Legal Income Tax /VAT free commerce business in Thailand using PayPal and Transferwise?

[CrossBones]

Hi

It just came to my attention that Thai PayPal accounts can be linked to US bank accounts. They can also be used to US Bank Accounts in Transferwise (borderless account). - Firstly you have to link to a Thai bank account for verification then you can link to the Transferwise/Borderless accounts. These USD Transferwise accounts have bank routing codes the USA.

 

So

 

The law in Thailand states...

 

"

the imposition of tax on income derived outside Thailand will apply only to income derived and brought into Thailand in the same year in which such income is earned"

 

https://www.tilleke.com/sites/default/files/Thailand-Tax-Guide.pdf

 

PayPal Thailand appears to be based in Singapore and they don't have a permanent establishment in Thailand. I think money held in PayPal balance is not "in Thailand". Money held in a US bank account is not "in Thailand" either. 

 

So I would like to ask, if I live in Thailand. Have a Thai trading name (or in my wife name, just a sole traders-name available from the local ampour office) 

 

We can run an international e-commerce business that does not have any Thai customers, as we wish - and putting all the funds into our transferwise account - completely tax free, and with no accounting requirements whatsoever. No income tax. No VAT. Nothing.

 

Money earnt in 2019 could be transferred to Thailand in 2020 - no tax. 

 

Any ideas?

 

 

Edited October 15, 2019 by CrossBones

[dimitriv]

Forget the "a sole traders-name available from the local ampour office"...  You really  don't want links with Thailand if you do not want to pay tax.

 

But the formation of a UK limited is about $50.  You can also start a SIngapore or Hong Kong limited. But this is more expensive.

 

You do not want to keep money in a Paypal account or a Transferwise account. If for example something happens with your Paypal account, complains, charge backs etc they can block your account. Transferwise is also famous for blocking accounts if too much money is coming in or your balance grows too much. It is better to open a normal personal bank account or trading account in another country to keep your money safe.

 

VAT:  If you sell to the EU you have to pay VAT. Officially. This is complicated to do. So you can also hope that nobody notices it. 

 

I have a UK limited. On my own name. Normal bank account. Nothing to hide. The money I keep abroad. The only problem when starting this is to get a normal  bank account. 

 

 

 

 

 

Edited October 15, 2019 by dimitriv