Reducing Tax burden through foreign dividends?

[Satcommlee]

I'm currently paying an obscene amount of tax under employment through Thai umbrella company set-up (Non-commercial, this is gentlemen's arrangement with a friend who had the necessary staff and an industry related to my work)

 

I am in full control of all remittances and am thinking of remitting the minimum required for the work permit but then paying the rest as Dividends from an offshore company as and when I need it (The kind you can set-up online, Seychelles, Mauritius etc.)

 

This is not tax evasion, it is tax planning..

 

So if I receive dividends from a foreign offshore company in Thailand (fully declared) what tax would I pay on this?

Anyone have any experience in this?

 

Thanks in advance.

 

 

Edited July 27, 2020 by Satcommlee

[hugh2121]

Sssshhh.

 

[rwill]

I don't know the answer to your question.  But I do know foreigners are not allowed to receive dividends from Thai companies.  So I don't know how that would affect you declaring it as dividends.

Edited July 28, 2020 by rwill
edit

[jabis]

Tax free, should the income/dividend be earned from the previous year, as far as I remember.

[khunPer]

18 hours ago, Satcommlee said:

So if I receive dividends from a foreign offshore company in Thailand (fully declared) what tax would I pay on this?

Anyone have any experience in this?

You need to read the double taxation agreement between that state with the company paying the dividend, and Thailand, if you transfer the dividend into Thailand during the same calendar years as it's earned/paid.

 

If you transfer the dividends the following calendar year, or later, it's considered tax free savings.

[khunPer]

2 hours ago, rwill said:

I don't know the answer to your question.  But I do know foreigners are not allowed to receive dividends from Thai companies.  So I don't know how that would affect you declaring it as dividends.

Indeed foreigners are allowed to receive dividends from Thai companies – I talk from experience – just the foreigners hold stocks only with the 49 percent limit, or the stocks are registered as NVDR (no voting rights). The withholding tax is 10 percent, both for Thais and foreigners.

[Satcommlee]

Thanks for your comments