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

[K2938]

14 minutes ago, Hiane said:

Maybe I wasn't specific enough, I'm talking about offshore money that hasn't been taxed. As I understand, until the end of this year I can remit it into Thailand tax-free, and starting January 1st 2024 this won't be the case anymore ?

Only if (1) either you are not a Thai tax resident or (2) if the remittance does not contain any income from the current year.  Otherwise you will also have to pay taxes on remittances in 2023

[Yumthai]

1 hour ago, stat said:

Ahem there are some expats I know making high 6 digits USD every year with investing, so those are the people that will leave after 6 months.

These people, if they wish so and because they can afford, can simply apply for a LTR visa and be tax exempted on their foreign money remittance.

 

[StayinThailand2much]

More questions than answers.

 

-->

 

Edited October 4, 2023 by StayinThailand2much

[CTwelve]

1 minute ago, MartinBangkok said:

Hmmmmm:

 

https://www.straitstimes.com/singapore/politics/foreign-sourced-disposal-gains-subject-to-tax-from-jan-1

"This is to address international tax avoidance risks relating to non-taxation of disposal gains in the absence of real economic activities,” 

 

Same thing. The are just cracking down on general tax evasion which is what we're seeing here. To be honest it's completely reasonable.

[K2938]

2 minutes ago, Yumthai said:

These people, if they wish so and because they can afford, can simply apply for a LTR visa and be tax exempted on their foreign money remittance.

Not true according to the extremely narrow interpretation of the law put forward by the BOI  themselves which you can read about higher up either in this thread or the LTR thread

[Yumthai]

12 minutes ago, K2938 said:

Not true according to the extremely narrow interpretation of the law put forward by the BOI  themselves which you can read about higher up either in this thread or the LTR thread

Well, the answer @SHA 2 BKK received from BOI is rather clear:

 

"We would like to address that for the LTR tax benefits: the revenue department has already announced a royal decree to exempt the LTR- Wealthy Global/ Wealthy Pension/ Work from Thailand from paying the income tax derived from oversea business/ work and assets. Therefore the change in conditions will not effect the exemption of the LTR mentioned group. 

 

Therefore, we can assure you that the incentive of the LTR visa is still the same. We also believe the revenue department will shortly give an official clarification also as it is their main responsibility and we will work with them to get the procedure for future assistance i.e. to address when you wire in the money that it is from the work remotely (same as in LTR application)- the revenue can cross check with us if they want, don't worry."

[deejai33]

2 hours ago, stat said:

Ahem there are some expats I know making high 6 digits USD every year with investing, so those are the people that will leave after 6 months.

Do they bring 6 digit USD amounts into thailand ?  Tax is only on thailand remittance still.  Not world-wide income.

 

Hard to spend 500,000 USD in thailand !

 

But maybe you mean bring in 100,000 USD, barely 6 digit.  If they've paid tax on it already, no big problem.  If they haven't, maybe they should.  And reflect, be thankful, how lucky they were in previous years to have a tax loophole/rule.

 

 

Edited October 4, 2023 by deejai33

[K2938]

49 minutes ago, Yumthai said:

"We would like to address that for the LTR tax benefits: the revenue department has already announced a royal decree to exempt the LTR- Wealthy Global/ Wealthy Pension/ Work from Thailand from paying the income tax derived from oversea business/ work and assets. Therefore the change in conditions will not effect the exemption of the LTR mentioned group. 

 

Therefore, we can assure you that the incentive of the LTR visa is still the same. We also believe the revenue department will shortly give an official clarification also as it is their main responsibility and we will work with them to get the procedure for future assistance i.e. to address when you wire in the money that it is from the work remotely (same as in LTR application)- the revenue can cross check with us if they want, don't worry."

If you are interested in this issue, then feel free to read what I was referring to (which was also published by the BOI only a few days ago) and you will see the subtle, but tax wise very important distinctions.  Would be inefficient to discuss this all over again if it is already all in these threads

Edited October 4, 2023 by K2938

[deejai33]

3 hours ago, Hiane said:

Long story short : if I plan to stay in Thailand indefinitely, any money I earned in 2022 or before, I should bring it into Thailand before the end of the year.

Correct ?

Did you live 180 days+ in 2022

Will you live 180 days+ in 2023, 2024 etc

 

Decide which years you could be taxed by thailand.

 

For 2023 return you can avoid tax on 2022 income.  So I'd say , yes bring it in tax free before 31st dec 2023.

 

Jan 1st 2024, loophole goes away.

 

But if they delay the change, 2023 income could be exempt, can bring it in 2024 !

 

 

Complicated !

 

 

[Dogmatix]

1 hour ago, Yumthai said:

Well, the answer @SHA 2 BKK received from BOI is rather clear:

 

"We would like to address that for the LTR tax benefits: the revenue department has already announced a royal decree to exempt the LTR- Wealthy Global/ Wealthy Pension/ Work from Thailand from paying the income tax derived from oversea business/ work and assets. Therefore the change in conditions will not effect the exemption of the LTR mentioned group. 

 

Therefore, we can assure you that the incentive of the LTR visa is still the same. We also believe the revenue department will shortly give an official clarification also as it is their main responsibility and we will work with them to get the procedure for future assistance i.e. to address when you wire in the money that it is from the work remotely (same as in LTR application)- the revenue can cross check with us if they want, don't worry."

Once the government starts messing about like this, nothing is safe. The wording is odd anyway.  The Revenue Department has no authority to issue Royal Decrees, only Revenue Dept orders like RD Order P 166/2566 which is only binding on its own staff, not the general public. The Royal Decree was issued not by the RD but by Prayut. 

 

It is now a policy of the previous government which current government may not like much and might not feel very bound by it.  A Royal Decree can easily be junked by issuing another Royal Decree.

[stat]

4 hours ago, CTwelve said:

I agree, but those same people can easily avoid such problems by staying out of the country for half a year. 

 

Let's wait and see what actually happens. I suspect it will be an additional declaration form at the annual visa renewal counter and the concierge will swiftly bundle you through with very little questioning.

 

If I am wrong then there's going to be an incredible amount of work for the Thai Inland Revenue service making endless paper trails for the estimated 5-6 million foreigners who live there.

 

It will also drive out all external wealth / investment coming into the country and nobody will touch the Elite Visa with a bargepole.

 

No one with money and a brain will take the risk that is exactly what I meant and will not stay longer then 178 days.

[stat]

2 hours ago, Yumthai said:

These people, if they wish so and because they can afford, can simply apply for a LTR visa and be tax exempted on their foreign money remittance.

 

Which remains to be seen if and which part of the income will be tax exempt... That the guys from BOI state everything is "no problem" is understandable. I only trust the RD and its wording when the first year of tax returns are done and confirmed by the RD.

Edited October 4, 2023 by stat

[stat]

3 hours ago, MartinBangkok said:

Hmmmmm:

 

https://www.straitstimes.com/singapore/politics/foreign-sourced-disposal-gains-subject-to-tax-from-jan-1

This article "only" refers to companies that have no economic activity in SG, so no change in personal income taxation in SG.

[Guavaman]

Fellow aliens subject to the income tax system in the Land of Smiles:

 

It is highly unfortunate for all AN members that the OP “More details on Thai taxation of overseas income” referred to misinformation published by ScanAsia as “More details on Thai taxation of overseas income October 3, 2023 - by Gregers Møller.

 

I suggest that AN readers completely delete the content of these postings from their memories, and immediately cease referring to them in posts and comments on AN to reduce the confusion created due to these posts.

 

What these “journalists” may have been referring to is the recent online publishing by the Legal Division of the Revenue Department Public Relations News on 2 Oct 2023 of “Q&A (in Thai) on this Revenue Department webpage:  Q&A คำสั่งกรมสรรพากร ที่ ป.161/2566 ลงวันที่ 15 กันยายน พ.ศ.2566

 

This webpage presents an informative clarification in a well-formatted set of 11 questions, answers, and examples (in Thai) regarding the recent Order by the Director General of the Revenue Department for use by RD officials in implementing the new Order.

https://www.rd.go.th/fileadmin/centralize/news_law_update/2566/QnA41_2.pdf

 

I have read these questions, answers, and examples in Thai, but I realize that many AN readers are illiterate in the language in which they have tax residency = Thailand. 

 

I suppose that these Q&As will eventually be published in an official English translation by the Revenue Department. In the interim, with the aim to reduce the stress caused by uncertainty due to the recent Order of the Director General of the Revenue Department, I am offering herewith the partial translation from Google of the Q&A posting to help you to begin to think through a strategy to respond to the official order.

 

QUESTION #1

Question: Order of the Revenue Department No. P. 161/2023 dated September 15, 2023.

How do you steal a bear? [What are the principles]

QUESTION #2

Question: Revenue Department Instruction No. P. 161/2023, dated 15 September 2023.

 How do I use deletion?  [What are the effects and when are they effective?]

QUESTION #3

What does "Resident in Thailand" mean?

QUESTION #4

What are the types of assessed income that must be subject to income tax under Section 41?, the second paragraph of the Revenue Code?

ANSWER:

Money has not been assessed from foreign sources at If you stay, you are forced to pay income tax including assessable income according to Section 40 (1) to (8) of the Revenue Code.

However, if it is assessable income received Tax exemption according to law. Taxpayers do not have to bring the assessable income is taxed in Thailand such as receiving an inheritance or receiving income received from the support of parents and trusted people, or marrying a married couple, only the money that is not received exceeding 20 millions of baht for the entire tax year.

QUESTION #5

If you use the money to buy stocks Borrow a foreign loan and receive interest crumbling from holding stocks and bonds. Later, the principal and interest were brought back into Thailand.

You must bring the principal and interest crumbling. Let's gather together the words to calculate income tax for natural persons. Yes or no?

QUESTION #6

If it is income based on assessment not known before 2024 but imported into Thailand in 2024, will I have to pay taxes or not?

QUESTION #7

If it is money, have you relied on an incorrect assessment expected to be received in 2023 and imported into Thailand.

In 2023, will I have to pay tax or not?

QUESTION #8

If you are not residing in Thailand for 180 days or more in a tax year, but have the funds to rely on this assessment. From the source of income Foreign persons in such tax year are subject to income tax. Individuals, when the income they relied on for assessment, did they return to Thailand or not?

QUESTION #9

If a person goes to live, work, or carry on a business in foreign countries. After a long time, he later wanted to come back and live in Thailand, so he brought his savings from working or operating a business abroad, such person must pay taxes on the use of that accumulated money have you entered Thailand or not? [when remitted to Thailand]

ANSWER:

No, you must pay taxes in the case of using money accumulated from doing work or business abroad into Thailand because such accumulated money has a place come from the money has been based on the evaluation Gidki [activities] occurred in the year of the specified tax year at the person has been in Thailand for less than 180 days.

For example, Mrs. D. is a Thai national and has been living in China since 2007 onwards. But in 2024, Mrs. D. wants to travel back to live in Thailand permanently, so the money accumulated from operating in China was brought back into All of Thailand. As such, Mrs. D. is not obliged to pay personal income tax for money imported into Thailand in 2024, because such accumulated money has a place come from income depends on the assessment of Gidki [activity] arose in the year of this tax that D. not the name of the person residing in Thailand.

QUESTION #10

If the income subject to assessment is not imported into Thailand for a year, the income received is subject to tax. If you have earned income abroad, if you bring it back in, you must bring it at a loss. Is tax collection in Thailand again a year? Is it a duplicate, double tax collection or not?

ANSWER:

There is no duplicate income tax in this case. Who is a person, who has a person, who has a place at tax address in Thailand (I'm in Thailand. Starting from 180 days ) can bring tax at tax at save the money for foreigners to use as credit and withhold taxes at must wasted in Thailand in the tax year introduced Assessable income can be brought into Thailand.

According to the provisions of the Double Tax Convention, Thailand is a contracting party with that country.

QUESTION #11

Revenue Department Order No. P.161/2023 is not legal. Tax victims must comply with the regulations.

Is the Revenue Department order like this or not?

ANSWER:

It is not a law, but a word explaining the law, Section 41. The second paragraph wraps Revenue Code.

Tax victims still have the burden of having to comply with the law in paying taxes, which is an order.

The Revenue Department, Category P., is an order that the Director-General, who is in the position of Comptroller, orders.

Employees of the Revenue Department are considered as Practice guidelines for giving advice and advice to tax victims to enable the m to comply with the law correctly.

 

I spent 2 hours of pasting and translating in Google to come up with this. I only expanded the answers and example for the issues that I think are most pertinent for most expats.  If you desire more comprehensive translation -- as the Thais say: "up to you". 

 

I think that my efforts are enough for you to begin to formulate a plan to meet the requirements of RD while minimizing any additional taxation in Thailand.

 

I would suggest that you first focus upon avoiding the need to file a tax return on funds remitted into Thailand. Stealth is the best strategy to fly under the radar and avoid filing a tax return. 

 

If you are over 65 years old, and unmarried, you are exempt from filing if your assessable income brought into Thailand is less than 190,000 Baht per year. This does not include income from social security and govt. pensions. If age under 65, you are exempt from filing if your assessable income brought into Thailand is not more than 150,000 Baht. 

 

If you are married, your spouse is exempt from assessable income [brought into Thailand] is not more than 150,000 Baht.  So if you are married and your assessable joint income is less than 300,000 Baht (both under 65), 340,000 Baht (one over 65 and one under), or 380,000 if both of you are over 65 -- you don't need to file a tax return.

 

The best tax advantage for married people or people with parents or children in Thailand, is the loophole in the Thai tax code for the ultra-rich:

 

One can provide gifts to spouses, children, parents up to 20m Baht each annually with absolutely no tax implications.

 

For example: Under DTAs foreign social security benefits are not taxable in the state of residence (Thailand). So you can bring in your social security benefits (by direct deposit to provide an audit trail), and then transfer gifts to your wife and or children up to 20m Baht each annually (adding notation to the transfers as gifts from Mr. X to Mrs. Y to provide an audit trail).  One could gift 20m each to wife and children annually, then ask them to pay for all of your needs -- if they are still hanging around after you have spoiled them. Warning!

 

May you all be liberated from suffering due to issues related to taxation of funds remitted into Thailand.

 

It is possible to meet the requirements of immigration while avoiding filing tax returns and paying tax on income from foreign sources, but you need to develop insight into the laws, rationale, and loopholes in the Thai tax system.

 

Stop freaking-out and use your pre-frontal cortex to make a clever plan to deal with the Thai tax system -- that is how the Thai billionaires think.

 

Metta

[Conno]

Well that clears everything up then LOL

 

Ps. Dear Guavaman. Still remain a little confused ref Question 1. Can you elaborate as I really remain at a complete loss on how one would steal a Bear? 

 

Edited October 4, 2023 by Conno

[jerrymahoney]

47 minutes ago, Conno said:

Well that clears everything up then LOL

 

Ps. Dear Guavaman. Still remain a little confused ref Question 1. Can you elaborate as I really remain at a complete loss on how one would steal a Bear? 

 

Simple. If you are a tax victim you  can steal a bear.

Edited October 4, 2023 by jerrymahoney

[jerrymahoney]

On 10/2/2023 at 10:41 PM, Guavaman said:

Immigration Officer: "You farang -- you have retirement income of 65k per month. Show me your Thai tax return for your visa extension of stay showing that you paid tax on income of 65k monthly. 

When I read this as regards US-Thailand DTA  I thought of the dialog from Bridge Over The River Kwai:

 

Nicholson (Sir Alec Guinness) Now sir, you may have overlooked the fact that the use of officers for manual labor is expressly forbidden by the Geneva Convention.
Saito: Is that so?
Nicholson: I happen to have a copy of the Convention with me and would be glad to let you glance through it if you wish.
Saito: That will not be necessary.
 

[Hiane]

6 hours ago, Guavaman said:

I would suggest that you first focus upon avoiding the need to file a tax return on funds remitted into Thailand. Stealth is the best strategy to fly under the radar and avoid filing a tax return.

 

Weird, wouldn't filling no tax return be more suspicious ? (assuming you have a TIN already)

[K2938]

6 hours ago, Guavaman said:

Fellow aliens subject to the income tax system in the Land of Smiles:

 

It is highly unfortunate for all AN members that the OP “More details on Thai taxation of overseas income” referred to misinformation published by ScanAsia as “More details on Thai taxation of overseas income October 3, 2023 - by Gregers Møller.

 

I suggest that AN readers completely delete the content of these postings from their memories, and immediately cease referring to them in posts and comments on AN to reduce the confusion created due to these posts.

 

What these “journalists” may have been referring to is the recent online publishing by the Legal Division of the Revenue Department Public Relations News on 2 Oct 2023 of “Q&A (in Thai) on this Revenue Department webpage:  Q&A คำสั่งกรมสรรพากร ที่ ป.161/2566 ลงวันที่ 15 กันยายน พ.ศ.2566

 

This webpage presents an informative clarification in a well-formatted set of 11 questions, answers, and examples (in Thai) regarding the recent Order by the Director General of the Revenue Department for use by RD officials in implementing the new Order.

https://www.rd.go.th/fileadmin/centralize/news_law_update/2566/QnA41_2.pdf

Thank you for posting this.   This appears to be potentially very useful.  Thank you for drawing everybody's attention to this. 

Unfortunately, Google Translate seems to have a big problem in translating many parts of this document intelligibly, but hopefully somebody who speaks Thai well on this forum can look at the document and translate.

Edited October 5, 2023 by K2938

[JackGats]

11 hours ago, deejai33 said:

...

Hard to spend 500,000 USD in thailand !

...

 

 

Hmm ... no!

[deejai33]

3 hours ago, K2938 said:

Thank you for posting this.   This appears to be potentially very useful.  Thank you for drawing everybody's attention to this. 

Unfortunately, Google Translate seems to have a big problem in translating many parts of this document intelligibly, but hopefully somebody who speaks Thai well on this forum can look at the document and translate.

Yes, nice to see some extra info from RD.  Q+A format with examples.

 

But as you say, google translate fails almost completly with the translating to english.

 

1st question:

 

Question: Order of the Revenue Department No. P. 161/2023 dated September 15, 2023.
 How do you steal a bear?

 

2nd question

 

Question: Order of the Revenue Department No. P. 161/2023 dated September 15, 2023.
 Is there any law governing the use of the amulet?

 

555.  Later talks of tax victims and buddist gods.

 

Edited October 5, 2023 by deejai33

[mokwit]

2 minutes ago, deejai33 said:

But as you say, google translate fails almost completly with the translating to english.

I thought "tax victim" was quite a good translation. 

[Lorry]

5 hours ago, K2938 said:

Thank you for posting this.   This appears to be potentially very useful.  Thank you for drawing everybody's attention to this. 

Unfortunately, Google Translate seems to have a big problem in translating many parts of this document intelligibly, but hopefully somebody who speaks Thai well on this forum can look at the document and translate.

1.

 

Question: What are the principles of the Revenue Department Order No. P. 161/2023 dated September 15, 2023?
 Answer: Revenue Department Order No. P. 161/2566 is an explanation of the legal principle according to Section 41, paragraph two, that a person has a duty to pay personal income tax.  from foreign sources of income  When entering into the following elements: (1) a person has assessable income from foreign sources;  In the tax year that is in  Thailand from 180 days or more and
 (2) that person brought such assessable income into Thailand in that tax year;  or in subsequent tax years
 Result: If both elements above are complete, that person has a duty to bring in money.  That assessment should be included in the calculation for personal income tax.  In the tax year received  Bringing that assessable income into Thailand
 Example: In 2023, Mr. A. is in Thailand for a total of 200 days. Mr. A. has assessable income from renting property located abroad.  By receiving rent money  into a bank account located abroad. Later in 2027, Mr. A. transferred the said money.  into a bank account in Thailand, Mr. A must bring the said assessable income  that have been imported into Thailand are included in the calculation for personal income tax for the tax year 2027.

[Lorry]

2.

 

Question: When does the Revenue Department Order No. P. 161/2023 dated September 15, 2023 come into effect?
 Answer: Effective for assessable income no matter what year it was incurred.  that has been imported  In Thailand from 1 January 2024 onwards.

[Lorry]

3.

 

Question: Residents in Thailand  means what?
 Answer: Any person who is present in Thailand for a total of 180 days or more within a tax year, whether in Thailand for a single consecutive period or  Residing in Thailand for a combined period of time, regardless of nationality or  That person's ethnicity
 example
 Mr. A. is in Thailand every day.  From January to December 2024, a total of 366 days. Mr. A. is a resident of Thailand in the tax year 2024. Ms. B. is in Thailand.  Only in odd months in 2024, a total of 184 days. Ms. B. is a resident of Thailand in the tax year 2024. Mr. C. is in Thailand from January to December 2024, a total of 179 days. Mr. C. is not a resident of Thailand in the tax year.  2024 Mrs. D. has been in Thailand continuously for a total of 250 days, with the first 100 days being in the year 2024 and the last 150 days being in the year 2025 like this.
 Mrs. D. is not a resident of Thailand in both tax year 2024 and tax year 2025 because Mrs. D. was in Thailand for less than 180 days in those tax years.

[Lorry]

4.

 

Question: What types of assessable income are subject to income tax according to Section 41, paragraph two, of the Revenue Code?
 Answer: Assessable income from foreign sources that is subject to income tax is assessable income according to Section 40 (1) to (8) of the Revenue Code. However, if it is assessable income that is exempt from tax according to  law  Taxpayers do not have to bring that assessable income to pay tax in Thailand, such as inheritance or income received from support from parents, descendants, or spouses, only for the amount of income that does not exceed twenty million baht throughout that tax year.  etc.
 

 

 

5.

 Question: If you use money to buy bonds abroad and receive interest from holding said bonds, later bring the principal and interest back into Thailand.  Must the principal and interest be included in the calculation of personal income tax?
 Answer: No, income tax will be paid only on the interest which is assessable income according to Section 40 (4) (a) of the Revenue Code.  brought back into Thailand  If in the tax year such interest is received  Such person has been in Thailand for more than 180 days.

Edited October 5, 2023 by Lorry

[Lorry]

6.

 

Question: If it is assessable income received before 2024 but imported into Thailand in 2024, will it have to be taxed?
 Answer: Tax must be paid if it is income that occurs in a tax year in which the income earner is in Thailand for 180 days or more in that tax year.  and bring in that assessable income from 1 January 2024 onwards. The income earner must bring in the said assessable income.  Total calculations to pay personal income tax in tax year 2024 and submit returns within March 2025.
 

 

7.

 Question: If it is assessable income received in 2023 and imported into Thailand in 2023, will it have to be taxed?
 Answer: Tax must be paid if it is income that occurs in a tax year in which the income earner is in Thailand for 180 days or more in that tax year.  and bring that assessable income into the year 2023. Income earners must include such assessable income in calculating income tax.  Individuals in tax year 2023 and submit returns by March 2024

Edited October 5, 2023 by Lorry

[Lorry]

8.

 

Question: If you are not in Thailand for 180 days or more in the tax year.  but has assessable income  from foreign income sources in that tax year  Do I have to pay personal income tax when bringing that assessable income back into Thailand?
 Answer: There is no need to pay personal income tax.  Even if the assessable income is brought back into Thailand
 Example: In 2028, Mr. A. is in Thailand for a total of 65 days. Mr. A. has income that should be assessed from renting properties in foreign countries.  By receiving the rental money into a bank account  located abroad  And in the same year, Mr. A. transferred the said income to a bank account in Thailand. Mr. A. did not have to pay personal income tax on the said rental money.  Because you were not a resident of Thailand when the money was generated

 

 

9.

 Question: If a person lives and works or conducts business in a foreign country for a long time and later wants to return to live in Thailand.  So I brought the accumulated money.  from working or operating a business abroad  Such person must  Do I have to pay taxes on bringing that savings into Thailand?
 Answer: No taxes required.  In the case of using money accumulated from work or business  abroad into Thailand  Because the said accumulated money comes from  Assessable income arising in a tax year in which the person is in Thailand for less than 180 days.
 Example: Mrs. D. is of Thai nationality and has been living in China since 2007.
 onwards, but in 2024 Mrs. D. wants to travel back to live in Thailand.
 permanently, so the money accumulated from operating in China was brought back into
 All of Thailand. As such, Mrs. D. is not obliged to pay personal income tax.
 For money imported into Thailand in 2024, because the said accumulated money comes from
 Assessable income arising in the tax year in which Mrs. D. is not a resident of Thailand.

[Lorry]

10.

 

Question: If assessable income imported into Thailand is taxable income?  Income earned abroad  If the money is brought back in, the income must be lost.  Taxes in Thailand again  Is it a double tax collection or not?
 Answer: There is no double taxation.  In the case of being a tax resident in Thailand  (Remained in Thailand for more than 180 days) can take tax paid abroad as a credit against required tax.  taxable income in Thailand in the tax year in which the assessable income is brought into Thailand  According to the provisions of the Double Tax Convention  that Thailand is a contracting party with that country
 

 

11.

 Question: The Revenue Department Order No. P. 161/2023 is not a law. Taxpayers must comply with it.  Is this an order from the Revenue Department?
 Answer: It is not legal.  But it is an explanation of the law, Section 41, paragraph two of the Revenue Code.  Taxpayers still have a duty to comply with the law in paying taxes, which the Revenue Department Order Type P. is an order given by the Director-General in his capacity as commander.  Revenue officers consider this a practice guideline.  to provide advice to taxpayers  To be able to comply with the law correctly

[Lorry]

So, they are serious and it's not just a fluke RD order.

Savings are not automatically safe (details see below).

It will be a bureaucratic nightmare, it's probably better to leave. 

 

Q1 already answers one question that is often asked: income from years past, is that still considered income (or is it savings)? How far will they go back?

In the answer, they go back 4 years - that gives you some idea.

Q2 doubles down: "no matter when that income was incurred" (in Q9 its 17 years)

 

Q8 endorses the obvious solution: bring your foreign income to Thailand in a year in which you stay less than 180 days in Thailand. This solution was mentioned before, it has been recommended by a big accounting firm. 

 

Q9 clarifies once more that only foreign income from years in which you were a tax resident in Thailand will be taxed (when you bring it into Thailand) - so all your saved income from the time you lived and worked in farangland will not be taxed.

 

Q10 they want to use the tax credit method for  DTAs. This can only work if the taxpayer proves for which income (how much?) he paid how much tax. Logically, he will have to translate, certify and legalize proof of income and his foreign tax returns (which is what TrouleandGrumpy's tax adviser said). Every year.  Have fun!

BTW sometimes a DTA doesn't use the tax credit method but says that certain types of income are just not taxable in Thailand.  It remains to be seen whether the RD will follow these rules.

Edited October 5, 2023 by Lorry