Pay no Thai tax by transferring your foreign income to Thailand the next calendar year?

[Leaver]

44 minutes ago, onebir said:

From what I've read here, the test is whether or not the activity involves or uses Thai resources. I can't remember the exact phrasing, but many forms of "digital nomad" work wouldn't appear to fall foul of this. (Edit see #22 above)

My understanding is, it's not so much the use of Thai resources, as to whether a Thai can do the job.  

[LivinLOS]

1 minute ago, geworthomd said:

America taxes anyone subject to their jurisdiction on worldwide income. To set up a foreign bank account one must provide a passport. That foreign bank must report to USA whatever the agency or that bank can never do business in America. “Death and Taxes...”

That's what the foreign earned income exclusion is for .

[LivinLOS]

12 minutes ago, Leaver said:

My understanding is, it's not so much the use of Thai resources, as to whether a Thai can do the job.  

Again.. Look at the law and the tax code.. 

 

Enforcement.. v law.. 

[rickudon]

Back to the original question, if you do not actually remit your income to Thailand, there is nothing to tax. I just use my foreign credit card, and pay the bill from a foreign account - no income remitted .....

[LivinLOS]

On 10/10/2020 at 6:44 PM, rickudon said:

Back to the original question, if you do not actually remit your income to Thailand, there is nothing to tax. I just use my foreign credit card, and pay the bill from a foreign account - no income remitted .....

If he generates that income, from work performed while in the kingdom, thats factually incorrect. 

Hard to police but not legally tax free. 

[rickudon]

On 10/12/2020 at 1:34 PM, LivinLOS said:

If he generates that income, from work performed while in the kingdom, thats factually incorrect. 

Hard to police but not legally tax free. 

Legally a grey area. In my case, no work performed, just pensions and investment income. Money goes through a number of different accounts, some stays for a year or more, some not. Without complete disclosure and analysis of all my financial transactions, impossible to say where it comes from ....

 

I do pay tax in the UK. It is very doubtful that i actually have any tax liability in Thailand under the current laws, and i do not intend explaining why, but i have checked it out.

 

Hard to police? Pretty near impossible unless banks, financial companies and governments collaborate on an international scale.

[Boomer6969]

On 10/10/2020 at 9:42 AM, scubascuba3 said:

I have wondered if those transferring their pension over monthly will eventually be taxed as it's current year

I get my pension paid into a USD UBS (Geneva) account. Early January I transfer the exact amount earned the year before into my USD (Bangkok Bank account). 

I think that nails it.

 

 

[DrTuner]

30 minutes ago, rickudon said:

Hard to police? Pretty near impossible unless banks, financial companies and governments collaborate on an international scale.

Which Thailand does not, it hasn't implemented the OECD CRS (Common Reporting System). For somewhat obvious reasons  - too many fishy transactions going on.

[userabcd]

3 hours ago, DrTuner said:

Which Thailand does not, it hasn't implemented the OECD CRS (Common Reporting System). For somewhat obvious reasons  - too many fishy transactions going on.

Thailand is in the process of implementing CRS and you will be happy to know that beginning 2022, it is planned Thailand will share their first AEOI of foreigners financial accounts with all other member countries tax offices.

Edited October 13, 2020 by userabcd

[DrTuner]

1 minute ago, userabcd said:

Thailand is in the process of implementing CRS and you will be happy to know that beginning 2022, it is planned Thailand will share their first AEOI with all other member countries tax offices.

We'll see, it's been talked about for years. It would certainly help with overseas banking, having an address in Thailand is a red flag, frequent AML queries.

[userabcd]

5 minutes ago, DrTuner said:

We'll see, it's been talked about for years. It would certainly help with overseas banking, having an address in Thailand is a red flag, frequent AML queries.

Oh its coming, that's for sure, the OECD are applying pressure. But making international banking and transfers easier, I doubt that.

Edited October 13, 2020 by userabcd

[LivinLOS]

6 hours ago, rickudon said:

Legally a grey area. In my case, no work performed, just pensions and investment income. Money goes through a number of different accounts, some stays for a year or more, some not. Without complete disclosure and analysis of all my financial transactions, impossible to say where it comes from ....

 

I do pay tax in the UK. It is very doubtful that i actually have any tax liability in Thailand under the current laws, and i do not intend explaining why, but i have checked it out.

If your not bringing it into the kingdom in the year it is paid to you, AND if that income came from sources which were passive income, then it would be untaxed.

If that income came from the performance of active work, whether or not it is taxed elsewhere, and whether or not it is brought into the kingdom in that tax year, it is liable for Thai taxes (but almost impossible to prove).  

[andre47]

5 hours ago, LivinLOS said:

If that income came from the performance of active work, whether or not it is taxed elsewhere, and whether or not it is brought into the kingdom in that tax year, it is liable for Thai taxes (but almost impossible to prove).  

Where did you get this information?

[LivinLOS]

4 hours ago, andre47 said:

Where did you get this information?

The tax code, and many many clarifications from the employment office and labour dept. 

Active work is considered under the physical presence test criteria, any active work being performed in the kingdom for any source (thai / non Thai, online or offline) needs a work permit. That work permit ensures you are then paying Thai taxes from day 1, not day 181. 

[andre47]

1 hour ago, LivinLOS said:

The tax code, and many many clarifications from the employment office and labour dept. 

Active work is considered under the physical presence test criteria, any active work being performed in the kingdom for any source (thai / non Thai, online or offline) needs a work permit. That work permit ensures you are then paying Thai taxes from day 1, not day 181. 

ahh...you mean work in Thailand. Yes, that is clear.

[LivinLOS]

4 hours ago, andre47 said:

ahh...you mean work in Thailand. Yes, that is clear.

I dont understand how else that could be interpreted. 

The point is so many people think that they can sit in Thailand while 'working' outside Thailand because thier invoices go outside Thailand. That isnt how a physical presence test works. 

Theres also knock on considerations and potential liabilities for the employer, the regulatory implications for communicating with an online employee in another country can have huge implications for the employer, making them liable not only to employer taxes and penalties in the country where the people are physically when doing the work, but also open them to additional regulatory scrutiny and even accounting.

I specialize in the business of cross border payrolling and labour supply, theres a lot of fine detail in there which is much more complicated than most peoples 'well I am covered by a DTA' thinking. 

[DrPhibes]

On 10/13/2020 at 8:15 PM, Boomer6969 said:

I get my pension paid into a USD UBS (Geneva) account. Early January I transfer the exact amount earned the year before into my USD (Bangkok Bank account). 

I think that nails it.

 

 

I make the money when I go back to the US for 3 months of tax season.  I have a seasoning bank account and January I start transferring money to LOS from the seasoned money from the previous calendar year earnings.  Very clear and clean.

 

On the subject of US taxes.  As a Green Card holder or US citizen, you are taxed on your world wide income as long as you are such.  The use of Tax Treaties, Foreign Income Exclusion, and Foreign Tax Credit all are used to try and keep your income from being double taxed.  The FATCA requirements placed on foreign banks make them report your foreign bank and securities account(s) to the US.  Failure to file income tax returns or do the required US Treasury FBAR reporting for years your cumulative foreign account balances hit $10,000+ at any time during the year can result in some serious penalties if found out.  Had a client some years ago who inherited a substantial amount of money from his foreign family and got bad advice from rich friends, tried to hide the money in Liechtenstein.  IRS found him out and broke him between penalties and attorney fees.

[HuntingDog]

On 10/10/2020 at 7:44 PM, rickudon said:

Back to the original question, if you do not actually remit your income to Thailand, there is nothing to tax. I just use my foreign credit card, and pay the bill from a foreign account - no income remitted .....

How about those double taxation treaties? 

 

If that income is not taxed in Thailand then it could be potentially taxed at source? (I'm referring to passive income so pensions, dividends or sales of shares)

 

For US Citizens it is as stated above a few times, I'm not sure about other western countries (UK, CA or AU) where people may be domiciled (generally considered your home country, regardless of whether you reside there).

 

Anyone know for any the countries above what the status is?

Edited September 1, 2021 by HuntingDog

[topt]

On 9/1/2021 at 11:51 PM, HuntingDog said:

Anyone know for any the countries above what the status is?

Gets mentioned many time in many previous threads.

 

Would make more sense for you to start a new thread asking specifically about the country you are from if you are really interested. Otherwise what is the relevance?