Thailand set to approve Special Tourist Visa for digital nomads

[Chris.B]

1 hour ago, SymS said:

My Mate Nate. You did not say over what period, and I'm not sure he makes over a million per year,, but over a few years certainly.
Anyway my point was that income varies a lot, and not all are "begtubers".

He is not a digital nomad. He is working and living in Thailand and his business activities are aimed at the Thai audience. ????

 

[Trvlr55]

Wow, reading the comments here, not only does the Thai government maybe not understand the concept of a digital nomad, it's even worse here.

 

Digital nomads don't dress up, and off to work in some building, etc.

They typically are on their computer, either connected to some overseas server directly, or doing something similar, in their room or sitting besides the pool, or at some coffee shop, but most likely all of the above.

 

They do not produce any goods, products, or services in the country they are temporarily residing in.
They do not displace any local workers.
They are on a completely flexible work schedule that they themselves control; some are direct employees, or subcontractors, others own their own single employee company and contract with some large company that needs whatever it is that they do. Some just trade stocks or securities.

 

They do not spend $$ like the typical 2 week tourist, but do take a lot of 3 or 4 day holidays to travel around the country they are in, so spend low some days, weekends adventures spend $$, more than most locals would, but less than typical tourists.

 

It's really a hybrid model. Unwise to apply old ideas, to something new.

 

What is a digital nomad... there's probably at least 20 countries already with existing "since Covid", digital nomad defined and approved programs that can be used as examples.

 

Other countries, do no levy taxes. Digital nomads are already paying taxes where their "tax home is", and typically the same country they are doing work for. There are already good examples of how to determine income, and if you are actually a digital nomad. Some times is just ones last 2 years of tax returns, some stricter counties want some sort of letter from wherever the income is derived from.

 

The host country gets income indirectly; from the housing, goods, and services these digital nomads use, while they are there. Not certain why "at this point" immigration would need to understand it, at least until the rules are officially written.

 

I went to Aruba, last January, one of the 1st countries to have this program, and I met several people doing this. IIRC only required an income letter from a company, or a tax return.  Some countries, also accept people who trade stock and securities in this category. Costa Rica earlier this year, came out with their program. 1 year, extendable, very small visa fee, proof of income very modest. both these countries, when the programs where created understood the idea, and came out with reasonable programs to get people to come, not just for a quick holiday, but for a decent amount of time. I have read-up on many of the digital nomad programs around the world, and I can't recall any that are expected the tax this category of visa holder.

 

Any country that would want work permits "for what??",

tax "some" income, local investment 'for a temporary stay!!" OMG!

What would they tax exactly; they are paid out in their tax home/tax country, not Thailand.

At best it would be double-taxation, probably break many existing agreements/treaties. If they are double-taxed nobody would apply.

 

I recall that originally the idea was a 40k investment, or govt bonds, not 250/500k, those are completely different programs I recall, still yet to be announced. Don't think they'll get any traction there, unless someone would want to pickup a condo for long term investment. govt bonds @1.5% interest... no thanks!

 

I recall reading, maybe here, t some past attempts made to crackdown on some "tourists" trading stocks, it all fell apart because it's not exactly illegal, but is a grey area. If you really think that's working in Thailand and you are living there now, do not even sell any stock to fund your living in Thaland, because they you are working... think about it. If you do it one time, is no different that 100 times... plenty of examples of people on retirement visas, etc help their girlfriend one time, for a few minutes in her shop/business with something small, and was seen, reported, and booted out of country for "working".

 

If Thailand is being smart, in creating this program, it would be to better clarify these grey areas; the countries local businesses will generate more income, and the government will get more taxes and revenue indirectly. This category of Visa, is what everyone has been asking for; people who come over, and not just for the bars, and nightly entertainment so abundant, but people who blend in to the local society because they are going to be there for some time, but not a permanent resident.

[SGD]

9 hours ago, Trvlr55 said:

...

If Thailand is being smart, in creating this program, it would be to better clarify these grey areas; the countries local businesses will generate more income, and the government will get more taxes and revenue indirectly. This category of Visa, is what everyone has been asking for; people who come over, and not just for the bars, and nightly entertainment so abundant, but people who blend in to the local society because they are going to be there for some time, but not a permanent resident.

However, you need to understand that what would be collected in tax in any western country is simply not collected in Thailand because of a hidden cash economy, tax avoidance and bribes.

 

Heck, they cannot even raise the VAT level back to the normal 10% since 1997 or whenever it was discounted to 7% and so many never pay that anyway.

 

Income tax is a joke.

 

So the clever Thais (sic) think taxing a few digital nomads will fill their coffers. It won't and they know that but it takes the light off their other tax free activities.

[inThailand]

Is a digital nomad basically a new name for backpacker? 

Edited March 10, 2022 by inThailand