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Thai gov. to tax (remitted) income from abroad for tax residents starting 2024 - Part I


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Posted
16 hours ago, seajae said:

so does this mean all incoming money transfers from abroad, if so will they will be taxing pensions as well when they are transferred from other countries, sounds more like a huge money grab by the government if it does, they should only be able to tax money earnt from Thailand not savings etc that were/are earned in other countries. This will be challenged as it is outright theft if the money has nothing to do with Thailand earnings, only the country where it is earned or banked have the right to any taxes from it, the finer details are needed to make sure what they plan to do is legal and not jut a way to rip farangs off 

tell that to usa... they tax americans worldwide.... you must give up your usa passport to get them off your back....

Posted
10 hours ago, Jenkins9039 said:

Nope...

 

I posted above the complete translation plus here 

image.thumb.png.6b6f7e9cbfc923e096ded8d1c5dea6e3.png

From your own post and link  page 11 :

 

https://www.thaienquirer.com/50748/new-tax-regulations-raises-questions-and-concerns/

 

Thailand’s Revenue Department has recently thrown a curveball at tax residents with its new tax guidelines on foreign income. According to legal experts, the policy appears to have three specific targets: residents trading in foreign stock markets through foreign brokerages, cryptocurrency traders, and Thais who have been exploiting a loophole that allowed them to bring foreign earnings into the country tax-free after keeping it in an offshore account for more than a calendar year.

 

No mention of new Thai income tax regulations for farang pensioners, digital nomads and long stay expats...

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Posted
5 minutes ago, honcho said:

tell that to usa... they tax americans worldwide.... you must give up your usa passport to get them off your back....

American digital nomads that are working remotely outside of the US for a specific period of time can deduct up to 120k on their US taxes.  This doesn't work for most forms of passive income though.  Nonetheless its possible in some cases to get them off your back for the majority of your federal taxes on regular income except for social security and medicare which you still must pay.

Posted
15 hours ago, Isaan sailor said:

Thailand to tourists—please come.

Thailand to expats—please leave.

There is still a lot more to the fine print, but even tourists could be impacted in the most broad terms. I am in Thailand 2 months out of the year. I wire money from the US to my Thai bank account. Will the wired funds get taxed during the transfer process? 

Posted
14 hours ago, Jenkins9039 said:

I guess they've started getting the CRS information returned and licking their chops at the opportunity.

What do you mean with CRS?

 

From acronym.com:Screenshot_20230918_214744_Acronyms.thumb.jpg.fcd05f6156b3297d803985c564668a82.jpg

Posted
17 hours ago, connda said:

Eventually someone is going to write, "Does that mean farang's pension income too."

Short answer would probably be "No," at least for those countries with bilateral tax agreements with Thailand.  If you're paying income tax in your home countries, then Thailand has no claim to tax the income twice.

That's how I read it as well 

Posted
49 minutes ago, Thorgal said:

No mention of new Thai income tax regulations for farang pensioners, digital nomads and long stay expats...

Where it says 'tax residents' that's anyone who stays more than 180 days a year and it will technically open a lot of us up to additional taxation, especially those who don't pay any tax on their income

 

 

Posted
15 hours ago, Jingthing said:

If you're living in Thailand most of the time you're technically a tax resident in Thailand. You're conflating tax residency with US global taxation of US citizens. Being a tax resident of Thailand does not stop that. Only renouncing US citizenship stops that.

  Correct. Living outside the US for more than 11 months out of the year just changes how you are taxed as a US citizen, not that you are taxed. So, living in Thailand as a US citizen under that criteria would change who and how one is taxed as a US citizen. 

Posted
1 hour ago, honcho said:

tell that to usa... they tax americans worldwide.... you must give up your usa passport to get them off your back....

Yeah, it would likely be double taxation. There’s no way the Usa would forfeit taxes because of some tax agreement with Thailand. Trying to do that would likely open yourself up to an audit as well with the associated difficulties of not being in the USA and getting notices, etc. Better to just pay tax and stay under the radar. It looks like Thai banks report to the IRS as well. I don’t even want a Thai account at this point.

Posted
15 hours ago, QuantumQuandry said:

Not all retirement money is taxed in home countries.  Disability or tax-exempt bonds, for example.  Other money is taxed but not in a normal manner (Roth IRAs, for example).  Will Thailand be up on the tax rules of other countries?  Will they even try to honor them?  Can't see that ending well.

  In the US it is, eventually. Just a point of clarification. 

Posted
15 hours ago, billd766 said:

The US taxman taxes ALL income worldwide for US taxpayers.

  Up to a point. US citizens working abroad for more than 11 months out of the year are taxed far less than US citizens working in the US. 

Posted
8 hours ago, ukrules said:

Where it says 'tax residents' that's anyone who stays more than 180 days a year and it will technically open a lot of us up to additional taxation, especially those who don't pay any tax on their income

 

 

A tax-resident (+180 days in LOS) will be taxable on income from all sources in Thailand on a cash basis regardless of where the money is paid, and on the portion of income that is brought into Thailand in the same year that it is earned.

 

A tax-non-resident (-180 days in LOS) is only taxable on income from sources in Thailand.

  • Haha 1
Posted
3 hours ago, Jenkins9039 said:

they don't need as OECD/CRS shares that information with them directly.

Interesting...  None of my UK Banks could share my account transactions information with Thailand as they are not aware of my Thailand Tax Identifier Number, 1 (Virgin One now Natwest) has asked for it & was ignored as I didn't have one at that time, the other (Barclays) has recently started to close accounts for people who are Non-UK resident for other "Operational" reasons so have never asked for it.

 

My Singapore Bank (Citi) knows I live in Thailand, even sends me new Debit cards here, but has never mentioned needing to know anything about my banking/Tax details here. 

 

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Posted
7 hours ago, mran66 said:

...don't forget that I recall it was Mr Big Joke who was behind changing the retirement visa requirement from "800k for 2mo" to "800k for 2+3 mo + 400k for 7mo".

 

As far as I can see, the primary if not only reason for that change was to encourage more retirees to skip the legal route, and get the 10+k bribe per renewal to immigration officers.

 

Seems Big Joke still thinks too many people skipping the agency approach, and sticking to legal way, thus he need to increase the requirements further to get more people to bribe the immigration staff and forget the bank approach

You may be right, corruption rules this country.

 

Posted

“…those that have earnings from occupation or business abroad or wealth that is located abroad…and has brought these assets into Thailand must factor this into their personal income tax for the year.”

 

"will see all income from abroad taxed as personal income tax regardless of whether it was earned income or savings."

 

So if you transfer money there from your savings you have to pay tax on it. Sounds like the only resort is to use an ATM to withdraw money. The ATM fees will most likely cost less than paying tax on transfers.

 

These jokers are doing all they can to make life more difficult for expats and drive them to other countries. Amazingly stupid decision. 

Posted

It seems this is nothing to do with xenophobia or a money grab by the Thai government. The conditions have been forced upon Thailand by your own Western governments imposition of the Common Reporting Standard. Sorry for the long link but couldn't find a quick way to shorten it on Android. 

 

https://sherrings.com/common-reporting-standard-crs-tax-laws-thailand.html#:~:text=The Common Reporting Standard&text=It is a standard set,financial information that is exchanged.

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  • Confused 1
Posted

The point not mentioned anywhere yet is that the RD is saying you have to report these offshore earnings in your tax return in the year after remitting them to Thailand and the RD will have access to information from the Thai bank that processed it and will have access to information from your overseas accounts showing year end balances and inflows into the accounts, if you use a Thai address or are a Thai citizen. 
 

It is not like you will get a tax bill when remit the money. You will sit and wait for years to see if they come after you with demands for back tax, penalties and interest, if you didn’t fully declare it. If you did declare something but assumed double tax relief, they could ask for the evidence. Similarly if you didn’t file at all on the basis of double tax relief. They don’t have enough inspectors to do all this but can select cases to pursue at random. 

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Posted
12 hours ago, jonclark said:

Oh right..I'm a tax resident....I always thought I was a guest in Thailand. So do I have resident status now lol. 

No you are not, thats why you wont pay. Only tax residents like i.e. Tim Newton from TNT who works in Thailand and might transfer some funds from Australia to T.???? to finance his hotel:).

 

If you invest in a Condo and you are a tax resident … I guess the lobby from Sansiri will have a word with the new Finance Minister????

Posted

Maybe it’s time for the 1% to contribute a bit more…
According to an article in the BP the rich 1% owns almost 67% of the country’s wealth… 
That’s incredible… Amazing Thailand…

 

 

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