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

[jaywalker]

So Thailand joins an Elite Club.

 

The USA and Eritrea are the only countries that tax folks domestically on income earned overseas...Now Thailand.

 

Why on Earth should I pay US taxes on money I made in Kuwait or the UAE or Thailand? I pay local taxes.

 

I've been DECADES outside the USA.

 

It's just wrong. Aside from a USA passport (which I loathe), why does Ceasar still demand MY money?

 

It costs a mint to every time I step in the US Embassy, and that's IF I can get an appointment!

[moe666]

1 hour 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.

I would not hold my breath on that

[malt25]

"for tax residents "  Am I missing something or does this not qualify the situation ?  An expat residing here who is not earning any income & not paying tax should not be involved.

[itsallmine68]

1 hour 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 

"so does this mean"

 

Let me call the local Tax Man and get you an answer 

Read the article it wont start until 2024 and by then it will have change so I nor anyone else have a clue 

[Modern Coding]

Welcome to global socialism: taxes, taxes and again taxes.

 

France has been taxing foreign incomes for ages already, US has been practicing double taxation for ages as well, Myanmar is now requiring all abroad-based Burmese citizens to pay 25% of their income back to the country, now Thailand is taxing foreign income as well,... And this is all just about to start.

 

Next step is global communism: "you will have nothing and you will be happy".

[Caldera]

This will upset quite some high-rollers who moved to Thailand specifically to take advantage of the tax regulations for foreign-sourced income brought into Thailand later.

[Jenkins9039]

4 minutes ago, Sheryl said:

I strongly suggest people click on the link and read the full article, which clearly states:

 

"The program will begin January 1, 2024 and apply only to tax residents in Thailand meaning tourists and short term workers will be exempt. Also exempt will be those who have been taxed in a foreign country that has a standing Double Tax Agreement with Thailand. "

 

There is then a link to show which those countries are. 61 countries listed, including US, UK, Australia and many European countries.

Kinda irrelevant, anyone more than 183 days in Thailand will have to have paid tax or will pay tax based on their expenditure within Thailand based on remittances to Thailand...

 

It makes it a non-attractive country whereby Thailand has just gifted the golden goose to its neighbours.

 

As the vast majority of remittances for the average expat are 'small' compared to the average remittances from high-income expats that usually previously resided in Tax havens, who will now have to pay tax for the luxury of living in THailand and spending 500-2m THB a month + 35% tax.

 

They will just go elsewhere.

 

 

[Sheryl]

3 minutes ago, JayBird said:

Is it possible that those in Thailand elite which is a tourist visa, do not pay taxes.  But those on a retirement or marriage visa will?

 

(For purposes of bringing in money for spending or even to put in the bank for income requirement)?

Again, as I explained:  if you are from a country with a double Tax Agreement, and if the money you bring in has already been taxed (at the time earned) in your home country or is currently subject to tax there, it cannot be taxed in Thailand.

 

 

[animatic]

Thailand and USA have a tax treaty and it says ‘USA citizens resident in Thailand’ ONLY pay tax in Thailand on money Earned In Thailand. 

They can not unilaterally change this no matter how much they want to. 

[Jenkins9039]

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

[shackleton]

I read it as people here in Thailand who transfer money from occupational or business abroad or wealth must be included in their personal income tax for the year 

Nothing to do with expat  retirees transferring their Pensions to Thailand who don't file tax returns as not working or have businesses here ???? 

[smedly]

5 minutes ago, JayBird said:

Is it possible that those in Thailand elite which is a tourist visa, do not pay taxes.  But those on a retirement or marriage visa will?

 

(For purposes of bringing in money for spending or even to put in the bank for income requirement)?

no, even your extension of stay is based on a visa - non immigrant

[Sheryl]

Just now, Jenkins9039 said:

Kinda irrelevant, anyone more than 183 days in Thailand will have to have paid tax or will pay tax based on their expenditure within Thailand based on remittances to Thailand...

 

It is not at all irrelevant and applies to people living here 365 days a year i.e,. tax residents.

 

If your remittances are from income taxed in your home country (now or in the past) and your country has a Double Tax Agreement with Thailand, it is nto taxable here.

[sirineou]

17 minutes ago, lordgrinz said:

I'm pretty sure I won't pay any tax, otherwise I am confident that being required to do so would be enough to convince my wife to finally leave this cesspool. We could live a way better life back in the states, and only have to deal with setting up a green card , no more 90 days, money in the bank, TM30's, Re-Entry permits, etc. Just way less hassles, and we could all come and go from the USA whenever we want without being hassled by the likes of the Royal Thai Mafia.

Have you been back to the States lately? No been there in Three years but going in two months, Life in the US has got a lot more expensive in the last few years, a lot more expensive!!  

Before we all start getting upset over this lets wait and see how this plays out. Depending on the tax rate and at what level of income it kicks in , you could pay nothing and stay here. There are negatives to Thailand but also there are a lot of positives .

[Expat68]

1 hour ago, mikebell said:

But how will you live?  I save up my pension & send 5K UKP a number of times a year; will I be taxed on that?  I have 800K in a Thai bank & they tax the interest on that.  Is that reclaimable?

Yes it is reclaimable 

[Sheryl]

2 minutes ago, shackleton said:

I read it as people here in Thailand who transfer money from occupational or business abroad or wealth must be included in their personal income tax for the year 

Nothing to do with expat  retirees transferring their Pensions to Thailand who don't file tax returns as not working or have businesses here ???? 

 

IF the pensioner is from a country which does not have a Double Tax Agreement with Thailand then potentially they would have to file and pay Thai taxes, even though not employed here. But most of us are from countries which do.

 

[Bobydog]

2 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 

But ripping people off is how they maintain their lifestyle

[garzhe]

1 hour ago, bdenner said:

I'm thinking a lot of you have your "nickers in a twist" over an item that will not effect you!

Probably right, but as usual not much information. Better to find out before you get caught on the hop

[moe666]

1 hour ago, freeworld said:

Its not a money grab if it follows the law or new laws are implemented for govt to get new sources of income.

 

No doubt foreigners residing in Thailand and making use of govt services and infrastructure should be paying tax in Thailand, this is a fuction of the world order.

 

I thought everyone is agreeable to paying their fair share? This is the mantra spewed by many.

 

Its all about being free.

We pay the same tax all Thais pay, every time I go to the store to buy something my purchase is taxed. We just do not pay a personal income tax.

[billd766]

1 hour 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.

IIRC if you are paying UK tax on your pensions in the UK, then IF Thailand imposes a tax on ALL income from abroad. 

 

https://expatnetwork.com/tax-resident-uk-thailand/#:~:text=As the tax treaty gives,on your Thai tax return.”

 

“You will need to submit UK tax returns for the previous years, showing you are non-UK tax resident, and a tax resident of Thailand. This will include the gross UK pension in the year and the tax paid, plus any other UK sources of income. As the tax treaty gives Thailand the taxing rights on the pension, the UK tax paid can be recovered. You will need to declare the private pension on your Thai tax return.”

 

There is more information in the link.

 

Second link

 

https://www.google.co.uk/search?q=income+tax+rate+in+thailand+for+UK+expats&sca_esv=566172731&sxsrf=AM9HkKmwlxFSrLm4M_yEN3bx4_dVlVQrlQ%3A1695012935704&ei=R9gHZfDGKoqMseMPzau9sAY&ved=0ahUKEwiwhrCfr7OBAxUKRmwGHc1VD2YQ4dUDCBA&oq=income+tax+rate+in+thailand+for+UK+expats&gs_lp=Egxnd3Mtd2l6LXNlcnAiKWluY29tZSB0YXggcmF0ZSBpbiB0aGFpbGFuZCBmb3IgVUsgZXhwYXRzMgUQABiiBDIFEAAYogQyBRAAGKIESJdoUPw9WJVScAF4AZABAJgBiAGgAeICqgEDMC4zuAEMyAEA-AEBwgIKEAAYRxjWBBiwA8ICBxAjGIoFGCfCAggQABiKBRiGA-IDBBgAIEGIBgGQBgg&sclient=gws-wiz-serp

 

Taxable rates of income for expats in Thailand.

 

Tax Exemptions and Tax Rates

Expats earning less than 150,000 Baht are exempt from income tax.
Expats earning more than 150,000 Baht but less than 500,000 Baht will be taxed at 10%.
Expats earning more than 500,000 Baht up to 1 Million Baht will be taxed at 20%.
Over 1 Million but less than 4 Million Baht will be taxed at 30%.
Over 4 Million Baht will be taxed at 37%. 

 

For individual taxpayer who is over 65 years old: 190,000 Baht allowance 

 

Personal Allowances

The following personal allowances are allowed in Thailand:

Individual taxpayer : 30,000 Baht allowance
Spouse of taxpayer (unemployed) : 30,000 Baht allowance
Child allowance (below 25 years old, studying at educational institution, or a minor, or an adjusted incompetent or quasi-incompetent person) : 15,000 Baht allowance per child for up to 3 children maximum
Additional education allowance for child studying in educational institution in Thailand: 2,000 Baht for each child
Parents allowance: 30,000 Baht for each of taxpayer’s and spouse’s parents if parents are over 60 years old and earns less than 30,000 Baht
Life Insurance Premium: Amount actually paid by taxpayer or spouse on the taxpayer’s own life but not exceeding 100,000 Baht each.
Contributions to approved Provident Fund or Retirement Mutual Fund (RMF): Amount actually paid by taxpayer or spouse at the rate not more than 15% of wage, but not exceeding 500,000 baht
Contribution to Long Term Equity Fund (LTF): Amount actually paid up to 15% of wage, but not exceeding 500,000 baht in a tax year, provided that the invested unit is held for at least 5 years, except in the case of incapacity or death during the investment period
Home mortgage interest: Amount actually paid for the purpose of purchase or construction of a residential building in Thailand but not exceeding 100,000 baht
Social insurance contributions: Amount actually paid by taxpayer or spouse
Donations to specified charities: Amount actually donated but not exceeding 10% of assessable income after all standard deductions and allowance
For individual taxpayer who is over 65 years old: 190,000 Baht allowance.

 

There is more information in the link.

 

 

[foreverlomsak]

1 hour ago, fondue zoo said:

Sooo, how will the Thai rich get around this?

as with everything else it won't apply to them

[lordgrinz]

5 minutes 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.

So you're guessing my US tax situation now?! 

[Dazinoz]

1 hour ago, freeworld said:

Its about tax residence ie basically 180 days over living in Thailand and one is considered tax resident, nothing to do with a visa length or immigration.

I think you will find most, if not all, retirement visas mean yearly so how does it have nothing to do with visa length?

[mokwit]

13 minutes ago, Sheryl said:

There is then a link to show which those countries are. 61 countries listed, including US, UK, Australia and many European countries.

In a worst case scenario we may be required to prove that we have paid tax in our home country - I am non tax resident in my home country.

[Thaindrew]

9 minutes ago, jaywalker said:

So Thailand joins an Elite Club.

 

The USA and Eritrea are the only countries that tax folks domestically on income earned overseas...Now Thailand.

 

Why on Earth should I pay US taxes on money I made in Kuwait or the UAE or Thailand? I pay local taxes.

 

I've been DECADES outside the USA.

 

It's just wrong. Aside from a USA passport (which I loathe), why does Ceasar still demand MY money?

 

It costs a mint to every time I step in the US Embassy, and that's IF I can get an appointment!

there are other countries, China for example

[mokwit]

13 minutes ago, Thaindrew said:

its going to depend how they apply this, Thai Elite Visa is a tourist visa that kets you stay for a year at a time, so you are a tourist but you could also be here over 180 days ..... 

180 days is the law with no exemption in law for tourist but historically this has not been a priority.

[In the jungle]

1 hour ago, impulse said:

If you didn't get mugged last night walking on the sidewalk, you're enjoying for free the benefits of tax money spent on police and sidewalks.

 

If you get mugged on the sidewalk here it is usually by the police.

[2ndhomepattaya]

Tax treaties

Thailand has DTTs with the following countries:

Armenia	Finland	Mauritius	Spain
Australia	France	Myanmar	Sri Lanka
Austria	Germany	Nepal	Sweden
Bahrain	Hong Kong	Netherlands	Switzerland
Bangladesh	Hungary	New Zealand	Taiwan
Belarus	India	Norway	Tajikistan
Belgium	Indonesia	Oman	Turkey
Bulgaria	Ireland	Pakistan	Ukraine
Cambodia	Israel	Philippines	United Arab Emirates
Canada	Italy	Poland	United Kingdom
Chile	Japan	Romania	United States
China	Korea, Republic of	Russia	Uzbekistan
Cyprus	Kuwait	Seychelles	Vietnam
Czech Republic	Laos	Singapore
Denmark	Luxembourg	Slovenia
Estonia	Malaysia	South Africa

[Robert Tyrrell]

Good afternoon, 

 

So apparently it seems Thai Nationals who travel abroad for better Jobs and Wages and education , Even less attractive for them to travel abroad to expand there education and finances !! Thai government shooting themselves in the foot again !! ???? Don’t they understand that a very large percentage of Thai Nationals income abroad comes back home to Thailand !!! And it’s economy  !! ???? 
 

TIT 555555555 ???? Lol ???? 

[kingstonkid]

1 hour ago, fondue zoo said:

Sooo, how will the Thai rich get around this?

Simple, the Thai rich are actually poor.  The smart ones get a paycheck from their company but as to cars, houses, trips and everything else it is owned by the company.  Same all over the world.