Tax on Foreign Generated Monies/Crypto

[Neeranam]

I work online for a German company but pay tax on my income in the UK.  Recently, I became a Thai citizen, is there any need to change where I pay tax?

 

Every month, I transfer cryptocurrencies to my Debit card, registered in the UK. I exchanged Bitcoin 3 years ago to  digital dollars, so my profits were taken then. I use this card to pay for most of my living expense. Are there any tax laws on digital assets being cashed here?

[topt]

On 1/2/2021 at 12:04 PM, Neeranam said:

I work online for a German company but pay tax on my income in the UK.  Recently, I became a Thai citizen, is there any need to change where I pay tax?

 

Every month, I transfer cryptocurrencies to my Debit card, registered in the UK. I exchanged Bitcoin 3 years ago to  digital dollars, so my profits were taken then. I use this card to pay for most of my living expense. Are there any tax laws on digital assets being cashed here?

My 2 cents........I don't think there is any difference to digital assets or fiat money at the end of the day as far as the Thai Revenue are concerned. Same rules you have read on other recent threads - don't bring in income in calendar year it is earned and if you do it is not income it is savings......

 

If you tell the taxman you no longer live in the UK and become non resident for tax I am not sure why you need to pay any tax to the UK unless earned from UK customers? That would be helped if you opened an offshore account for the German company to pay into. 

[Bender Rodriguez]

you were thai because one of your parents right ?

 

 

[CaptainCarrot]

19 hours ago, topt said:

My 2 cents........I don't think there is any difference to digital assets or fiat money at the end of the day as far as the Thai Revenue are concerned. Same rules you have read on other recent threads - don't bring in income in calendar year it is earned and if you do it is not income it is savings......

 

If you tell the taxman you no longer live in the UK and become non resident for tax I am not sure why you need to pay any tax to the UK unless earned from UK customers? That would be helped if you opened an offshore account for the German company to pay into. 

My 1 cent:
I've not read all the detail in recent threads so this may be answered, but does the rule on earnings vs savings remittance apply to Thai citizens as well as expats?
Agreed an offshore account may be the best solution (I use Channel Islands), but I wonder whether the payment Germany>UK would (pre Brexit) have avoided the German company deducting a withholding tax, which many countries require for offshore payments of this type. Moving to an offshore account (or even the existing setup post Brexit!)  might require that the company make that deduction.
 

[CaptainCarrot]

19 hours ago, topt said:

 

 

If you tell the taxman you no longer live in the UK and become non resident for tax I am not sure why you need to pay any tax to the UK unless earned from UK customers? 

Re comment bolded: AFAIK UK does not require deduction of withholding tax on services, except in very restricted cases which would not apply here. If the OP is Resident for Tax Purposes in the UK then yes, but why would he/she be?

 

Usual disclaimer......

[khunPer]

On 1/2/2021 at 6:04 AM, Neeranam said:

I work online for a German company but pay tax on my income in the UK.  Recently, I became a Thai citizen, is there any need to change where I pay tax?

 

Every month, I transfer cryptocurrencies to my Debit card, registered in the UK. I exchanged Bitcoin 3 years ago to  digital dollars, so my profits were taken then. I use this card to pay for most of my living expense. Are there any tax laws on digital assets being cashed here?

If you stay in Thailand 183 days a year, you are tax resident in Thailand, no matter where you are citizen. However, your tax status depends of the Double Taxation Agreement (DTA) between your home country, and probably also state of income, and Thailand. If you are Thai citizen, your home country is also Thailand.

 

In general, all income from abroad is taxable in Thailand, if it's transferred into Thailand during the same calendar year, as it's earned.

 

If money is transferred into Thailand the following calendar year, or any later year, it's considered savings, which are free of income tax.

 

European countries have DTAs with Thailand, and without checking any specific country, in general income earned and taxed in another country, would not also be taxed in Thailand; and if it is taxed in Thailand, the tax paid/withheld in the other country should be deducted. Due to Thailand in general has a lower income tax than most European countries, there will be no income tax to pay in Thailand from money earned from work abroad, but do check the DTAs. Unfortunately the Thai tax department have re-organized their website, som the DTA list seems not available right now, it used to be HERE, but you should be able to find the DTA from the other states by Google-seach, UK should for example be HERE.

 

Digital currencies, and gains from same, seems like being widely debated tax-wise at the moment. In principle any gains are taxable according to one's tax residence...????

[topt]

4 hours ago, CaptainCarrot said:

I've not read all the detail in recent threads so this may be answered, but does the rule on earnings vs savings remittance apply to Thai citizens as well as expats?

yes