Is the new tax on money transferred into Thailand being implemented?

[Neeranam]

16 hours ago, topt said:

Also please note it is not a new tax........they have said they will remove the loophole about money remitted the following year after being earnt not being taxed. 

Good point. If you never did this, there will be no change for you. 

[Mike Lister]

18 minutes ago, zombie nights said:

Mike Lister:

Please tell us your qualifications to give advice on Thai tax law?

Answer: None at all!

And stop posting ludicrous misinformation .

 

Get a life please.

 

16 minutes ago, sungod said:

 

I think its called paranoia..........

 

10 minutes ago, Happy happy said:

Dear oh dear:

Proving your paranoia.

Here, do something useful and add some value for a change:

 

 

 

Draft Copy 4, with links, most data and comments/suggestions incorporated.

 

I'll leave it now for the rest of the day and will pick up any comments/questions later. This needs to be useable and understandable for the average person, if you think it needs changes, say so.

 

 

1. This guide has been compiled in an attempt to provide readers with the simplest possible over view of Personal Income Tax (PIT) in Thailand. The scope of this document is limited to PIT.

 

2. You may have heard that new tax laws came into effect on 1 January this year, in fact, that is not true! The old tax rules still exist and remain valid, albeit just one minor change to them was made in November last year. Previously, anyone who earned money overseas and remitted it to Thailand in a different tax year, received that money free of Thai tax. That loop hole in the Revenue Department (RD) tax code has been extensively exploited by wealthy Thai’s and is now closed, hence, any money earned overseas and remitted to Thailand in any year, is now liable to Thai tax. The purpose of the new rule is to prevent tax avoidance. Unfortunately, it now means that overseas funds transfers by foreigners living in Thailand, also have an increased risk of being taxed.

 

3. This guide is an overview of the core parts of the PIT system. It is not designed to be exhaustive and it doesn’t cover all aspects of PIT, nor is it intended to  override anything produced by the Thai Revenue or specialist tax companies such as Sherrings or Mazzars. This guide also does not address all types of income or the rules relevant to people from every country. What this guide will provide is a starting point for readers to manage their own tax affairs and it will also provide most of the answers for those with simple tax affairs, especially the average pensioner.

 

4. There are also certain types of visa that fall outside of the RD tax code. The LTR visa for example received its tax exempt status by royal decree hence visa holders will not to be assessed for Thai tax and they are specifically excluded from this explanation.

 

5. Terminology: this document uses the word “assessable” often. Assessable in the context of this document means income that is liable to tax and must be included on a Thai tax return. Not all income is assessable, some is excluded from tax assessment by its very nature or because of the terms of a specific tax agreement.

 

6. Dual Tax Agreement/Double Tax Agreement (DTA): is an agreement between two countries that sets out which of the two countries has the right to tax specific types of income and all the associated rules. It’s purpose, in part, is to ensure that the same funds are not taxed twice and provides a means by which tax that is paid twice, can be recovered, how and from where.

 

7. If you stay in Thailand for more than a cumulative 180 days, between 1 January and 31 December each year, you will be considered to be Tax Resident in Thailand during that year, regardless of the type of visa you have. It doesn’t matter that you may be Tax Resident in your home country or elsewhere or that you pay tax in those countries, Thailand will still regard you as Tax Resident. Tax Residency and Immigration status (and the visa you hold) are different things. Tax residency is based solely on the number of days you spend in Thailand and where you are at midnight on each day.

 

8. Because you are Tax Resident, YOU must review your income each year to determine if it is regarded as assessable to tax in Thailand, nobody else will do this for you. If your income does not exceed 120,000 baht per year, you do not need to file a tax return (60,000 baht if your only income is bank interest paid to you by a bank in Thailand). If your income is over 120,000 baht per year, you must file a Thai tax return between 1 January and 31 March.

 

9. Your income in Thailand is defined as any money paid to you inside Thailand, as well as, any money you receive from overseas, both types are potentially assessable income for Tax Residents. There are many types of income that can be classed as assessable, the Thai RD lists some of them and is linked below, however, the list is not exhaustive:.

https://sherrings.com/personal-income-tax-in-thailand.html#:~:text=Section%2040%20of%20Thailand's%20Revenue,Pensions%3B%20and

 

10. There are also classes or types of income that the RD does not regard as assessable and these are also linked below:

https://www.rd.go.th/english/37749.html

 

11. Income that is derived from  within Thailand is fairly clear, if you work and have a job and you are a Tax Resident, your income is assessable for tax.  Interest that is paid to you on Thai bank accounts is regarded as income, as is income from investments such as stocks and bonds within Thailand.  You should note that if you are generating income by working while staying in Thailand, it is (and has always been) irrelevant where that money is paid and whether you bring the money into the country or keep it offshore. That money arises in Thailand hence it is taxable here.

 

12. It is not possible to give the same blanket rule to everyone to determine whether income is assessable or not because of the variables involved. Overseas income has to pass several tests to determine if it is assessable to Thai tax or not. It is still early days and all the rules are not yet clear. It has been said that tax residents who import funds from countries that have a DTA with Thailand, will not be effected. Exactly how that will work leaves many questions unanswered hence this document attempts to look at only the most popular types of income based on what is known at present. This document does not speculate as to what may happen in the future, other than in the segment at the end concerning likely future Immigration rules.

 

13. If we take the simplest type of income and say that you transfer personal savings from overseas to Thailand and those savings  were earned before 1 January 2024, those funds are not assessable. But savings earned after that date are, hence the date when the income is earned is extremely important. A word of caution, you may be asked to provide proof that savings were earned before 1 January 2024.  

 

14. Another common type of income is pensions, which can be complicated, depending on the type of pension and the country that it comes from. The country of origin is important because there are over 60 different types of Dual Tax Agreements, sometimes called Double Taxation Agreements (DTA’s), between Thailand and those 60+ countries and each one is different. As a general rule, most private or company pensions from most countries appear to be assessable here but YOU will need to confirm that yours is or is not. If that is true, private and company pension income IS assessable income in Thailand.

 

15. US Social Security payments, a form of pension paid to some older people, can only be taxed by the US under DTA rules and Thailand is forbidden from taxing them, this means those payments are NOT assessable income. UK State pension on the other hand is not covered by a DTA so it is assessable income in Thailand whilst UK Government or Civil Service pensions are not!

 

16. The proceeds from the sale of a capital item such as overseas property, where funds are remitted to Thailand, is one popular source of funds, the sale of some investment products such as stocks, shares and bonds is another. Those proceeds typically comprise two parts, capital and profit. If the capital was acquired before 1 January 2024, it is free of Thai tax. One way to separate capital and profit may bee to have an official valuation or statement that is dated 1 January 2024 since anything earned before that date, is not assessable. Also, if the profit has been the subject of a Capital Gains return in the home country, that also may be free of Thai tax but this cannot be guaranteed at this time, until things are made more clear and are once again subject to the terms of any DTA. YOU will need to review the DTA between Thailand and your home  country to fully understand what particular clauses affect you.

 

17. It appears as though most property rental income that is remitted to Thailand is considered to be assessable income and is taxable here, unless of course it has been taxed in the home country and/or the DTA prohibits its taxation (which seems unlikely).

 

18. YOU are responsible for determining if you have the minimum assessable income in Thailand each year which means you must file a tax return. That assessable income might comprise, pension payments, investment income, rental income or any of the other types of income listed in the link above. If you have assessable income of over 120,000 baht per year, you must file a tax return (60,000 baht if your sole source of assessable income is bank interest paid in Thailand).

 

19. Before you can file a tax return in Thailand, you need to acquire a Tax Identification Number or TIN from the RD offices in your area. You will need your passport, a valid and current visa or extension and in many areas, a Certificate of Residency from the Immigration Department.

 

20. Completing a tax return is a simple affair for most people, if you have difficulty, the Revenue Department staff are extremely helpful. Tax returns must be filed between 1 January and 30 March each year, if you file later than that, penalties will apply.

 

21. Thai tax is layered in bands and is payable based on the amount of assessable income falls within each band and are shown and linked below:

Taxable Income per year(Baht) Tax rate

0 – 150,000 Exempt

150,000 – 300,000 5%

300,000 – 500,000 10%

500,000 – 750,000 15%

750,000 – 1,000,000 20%

1,000,000 – 2,000,000 25%

2,000,000 – 4,000,000 30%

Over 4,000,000 35%

https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax

 

22. The Thai tax system contains a series of Allowances, Deductions and Exemptions that will help you reduce your tax bill and they are very generous. It is easily possible for the average expat foreign retiree to reduce their taxable income by 500,000 baht or more each year. For example, a retiree aged 65 years of age, married and living here full  time, supporting a Thai wife who has no income and doesn’t file tax return, is allowed the following:

 

a. Personal Allowance for self - 60,000

b. Personal Allowance for wife - 60,000

c. Over age 65 years exemption - 190,000

d. 50% of pension income received, up to 100k - 100,000

e. In addition, the first 150,000 of assessable income is zero rated and free of tax

 

23. Additional deductions and allowances exist for health or life insurance premiums paid in Thailand. A complete list of deductions, allowances and exemptions can be found here

https://www.rd.go.th/english/6045.html  or from Sherrings below.

https://sherrings.com/personal-tax-deductions-allowances-thailand.html

 

24. The Thai Revenue  tax filing system is online but is only available in Thai language at present. The tax forms are however available in English and they can be downloaded from the link below. CAUTION, the forms are updated every year and the 2023/24 forms for full year PIT are NOT yet available:

https://www.rd.go.th/english/63902.html

 

25. A simple sample completed tax form for a person aged over 65 years is shown below.

26. SAMPLE FORM

 

27. Tax filing in Thailand is based on the honour system, it relies on you declaring all the right information every year and there are severe penalties for avoiding Thai tax. It would be foolish and a gross under estimation of RD capabilities to think  that doing nothing and keeping a low profile means you should ignore Thai taxation. Very few sane people in the US and UK ignore the tax authorities who tend to have a long reach. It cannot be ruled out that at some point, a link may be established between tax filings and visa extensions, along with tax clearance certificates required to leave the country. This is possible because similar things have been adopted in several countries in the past, including the US.

 

28. There are several sources of detailed tax information and these web sites are linked below:

https://www.rd.go.th/english/6045.html

https://sherrings.com/personal-income-tax-in-thailand.html

https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax

[Neeranam]

26 minutes ago, impulse said:

 

I'm only guessing here, but I doubt retirees will be affected much.  The guys  who are going to get hit are the offshore workers.  (as in, work in 3rd country, not their home country and not where they reside)  The ones that aren't paying tax on a huge portion of their income and used to get by claiming this is last year's money so they didn't pay tax when it arrived in Thailand. 

 

That provision never made sense to me, though I thought I understood who it was intended to shield.  And it wasn't foreigners.

 

But, that's just a guess.  As I ponder my decision where to retire to, Mexico is looking better.  Mostly because it's closer to home and Medicare.  Pre-existing conditions prevent me from getting reliable, affordable insurance.

 

More online workers will be affected nowadays, like me. I work for a German company. 

Starting another job with a British company, affiliated with the UK government. Could I pay tax on that in the UK, despite not being a resident there? 

[jts-khorat]

13 hours ago, Mike Lister said:

What, take it down to the money changer in small amounts from time to time or put it in the bank perhaps? Because whatever you do with it, the banks will record it as a foreign currency transaction and your passport will be required for that so everyone will know, who did what and when.

 

Quite impossible to track if the wife or any other family member exchanges it; if one bank branch does not want to do it, the next will, so no problem at all (at least in Udon Thani).

[Neeranam]

Just now, jts-khorat said:

 

Quite impossible to track if the wife or any other family member exchanges it; if one bank branch does not want to do it, the next will, so no problem at all (at least in Udon Thani).

Or buy gold with your foreign credit card. I buy gold with my crypto.com card and get 3% cashback but pay 3% in fees to the gold shop. 

 

[kinyara]

I have been and continue to be amazed at the collective hysteria, arguing and endless debate around an issue that has zero factual clarification. I find it much more relaxing in retirement ignoring the " what if's " of paranoid, scaremongering foreigners and dealing with any realities when they present themselves. 

[Mike Lister]

1 minute ago, jts-khorat said:

 

Quite impossible to track if the wife or any other family member exchanges it; if one bank branch does not want to do it, the next will, so no problem at all (at least in Udon Thani).

I don't think you understand how banks operate here, or how the Forex works in terms of identifying customers. Neither my Thai wife nor myself are able to undertake ANY form of transaction at a UOB or BBL branch, without first showing ID.

[jts-khorat]

6 minutes ago, Mike Lister said:

I don't think you understand how banks operate here, or how the Forex works in terms of identifying customers. Neither my Thai wife nor myself are able to undertake ANY form of transaction at a UOB or BBL branch, without first showing ID.

 

That is not wrong. But showing ID is not the same than having to prove where the money came from.

 

Whenever we come to Thailand to visit the family, we carry not small amounts of cash and exchanging it has never been a problem. Not all bank branches accept it, but the issue is rather crumpled or ripped bank notes, which are rejected according to the mood of the bank teller, not the exchange process itself.

 

Obviously, we are not talking millions of Baht here, but what a tourist might carry for an extended holiday (meaning I could live on that money comfortably for months).

Edited January 7 by jts-khorat

[Mike Lister]

Just now, jts-khorat said:

 

That is not wrong. But showing ID is not the same then having to prove where the money come from.

 

Whenever we come to Thailand to visit the family, we carry not small amounts of cash and exchanging it has never been a problem. Not all bank branches accept it, but the issue is rather crumpled or ripped bank notes, which are rejected according to the mood of the bank teller, not the exchange process itself.

 

Obviously, we are not talking millions of Baht here, but what a tourist might carry for an extended holiday.

I did not suggest that anyone had to prove where the money came from, other than in a different thread where I wrote that people who deposit foreign cash currency into a foreign currency account, must produce a signed Customs declaration.

 

What I wrote in the context of your reply is that the bank or exchange facility will require ID in order to exchange currency, thereafter your identity is known if it becomes necessary to find out more about the transaction or the person. Banks in the West have to report cash deposits over a certain very low level, they also have to report cumulative cash transactions, over a fairly low level. Do you really think that Thai banks don't do exactly the same thing for the same reason! Already, cash deposits in Thailand via an ADM require ID. 

 

 

[aublumberg]

12 hours ago, Liverpool Lou said:

Foreign currency can be carried in without limit, and without it being taxed, but anything over $20k has to be declared.

Foreign currency brought into Thailand exceeding USD15,000 or equivalent has to be declared. 

Exchange Control Regulation (bot.or.th)

ศูนย์บริการศุลกากร - Customs Care Center

[Bday Prang]

This subject is second only to covid regarding  the scaremongering and fear surrounding it.  And as with Covid  one person has appointed themselves as scaremonger in chief. 

[Mike Lister]

1 minute ago, Bday Prang said:

This subject is second only to covid regarding  the scaremongering and fear surrounding it.  And as with Covid  one person has appointed themselves as scaremonger in chief. 

Not my fault people can't read properly and comprehend.

[jts-khorat]

Just now, Mike Lister said:

What I wrote in the context of your reply is that the bank or exchange facility will require ID in order to exchange currency, thereafter your identity is known if it becomes necessary to find out more about the transaction or the person.

 

You are overthinking it.

 

Mainly, because I would have to open a bank account and that is just too much hassle, the foreign currency has always been exchanged by (Thai) family members who already have their own bank accounts. I have a very, very large family, if amounts would be a problem. And nobody in my family has ever heard of a customs declaration, so I am not sure where you get that from. Of course, regulations might become more strict and what was easy before might not always be an option.

 

Either way, I have no bone in this fight, as I do not stay more than 180 days a year in Thailand, I am just telling you what was hassle-free up to now.

[Mike Lister]

1 minute ago, jts-khorat said:

 

You are overthinking it.

 

Mainly, because I would have to open a bank account and that is just too much hassle, the foreign currency has always been exchanged by (Thai) family members who already have their own bank accounts. I have a very, very large family, if amounts would be a problem. And nobody in my family has ever heard of a customs declaration, so I am not sure where you get that from. Of course, regulations might become more strict and what was easy before might not always be an option.

 

Either way, I have no bone in this fight, as I do not stay more than 180 days a year in Thailand, I am just telling you what was hassle-free up to now.

If you're a tourist, you are under the radar and you probably wouldn't see or understand many of the changes that have taken place, that wasn't obvious from what you wrote.

[jts-khorat]

1 minute ago, Mike Lister said:

If you're a tourist, you are under the radar and you probably wouldn't see or understand many of the changes that have taken place, that wasn't obvious from what you wrote.

 

Understood. No harm done :-)

 

The biggest risk I see is, that future visa extensions that go over 180 days (and are already bound with a minimum income threshold) will necessitate a tax declaration.

 

I would be interested to see a calculation, what tax there would be to pay on the THB 400,000 or the THB 800,000; this I guess, would be the automatic tax risk for all on long stay visas.

 

With applicable deductions (before even thinking about double taxation treaties etc) this amount already cannot be very large, so it might put the mind of many to rest, if they would see that number -- I think in the long thread I saw a calculation, where a Thai shop owner earned THb 600,000 a year and the resulting tax burden was rather negligible.

 

In the end, having some tax office doing this simple declaration might easily more expensive than the tax itself.

[Mike Lister]

5 minutes ago, jts-khorat said:

 

Understood. No harm done :-)

 

The biggest risk I see is, that future visa extensions that go over 180 days (and are already bound with a minimum income threshold) will necessitate a tax declaration.

 

I would be interested to see a calculation, what tax there would be to pay on the THB 400,000 or the THB 800,000; this I guess, would be the automatic tax risk for all on long stay visas.

 

With applicable deductions (before even thinking about double taxation treaties etc) this amount already cannot be very large, so it might put the mind of many to rest, if they would see that number -- I think in the long thread I saw a calculation, where a Thai shop owner earned THb 600,000 a year and the resulting tax burden was rather negligible.

 

In the end, having some tax office doing this simple declaration might easily more expensive than the tax itself.

Tax on 400k for a married over age 65 would be zero, on 800k it will depend on the source of the funds but can range from zero to around 25k baht.

 

"The biggest risk I see is, that future visa extensions that go over 180 days (and are already bound with a minimum income threshold) will necessitate a tax declaration".

It's  Interesting that posters @Happy happy @zombie nights

and @sungod

seem to think such things are scaremongering or paranoia.

 

Personally, I think it's only a matter of time.

 

 

Edited January 7 by Mike Lister

[Neeranam]

I know quite a few Americans and Brits who are worrying about their pensions being taxed, despite their countries having having a tax treaty with Thailand. It's bizarre. Some foreigners here are scared of their own shadow.

I tell them just don't tell anyone and never go to the tax office and volunteer your information.

This removal of a loophole for wealthy Thais avoiding tax by bringing it into Thailand in a different year to when it was earned is just that...

This is Thailand, not North Korea!

Edited January 7 by Neeranam

[ballpoint]

31 minutes ago, jts-khorat said:

 

Understood. No harm done :-)

 

The biggest risk I see is, that future visa extensions that go over 180 days (and are already bound with a minimum income threshold) will necessitate a tax declaration.

 

I would be interested to see a calculation, what tax there would be to pay on the THB 400,000 or the THB 800,000; this I guess, would be the automatic tax risk for all on long stay visas.

 

With applicable deductions (before even thinking about double taxation treaties etc) this amount already cannot be very large, so it might put the mind of many to rest, if they would see that number -- I think in the long thread I saw a calculation, where a Thai shop owner earned THb 600,000 a year and the resulting tax burden was rather negligible.

 

In the end, having some tax office doing this simple declaration might easily more expensive than the tax itself.

Assuming the worst case scenario - If the entire 800,000 was remitted with no overseas taxes paid on it, and it was deemed to all be assessable income, then your allowances would play the biggest part. 

For myself, being under 65 and married (but on a retirement extension), and claiming the maximum THB 25,000 for my health insurance premium, my tax would be THB 50,750 in such a scenario.  Not too great, but I would still be looking at ways of (legally) minimising it.

(Spreadsheet from PWC, who used to file my taxes when employed here).

 

 

 

[Mike Lister]

37 minutes ago, Neeranam said:

I know quite a few Americans and Brits who are worrying about their pensions being taxed, despite their countries having having a tax treaty with Thailand. It's bizarre. Some foreigners here are scared of their own shadow.

I tell them just don't tell anyone and never go to the tax office and volunteer your information.

This removal of a loophole for wealthy Thais avoiding tax by bringing it into Thailand in a different year to when it was earned is just that...

This is Thailand, not North Korea!

Each to their own but I was never in favor of burying my head in the sand on things as potentially dangerous as tax.

[sungod]

49 minutes ago, Mike Lister said:

Tax on 400k for a married over age 65 would be zero, on 800k it will depend on the source of the funds but can range from zero to around 25k baht.

 

"The biggest risk I see is, that future visa extensions that go over 180 days (and are already bound with a minimum income threshold) will necessitate a tax declaration".

It's  Interesting that posters @Happy happy @zombie nights

and @sungod

seem to think such things are scaremongering or paranoia.

 

Personally, I think it's only a matter of time.

 

 

Nobody knows and all you are doing is getting yours and other posters knickers in a twist.

[Neeranam]

16 minutes ago, ballpoint said:

Assuming the worst case scenario - If the entire 800,000 was remitted with no overseas taxes paid on it, and it was deemed to all be assessable income, then your allowances would play the biggest part. 

For myself, being under 65 and married (but on a retirement extension), and claiming the maximum THB 25,000 for my health insurance premium, my tax would be THB 50,750 in such a scenario.  Not too great, but I would still be looking at ways of (legally) minimising it.

(Spreadsheet from PWC, who used to file my taxes when employed here).

 

 

 

Say it was a gift, you are allowed 20 million a year to Thai relatives?

[Mike Lister]

1 minute ago, sungod said:

Nobody knows and all you are doing is getting yours and other posters knickers in a twist.

What I and others are doing is trying to raise awareness and educate people, I make no apologies if you don't like that. Tell you what, here's your very own copy of what we've put together, why don't you do something positive on this subject rather than offend people who are tell us all, what you think is knicker twisting?

 

1. This guide has been compiled in an attempt to provide readers with the simplest possible over view of Personal Income Tax (PIT) in Thailand. The scope of this document is limited to PIT.

 

2. You may have heard that new tax laws came into effect on 1 January this year, in fact, that is not true! The old tax rules still exist and remain valid, albeit just one minor change to them was made in November last year. Previously, anyone who earned money overseas and remitted it to Thailand in a different tax year, received that money free of Thai tax. That loop hole in the Revenue Department (RD) tax code has been extensively exploited by wealthy Thai’s and is now closed, hence, any money earned overseas and remitted to Thailand in any year, is now liable to Thai tax. The purpose of the new rule is to prevent tax avoidance. Unfortunately, it now means that overseas funds transfers by foreigners living in Thailand, also have an increased risk of being taxed.

 

3. This guide is an overview of the core parts of the PIT system. It is not designed to be exhaustive and it doesn’t cover all aspects of PIT, nor is it intended to  override anything produced by the Thai Revenue or specialist tax companies such as Sherrings or Mazzars. This guide also does not address all types of income or the rules relevant to people from every country. What this guide will provide is a starting point for readers to manage their own tax affairs and it will also provide most of the answers for those with simple tax affairs, especially the average pensioner.

 

4. There are also certain types of visa that fall outside of the RD tax code. The LTR visa for example received its tax exempt status by royal decree hence visa holders will not to be assessed for Thai tax and they are specifically excluded from this explanation.

 

5. Terminology: this document uses the word “assessable” often. Assessable in the context of this document means income that is liable to tax and must be included on a Thai tax return. Not all income is assessable, some is excluded from tax assessment by its very nature or because of the terms of a specific tax agreement.

 

6. Dual Tax Agreement/Double Tax Agreement (DTA): is an agreement between two countries that sets out which of the two countries has the right to tax specific types of income and all the associated rules. It’s purpose, in part, is to ensure that the same funds are not taxed twice and provides a means by which tax that is paid twice, can be recovered, how and from where.

 

7. If you stay in Thailand for more than a cumulative 180 days, between 1 January and 31 December each year, you will be considered to be Tax Resident in Thailand during that year, regardless of the type of visa you have. It doesn’t matter that you may be Tax Resident in your home country or elsewhere or that you pay tax in those countries, Thailand will still regard you as Tax Resident. Tax Residency and Immigration status (and the visa you hold) are different things. Tax residency is based solely on the number of days you spend in Thailand and where you are at midnight on each day.

 

8. Because you are Tax Resident, YOU must review your income each year to determine if it is regarded as assessable to tax in Thailand, nobody else will do this for you. If your income does not exceed 120,000 baht per year, you do not need to file a tax return (60,000 baht if your only income is bank interest paid to you by a bank in Thailand). If your income is over 120,000 baht per year, you must file a Thai tax return between 1 January and 31 March.

 

9. Your income in Thailand is defined as any money paid to you inside Thailand, as well as, any money you receive from overseas, both types are potentially assessable income for Tax Residents. There are many types of income that can be classed as assessable, the Thai RD lists some of them and is linked below, however, the list is not exhaustive:.

https://sherrings.com/personal-income-tax-in-thailand.html#:~:text=Section%2040%20of%20Thailand's%20Revenue,Pensions%3B%20and

 

10. There are also classes or types of income that the RD does not regard as assessable and these are also linked below:

https://www.rd.go.th/english/37749.html

 

11. Income that is derived from  within Thailand is fairly clear, if you work and have a job and you are a Tax Resident, your income is assessable for tax.  Interest that is paid to you on Thai bank accounts is regarded as income, as is income from investments such as stocks and bonds within Thailand.  You should note that if you are generating income by working while staying in Thailand, it is (and has always been) irrelevant where that money is paid and whether you bring the money into the country or keep it offshore. That money arises in Thailand hence it is taxable here.

 

12. It is not possible to give the same blanket rule to everyone to determine whether income is assessable or not because of the variables involved. Overseas income has to pass several tests to determine if it is assessable to Thai tax or not. It is still early days and all the rules are not yet clear. It has been said that tax residents who import funds from countries that have a DTA with Thailand, will not be effected. Exactly how that will work leaves many questions unanswered hence this document attempts to look at only the most popular types of income based on what is known at present. This document does not speculate as to what may happen in the future, other than in the segment at the end concerning likely future Immigration rules.

 

13. If we take the simplest type of income and say that you transfer personal savings from overseas to Thailand and those savings  were earned before 1 January 2024, those funds are not assessable. But savings earned after that date are, hence the date when the income is earned is extremely important. A word of caution, you may be asked to provide proof that savings were earned before 1 January 2024.  

 

14. Another common type of income is pensions, which can be complicated, depending on the type of pension and the country that it comes from. The country of origin is important because there are over 60 different types of Dual Tax Agreements, sometimes called Double Taxation Agreements (DTA’s), between Thailand and those 60+ countries and each one is different. As a general rule, most private or company pensions from most countries appear to be assessable here but YOU will need to confirm that yours is or is not. If that is true, private and company pension income IS assessable income in Thailand.

 

15. US Social Security payments, a form of pension paid to some older people, can only be taxed by the US under DTA rules and Thailand is forbidden from taxing them, this means those payments are NOT assessable income. UK State pension on the other hand is not covered by a DTA so it is assessable income in Thailand whilst UK Government or Civil Service pensions are not!

 

16. The proceeds from the sale of a capital item such as overseas property, where funds are remitted to Thailand, is one popular source of funds, the sale of some investment products such as stocks, shares and bonds is another. Those proceeds typically comprise two parts, capital and profit. If the capital was acquired before 1 January 2024, it is free of Thai tax. One way to separate capital and profit may bee to have an official valuation or statement that is dated 1 January 2024 since anything earned before that date, is not assessable. Also, if the profit has been the subject of a Capital Gains return in the home country, that also may be free of Thai tax but this cannot be guaranteed at this time, until things are made more clear and are once again subject to the terms of any DTA. YOU will need to review the DTA between Thailand and your home  country to fully understand what particular clauses affect you.

 

17. It appears as though most property rental income that is remitted to Thailand is considered to be assessable income and is taxable here, unless of course it has been taxed in the home country and/or the DTA prohibits its taxation (which seems unlikely).

 

18. YOU are responsible for determining if you have the minimum assessable income in Thailand each year which means you must file a tax return. That assessable income might comprise, pension payments, investment income, rental income or any of the other types of income listed in the link above. If you have assessable income of over 120,000 baht per year, you must file a tax return (60,000 baht if your sole source of assessable income is bank interest paid in Thailand).

 

19. Before you can file a tax return in Thailand, you need to acquire a Tax Identification Number or TIN from the RD offices in your area. You will need your passport, a valid and current visa or extension and in many areas, a Certificate of Residency from the Immigration Department.

 

20. Completing a tax return is a simple affair for most people, if you have difficulty, the Revenue Department staff are extremely helpful. Tax returns must be filed between 1 January and 30 March each year, if you file later than that, penalties will apply.

 

21. Thai tax is layered in bands and is payable based on the amount of assessable income falls within each band and are shown and linked below:

Taxable Income per year(Baht) Tax rate

0 – 150,000 Exempt

150,000 – 300,000 5%

300,000 – 500,000 10%

500,000 – 750,000 15%

750,000 – 1,000,000 20%

1,000,000 – 2,000,000 25%

2,000,000 – 4,000,000 30%

Over 4,000,000 35%

https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax

 

22. The Thai tax system contains a series of Allowances, Deductions and Exemptions that will help you reduce your tax bill and they are very generous. It is easily possible for the average expat foreign retiree to reduce their taxable income by 500,000 baht or more each year. For example, a retiree aged 65 years of age, married and living here full  time, supporting a Thai wife who has no income and doesn’t file tax return, is allowed the following:

 

a. Personal Allowance for self - 60,000

b. Personal Allowance for wife - 60,000

c. Over age 65 years exemption - 190,000

d. 50% of pension income received, up to 100k - 100,000

e. In addition, the first 150,000 of assessable income is zero rated and free of tax

 

23. Additional deductions and allowances exist for health or life insurance premiums paid in Thailand. A complete list of deductions, allowances and exemptions can be found here

https://www.rd.go.th/english/6045.html  or from Sherrings below.

https://sherrings.com/personal-tax-deductions-allowances-thailand.html

 

24. The Thai Revenue  tax filing system is online but is only available in Thai language at present. The tax forms are however available in English and they can be downloaded from the link below. CAUTION, the forms are updated every year and the 2023/24 forms for full year PIT are NOT yet available:

https://www.rd.go.th/english/63902.html

 

25. A simple sample completed tax form for a person aged over 65 years is shown below.

26. SAMPLE FORM

 

27. Tax filing in Thailand is based on the honour system, it relies on you declaring all the right information every year and there are severe penalties for avoiding Thai tax. It would be foolish and a gross under estimation of RD capabilities to think  that doing nothing and keeping a low profile means you should ignore Thai taxation. Very few sane people in the US and UK ignore the tax authorities who tend to have a long reach. It cannot be ruled out that at some point, a link may be established between tax filings and visa extensions, along with tax clearance certificates required to leave the country. This is possible because similar things have been adopted in several countries in the past, including the US.

 

28. There are several sources of detailed tax information and these web sites are linked below:

https://www.rd.go.th/english/6045.html

https://sherrings.com/personal-income-tax-in-thailand.html

https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax

[Mike Lister]

Just now, Neeranam said:

Say it was a gift, you are allowed 20 million a year to Thai relatives?

At least tell him what the downside risks are rather than suggesting this is a get out clause every year....which it definitely isn't.

[Bday Prang]

10 hours ago, AlexRich said:

I don't think your question can be answered until the full details are published by the tax authorities. If you are a full time resident perhaps bring as little money in as you can until the tax rules become clear. 

Probably the best course of action. and definitely the only comment worth taking any notice of regarding this subject, In my not so humble opinion.

The rest of you can feel free to worry yourself into an early grave,  and don't forget to worry about death taxes before you pop your clogs.

[sungod]

2 minutes ago, Mike Lister said:

What I and others are doing is trying to raise awareness and educate people, I make no apologies if you don't like that. Tell you what, here's your very own copy of what we've put together, why don't you do something positive on this subject rather than offend people who are tell us all, what you think is knicker twisting?

 

1. This guide has been compiled in an attempt to provide readers with the simplest possible over view of Personal Income Tax (PIT) in Thailand. The scope of this document is limited to PIT.

 

2. You may have heard that new tax laws came into effect on 1 January this year, in fact, that is not true! The old tax rules still exist and remain valid, albeit just one minor change to them was made in November last year. Previously, anyone who earned money overseas and remitted it to Thailand in a different tax year, received that money free of Thai tax. That loop hole in the Revenue Department (RD) tax code has been extensively exploited by wealthy Thai’s and is now closed, hence, any money earned overseas and remitted to Thailand in any year, is now liable to Thai tax. The purpose of the new rule is to prevent tax avoidance. Unfortunately, it now means that overseas funds transfers by foreigners living in Thailand, also have an increased risk of being taxed.

 

3. This guide is an overview of the core parts of the PIT system. It is not designed to be exhaustive and it doesn’t cover all aspects of PIT, nor is it intended to  override anything produced by the Thai Revenue or specialist tax companies such as Sherrings or Mazzars. This guide also does not address all types of income or the rules relevant to people from every country. What this guide will provide is a starting point for readers to manage their own tax affairs and it will also provide most of the answers for those with simple tax affairs, especially the average pensioner.

 

4. There are also certain types of visa that fall outside of the RD tax code. The LTR visa for example received its tax exempt status by royal decree hence visa holders will not to be assessed for Thai tax and they are specifically excluded from this explanation.

 

5. Terminology: this document uses the word “assessable” often. Assessable in the context of this document means income that is liable to tax and must be included on a Thai tax return. Not all income is assessable, some is excluded from tax assessment by its very nature or because of the terms of a specific tax agreement.

 

6. Dual Tax Agreement/Double Tax Agreement (DTA): is an agreement between two countries that sets out which of the two countries has the right to tax specific types of income and all the associated rules. It’s purpose, in part, is to ensure that the same funds are not taxed twice and provides a means by which tax that is paid twice, can be recovered, how and from where.

 

7. If you stay in Thailand for more than a cumulative 180 days, between 1 January and 31 December each year, you will be considered to be Tax Resident in Thailand during that year, regardless of the type of visa you have. It doesn’t matter that you may be Tax Resident in your home country or elsewhere or that you pay tax in those countries, Thailand will still regard you as Tax Resident. Tax Residency and Immigration status (and the visa you hold) are different things. Tax residency is based solely on the number of days you spend in Thailand and where you are at midnight on each day.

 

8. Because you are Tax Resident, YOU must review your income each year to determine if it is regarded as assessable to tax in Thailand, nobody else will do this for you. If your income does not exceed 120,000 baht per year, you do not need to file a tax return (60,000 baht if your only income is bank interest paid to you by a bank in Thailand). If your income is over 120,000 baht per year, you must file a Thai tax return between 1 January and 31 March.

 

9. Your income in Thailand is defined as any money paid to you inside Thailand, as well as, any money you receive from overseas, both types are potentially assessable income for Tax Residents. There are many types of income that can be classed as assessable, the Thai RD lists some of them and is linked below, however, the list is not exhaustive:.

https://sherrings.com/personal-income-tax-in-thailand.html#:~:text=Section%2040%20of%20Thailand's%20Revenue,Pensions%3B%20and

 

10. There are also classes or types of income that the RD does not regard as assessable and these are also linked below:

https://www.rd.go.th/english/37749.html

 

11. Income that is derived from  within Thailand is fairly clear, if you work and have a job and you are a Tax Resident, your income is assessable for tax.  Interest that is paid to you on Thai bank accounts is regarded as income, as is income from investments such as stocks and bonds within Thailand.  You should note that if you are generating income by working while staying in Thailand, it is (and has always been) irrelevant where that money is paid and whether you bring the money into the country or keep it offshore. That money arises in Thailand hence it is taxable here.

 

12. It is not possible to give the same blanket rule to everyone to determine whether income is assessable or not because of the variables involved. Overseas income has to pass several tests to determine if it is assessable to Thai tax or not. It is still early days and all the rules are not yet clear. It has been said that tax residents who import funds from countries that have a DTA with Thailand, will not be effected. Exactly how that will work leaves many questions unanswered hence this document attempts to look at only the most popular types of income based on what is known at present. This document does not speculate as to what may happen in the future, other than in the segment at the end concerning likely future Immigration rules.

 

13. If we take the simplest type of income and say that you transfer personal savings from overseas to Thailand and those savings  were earned before 1 January 2024, those funds are not assessable. But savings earned after that date are, hence the date when the income is earned is extremely important. A word of caution, you may be asked to provide proof that savings were earned before 1 January 2024.  

 

14. Another common type of income is pensions, which can be complicated, depending on the type of pension and the country that it comes from. The country of origin is important because there are over 60 different types of Dual Tax Agreements, sometimes called Double Taxation Agreements (DTA’s), between Thailand and those 60+ countries and each one is different. As a general rule, most private or company pensions from most countries appear to be assessable here but YOU will need to confirm that yours is or is not. If that is true, private and company pension income IS assessable income in Thailand.

 

15. US Social Security payments, a form of pension paid to some older people, can only be taxed by the US under DTA rules and Thailand is forbidden from taxing them, this means those payments are NOT assessable income. UK State pension on the other hand is not covered by a DTA so it is assessable income in Thailand whilst UK Government or Civil Service pensions are not!

 

16. The proceeds from the sale of a capital item such as overseas property, where funds are remitted to Thailand, is one popular source of funds, the sale of some investment products such as stocks, shares and bonds is another. Those proceeds typically comprise two parts, capital and profit. If the capital was acquired before 1 January 2024, it is free of Thai tax. One way to separate capital and profit may bee to have an official valuation or statement that is dated 1 January 2024 since anything earned before that date, is not assessable. Also, if the profit has been the subject of a Capital Gains return in the home country, that also may be free of Thai tax but this cannot be guaranteed at this time, until things are made more clear and are once again subject to the terms of any DTA. YOU will need to review the DTA between Thailand and your home  country to fully understand what particular clauses affect you.

 

17. It appears as though most property rental income that is remitted to Thailand is considered to be assessable income and is taxable here, unless of course it has been taxed in the home country and/or the DTA prohibits its taxation (which seems unlikely).

 

18. YOU are responsible for determining if you have the minimum assessable income in Thailand each year which means you must file a tax return. That assessable income might comprise, pension payments, investment income, rental income or any of the other types of income listed in the link above. If you have assessable income of over 120,000 baht per year, you must file a tax return (60,000 baht if your sole source of assessable income is bank interest paid in Thailand).

 

19. Before you can file a tax return in Thailand, you need to acquire a Tax Identification Number or TIN from the RD offices in your area. You will need your passport, a valid and current visa or extension and in many areas, a Certificate of Residency from the Immigration Department.

 

20. Completing a tax return is a simple affair for most people, if you have difficulty, the Revenue Department staff are extremely helpful. Tax returns must be filed between 1 January and 30 March each year, if you file later than that, penalties will apply.

 

21. Thai tax is layered in bands and is payable based on the amount of assessable income falls within each band and are shown and linked below:

Taxable Income per year(Baht) Tax rate

0 – 150,000 Exempt

150,000 – 300,000 5%

300,000 – 500,000 10%

500,000 – 750,000 15%

750,000 – 1,000,000 20%

1,000,000 – 2,000,000 25%

2,000,000 – 4,000,000 30%

Over 4,000,000 35%

https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax

 

22. The Thai tax system contains a series of Allowances, Deductions and Exemptions that will help you reduce your tax bill and they are very generous. It is easily possible for the average expat foreign retiree to reduce their taxable income by 500,000 baht or more each year. For example, a retiree aged 65 years of age, married and living here full  time, supporting a Thai wife who has no income and doesn’t file tax return, is allowed the following:

 

a. Personal Allowance for self - 60,000

b. Personal Allowance for wife - 60,000

c. Over age 65 years exemption - 190,000

d. 50% of pension income received, up to 100k - 100,000

e. In addition, the first 150,000 of assessable income is zero rated and free of tax

 

23. Additional deductions and allowances exist for health or life insurance premiums paid in Thailand. A complete list of deductions, allowances and exemptions can be found here

https://www.rd.go.th/english/6045.html  or from Sherrings below.

https://sherrings.com/personal-tax-deductions-allowances-thailand.html

 

24. The Thai Revenue  tax filing system is online but is only available in Thai language at present. The tax forms are however available in English and they can be downloaded from the link below. CAUTION, the forms are updated every year and the 2023/24 forms for full year PIT are NOT yet available:

https://www.rd.go.th/english/63902.html

 

25. A simple sample completed tax form for a person aged over 65 years is shown below.

26. SAMPLE FORM

 

27. Tax filing in Thailand is based on the honour system, it relies on you declaring all the right information every year and there are severe penalties for avoiding Thai tax. It would be foolish and a gross under estimation of RD capabilities to think  that doing nothing and keeping a low profile means you should ignore Thai taxation. Very few sane people in the US and UK ignore the tax authorities who tend to have a long reach. It cannot be ruled out that at some point, a link may be established between tax filings and visa extensions, along with tax clearance certificates required to leave the country. This is possible because similar things have been adopted in several countries in the past, including the US.

 

28. There are several sources of detailed tax information and these web sites are linked below:

https://www.rd.go.th/english/6045.html

https://sherrings.com/personal-income-tax-in-thailand.html

https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax

 

I dont care about tax, never made any reference to it in this thread, just made a comment about how easy it is to exchange cash.

 

I think you need to take your blinkers off and chill out.....

[Neeranam]

12 minutes ago, Mike Lister said:

Each to their own but I was never in favor of burying my head in the sand on things as potentially dangerous as tax.

I've lived here(and worked) for 30 years and never known anyone to go to jail for tax evasion.

[Neeranam]

9 minutes ago, Mike Lister said:

At least tell him what the downside risks are rather than suggesting this is a get out clause every year....which it definitely isn't.

I don't know of any risks in gifting family, do you?

 

[Mike Lister]

1 minute ago, Neeranam said:

I've lived here(and worked) for 30 years and never known anyone to go to jail for tax evasion.

You'll forgive me for saying but that's anecdotal evidence at best! I've lived here for over 20 years also and I've never heard of anyone having problems with the RD but I would never think that nobody has or never will. So using that evidence as the basis for suggesting somebody use the gift tax rule to import their income safetly, doesn't make any sense, 

[Mike Lister]

1 minute ago, Neeranam said:

I don't know of any risks in gifting family, do you?

 

That discussion was already had in the long thread and I thought you were involved so I think you already know!!! I don't really want to sift through all that crap just to repeat things you know already.

 

 

[Mike Lister]

13 minutes ago, sungod said:

 

I dont care about tax, never made any reference to it in this thread, just made a comment about how easy it is to exchange cash.

 

I think you need to take your blinkers off and chill out.....

If you don't care about tax, why are you even in this discussion!