LTR Visa is Now available for Long Term Residency

[TravelerEastWest]

"subject the transfers to taxation"

 

Everyone - agrees with you!

[TravelerEastWest]

OK another update from the visa guy who talked with the BOI today the Pension visa is only exempt for overseas income taht does not come into Thailand....

 

For now - who knows what will happen next year...!

[SHA 2 BKK]

14 minutes ago, TravelerEastWest said:

OK another update from the visa guy who talked with the BOI today the Pension visa is only exempt for overseas income taht does not come into Thailand....

 

For now - who knows what will happen next year...!

Sorry mate.  “….  only exempt for income that does not come into Thailand”?  
 

Shouldn’t that be “only exempt for overseas income that does come into Thailand”?  I know any Thai income will be taxed at at the usual rate in Thailand but the Pensioner LTR proclaims that overseas income can be brought in Tax Free as long as it’s the following Tax year (as per Royal Decree 743).  
 

Can you clarify matey?

[SHA 2 BKK]

6 minutes ago, SHA 2 BKK said:

Sorry mate.  “….  only exempt for income that does not come into Thailand”?  
 

Shouldn’t that be “only exempt for overseas income that does come into Thailand”?  I know any Thai income will be taxed at at the usual rate in Thailand but the Pensioner LTR proclaims that overseas income can be brought in Tax Free as long as it’s the following Tax year (as per Royal Decree 743).  
 

Can you clarify matey?

Here is the relevant section of the Royal Decree (743)

Section 5 Income tax under Part 2 of Chapter 3 in Title 2 of the Revenue Code shall be exempted for a foreigner categorised as Wealthy Global Citizen, Wealthy Pensioner, or Work- from-Thailand Professional who is granted a Long-Term Resident Visa under immigration law for assessable income under section 40 of the Revenue Code derived in the previous tax year from an employment, or from business carried on abroad, or from a property situated abroad, and brought into Thailand.
 

[JackGats]

48 minutes ago, SHA 2 BKK said:

... I know any Thai income will be taxed at at the usual rate in Thailand but the Pensioner LTR proclaims that overseas income can be brought in Tax Free as long as it’s the following Tax year (as per Royal Decree 743).  ...

So whereas retirement visa holders would be well-advised to hurry and remit a high sum this year, LTR holder had better not do so until January 2024. If LTR holders remit the money in what is left of 2023, they may lose the benefit of Royal Decree 743.

Edited October 12, 2023 by JackGats

[SHA 2 BKK]

19 minutes ago, JackGats said:

So whereas retirement visa holders would be well-advised to hurry and remit a high sum this year, LTR holder had better not do so until January 2024. If LTR holders remit the money in what is left of 2023, they may lose the benefit of Royal Decree 743.

Good point cobber.  I’ve had my LTR over a year so am covered but newbies should wait until next year. 

[TravelerEastWest]

2 hours ago, SHA 2 BKK said:

Good point cobber.  I’ve had my LTR over a year so am covered but newbies should wait until next year. 

Very interesting! Late now so I will think about this tomorrow.

 

Another thought my main Thai expense is international school for two kids. I live on a simple farm and have an old car and rarely go out...

 

What if I send money for school directly from America to the school? Just a thought...

[K2938]

6 hours ago, TravelerEastWest said:

Another thought my main Thai expense is international school for two kids. I live on a simple farm and have an old car and rarely go out...

 

What if I send money for school directly from America to the school? Just a thought...

While making detection a little more difficult, this is highly unlikely to be a legal way around the remittance taxation.  However, as there currently is no detailed guidance from the Thai Revenue Department nobody really knows

[BritTim]

3 hours ago, K2938 said:

While making detection a little more difficult, this is highly unlikely to be a legal way around the remittance taxation.  However, as there currently is no detailed guidance from the Thai Revenue Department nobody really knows

I am not an expert but, especially if the transfer was done when not in Thailand, it might be legal tax avoidance. Presumably, they would not demand income tax on all funds used to purchase Thai products and services while outside Thailand.

[TravelerEastWest]

13 minutes ago, BritTim said:

I am not an expert but, especially if the transfer was done when not in Thailand, it might be legal tax avoidance. Presumably, they would not demand income tax on all funds used to purchase Thai products and services while outside Thailand.

Good thinking and what if I didn't send it but my mother gifted the tuition to my kids?

[BritTim]

2 minutes ago, TravelerEastWest said:

Good thinking and what if I didn't send it but my mother gifted the tuition to my kids?

Creative thinking can greatly reduce your tax liabilities. Many years ago, when I had a regular job with IBM, a friendly tax official in the UK advised me on various deductions I could legally claim. One example was for conservative business attire which was a requirement at the time when working for IBM.

[observer90210]

With the forthcomming tax absurdity on foreign income, who want's to stay long and get ripped by the boggie(tax)man ?

[TravelerEastWest]

14 hours ago, SHA 2 BKK said:

Sorry mate.  “….  only exempt for income that does not come into Thailand”?  
 

Shouldn’t that be “only exempt for overseas income that does come into Thailand”?  I know any Thai income will be taxed at at the usual rate in Thailand but the Pensioner LTR proclaims that overseas income can be brought in Tax Free as long as it’s the following Tax year (as per Royal Decree 743).  
 

Can you clarify matey?

Yes you are correct overseas income that does not come to Thailand is not taxed and old income probably won't be taxed per 743...

 

I would really like for final regulations taht are clear to be issued!

[SHA 2 BKK]

3 minutes ago, TravelerEastWest said:

Yes you are correct overseas income that does not come to Thailand is not taxed and old income probably won't be taxed per 743...

 

I would really like for final regulations taht are clear to be issued!

Yes cobber your not Robinson Crusoe in wanting final Regulations!   I reckon we LTR will be ok (I'm keeping that email from LTR saying we are in the clear) and the RD won't want thousands of Farangs on the other Visas in their office at tax time arguing the toss over DTAs et al.  

 

But I think we may never get that final Regulation we all seek and deliberately so.  As Churchill said : 

 

"It's a riddle wrapped in a mystery inside an enigma"

 

They will want voluntary tax returns from most and only go after the ones that are remitting a lot of coin into Thailand on non LTR Visas.  I may be wrong but I may be right!

[Middle Aged Grouch]

On 10/12/2023 at 1:53 AM, TravelerEastWest said:

Not unusual in Thailand i have stayed in a hotel paying by the week and was charged for electricity as used - water was not expensive and not charged.

Then you have been scammed.

[TravelerEastWest]

5 hours ago, Middle Aged Grouch said:

Then you have been scammed.

Actually - the opposite I got a great rate, good service and nothing stolen etc.

 

The way it worked was that it was a normal middle class hotel - clean, safe etc but not luxury and they had normal market rates for normal stays - but for extended stays they gave you a discount on the normal rate but charged for electricity as you used it so for those not in the room a lot using lots of air-conditioning very low price for those using the air nonstop a bit higher.

 

What would make you think that fair rates are a scam?

 

Note I have not used a hotel in Thailand in over 20 years as I have a house now but in the past it was very normal for extended stays...

[TravelerEastWest]

6 hours ago, SHA 2 BKK said:

Yes cobber your not Robinson Crusoe in wanting final Regulations!   I reckon we LTR will be ok (I'm keeping that email from LTR saying we are in the clear) and the RD won't want thousands of Farangs on the other Visas in their office at tax time arguing the toss over DTAs et al.  

 

But I think we may never get that final Regulation we all seek and deliberately so.  As Churchill said : 

 

"It's a riddle wrapped in a mystery inside an enigma"

 

They will want voluntary tax returns from most and only go after the ones that are remitting a lot of coin into Thailand on non LTR Visas.  I may be wrong but I may be right!

I agree I think we will be OK or mostly so...

 

America has a DTA with Thailand so Social Security should be Ok no matter what the law says. Income from past years should be OK for LTR visas.

 

Lets see going forward about current year overseas income going to Thailand - but it shouldn't be a big issue either way for us.

 

Churchill had some flaws but also some great quotes!

[Middle Aged Grouch]

28 minutes ago, TravelerEastWest said:

Actually - the opposite I got a great rate, good service and nothing stolen etc.

 

The way it worked was that it was a normal middle class hotel - clean, safe etc but not luxury and they had normal market rates for normal stays - but for extended stays they gave you a discount on the normal rate but charged for electricity as you used it so for those not in the room a lot using lots of air-conditioning very low price for those using the air nonstop a bit higher.

 

What would make you think that fair rates are a scam?

 

Note I have not used a hotel in Thailand in over 20 years as I have a house now but in the past it was very normal for extended stays...

Why one may think that you have been scammed ? Because usually you are better off paying a flat rate for your stay and no extra and seperate charges for water or electricity or cleaning like it is done in some developpments who rent houses in beach towns. But free for you to have your idea on the issue. Have a nice evening.

[BritTim]

9 hours ago, Middle Aged Grouch said:

Then you have been scammed.

If that is what the rental agreement specifies, it is all perfectly legal. Fwiiw, it is the most common kind of long term rental agreement in Thailand.

[TravelerEastWest]

19 minutes ago, BritTim said:

If that is what the rental agreement specifies, it is all perfectly legal. Fwiiw, it is the most common kind of long term rental agreement in Thailand.

Perhaps he is relatively new to renting in hotels longer than a short stay? As for houses in beach towns I have no idea what is standard then or now as this was in Chiang Mai and in a nice hotel not a beach house... 

 

As for a flat rate with no extra electricity being better - anything is possible but it is unlikely to be true as the hotel would need to cover themselves for those who use lots of air-conditioning, and those who don't use a lot would be over charged - simple math...

 

There was no scamming going on and the poster presented zero evidence of the hotel scamming anyone perhaps he owes the hotel an apology?

Edited October 13, 2023 by TravelerEastWest

[SHA 2 BKK]

BOI still bullish about the LTR Visa. Including the tax benefits. This is their Facebook October 5.    Apparently one of the new Deputy PM’s is the BOI line Minister.  
 

“Thailand is gaining global recognition as a favorable work destination. According to the Expat Insider 2023 report by InterNations, a website with a global Expat network exceeding 5 million members, Thailand ranks 6th among 53 countries as the most desirable destination for foreigners to work. This is a significant leap from its 8th position in 2022 and 12th in 2021. This metric testifies to Thailand's successful policies in attracting foreign professionals.

???? The global investment scene is rapidly pivoting towards Asia. Countries like Singapore, Malaysia, the Philippines, and Indonesia are devising long-term visa strategies to allure prospective talents and investors. Within this evolving landscape, Thailand emerges distinctively with its Long-Term Resident (LTR) Visa initiative.

The Thai government has introduced the Long-Term Resident (LTR) Visa program to attract high-potential individuals a year ago.  This 10-year visa offers a range of tax and non-tax benefits, making Thailand an attractive regional hub for living and doing business.

???? A Look at the Data
Since its official launch on September 1, 2022, the LTR Visa program has witnessed a surge of 4,842 applications in just a span of one year. The applicants primarily come from Europe (2,179), the United States (810), and China (507), and are categorized into 5 main groups:

▶️ Retirees with an income of at least $80,000 per year: 30% 
▶️ Remote Workers: 25.4% 
▶️ High-Skilled Professionals: 15.6% 
▶️ High-Net-Worth Individuals with an annual income of at least $1 million: 6.3% 
▶️ Spouses and Dependents: 22.8%

???? Economic Impact
This initiative is more than just a visa program; it's a strategy of Thailand's economy. 
The Thailand Board of Investment (BOI) estimates that each LTR visa holder will contribute around 1 million Thai Baht per year to the economy. With over 4,000 applicants already, that's a prospective economic value of over 4 billion Baht!! 

???? Talent and Business Synergy
The LTR visa is a magnet for top-tier global organizations such as Seagate Technology (Thailand), IHI Power Systems (Thailand), Robert Bosch Automotive Technologies (Thailand), Murata Electronics (Thailand), Delta Electronics (Thailand), Ducati Motor (Thailand), and Newly Weds Foods (Thailand)

This also includes Thai companies seeking highly skilled foreign personnel, such as SCB DataX. This not only enhances Thailand's talent pool but also fosters skills transfer, potentially upskilling the domestic workforce.

This diversity can result in a society that's not just economically robust, but also culturally rich.

✨ The Bigger Picture
Thailand isn't just offering residency; it's building a talent and investment ecosystem. It's transforming from a competitive nation to a technological and innovative hub of the region. 

The LTR visa program is more than a pathway for long-term stay; it's an integral part of Thailand's long-term vision. By offering opportunities for economic investment, professional development, and cultural enrichment, Thailand is not just opening its doors wider but is also elevating its standing on the global stage.

Be part of this revolutionary moment.

✨✨✨✨✨✨✨✨✨✨✨✨✨✨✨✨
#BOI #LTR #LongTermResident #VISA #Thailand
???? 0 2553 8111 
???? [email protected]
???? www.boi.go.th
???? all contacts are free of charge

[K2938]

1 hour ago, SHA 2 BKK said:

Apparently one of the new Deputy PM’s is the BOI line Minister.  

What is meant with "line Minister", please?

[BritTim]

49 minutes ago, K2938 said:

What is meant with "line Minister", please?

That is a good question. The BOI operates directly under the aegis of the Prime Minister's Office. I assume it means that the person supervising the BOI from the PM's office is one of the Deputy PMs.

[Thailand J]

What is the latest news regarding tax exemption for LTR wealthy pensioners?

Is it true the exemption is only for income from the previous year ( not years)? If so I'll make sure my brokerage account year end statement shows enough cash. That will be where the next year's transfers are from.

I have visited AXA office, I am ready to apply LTR.

 

 

https://ltr.boi.go.th/documents/Royal-Decree-743.pdf

Edited October 14, 2023 by Thailand J

[SHA 2 BKK]

7 hours ago, BritTim said:

That is a good question. The BOI operates directly under the aegis of the Prime Minister's Office. I assume it means that the person supervising the BOI from the PM's office is one of the Deputy PMs.

Sorry for those not used to the Westminster System of Government.  
 

A “line Minister” is one that has specific “carriage” of a project.   Whilst the BOI might sit under aegis of the Prime Minister’s’ Department, one of the Deputy PM’s is Chairman and therefore the “line Minister” - NB yes Thailand is not a Westminster System of Government (unfortunately) but I think it’s a good analogy.  

 

This from their Facebook. 
 

“BOI revealed that on october 10, 2023, the first BOI board meeting chaired by Mr.Panpree Bahiddha-Nukara, Deputy Prime Minister, and newly appointed Chairman of the BOI, also fine-tuned the 5-year investment promotion strategy that became effective in January this year.”

 

Edited October 14, 2023 by SHA 2 BKK

[SHA 2 BKK]

29 minutes ago, Thailand J said:

What is the latest news regarding tax exemption for LTR wealthy pensioners?

Is it true the exemption is only for income from the previous year ( not years)?

 

https://ltr.boi.go.th/documents/Royal-Decree-743.pdf

This has always been the case and is the currently case for most tax residents until midnight 31 December 2023. 
 

LTR Pensioners will continue to be free from paying income taxes on remittances of income (not only pensions) as long as was received in the previous tax (calendar) year.   

[Thailand J]

With LTR my 800,000B deposit for non-0 renewal can goto Vanguard Federal Money Market fund. The fund price always stays at $1, so no one will ever lose money. 5% return is enough to pay for yearly LTR required insurance plus more.

Edited October 14, 2023 by Thailand J

[SHA 2 BKK]

13 minutes ago, Thailand J said:

With LTR my 800,000B deposit for non-0 renewal can goto Vanguard Federal Money Market fund. The fund price always stays at $1, 5% return is enough to pay for yearly LTR required insurance plus more.

I parked most of my liquid assets in Australia.  4.7% return.   I will have to pay Australian income tax on that but it’s far better than Thai Bank rates (which are also taxed).  The money is at call and has some Government Guarantees.    
 

 

Edited October 14, 2023 by SHA 2 BKK

[Thailand J]

8 minutes ago, SHA 2 BKK said:

But sorry can you clarify the interest you are getting on the 800k?   Is it 1.5% ?  Many thanks.

1.5% is about right. Bangkok Bank FD.

[Misty]

On 10/7/2023 at 10:52 PM, SHA 2 BKK said:

Misty you know more than all than all of us combined!  Changing LTR midstream - champion in my books.  Yes 17% on Thai sourced income.  But for we “poor” pensioners no tax reduction for income made in Thailand but zero tax on income remitted from the previous year?  
 

I reckon I close to the mark Krap????

hi Sha2Bkk - sorry for slow response. Am travelling and just saw your post. Yes, there's a tradeoff between the LTR HSP visa and the other LTR visas in that with the HSP you get a break on taxes for local income, but unlike the other LTRs you don't get any breaks for foreign source income.

 

The HSP suits my current situation well.  But at some point in the future if I no longer have local source income I'd consider reapplying for one of the other LTR visas.  Will have to see how this new interpretation of the RD directive plays out.  I've had no shortage of locally sourced/ Thai taxed income from decades of working here. Will be interested to see how the new interpretation would apply, should I decide to repatriate some of it.