Paypal and Thailand Territorial Tax System

[supremeville]

Hi,

 

Wondering about something. Thailand is more or less a territorial tax system (just have to wait one year before bringing revenue in tax free).

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So wondering about Paypal.

 

Say I get paid by a foreign source to a Paypal account (I created this account from Thailand it is linked to my Thai Bank account, Bangkok Bank) .

 

I checked in the terms of service and this Paypal account is actually managed by Paypal Singapore:

"This Agreement is a contract between you and PayPal Pte. Ltd., a Singaporean company, and governs your use of all PayPal Services."

 

So as long as I wait one year before withdrawing from this Paypal account to my Thai bank account, there are no income taxes to be paid right?

 

 

 

 

 

 

 

[wmlc]

What you are saying is not relevant to anything. It is so simple. You are a resident for tax purposes if you have resided in Thailand for 180 days or more whether your visa is tourist, retirement, marriage or you are working. Therefore, you will need to pay tax on all overseas income after 6 months of residency here.

[Jeffrey346]

26 minutes ago, wmlc said:

What you are saying is not relevant to anything. It is so simple. You are a resident for tax purposes if you have resided in Thailand for 180 days or more whether your visa is tourist, retirement, marriage or you are working. Therefore, you will need to pay tax on all overseas income after 6 months of residency here.

Not 100% accurate.. The OP can wait 1 year from the date the product was paid into his Thai bank via PP, rendering that income tax free here in Thailand.

[KittenKong]

14 hours ago, supremeville said:

So as long as I wait one year before withdrawing from this Paypal account to my Thai bank account, there are no income taxes to be paid right?

I suspect that it will depend entirely on whether the Thai Baht PayPal account comes under Thai jurisdiction or not. And I suspect that it does.

The obvious way round it would to be paid to a PayPal account in some other country.

[Jeffrey346]

1 hour ago, KittenKong said:

I suspect that it will depend entirely on whether the Thai Baht PayPal account comes under Thai jurisdiction or not. And I suspect that it does.

The obvious way round it would to be paid to a PayPal account in some other country.

That doesn't resolve anything. PP rules state your account needs to be in the country you reside in.

Even if you could have an account in a country you do not reside in, you still would be subject to that country's tax rules.

[userabcd]

Where are you based when the earnings are generated, are you in Thailand and then paid by a foreign company?

 

How was the pay pal account set up, whilst you were in Thailand or in Singapore. 

[supremeville]

Let's focus on the main issue please.

 

Is a  "Thai" Paypal account -which is actually managed by Paypal Singapore- considered a Thai account by the Revenue Department or is it a foreign account?

 

Going to ask the Revenue department, but hoping someone from the forum with experience about this issue could help.

 

????

 

 

[TigerandDog]

2 minutes ago, supremeville said:

Let's focus on the main issue please.

 

Is a  "Thai" Paypal account -which is actually managed by Paypal Singapore- considered a Thai account by the Revenue Department or is it a foreign account?

 

Going to ask the Revenue department, but hoping someone from the forum with experience about this issue could help.

 

????

 

 

I have 2 PayPal accounts. 1 in my home country and 1 here ( but actually a Singapore a/c ). PayPal Thailand does not exist.  As a small source of extra income I complete paid surveys which are paid to my home country bank account. I then transfer those funds via my home country PayPal account to my Paypal account here ( Singapore ) and then transfer the funds directly to my Thai bank account. Have been advised by my local Revenue Office that no tax payments are required as as far as they are concerned I'm just transferring my own funds from my home country to my Thai bank account..

[thaitero]

I just noticed that it is like multicurrency account.. If you are sent Euros, US, Baht to this account.. They all stay in that currency..

[lyseoy]

On 4/29/2019 at 12:41 PM, supremeville said:

Is a  "Thai" Paypal account -which is actually managed by Paypal Singapore- considered a Thai account by the Revenue Department or is it a foreign account?

 

Excellent question. I wish I had an answer for you, but it might be one of those cases where no answer exists, until a case makes presedence for it. Good luck in your search for the answer - In the mean time, I suggest you try to avoid receiving the payments to the Thai PayPal account. If the payments are related to a company you own, I guess you can get a PayPal account in the same place it's incorporated.