Company or workpermit

[sead]

After 8 years in Thailand i want to work less in Scandinavia and at same time pay my taxes in Thailand. The rules say that if i work less than 6 months in Scandinavia then i pay tax in the country i live in. I had moved to Thailand before but was forced to take care of my child in Sweden so had to move back for 1 year. I would like to skip those 48% taxes and work less. Does anyone know what the best options are for me to work in Scandinavia. Should i start a company in Thailand and then go work or do i just go and report a Thaiadress to the tax office. I already sent some letters to some agencies but perhaps someone have info.

Best Regards

 

[SS1]

Do I understand correctly, that you are referring to a physical job in Scandinavia and not a remote job? So essentially you would be living in Thailand over 6 months per year and working in Scandinavia (Sweden) for under 6 months per year? If that's the case, I don't see any reason why you'd need a work permit in Thailand. You could just declare your new tax residency to your home country and you wouldn't have any taxes to pay in Thailand since you're not working here. However, I don't know about the tax implications about locally done work in your home country even if you're tax resident abroad. 

If that was a typo (about working in Scandinavia, and you meant Thailand) and your job is remote, I would rather set up a company in a low tax jurisdiction (like HK or SG) and work for your employer/clients this way whilst establishing tax residency in Thailand. You would not pay yourself any salary from the company and would only earn dividents outside of Thailand, which if not brought into the country during the tax year they were earned, would not be taxable income. This is assuming your job/business has nothing to do with Thailand itself. 

[sead]

Hi.

The rules are that if i work less than 6months in f,ex denmark then i pay tax in the country that i am living in. I prefer to pay my tax in Thailand rather than Denmark in which i currently pay 48% tax.

Ty for your answer.

 

[blackcab]

The "problem" with Thailand is that you will only be liable to pay income tax on your foreign earnings if you reside in Thailand for more than 180 days per year and you transfer your overseas earnings to Thailand within the year that you earned them.

 

Question 1: Do you have to prove your tax payments in Thailand to the Scandinavian tax authorities?

 

Question 2: Do the Scandinavian tax authorities require a minimum amount of ta to be paid? For example, what happens if you reside in Thailand for more than 180 days per year, but you only transfer a small portion of your earnings to Thailand, resulting in a small tax payment in Thailand?

[sead]

I dont have to prove that I paid any tax in Thailand from the tax given back to me. But I do have to prove a residential paper from the country I live in

If I work less than 6 month's I dont have to pay any tax at all in f,ex Denmark

I worked 2 months in Norway 2 years ago and got all salary tax free and was never asked for any proof that I have paid my tax in my residing country. 

Edited May 16, 2020 by sead

[blackcab]

You could work in Denmark less than 6 months per year. You could live in Thailand as many days of the year as you like. If you do not transfer your earnings from Denmark to Thailand in the same year then no tax is payable in Thailand.

 

If you need to prove your residence then immigration will issue you a certificate of residence if you live in Thailand longer than 90 days. If you got this certificate translated into Danish, perhaps this might be acceptable.

[sead]

12 minutes ago, blackcab said:

You could work in Denmark less than 6 months per year. You could live in Thailand as many days of the year as you like. If you do not transfer your earnings from Denmark to Thailand in the same year then no tax is payable in Thailand.

 

If you need to prove your residence then immigration will issue you a certificate of residence if you live in Thailand longer than 90 days. If you got this certificate translated into Danish, perhaps this might be acceptable.

Well it would be nice to not have to pay tax and use that money on a good insurance instead. Ty for you help.

[khunPer]

1 hour ago, sead said:

Hi.

The rules are that if i work less than 6months in f,ex denmark then i pay tax in the country that i am living in. I prefer to pay my tax in Thailand rather than Denmark in which i currently pay 48% tax.

Ty for your answer.

You need to read the double taxation agreement between Denmark and Thailand.

 

It's not that easy to pay income tax in Thailand; only 11 percent of Thais are registered for income tax, and only around 5 percent pays income tax.

 

To pay income tax in Thailand you need to prove that you physically stay in the country for more than 183 days per calendar year; that will allow you to only work in Denmark for less than six month a year.

 

It's depending from what source your income is earned, where it could be taxed. In Denmark you have different incomes categorized as A-income (from most work); B-income (mainly fees from individual or temporary jobs, but also fee as board member); profit form private company (personal owned business); dividend from shares (a limited company, including stock exchange registered companies): interest; capital gain; and retirement pensions. They are all taxed different, when you move to a third world country.

 

Especially Clause 15 is worth reading. If you are taking about regular physical work – i.e. "Personligt arbejde i tjenesterforhold" – then in short term the understanding is that any work done in Denmark for a non Thai employer/company is taxable in Denmark, even you are resident or tax-resident in Thailand; you will however only be income taxed in one state, that's the basic idea with a Double Taxation Agreement.

 

5 hours ago, sead said:

I worked 2 months in Norway 2 years ago and got all salary tax free and was never asked for any proof that I have paid my tax in my residing country.

Whatever agreements there are within the Nordic countries, or within EU, has no value here, it's only what has been agreed in the Double Taxation Agreement between Denmark and Thailand, which is applicable.

 

To be accepted as tax resident for Thailand by the Danish tax authorities – and I talk from experience – you need to show that you are reporting your income and paying tax in Thailand, year by year. In other words, you need every year to file your so-called "tax return form" in Thailand, pay your tax, and apply for "Certificate of Residence : R.O.22" and "Income Tax Payment Certificate : R.O.21" for the said income year, for example "taxable year 2019". These documents need to be supplied to the Danish tax office "Skattestyrelsen".

 

If you let us know you income source, or type of income, from Denmark, I might be able to guide you to the right clause in the Double Taxation Agreement, and how that might be taxed in Thailand, if applicable.

 

Thereafter you can ask "Skattestyrelsen" about a firm statement, so you know how you shall be taxed. The Danish tax office is normally very kind and gives fast and understandable replies. You can ask questions from within your online tax account (i.e. skat.dk).

????

 

 

[khunPer]

5 hours ago, blackcab said:

You could work in Denmark less than 6 months per year. You could live in Thailand as many days of the year as you like. If you do not transfer your earnings from Denmark to Thailand in the same year then no tax is payable in Thailand.

 

If you need to prove your residence then immigration will issue you a certificate of residence if you live in Thailand longer than 90 days. If you got this certificate translated into Danish, perhaps this might be acceptable.

Unfortunately not.

[sead]

59 minutes ago, khunPer said:

You need to read the double taxation agreement between Denmark and Thailand.

 

It's not that easy to pay income tax in Thailand; only 11 percent of Thais are registered for income tax, and only around 5 percent pays income tax.

 

To pay income tax in Thailand you need to prove that you physically stay in the country for more than 183 days per calendar year; that will allow you to only work in Denmark for less than six month a year.

 

It's depending from what source your income is earned, where it could be taxed. In Denmark you have different incomes categorized as A-income (from most work); B-income (mainly fees from individual or temporary jobs, but also fee as board member); profit form private company (personal owned business); dividend from shares (a limited company, including stock exchange registered companies): interest; capital gain; and retirement pensions. They are all taxed different, when you move to a third world country.

 

Especially Clause 15 is worth reading. If you are taking about regular physical work – i.e. "Personligt arbejde i tjenesterforhold" – then in short term the understanding is that any work done in Denmark for a non Thai employer/company is taxable in Denmark, even you are resident or tax-resident in Thailand; you will however only be income taxed in one state, that's the basic idea with a Double Taxation Agreement.

 

Whatever agreements there are within the Nordic countries, or within EU, has no value here, it's only what has been agreed in the Double Taxation Agreement between Denmark and Thailand, which is applicable.

 

To be accepted as tax resident for Thailand by the Danish tax authorities – and I talk from experience – you need to show that you are reporting your income and paying tax in Thailand, year by year. In other words, you need every year to file your so-called "tax return form" in Thailand, pay your tax, and apply for "Certificate of Residence : R.O.22" and "Income Tax Payment Certificate : R.O.21" for the said income year, for example "taxable year 2019". These documents need to be supplied to the Danish tax office "Skattestyrelsen".

 

If you let us know you income source, or type of income, from Denmark, I might be able to guide you to the right clause in the Double Taxation Agreement, and how that might be taxed in Thailand, if applicable.

 

Thereafter you can ask "Skattestyrelsen" about a firm statement, so you know how you shall be taxed. The Danish tax office is normally very kind and gives fast and understandable replies. You can ask questions from within your online tax account (i.e. skat.dk).

????

 

 

I am born and raised in Sweden and a Swedish citizen. been working for almost 32 mostly in Denmark and Norway as a welder. My salary is around 8000 Euro Netto. I do ofc have danish cpr etc. I am not a gränseganger but only pay Danish tax. My current adress is in Sweden. But i go directly from Thailand to work last 8 years, My Swedish adress is purely for me to be secured and have a place to receive mails. I also need a registered adress for my car etc

Mvh

Edited May 16, 2020 by sead

[khunPer]

57 minutes ago, sead said:

I am born and raised in Sweden and a Swedish citizen. been working for almost 32 mostly in Denmark and Norway as a welder. My salary is around 8000 Euro Netto. I do ofc have danish cpr etc. I am not a gränseganger but only pay Danish tax. My current adress is in Sweden. But i go directly from Thailand to work last 8 years, My Swedish adress is purely for me to be secured and have a place to receive mails. I also need a registered adress for my car etc

Mvh

If you are a welder and working in Denmark, you would pay Danish withholding tax – i.e. "A-skat" – and you shall pay tax in Denmark, according to how I read clause 15 in the Double Taxation Agreement between Denmark and Thailand. You can download it in English language PDF here or in Danish language here.

 

Quote

Artikel 15

Personligt arbejde i tjenesteforhold

1. Såfremt bestemmelserne i artiklerne 16, 18 og 19 ikke medfører andet, kan gage, løn og andre lignende vederlag, som oppebæres af en person, der er hjemmehørende i en kontraherende stat, for personligt arbejde, kun beskattes i denne stat, medmindre arbejdet er udført i den anden kontraherende stat. Er arbejdet udført der, kan det vederlag, som oppebæres herfor, beskattes i denne anden stat.

Clause 16, 18 and 19 are about board member fees (16), retirement pension (18), and governmental employment (19). Article 15 furthermore exclude work for a foreign employer without permanent establishment ("fast driftssted") in less than 183 days in any 12-month period.

 

You will not be taxed in Thailand from Danish work income, when you have already paid Danish withholding tax.

 

You are tax-resident in the country you stay 183 days per calendar year. But even if you were are tax-resident in Thailand, you shall likely still pay Danish tax in this situation; i.e. taxation follows the work place.

 

Your Swedish citizenship and address has nothing to do with eventual taxation in Thailand, it's a question of where you stay 183 days a year. However, a Scandinavian country might claim full taxation – I cannot say for Sweden, but Denmark do – if you have a permanent rented apartment, or own residential property other than summer house for limited use, not exceeding 180 days a year.