money earned, that is where money has to be taxated"... Easy peasey....

 

glegolo

[MadMuhammad]

4 hours ago, glegolo said:

Is this above quoted by me for the Asean-countries? In that case forget what you have quoted as being an australian.......

 

Find out yourself if Australia have a taxagreement like Sweden have, i.e. "where money earned, that is where money has to be taxated"... Easy peasey....

 

glegolo

The Thai/Aus agreement Article 7 Paragraph 8 appears to answer my question. 

 

Thank you for your guidance 

[bkkcanuck8]

59 minutes ago, MadMuhammad said:

The Thai/Aus agreement Article 7 Paragraph 8 appears to answer my question. 

 

Thank you for your guidance 

That all seems to relate to "business" (aka enterprise - incorporated or limited) and not personal tax law.   Is your trust held within a corporate structure?  

[MadMuhammad]

17 minutes ago, bkkcanuck8 said:

That all seems to relate to "business" (aka enterprise - incorporated or limited) and not personal tax law.   Is your trust held within a corporate structure?  

Yes it is. A Pty Ltd company with myself as sole director. 

[al007]

18 hours ago, huawei said:

The uk for example is a country where you pay tax if you are non resident, for example on rental income if in access of claimed allowances.

 

of course you pay tax on "earned income" earned in that country , that's the case in every country you work, less the available allowances.

 

you are a tax resident in a country ( Thailand) doesn't automatically mean you need to file a tax return. If you are here for over 180 days and the monies you transfer in are from a capital sale for example ( like the sale of a house) which clearly is not income or other income and it was from a prior tax year you do not have to file.

 

where you live is where you pay, again that is not true, not all counties assess you on your worldwide income..e.g Thailand. Thailand is remittance based.

As a retired UK Chartered Accountant I can confirm the above to be correct

 

there are many on Thai Visa who believe they are tax experts, they are not do not rely on what they say, and ask them about domicile and tax residency, two very different things, many still have UK domicile and their worldwide assets will be liable to UK IHT on death

 

Incidentally transfers to a non domiciled wife are not IHT exempt

 

Comments on these matters should be left to the professionally qualified, of which financial advisers are not qualified to give sound advice

[glegolo]

So THIS is how you kill a thread!!!!!

 

glegolo

[JimGant]

Quote

She stated if stay in Thailand for 180+ days, you're required to pay income tax on any funds you transfer in /bring into the country. ......Where you live is where you pay, no matter where the income came from. 

You just can't make blanket statements when tax treaties aren't all the same. Using the US-Thai tax treaty, for example, the US has exclusive taxing authority on Social Security payments and government pensions. Thailand, however, has "exclusive" taxing authority on private pensions and retirement vehicles such as IRAs -- except it doesn't have "exclusive" taxing authority, because of the so-called "savings" clause that gives Uncle Sam taxing authority as if there weren't any such thing as tax treaties. However, the practical result, in this case, is that Thailand has "first dibs" on your tax payment, thus they get their money in full while Uncle Sam only gets the difference (if any) between the US tax and the Thai tax (via issuing a credit for the Thai tax).

 

Here's an example of a US citizen, resident of Switzerland, where the tax treaty gives "first dibs" to his country of residence, i.e., Switzerland, on taxation of his IRA (interesting the US doesn't have exclusivity on IRAs, since they're tax deferred, but that's how it is). He still has to declare these IRA receipts on his US tax return, but he'll get a credit for the Swiss taxes paid. This example could equally apply to Thailand -- except for the "not received in year brought into Thailand" rule.

[If you're interested in not paying Uncle Sam taxes on your IRA withdrawals, while a resident of Thailand, read this thread, beginning with entry 26 (but this guy might now be in jail)]:

https://www.thaivisa.com/forum/topic/1008555-tax-specialist-in-chiang-mai/?page=2

 

 

Quote

Article 18(1) of the Treaty provides that Taxpayer’s state of residence, Switzerland, has primary taxing jurisdiction over his IRA distributions. The saving clause in paragraph 2 of Article 1 (Personal Scope) gives the United States the right to tax Taxpayer’s IRA distributions under the Internal Revenue Code (“Code”) as if the Treaty had not come into effect. Double taxation would be alleviated under paragraph 3 of Article 23 (Relief from Double Taxation), which requires the United States to allow a credit for the Swiss tax paid in respect of the distributions.

https://hodgen.com/ira-distribution-to-u-s-citizen-living-in-switzerland-which-country-taxes-it/

 

Quote

 I no longer see that mention of "remitted to Thailand in the same year earned" that was previous policy. 

I'm sure it must still be policy, if a firm as credible as KPMG still endorses it (this is dated May 2016):

 

Quote

Interest, dividend, and rental income derived from sources outside Thailand by resident of Thailand are taxable in Thailand to the extent such income is paid or remitted into Thailand within the same calendar year it is received

https://home.kpmg.com/xx/en/home/insights/2011/12/thailand-income-tax.html