Taxes, Banking, And Entering/leaving Thailand

[Wingman]

Hi,

I'm a male (22) Thai-US dual citizen (born in the US, Thai parents) who just graduated from a US university. I consider myself a US citizen but my parents suggested I get a Thai passport and I.D. to have greater international mobility for my career.

In a couple months I'll be moving back to Thailand to work for an international firm (US headquarters) as a Thai national.

Am I still obligated to pay US taxes on my income despite working as a Thai national?

Also, my first project is an international assignment so I'll be in Thailand only long enough to get Singapore work permits.

Anyone know what my tax obligations are as a Thai expat?

Furthermore, when I'm entering/leaving Thailand, do I need to present both my US and Thai passport to customs? This may be a dumb question but I've never used my Thai passport and always used myUS passport when travelling.

After I finish my Singapore assignment, I may be sent to work in the United States or Australia before I can return to Thailand. Because of constant interntaionl travel demands, I've considered opening an offshore bank account (probably with HSBC) instead of opening a local Thai bank account.

Is opening an offshore account a good idea?

thanks

wingman

[samran]

Have you done your Thai military service yet? All males are eligable to be conscripted. The second you go apply for a Thai ID this is a question that could come up.

I'd get the Thai passport from the Thai embassy in DC and leave it at that. I wouldn't use it until you are 30 to enter Thailand unless you fancy being conscripted or are sure you will be exempted from military service. After 30 you won't be eligable for consctition anymore.

Get your firm to organise a workpermit and work as a US national when in Thailand.

Sorry, but don't have a clue about US taxes.

[thaihome]

The key to your financial questions, both tax and bank account depends on how your company is going to pay you. You don’t mention that so here are some general facts and opinions:

As a US citizen you are required to file an Income tax return and report all income, regardless of source country. Once you establish non-US residency, the first $80K of foreign earned income is exempt from US income tax. If you are being paid as a Thai national, then you will undoubtedly be under that. But you should still file a US return.

You will be liable for Thai income tax for any income earned while in Thailand and Singapore income tax for any income earned in Singapore. You will get US tax credits for any foreign income tax paid.

As far as the bank account is concerned that depends on how your company is going to pay you. Depending on the size and overseas presence of your company, the various options of onshore/offshore payrolls are almost endless and affects your tax liability in US, Thailand, and Singapore. If you have more then the equivalent of $10,000 in foreign bank account, you have to report that to the US IRS

In order to avoid being considered a foreigner in Thailand you will have to enter on your Thai passport. You need to discuss with your company what passport you will use for Singapore and future assignments. There are numerous discussions here on dual nationality.

The other posters comment on national service is a good one and you should investigate that immediately. I think there are a couple of dual nationality posters here and maybe they can give advice.

TH

[samran]

The other posters comment on national service is a good one and you should investigate that immediately. I think there are a couple of dual nationality posters here and maybe they can give advice.

TH

I am one of those people

Once you have your ID card, and being 22 you will have to turn up an partake in the conscription lottery that goes on every year. The odds of being conscripted vary, depending on what district you live in.

The only way around this that I can see is if you enter Thailand as a US citizen and go through the work permit proceedure. If you work for a large multinational, they will be able to handle that for you. By all means get your Thai PP, but don't use it to live in thailand until you are 30. After 30 they effectively can't draft you to serve anymore.

Check out various posts on the issue on this site. Also check out the website of Thai consulate in LA which outlines Thai military service requirements.

[lopburi3]

If you have more then the equivalent of $10,000 in foreign bank account, you have to report that to the US IRS

This report is made to US Treasury and is made on form TD F 90-22.1 by June 30. So if anyone has not filed for last year yet you still have time. Form can be downloaded at Link

[Wingman]

Thanks for the replies,

I already have my Thai passport. I was planning on getting my Thai ID up north near my mom's old village (around ubon ratchathani).

How does the military keep track/identify those who participate in the conscription lottery? How do the elite Thai families get their sons around conscription? Should I hold off on getting my Thai ID?

Unless they expect me to teach english for two years, I don't know how useful I'd be as a conscripted Thai soldier. My Thai language skills is rudimentary at best.

I'll definately look into working in Singapore as a US national.

The company I'll be working for is a Fortune 50 company with operations everywhere imaginable. Revenues from Thailand operations is about 6 billion THB. Assuming the company can be very flexible with how they pay me, what are my best banking options to minimize tax?

I'd love to work in Thailand and feel I can contribute a lot, but if it's going to be a huge hassle going through conscription I'll just have to transfer to the US and hope I get get re-assigned to Thailand as a US expat.

[samran]

How does the military keep track/identify those who participate in the conscription lottery? How do the elite Thai families get their sons around conscription? Should I hold off on getting my Thai ID?

Unless they expect me to teach english for two years, I don't know how useful I'd be as a conscripted Thai soldier. My Thai language skills is rudimentary at best.

The thing is, they will conscript you first and think about your usefulness later.

I would think that when you apply for your ID they will ask you about it. In anycase, going on the house registry, you will be required by law to report for conscription. Not having an exemption certificate makes alot of things difficult later on (ie getting a new ID, getting certain jobs).

Some elite families paid off certain people. By no means is this the main thing to do these days. Others actually have their sons do military training (ROTC) while at high school, which gets a majority of Thai men out of conscription. Other elite families actually see it as an honour to have a son as a solider, so some volunteer. If you are a university graduate, if you volunteer you only have to serve out 6 months. If you are conscripted, then you are in for 2 years regardless of your educational background.