Plan to attract a million foreign investors stalls yet again: TAX breaks are the sticking point

[Kwaibill]

14 minutes ago, DefaultName said:

If this scheme allows them to actually OWN the land, I wouldn't put it past the Chinese government to sponsor them to do just that.

Condo owners do not typically own the land.

Probably a million units available across all of Thailand.

[2 is 1]

Why somebody buy 10 million condo and show how much money he have for 10 years visa!

He can get 20 years Elite visa just 1 million!

[metisdead]

Troll posts and the replies have been removed. 

[Scott Tracy]

8 hours ago, mikebell said:

9 hours ago, BKKTRAVELER said:

To be fair, many Thais I know have difficulties understanding what a billion is, so imagine a trillion...

I am British and was taught a million had SIX noughts.  So how many in a billion, please?  And a trillion too?

Apparently, a trillion is a million million, 12 zeros. Must mean a billion has 9 zeros...except of course, it doesn't....

[IamNoone88]

If you want to attract foreigners, put some very smart foreigners in charge and execute their plan. It will get done.

[DrPhibes]

1 hour ago, khunPer said:

If you stay in Thailand for more than 180 days days you are tax resident in Thailand, and shall pay income tax to Thailand, which is actually the case for all foreigners staying here for more than 180 days.

 

Any income from abroad is taxable in Thailand, if it's brought into Thailand - i.e. transferred - during the same calendar year that earned.

 

If a foreign income is already taxed in a foreign country, like many retirement pensions are, and the is a double taxation agreement between the foreign state and Thailand, the income will not be double taxed.

 

For some people it can be a benefit, if their income taxation follows the country of tax-residence, and theryby to have the income taxed in Thailand, if the income tax percentage is lower. This is for example the case for some European countries; however, those countries might insist on taxation as country of source for the payout, for example retirement pensions paid by a government, or retirement savings based on tax deductions in earlier income...????

Yup, that's why I set up a separate seasoning account in the US that gets the US earnings for that year, well documented, and spend it in the next calendar year here.  A couple of rotating accounts.  If I don't spend it all, it goes into another overall savings account and that emptied account gets filled with that years earnings, etc...

[impulse]

7 hours ago, Hockeybik said:

Will 1,000,000 rich Chinese come here to buy condos?

Winner winner, chicken dinner.

 

They don't need a single western participant to meet their million investor goal.

 

[khunpa]

Hmm… Attract a million rich foreigners to a country with constant political instability, a poor educational system, a destroyed economy, wide-spread corruption and people left dead on the streets due to an uncontrolled virus-outbreak.

 

I don’t know any rich people who would like to invest… do you????

Edited July 23, 2021 by khunpa

[Captor]

11 hours ago, Whale said:

If you want to attract them give them tax free for x years and then a slowly rising amount.

 

The majority (digital Nomads and retirees) will not be paying any tax anyway as they will use the 1 year money import rule. They are supposedly "well off" before they come here anyway so will have reserves for the 1 year rule).

If you want them to start Thailand based businesses then 17% is not attractive enough IMHO.

 

Same with retirees. They have to pay tax to the home country.

[Captor]

10 hours ago, Smithson said:

The point of attracting foreigners is to bring money to the government/country. Why should they pay less income tax than locals or long term expats, many of whom are self employed?

The locals pay tax?

[Scouse123]

I think these asses in government actually believe foreigners will be taken in and want to take up their ' generous offer ' and can't wait to get here. How dumb they really are here!

 

They then go away from these so called ' meetings or think tanks ' content in the belief in themselves having done a days work.

 

They juggle hypothetical figures on their abacuses and come to the conclusion that they are being too generous to those ' dirty foreigners ' and then tweak the figures to what they feel will be acceptable coming in to their coffers.

 

The truth be known, it's a ridiculous idea, it will not fly with digital or any other nomads who can operate here or anywhere else and are clever enough to fly under the radar, and if they do want to operate above board, can find a far more pleasant and welcoming civilized country.

 

It is starting to remind me of Blackpool in the UK, decrepit,dreadfully out of date, old hat with its tacky neon and past its-sell-by-date prostitutes but certain people will always come because they've ' always come on holiday here ' Unfortunately for Thailand, that market is shrinking.

 

They are heading for a massive ' correction ' and their economy is going down the tube!

 

In the meantime, Rome burns and Nero buys submarines!

 

 

 

 

 

Edited July 23, 2021 by Scouse123

[talahtnut]

The only real investment opportunity in Thailand would be

vaccines like Fizzer of AstraZollocks, 3000 easy baht a pop.

[spermwhale]

If they want to attract wealthy individuals, the country needs to clean up and enter the developed world. Phuket is a national embarrassment. Not long after you leave the airport that's when you start to see the garbage piled up on the sides of the road and you have to drive through ugly little towns with cheap third world construction. It's not like driving around Hawaii or Ibiza. 

 

[BKKTRAVELER]

5 hours ago, Scott Tracy said:

Apparently, a trillion is a million million, 12 zeros. Must mean a billion has 9 zeros...except of course, it doesn't....

Sounds right buddy. In the end, a lot of zeroes for such big amounts 555

[jacob29]

17 hours ago, Whale said:

The majority (digital Nomads and retirees) will not be paying any tax anyway as they will use the 1 year money import rule.

 

I would argue the majority are in fact paying tax, just in another country (definitely the case for US citizens). Double tax agreement means they would only pay extra if the other jurisdictions tax rate was under 35%.

[ianwheldale]

21 hours ago, mikebell said:

I am British and was taught a million had SIX noughts.  So how many in a billion, please?  And a trillion too?

Long ago when I was at school a UK billion was a million million but a USA billion was a thousand million. I think the latter is accepted as the norm now.

[Smithson]

11 hours ago, Captor said:

The locals pay tax?

Of course, they all pay tax in some form. Regarding income tax, if their salary is high enough they pay tax, as do almost all farang. 

 

To encourage the very rich to live here by allowing them to pay less tax than locals would create resentment.

 

It sounds like a plan to bail out the rich, with poor Thais hardly benefitting. Better to letter the empty condos be sold cheaply.

[digibum]

20 hours ago, medina21 said:

Great idea. Buy a 10 million baht condo which is only worth 7 million in the local market. When governments mandate prices, they create a false market. Also, the 10 year visa will be renewable every year, so is not a 10 year visa.

To be fair, a lot of countries have these “investment” schemes where you get long term residency in exchange for buying specific government approved real estate projects.  
 

Thailand isn’t breaking any new ground with that.  

[SomchaiCNX]

19 hours ago, Bluespunk said:

Because the logic behind any plan aimed at attracting foreign investors is to make coming to Thailand attractive

While  ignoring those who are here already and invested for more than 20 years, yes, it makes more sense now ????

[Exploring Thailand]

23 hours ago, Whale said:

The majority (digital Nomads and retirees) will not be paying any tax anyway as they will use the 1 year money import rule.

Do you mind sharing what that rule is?

[digibum]

6 hours ago, jacob29 said:

I would argue the majority are in fact paying tax, just in another country (definitely the case for US citizens). Double tax agreement means they would only pay extra if the other jurisdictions tax rate was under 35%.

That’s a common myth.  
 

US citizens can take the Foreign Earned Income Exemption (FEIE) which means that the first $110,000 of your earnings is basically tax free if you are a bonafide resident of another country (either have PR, spend 330 days outside the US, etc).   

Even someone who was generating all of their income from a US business that resides in Thailand would be eligible to take the FEIE.  
 

It doesn’t apply to unearned income though (dividends, capital gains, etc).  
 

Given that $110k would put you in something like the top 10% of wage earners in the US, and that most of the people who have jobs paying more than $110k a year are employed in positions that require their physical presence in the US, dual taxation only applies to a very, very small percentage of people.  
 

Because if you’re earning considerable more than $110k a year and living overseas, there are enough tax loopholes that would allow you to avoid paying very much in taxes.   

 

That said, a lot of people complain about double taxation online because they’re ignorant of the tax laws, don’t like having to fill out a 1040 every year, and confuse filing a return with paying taxes. 

[digibum]

11 minutes ago, SomchaiCNX said:

While  ignoring those who are here already and invested for more than 20 years, yes, it makes more sense now ????

if you’ve been here 20 years, what would be the government’s incentive to notice you to stay?   Your likelihood of leaving is near zero, and you’ve already invested.  
 

This isn’t a reward system where people are being paid back.  
 

It’s like when HBO offers a free month for rent subscribers.  The idea is to entice new customers.   
 

Should they also give a free month to everyone that’s already a subscriber too? 
 

When a car dealership runs a promotion for new car buyers do you go to the dealership and tell them you should get the promotion too because you bought a car 6 years ago?  

[Bluespunk]

1 hour ago, SomchaiCNX said:

While  ignoring those who are here already and invested for more than 20 years, yes, it makes more sense now ????

Completely different issue.
 

The OP is discussing attracting new investors. 

Edited July 24, 2021 by Bluespunk

[SomchaiCNX]

2 hours ago, Bluespunk said:

Completely different issue.
 

The OP is discussing attracting new investors. 

Whatever. Just a warning for those NEW investors, once you are here you know what to expect. 

 

[Bluespunk]

31 minutes ago, SomchaiCNX said:

Whatever. Just a warning for those NEW investors, once you are here you know what to expect. 

 

I seriously doubt many will be fooled by this “lure”, if it is ever put together that is. 

[herfiehandbag]

On 7/23/2021 at 12:24 PM, mikebell said:

I am British and was taught a million had SIX noughts.  So how many in a billion, please?  And a trillion too?

I believe that a billion is a thousand million (1000,000,000) and a trillion is thousand billion (1,000,000,000,000)?

 

Academic really, as I rarely have more than a couple of thousand Baht left at the end of the month!

[connda]

On 7/23/2021 at 11:19 AM, webfact said:

The Thai plan is to entice one million well-heeled foreigners into the country this year.

 

They hope offering ten year visas, deals to buy 10 million baht condos and give work permits will provide a one TRILLION baht windfall for Thai coffers. 

They are truly delusional.

[placeholder]

19 hours ago, Scott Tracy said:

Apparently, a trillion is a million million, 12 zeros. Must mean a billion has 9 zeros...except of course, it doesn't....

In the UK a billion used to mean a million million. Now, the American usage has been widely adopted at least in govt. & financial circles  so that a billion means a thousand million.

"The old UK meaning of a billion was a million million, or one followed by twelve noughts (1,000,000,000,000). The USA meaning of a billion is a thousand million, or one followed by nine noughts (1,000,000,000). ... The UK government has been using the American meaning of billion since 1974 for the numbers it gives out."

http://www.plainenglish.co.uk/campaigning/past-campaigns/budget/how-much-is-a-billion.html

[BEngBKK]

On 7/23/2021 at 7:58 AM, billd766 said:

Will the business be subject to the 49/51 % law, and will the farang owners HAVE to abide by the 4 Thais per 1 farang rule?

 

If the answer to either or both questions is yes, Thailand can forget it.

 

How about the 49/51 % law when buying a condo?

 

If they get a 10 year visa (a good idea IMHO) will the farangs still have to make 90 reports, fill in the TM 28 and TM 30 every time they stay somewhere else overnight?

 

Will they have to have 800,000 or more in the bank and prove it to Immigration every year?

 

Just some of the niggely points to be aware of.

I bought a condo and the 49/51 % rule also comply to the building where you buy your condos.

So, you can can only own 49 % of the building. If the building have more than 3 condos you will be owning 100 % of you condo.

  

[Laughing Gravy]

On 7/24/2021 at 12:40 AM, Scouse123 said:

How dumb they really are here!

True and eloquently put.