Don't cut off the hands that feeds you

[Iamloki]

22 hours ago, RafPinto said:

By now, everyone knows about the proposed taxes on "tax residents".
From "aliens" to "tax residents".

I am in touch with some friends who are/were considering to move to Thailand.

Friend one:

He sold his business a few months ago and is planning to move with his wife and 13 year old son to Thailand.
All taxes paid and doesn't owe anything.

He is in his early 50's.
He was very far ahead in his planning to move to BKK beginning of 2024.

 

He was in advanced talks to buy a nice condo in the Thong Lor area.

Price: 22,000.000 Baht

Furniture:

Probably another 2-3 Million Baht

Intended to buy a new Mercedes:

Price: 4,500.000 Baht

 

School fee for son:

Price: Around 750,000Baht a year plus extras

 

Private Health Insurance for the 3:

Around 120k a year

 

They love to dine out and travel.

 

So let's say: 28,500.000 baht straight spending on condo, furniture and car.
750k school

Average monthly spending including dining out and trips inside Thailand/ 

First year of staying in Thailand: 100kx12= 1,2 Million Baht.

120k health insurance

 

That's almost 31 Million Baht which would be spend in year one

He was applying to get a non-immi O_A

The money he would use to buy all things mentioned above come from his savings, accumulated in the years before.
No money from the  sale of his business would be used.

 

 

As he reads about the new tax, he is inquiring about the MM2H visa and probably move to Malaysia.

He doesn't like to mess around and wants to plan his futures around facts.

 

Another friend , already living in Thailand was considering to buy land around HuaHin (in his wife's name/Thai) and build a house. Quotes around 18-20 Million baht.
He also abandoned this idea and continues to rent instead.

 

Next person I know put a deposit down on a brand new BMW electric SUV: Price: Around 6 Million Baht.
Delivery early 2024

 

He got out of the contract, lost his 50k deposit.
No new car anymore.

 

The money they think they will extract from farangs and the money they will finally get..
 

Do not spend the money you do not have or think you will get soon.

They were expecting to get 20 Million Chinese in with a 2000Baht visa fee.
That's 40 Billion baht they were already planning with and spending it.
See: the 10k digital wallet which will cost 350 Billion Baht.

 

I will be very careful with what I buy here. Rent, don't buy.

New car? why

Travelling inside Thailand and getting taxed on the money I spend here? No, there are beautiful neigbouring countries.

 

Don't P.... off the people who feed you.
The Kasakhs, Chinese group tours will not save you.

 

 

 

 

 

 

 

Good post. I hear what you are saying... Two things jumped out at me with Friend #1:

"He doesn't like to mess around and wants to plan his futures around facts."

Facts are constantly subject to change.

 

"inquiring about the MM2H visa and probably move to Malaysia."

I did a quick Google search and the following was the first return. I have done no further research.

As announced during the tabling of Budget 2022, foreign sourced income received in Malaysia will be taxed. While some may see this as a quick method to raise revenue collection, Malaysia has in some ways been compelled to do so in order to comply with global tax standards.

 

 

[jacob29]

On 10/9/2023 at 12:32 PM, SuperSaiyan said:

 

Your solipsistic view of the situation doesn't apply to people owning assets. 

I think it does, as I don't think this tax will apply to assets in the way some are thinking.

 

It's probably going to be the same as a global tax on income (like pretty much every other country in the region), with the added 'perk' that if you bring in less than you have cumulatively earned abroad *while you are a tax resident*, you don't have to pay tax on it.

 

Mind you, the fact they haven't made clarifying statements and provided concrete examples is kind of baffling lol. It doesn't make sense to tax assets though, that would make it one of the worst tax regimes in the world. Does it really make sense to go from one extreme to the other?

Edited October 12, 2023 by jacob29

[SuperSaiyan]

5 minutes ago, jacob29 said:

I think it does, as I don't think this tax will apply to assets in the way some are thinking.

 

It's probably going to be the same as a global tax on income (like pretty much every other country in the region), with the added 'perk' that if you bring in less than you have cumulatively earned abroad *while you are a tax resident*, you don't have to pay tax on it.

 

Mind you, the fact they haven't made clarifying statements and provided concrete examples is kind of baffling lol. It doesn't make sense to tax assets though, that would make it one of the worst tax regimes in the world. Does it really make sense to go from one extreme to the other?

So you kinda didn't understand the difference between the regular foreign retiree which won't be affected whatsoever because he's taxed out to the max already and a guy who has f. ex. a company in a 0% tax country owning rental properties and then become tax liable on money sent into Thailand.

 

And my guess is that this is only the first step. Next step will be include every foreign income like in every other Western country. If you tell the German tax man that you only want to tax income received into Germany he's going to unleash hell on you.

[jacob29]

1 minute ago, SuperSaiyan said:

So you kinda didn't understand the difference between the regular foreign retiree which won't be affected whatsoever because he's taxed out to the max already and a guy who has f. ex. a company in a 0% tax country owning rental properties and then become tax liable on money sent into Thailand.

That's nothing to do with assets though, you're talking about income and tax status on that income.

 

I agree this is a tentative first step towards regular taxation on worldwide income. There seems to be a lot of people concerned this change will trigger tax liabilities even worse than tax on worldwide income implemented by other countries, and I think that's unlikely.

[SuperSaiyan]

6 minutes ago, jacob29 said:

That's nothing to do with assets though, you're talking about income and tax status on that income.

What? Of course it does. The structure might make it sound like it's income for you but what if you own the properties in your name and then transmit the money to Thailand? What about selling property while you are tax resident in Thailand? Or what about owning stocks which pay dividends with a broker who has you listed with a Thai address? I mean, it's okay if you don't understand that, just be assured, most people don't even need to worry about any of that because their pension are already taxed and that's it. They need to be worried about that they have to file the paperwork as well and present it as further requirement to get a visa - didn't file your docs? "no visa for you, buddy."

 

Edited October 12, 2023 by SuperSaiyan

[jacob29]

9 minutes ago, SuperSaiyan said:

What? Of course it does. The structure might make it sound like it's income for you but what if you own the properties in your name and then transmit the money to Thailand? What about selling property while you are tax resident in Thailand? Or what about owning stocks which pay dividends with a broker who has you listed with a Thai address? I mean, it's okay if you don't understand that, just be assured, most people don't even need to worry about any of that because their pension are already taxed and that's it. They need to be worried about that they have to file the paperwork as well and present it as further requirement to get a visa - didn't file your docs? "no visa for you, buddy."

 

It's likely the same as any other country with a tax on worldwide income, the same rules would apply. Which means you don't pay tax on assets, though you may be liable for capital gains.