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

[freeworld]

Well, TI's computer can easily establish who was tax resident or not for any given year. So you wouldn't be asked anything.

 

Haha immigration. My last entry to Thailand in Oct 2023 and I made an address report within 24 hrs. A month later did my annual extension and produced a copy of my address report of which the immigration officer looked in her pc and printed something out after viewing my physical paper (so they had the entry stamp and a copy of my address report) 

 

A few months later I went to CW to do a 90 day report and they were asking me to fill update my address report when I last entered the country in Oct 2023. So I had to go home to fetch the physical paper that reported my adress (nothing on their computers) and that was not acceptable. They wanted me to fill in again the paper with all the supporting backup. I told them its all on their computers and they said we dont have access to that. So in the end I produced the address report in October 2023 and had to submit a new form again doing the same adress report for oct 2023 after entry with supporting docs.

[Mike Lister]

2 minutes ago, freeworld said:

Also theorising.

 

That could be if there was some connection between immig and tax dept but I know in my home country personal tax information is highly confidential between only tax officials and the tax payer. For anyone else to gain access to personal tax information a court order is required.

All Immi has to do is count the number of days you've been in the country by looking at your passport, even most immi staff are capable of doing that, perhaps! If less than 180, check and pass, if more than 180, tax clearance required from RD.

[Ben Zioner]

6 minutes ago, freeworld said:

Also theorising.

 

That could be if there was some connection between immig and tax dept but I know in my home country personal tax information is highly confidential between only tax officials and the tax payer. For anyone else to gain access to personal tax information a court order is required.

Couldn't be more wrong. To assess someones Tax residence status Immigration need only their own data. They are paid to know how many days you spent in the country in the previous year. You are the one "theorising" here. 

 

I get to think that the idea of paying income tax causes brain freeze in some people.

[Dogmatix]

3 hours ago, StayinThailand2much said:

 

Yes, that's the question. Will they...

 

(A) Patiently wait for lodged tax returns by Thais who invest overseas, and foreigners, possibly resulting in very little extra revenue (after all, they don't have contact addresses of expats, or Thais who never lodged a tax return), or

 

(B) Go after transfers, forcing the account holders to lodge tax returns, and provide whatever proof of earlier taxation they have/don't have, resulting in large extra revenue for the RD.

 

 

(A) would indicate that they just want to comply with international regulations, while (B) would generate a lot of income which the government is keen to get their hands on.

 

 

These are interesting questions. There is definitely pressure to increase tax revenues which have been sliding backwards since COVID and Thailand's tax base is too long to pay for the type of welfare that voters are starting to expect - MFP promised an old age allowance of 3,000 baht a month, after the Prayut government stopped the old age allowance of 600 for new oldies and there is a group pressuring the current government to go through with that.  MFP planned to increase VAT, introduce a wealth tax plus some other measures to pay for this. So definitely the government would like to see this  remittance tax generate incremental revenue. 

 

There are no international regulations requiring this type of remittance tax.  In Thailand's case the international pressure was to join CRS reporting which they did in March 2023.  The RD twisted this round to sound like the pressure was to tax remittances, whereas the truth was that the RD felt that CRS would give them information about overseas bank accounts of tax residents that would make it easier for them to investigate foreign source income that might be remitted. 

 

The fact that the international pressure was non-existent and that they need to increase tax revenues doesn't necessarily mean that their will be draconian investigations of remittances but it might. I guess we'll find out soon enough.

[freeworld]

13 minutes ago, Mike Lister said:

All Immi has to do is count the number of days you've been in the country by looking at your passport, even most immi staff are capable of doing that, perhaps! If less than 180, check and pass, if more than 180, tax clearance required from RD.

Yes that is feasible its what tax department relies on as well. They want copies of all the pages and stamps and a summary list of dates and days showing that one is resident in Thailand 180 days and more.

[Yumthai]

2 hours ago, FritsSikkink said:

Let's think a bit bigger, Car manufacturer wants to build factory in Thailand but first needs to pay tax on an investment of billions THB.

Probably not as for big businesses BOI will likely get involved providing tax incentives/allowances.

This is why rich get richer, big money has always legal ways to mitigate tax.

[Mike Lister]

3 minutes ago, Dogmatix said:

 

These are interesting questions. There is definitely pressure to increase tax revenues which have been sliding backwards since COVID and Thailand's tax base is too long to pay for the type of welfare that voters are starting to expect - MFP promised an old age allowance of 3,000 baht a month, after the Prayut government stopped the old age allowance of 600 for new oldies and there is a group pressuring the current government to go through with that.  MFP planned to increase VAT, introduce a wealth tax plus some other measures to pay for this. So definitely the government would like to see this  remittance tax generate incremental revenue. 

 

There are no international regulations requiring this type of remittance tax.  In Thailand's case the international pressure was to join CRS reporting which they did in March 2023.  The RD twisted this round to sound like the pressure was to tax remittances, whereas the truth was that the RD felt that CRS would give them information about overseas bank accounts of tax residents that would make it easier for them to investigate foreign source income that might be remitted. 

 

The fact that the international pressure was non-existent and that they need to increase tax revenues doesn't necessarily mean that their will be draconian investigations of remittances but it might. I guess we'll find out soon enough.

It is not covid related, Direct Tax income has been sliding for several years, since before 2005, it is now the lowest of any ASEAN. Direct taxes contribute less than 2% to Budget Revenue, indirect taxation continues to be the mainstay with corporate taxes coming second. Populist giveaways by successive governments are largely to blame, deductions and allowances relative to average wage are disproportionate. I've just done my wife's books for last year, she will pay 9k Baht in tax on sales of 1.1 mill. with a standard deduction of 60% of sales allowed as a deductible for costs. 

[Yumthai]

50 minutes ago, Ben Zioner said:

Well I have made a transfer of 100 000 USD that should be there by first business day 2024 (tomorrow). How could one think it was earned  this year? I'll show them my FCD book, and my USB statement and remittance advice. I hope I am not the only one to have done so.

Well a smart-ass RD officer could always argue that the money remitted in Thailand on January 3rd could have been earned on January 1st/2nd, kindly letting you know that if you disagree you'll have to provide legalized Thai translations of all supporting documentation.

 

 

[Ben Zioner]

36 minutes ago, Yumthai said:

Well a smart-ass RD officer could always argue that the money remitted in Thailand on January 3rd could have been earned on January 1st/2nd, kindly letting you know that if you disagree you'll have to provide legalized Thai translations of all supporting documentation.

 

 

Well I got that covered, unless they repeal RD.743 a few minutes before my money turns up.

[stat]

1 hour ago, Ben Zioner said:

Well I have made a transfer of 100 000 USD that should be there by first business day 2024 (tomorrow). How could one think it was earned  this year? I'll show them my FCD book, and my USB statement and remittance advice. I hope I am not the only one to have done so.

You answered your own question ;-) If you earned it in 2023 and can prove it it, it SHOULD be no problem, but no one knows 100% for sure. I was stating earned in 2024 and remitted in 2024 ;-

 

Godspeed!

[TravelerEastWest]

2 hours ago, jayboy said:

 

You make some very good points, in particular drawing attention to the credentials and added value - particularly RD experience - of the Thai professionals working there.I have now looked at their website.Everything looks kosher.I wonder what their charges are.

 

My position is that information supplied by the RD so far doesn't really need a professional spin/explanation because the whole initiative remains work in progress and the announcements are easily understood (though I recognize some on this forum might disagree). All that might change as we move forward.In summary I agree your comments in full with the caveat that legislative developments are rarely if ever conducted transparently in Thailand.

 

Once when I lived in Bangkok a long time ago I spoke with a Thai tax accountant who used to work as a partner for one of the large international accounting firms. Great education, spoke English well - good experience etc he was very expensive - around $500 per hour. My tax needs were not that complicated so I didn't hire him.

 

i not know how much this firm charges but it is probably a lot...

 

I agree that the new rules are a work in progress and the average person doesn't need  high level advice - but a large corporation needs to plan ahead as best they can and can afford $500 per hour for a tax partner to brief them and help to plan.. I understood their summary very quickly it was well written. But I don't speak Thai very well or read Thai at all so in the sense that to understand tax law you need to understand Thai at a native speaker's level or close to it - not me...) and understand taxation. Understanding international taxation comes after you understand domestic taxation.

 

Just for fun let's look at the often stated idea in this thread that you qualify as a tax resident each year - do we really know that? Or does the RD have another unpublished interpretation where you qualify as a tax resident and then you are one until you are not...? Probably not but this is the type of question that is difficult to answer sometimes. also it is interesting like a puzzle.

 

Someone recently posted an idea where an expat can move to Thailand mid year and not be a tax resident for that year and buy a Condo and presumably not have tax liabilities. He may have been joking but it actually sounds like a good idea? Probably there are many legal ways that don't require great wealth to avoid most of the tax consequences of the new rules. Sometimes a good tax accountant can put together a plan quickly and help you with the paperwork, and be worth their fees especially if you are still working and not retired.

 

It becomes even more confusing if the legislative developments are not conducted openly. CPSAN in America used to broadcast lots of legislative sessions  - some very boring. The British legislative sessions were much more interesting in comparison! The politicians were very witty and sarcastic.

[stat]

5 hours ago, scottiejohn said:

Name those countries that you claim automatically deduct a tax on all payments coming into personal accounts from overseas!

He cannot and will not admit that he in the wrong I bet :-)

[TravelerEastWest]

2 hours ago, jayboy said:

 

You make some very good points, in particular drawing attention to the credentials and added value - particularly RD experience - of the Thai professionals working there.I have now looked at their website.Everything looks kosher.I wonder what their charges are.

 

My position is that information supplied by the RD so far doesn't really need a professional spin/explanation because the whole initiative remains work in progress and the announcements are easily understood (though I recognize some on this forum might disagree). All that might change as we move forward.In summary I agree your comments in full with the caveat that legislative developments are rarely if ever conducted transparently in Thailand.

 

Once when I lived in Bangkok a long time ago I spoke with a Thai tax accountant who used to work as a partner for one of the large international accounting firms. Great education, spoke English well - good experience etc he was very expensive - around $500 per hour. My tax needs were not that complicated so I didn't hire him.

 

i do not know how much this firm charges but it is probably a lot...

 

I agree that the new rules are a work in progress and the average person doesn't need  high level advice - but a large corporation needs to plan ahead as best they can and can afford $500 per hour for a tax partner to brief them and help to plan.. I understood their summary very quickly it was well written. But I don't speak Thai very well or read Thai at all so in the sense that to understand tax law you need to understand Thai at a native speaker's level or close to it - not me...) and understand taxation. Understanding international taxation comes after you understand domestic taxation.

 

Just for fun let's look at the often stated idea in this thread that you qualify as a tax resident each year - do we really know that? Or does the RD have another unpublished interpretation where you qualify as a tax resident and then you are one until you are not...? Probably not but this is the type of question that is difficult to answer sometimes. also it is interesting like a puzzle.

 

Someone recently posted an idea where an expat can move to Thailand mid year and not be a tax resident for that year and buy a Condo and presumably not have tax liabilities. He may have been joking but it actually sounds like a good idea? Probably there are many legal ways that don't require great wealth to avoid most of the tax consequences of the new rules. Sometimes a good tax accountant can put together a plan quickly and help you with the paperwork, and be worth their fees especially if you are still working and not retired.

 

It becomes even more confusing if the legislative developments are not conducted openly. CPSAN in America used to broadcast lots of legislative sessions  - some very boring. The British legislative sessions were much more interesting in comparison! The politicians were very witty and sarcastic.

[TravelerEastWest]

2 hours ago, jayboy said:

 

You make some very good points, in particular drawing attention to the credentials and added value - particularly RD experience - of the Thai professionals working there.I have now looked at their website.Everything looks kosher.I wonder what their charges are.

 

My position is that information supplied by the RD so far doesn't really need a professional spin/explanation because the whole initiative remains work in progress and the announcements are easily understood (though I recognize some on this forum might disagree). All that might change as we move forward.In summary I agree your comments in full with the caveat that legislative developments are rarely if ever conducted transparently in Thailand.

 

Once when I lived in Bangkok a long time ago I spoke with a Thai tax accountant who used to work as a partner for one of the large international accounting firms. Great education, spoke English well - good experience etc he was very expensive - around $500 per hour. My tax needs were not that complicated so I didn't hire him.

 

i do not know how much this firm charges but it is probably a lot...

 

I agree that the new rules are a work in progress and the average person doesn't need  high level advice - but a large corporation needs to plan ahead as best they can and can afford $500 per hour for a tax partner to brief them and help to plan.. I understood their summary very quickly it was well written. But I don't speak Thai very well or read Thai at all so in the sense that to understand tax law you need to understand Thai at a native speaker's level or close to it - not me...) and understand taxation. Understanding international taxation comes after you understand domestic taxation.

 

Just for fun let's look at the often stated idea in this thread that you qualify as a tax resident each year - do we really know that? Or does the RD have another unpublished interpretation where you qualify as a tax resident and then you are one until you are not...? Probably not but this is the type of question that is difficult to answer sometimes. also it is interesting like a puzzle.

 

Someone recently posted an idea where an expat can move to Thailand mid year and not be a tax resident for that year and buy a Condo and presumably not have tax liabilities. He may have been joking but it actually sounds like a good idea? Probably there are many legal ways that don't require great wealth to avoid most of the tax consequences of the new rules. Sometimes a good tax accountant can put together a plan quickly and help you with the paperwork, and be worth their fees especially if you are still working and not retired.

 

It becomes even more confusing if the legislative developments are not conducted openly. CPSAN in America used to broadcast lots of legislative sessions  - some very boring. The British legislative sessions were much more interesting in comparison! The politicians were very witty and sarcastic.

[stat]

2 hours ago, freeworld said:

Which law or rule is that?

 

You are only tax resident in a tax year when you are resident 180 days or more. Today is day number 2.

Why would you write in a forum regarding tax law when you are not planning or are in fact a tax resident of said country? Again my post only applies when you are a tax resident of Thailand. My apologies if that was not clear in my orginal post.

[stat]

57 minutes ago, freeworld said:

Yes that is feasible its what tax department relies on as well. They want copies of all the pages and stamps and a summary list of dates and days showing that one is resident in Thailand 180 days and more.

They do not need copies of pages of your passport. They have an IT system that shows when you entered and when you left.

[stat]

7 minutes ago, TravelerEastWest said:

 

Once when I lived in Bangkok a long time ago I spoke with a Thai tax accountant who used to work as a partner for one of the large international accounting firms. Great education, spoke English well - good experience etc he was very expensive - around $500 per hour. My tax needs were not that complicated so I didn't hire him.

 

i not know how much this firm charges but it is probably a lot...

 

I agree that the new rules are a work in progress and the average person doesn't need  high level advice - but a large corporation needs to plan ahead as best they can and can afford $500 per hour for a tax partner to brief them and help to plan.. I understood their summary very quickly it was well written. But I don't speak Thai very well or read Thai at all so in the sense that to understand tax law you need to understand Thai at a native speaker's level or close to it - not me...) and understand taxation. Understanding international taxation comes after you understand domestic taxation.

 

Just for fun let's look at the often stated idea in this thread that you qualify as a tax resident each year - do we really know that? Or does the RD have another unpublished interpretation where you qualify as a tax resident and then you are one until you are not...? Probably not but this is the type of question that is difficult to answer sometimes. also it is interesting like a puzzle.

 

Someone recently posted an idea where an expat can move to Thailand mid year and not be a tax resident for that year and buy a Condo and presumably not have tax liabilities. He may have been joking but it actually sounds like a good idea? Probably there are many legal ways that don't require great wealth to avoid most of the tax consequences of the new rules. Sometimes a good tax accountant can put together a plan quickly and help you with the paperwork, and be worth their fees especially if you are still working and not retired.

 

It becomes even more confusing if the legislative developments are not conducted openly. CPSAN in America used to broadcast lots of legislative sessions  - some very boring. The British legislative sessions were much more interesting in comparison! The politicians were very witty and sarcastic.

180 or 183 days it is you can look it up. Laws are in the open plus you can google personal income tax thailand and you will get a detailed tax guides from the big 4. Only 179 days in TH should work to be free of TH income tax.

[ukrules]

1 hour ago, freeworld said:

I told them its all on their computers and they said we dont have access to that.

 

Low level workers rarely have access to all the information on file about you.

 

[TravelerEastWest]

3 hours ago, jayboy said:

 

 

Not sure how it happened - apologies for the duplicate posts!

[Felt 35]

40 minutes ago, stat said:

They do not need copies of pages of your passport. They have an IT system that shows when you entered and when you left.

 

In my experience I have had to prove copies of passport and on the copies mark eventually departure/entry and in addition attached a short but polite note where I write my name and TIN number and the departure/entry's periods and sum up total days in Thailand for the actual tax year.

Felt

[Ben Zioner]

7 minutes ago, TravelerEastWest said:

Probably there are many legal ways that don't require great wealth to avoid most of the tax consequences of the new rules. Sometimes a good tax accountant can put together a plan quickly and help you with the paperwork, and be worth their fees especially if you are still working and not retired.

I think there are. One should explore the exact rules and practices regarding "gifts". And I draw your attention to the fact that our billionaire PM has received one of those "gifts" THB 20M I think, from his children. This was published here recently.

 

This also leads me to think that moving to tax overseas income and not ruling against these "gifts" was indeed directed against foreigners, as we are much less likely to benefit from such donations. It could have been intentional, or not, I don't want to overestimate them.

[stat]

11 minutes ago, Felt 35 said:

 

In my experience I have had to prove copies of passport and on the copies mark eventually departure/entry and in addition attached a short but polite note where I write my name and TIN number and the departure/entry's periods and sum up total days in Thailand for the actual tax year.

Felt

Thanks for you post and yes that may be correct. However if you claim you lost your passport and have not been in Thailand for 183 days they will have no problem to prove to you how long you have stayed in Thailand. All I am saying is they (RD and immigration) can prove if need be how long you have been in TH no matter what you claim. The main reason is that they love paper and paper is the easiest to handle for them.

[TravelerEastWest]

35 minutes ago, stat said:

180 or 183 days it is you can look it up. Laws are in the open plus you can google personal income tax thailand and you will get a detailed tax guides from the big 4. Only 179 days in TH should work to be free of TH income tax.

 

Actually as I mentioned that was only an example of how a tax question can come up on what seems to be clear... Sorry if it seemed like a real question.

 

"1. Residents of Thailand If you stay in Thailand for the total of at least 180 days in the tax year, you are considered a “resident of Thailand” for tax purposes. You have to file a return on the income that you received if you meet one of the following conditions: (1) Your total income exceeded 120,000 baht in the tax year.

 

(2) You were married and your income combined with that of your spouse exceeded 220,000 baht in the tax year. 2. Non-residents of Thailand If you stayed in Thailand for less than 180 days..."

 

But the above Rd statement doesn't go into details. What if you are a permanent resident or Thai citizen does that change things and make you always a tax resident? (Just a rhetorical question.) I think my friends in America with Green cards told me that they always owe taxes in America regardless of how many days they are in America after getting their Green card.

 

Also the above RD statement is a translation which is slanted to their point of view - same thing happens with IRS publications - which are not the law only an IRS view of the law - but not a translation normally.

 

If I had a lot of money I would hire an expert to help me - but I don't have a lot of money so I will keep reading this thread...

[TravelerEastWest]

8 minutes ago, Ben Zioner said:

I think there are. One should explore the exact rules and practices regarding "gifts". And I draw your attention to the fact that our billionaire PM has received one of those "gifts" THB 20M I think, from his children. This was published here recently.

 

This also leads me to think that moving to tax overseas income and not ruling against these "gifts" was indeed directed against foreigners, as we are much less likely to benefit from such donations. It could have been intentional, or not, I don't want to overestimate them.

Any man who has kids who gives him large gifts is very lucky. My two kids very much need regular supplies of money but they assure me they will take care of me when I am old - so all is well.

 

Gifts are indeed an interesting idea for tax planning. If the gifts are real then they should work if not real then they could be more trouble then they are worth.

 

Before someone says the RD has to prove they are not gifts let me say they can do whatever they want (IRS also) and then it is up to you to go to court for Justice. Which can be a slow and expensive process.

 

I wonder if this is like the US IRS where they can lose a tax case in one part of the country but still follow their view somewhere else?

 

Example they lose in Bangkok but in Chiang mai they legally still follow their view of the law.

 

People talk about immigration offices being different in the rules they follow and complain - don't forget in America we have state law and each state can have different rules much more complicated than Thailand.

[stat]

12 minutes ago, TravelerEastWest said:

 

Actually as I mentioned that was only an example of how a tax question can come up on what seems to be clear... Sorry if it seemed like a real question.

 

"1. Residents of Thailand If you stay in Thailand for the total of at least 180 days in the tax year, you are considered a “resident of Thailand” for tax purposes. You have to file a return on the income that you received if you meet one of the following conditions: (1) Your total income exceeded 120,000 baht in the tax year.

 

(2) You were married and your income combined with that of your spouse exceeded 220,000 baht in the tax year. 2. Non-residents of Thailand If you stayed in Thailand for less than 180 days..."

 

But the above Rd statement doesn't go into details. What if you are a permanent resident or Thai citizen does that change things and make you always a tax resident? (Just a rhetorical question.) I think my friends in America with Green cards told me that they always owe taxes in America regardless of how many days they are in America after getting their Green card.

 

Also the above RD statement is a translation which is slanted to their point of view - same thing happens with IRS publications - which are not the law only an IRS view of the law - but not a translation normally.

 

If I had a lot of money I would hire an expert to help me - but I don't have a lot of money so I will keep reading this thread...

The US is the odd man out there as it taxes citizens and green card holders no matter where they live without even 1 day in the US.

[Dogmatix]

1 hour ago, Mike Lister said:

It is not covid related, Direct Tax income has been sliding for several years, since before 2005, it is now the lowest of any ASEAN. Direct taxes contribute less than 2% to Budget Revenue, indirect taxation continues to be the mainstay with corporate taxes coming second. Populist giveaways by successive governments are largely to blame, deductions and allowances relative to average wage are disproportionate. I've just done my wife's books for last year, she will pay 9k Baht in tax on sales of 1.1 mill. with a standard deduction of 60% of sales allowed as a deductible for costs. 

The statistics tell a different story.  https://stats.oecd.org/Index.aspx?DataSetCode=REVTHA. Direct taxes rose nearly every year from 2001 till 2019.  In fact personal income tax rose every year in that period except 2009 due to the 2008 subprime recession year.  Direct taxes accounted for 29%of government revenue in 2021, not 2%. 

 

It is great that you are proud of your wife's small business and minimal tax payments which you mention with great frequency. But the standard deduction of 60% is not really over generous for a business. That assumes a pre-tax profit margin of 40% which is far, far less than the average pre-tax margin of companies listed on the SET.  Combined with personal allowances a 60% expenses deduction is advantageous for a small enough business but for a significantly larger business such a small deduction would result in a crippling tax bill.  That is why businesses of any size will incorporate and submit audited financial statements showing their actual costs and benefit from lower corporate income tax rates.  

 

[Dogmatix]

33 minutes ago, Ben Zioner said:

I think there are. One should explore the exact rules and practices regarding "gifts". And I draw your attention to the fact that our billionaire PM has received one of those "gifts" THB 20M I think, from his children. This was published here recently.

 

This also leads me to think that moving to tax overseas income and not ruling against these "gifts" was indeed directed against foreigners, as we are much less likely to benefit from such donations. It could have been intentional, or not, I don't want to overestimate them.

 

You have to remember that this was not a holistic tax reform by the government involving legislation. It was simply the director-general of the RD deciding unilaterally that a clause in the Revenue Code will mean something different from what it was ruled to mean 38 years ago. Srettha ordered the RD around the same time to prepared draft amendments to toughen up the gift tax section of the Revenue Code and the Inheritance Tax Act to collect more tax and the RD said it had already done that but no details have been leaked.  The wording on gifts is quite clear and the director-general obviously didn't see any scope for tweaking it to mean something difference with a malevolent stroke of his pen.  If it is going to be done, it will need legislation in parliament. 

[UKresonant]

Just now, Dogmatix said:

 

New expats will be effectively limited to arriving after 1 July and buying their condo before the end of December that year.  No need to think about moving and buying another condo, if you are retired and need to import the money.  When selling to another foreigner find another new expat who has arrived after 1 July and is ready to buy before the year end. 

 

This a brilliant scheme to encourage expats to move to Thailand and buy condos.  Countries like the Philippines and Malaysia will be kicking themselves for not having thought of it.

Yes 5th July to 31st December will become an additional season to consider for TAT statistics 

 

Or just multiple trips, with a balance of Days up to 31st Dec

(Dad has kept below the 180 Day limit for about 20 years now , January, April May, August Sept and balance of the days in December  which can be adjusted should any of the other trips have any slight unforeseen overrun).

[UKresonant]

Just now, Mike Lister said:

All Immi has to do is count the number of days you've been in the country by looking at your passport, even most immi staff are capable of doing that, perhaps! If less than 180, check and pass, if more than 180, tax clearance required from RD.

Oh I hope not, that tax clearance Cert was a PITA when it was on the go before and much happiness was expressed when it was no longer a thing.

Imagine an urgent matter arises and you get a call on a Friday evening to come home (country) a.s.a.p,  then there is a public holiday on Monday, you can't confirm your flight until you get an audience and get that stupid bit of paper 

[Mike Lister]

3 hours ago, Dogmatix said:

The statistics tell a different story.  https://stats.oecd.org/Index.aspx?DataSetCode=REVTHA. Direct taxes rose nearly every year from 2001 till 2019.  In fact personal income tax rose every year in that period except 2009 due to the 2008 subprime recession year.  Direct taxes accounted for 29%of government revenue in 2021, not 2%. 

 

It is great that you are proud of your wife's small business and minimal tax payments which you mention with great frequency. But the standard deduction of 60% is not really over generous for a business. That assumes a pre-tax profit margin of 40% which is far, far less than the average pre-tax margin of companies listed on the SET.  Combined with personal allowances a 60% expenses deduction is advantageous for a small enough business but for a significantly larger business such a small deduction would result in a crippling tax bill.  That is why businesses of any size will incorporate and submit audited financial statements showing their actual costs and benefit from lower corporate income tax rates.  

 

Below is a screenshot from page 26 of The World Bank Spending & Revenue Assessment dated June 2023 (linked below) which shows Revenue Collection by type since 2005. You will note that Income Tax equaled 5.7% of GDP in 2021 which is higher than the 2% I quoted previously. But then I also attach the 2022 budget breakdown which refers to direct tax as being 2% of total revenue budget. You will also note that income tax collection has fallen, YoY.

 

My apologies if I have used my wife's business as an example of taxation previously but she is the only wife and only business I have first hand knowledge of in Thailand where I can be absolutely certain of the financial details, whereas I cannot be certain which AN readers have seen that information before! I will try very hard from today onwards to try not to bore you with repetition since I understand how difficult it must be for you to not read something once it is posted! But one aspect of that repetition that perhaps you didn't understand is that my wife files taxes as a self employed person, she does not have any of the overheads of being a limited company, she is in effect, a regular employee, the same as any other regular employee of any company. Indeed, were the example of a limited company of any scale, it might involve capital expenditure and long term investment as well as supporting a labor force, along would all the other overhead costs that go along with being a limited company hence a 60% standard deduction would not be high.  But a self employed person generally has none of those things, in my wife's case, her actual costs are only 16% of the cost of sales!

 

https://dmcrth.dmcr.go.th/attachment/dw/download.php?WP=rUqjMT04qmqZG22DM7y04TyerPMjBT01qmIZAJ1CM5O0hJatrTDo7o3Q

 

https://documents1.worldbank.org/curated/en/099052523201010405/pdf/P17715700c42070140a5b009c8453acd7a6.pdf