On Friday, the Director-general of the Revenue Department revealed a surge in tax receipts from October and November 2023. They were driven by a recovery in foreign tourism. At the same time, she also pointed to Thailand’s integration with the OECD tax collection framework. The country will play its part in ending worldwide tax avoidance and evasion by international firms and foreign residents.

 

Thailand’s Tax Revolution – The Revenue Department of Thailand embraces a new era in tax enforcement, sharing data with 138 countries within the OECD framework. As the government sets an ambitious revenue target of ฿2.2767 trillion for fiscal year 2024, the move aims to combat tax avoidance and elevate economic recovery. Foreign firms, residents and tourists expected to foot more of the bill.

Thailand is moving toward greater integration with the international tax framework to stamp out tax avoidance and evasion. Significantly, it comes with the Revenue Department reporting a surge in income in the first few months of the fiscal year which will also see foreign residents more closely scrutinised for tax. Thailand’s Revenue Department is to share tax information with 138 countries worldwide as part of the new OECD framework agreed in July 2023. At the same time, the September 15th order which altered the income tax status of all foreign residents after 35 years is also now in effect.

 

Thailand’s tax authorities are expecting a bumper 2024 as the Pheu Thai government aims to widen the kingdom’s tax base. In brief, the government sees this as a factor in bolstering economic recovery while simultaneously combating inequality in the country.

 

by Joseph O' Connor

 

Full story: Thai Examiner.com 2024-01-08

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

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My UK pension starts in 2025, start taxing that I'll be gone.

Now it is clear that all foreign residents in Thailand will have to pay taxes for those who reside beyond 180 days

At least they are candid now. They admit they want to hit foreigners living in Thailand. Always good to have us around when it is time to look good.

2 hours ago, webfact said:

combating inequality in the country

 

This i totally agree with, were the gvt not totally corrupt. Moreover, were they not going to use this to fund their hair brained 10 000 bht xcheme

2 hours ago, webfact said:

Thailand’s tax authorities are expecting a bumper 2024 as the Pheu Thai government aims to widen the kingdom’s tax base. In brief, the government sees this as a factor in bolstering economic recovery while simultaneously combating inequality in the country.

Good, stealing money from those who worked hard to give it to the useless lazy masses is definitely the way to achieve economic recovery. But yes these idiots will reelect you, unless the army takes care of the country, once more.

11 minutes ago, hotchilli said:

My UK pension starts in 2025, start taxing that I'll be gone.

 

Bye. 

 

They are coming for us, better get used to it. 

 

 

Too bad other countries don't tax income... oh wait... they do.  This is a measure by Thailand to collect tax from those who don't pay... it is not aimed at pensions, SSI, or other previously taxed income... it's aimed at those that are generating income and not paying their fair share.

17 minutes ago, hotchilli said:

My UK pension starts in 2025, start taxing that I'll be gone.

With your allowances here and the tax ladder, I doubt very much you will have any tax to pay. Plus your proof of having paid tax in UK.

9 minutes ago, Ben Zioner said:

Good, stealing money from those who worked hard to give it to the useless lazy masses is definitely the way to achieve economic recovery. But yes these idiots will reelect you, unless the army takes care of the country, once more.

I'm not sure the masses are that lazy, perhaps they're more thrifty and less socially aware of the need to pay tax. Over 50% of the workforce has earnings in the informal sector or grey market, ranging form 1% to 100% of their earnings. Given that only 11% of the workforce file tax returns, it might be safe to assume that most of the informal workers don't pay any tax at all. So the problem is more about collection and enforcement rather than anything else.

Well as expected, happy new year expats from the Thailand RD, "we're coming for your money", but like most anything Thailand endeavors to implement it will be a Cluster F.

 

Just thank your lucky stars they don't have dual taxation percentages for expats, like their dual pricing in national parks, hospitals, golf courses....etc......555

34 minutes ago, hotchilli said:

My UK pension starts in 2025, start taxing that I'll be gone.

Read your country's Dual Tax Agreement and you will see many things including most pensions are exempt from dual taxation 

37 minutes ago, Ben Zioner said:

At least they are candid now. They admit they want to hit foreigners living in Thailand. Always good to have us around when it is time to look good.

You know better than that, SOME foreigner's are collateral damage in all of this, nothing more. The article is written by a farang, for a farang newspaper, in a farang community, it is sensationalistic journalism and nothing more.

If i only was sure that new tax regime will benefit the real poor and disadvantageous people of Thailand i wouldn't

bother me that much, but this is the thing, It's NOT GOING TO, and the poor will stay poor and the extra revenue will

either disappear somewhere or will be used to buy a couple of submarines of a whole wing of fighter jets from China...

This information sharing system has been pushed by the US for years. As they have a world wide income taxing approach (as does Australia) it's easy revenue for them these days.

How identities are matched between the various countries may be a little challenging but increasingly will become easier I'm sure.

 

"The September 15th order imposes a clearer obligation in relation to tax reporting for foreign residents in Thailand.

 

"In any case, this applies even if they are registered in their own countries and can take advantage of tax treaties with 59 countries that Thailand has agreements with. All foreign residents, in theory, must still account for tax on an annual basis."

 

This rather dramatic interpretation of the new rule appears to be an invention of the writer, as it isn't what the actual text of the rule says at all. In fact, we still have no idea what the precise impact of the change will be.

46 minutes ago, worrab said:

With your allowances here and the tax ladder, I doubt very much you will have any tax to pay. Plus your proof of having paid tax in UK.

I bring in Bht 40k per month totalling Bht 400k per year. With various allowances and the tax threshold, I shall have to pay around Bht 4000  at the end of the year even though there is an agreement with UK.. Confirmed by my local taxman.

1 hour ago, hotchilli said:

My UK pension starts in 2025, start taxing that I'll be gone.

You and many others, for various reasons. And not only pensioners PIT will hit others groups, such as digital nomads. And beyond PIT cost of living, health care requirements, etc will nullify Thailand's attractiveness.

38 minutes ago, Dan O said:

Read your country's Dual Tax Agreement and you will see many things including most pensions are exempt from dual taxation 

The UK state pension falls below the level requiring tax, ie less than the personal tax free allowance for the UK. So tax free. It does however qualify for Thai taxation by amount. I hope you are correct of course.

12 minutes ago, KannikaP said:

I bring in Bht 40k per month totalling Bht 400k per year. With various allowances and the tax threshold, I shall have to pay around Bht 4000  at the end of the year even though there is an agreement with UK.. Confirmed by my local taxman.

many people bring in a hell of a lot more but I am happy for you..........

1 hour ago, worrab said:

With your allowances here and the tax ladder, I doubt very much you will have any tax to pay. Plus your proof of having paid tax in UK.

Would be interesting to know what the tax threshold is here in Thailand... at what financial level do you start to pay tax?

[I'm talking about income from overseas not income from working here in Thailand].

47 minutes ago, Dan O said:

Read your country's Dual Tax Agreement and you will see many things including most pensions are exempt from dual taxation 

 

9 minutes ago, jacko45k said:

The UK state pension falls below the level requiring tax, ie less than the personal tax free allowance for the UK. So tax free. It does however qualify for Thai taxation by amount. I hope you are correct of course.

As has been mentioned many times State and personal pensions are excluded from the UK/Thai DTA so potentially taxable.....

1 minute ago, hotchilli said:

Would be interesting to know what the tax threshold is here in Thailand... at what financial level do you start to pay tax?

[I'm talking about income from overseas not income from working here in Thailand].

It depends on several factors, not least is whether you are an employee or self employed or a limited company. At the risk of boring certain posters, a self employed person with sales of 1 million Baht a year and a profit margin of 60%, can pay as little as 8k in tax.

4 minutes ago, hotchilli said:

Would be interesting to know what the tax threshold is here in Thailand... at what financial level do you start to pay tax?

[I'm talking about income from overseas not income from working here in Thailand].

For others who are employed and pay tax via a PAYE equivalent, it depends on their marital status, number of children, insurance and mortgage products (all of which as tax deductible) and many other such things, there is no single standard amount.

Nothing in thai news

5 minutes ago, hotchilli said:

Would be interesting to know what the tax threshold is here in Thailand... at what financial level do you start to pay tax?

[I'm talking about income from overseas not income from working here in Thailand].

From my taxman, for an over 65 year old....first 190,000 is free, plus a 60k allowance, so there's 250k. After that 0 - 150k is at 0%, 150 - 300k is at 5%, 300 - 500k is at 10%, and so on.

So in my case I can have 400k before I pay any tax, then I have 80k @ 5% = 4000 baht.  

1 hour ago, worrab said:

With your allowances here and the tax ladder, I doubt very much you will have any tax to pay. Plus your proof of having paid tax in UK.

correct

9 minutes ago, Mike Lister said:

For others who are employed and pay tax via a PAYE equivalent, it depends on their marital status, number of children, insurance and mortgage products (all of which as tax deductible) and many other such things, there is no single standard amount.

Isn't it 60,000 baht and same for a spouse? (Presuming no deduct allowances). 

Opps, prior post better 190k+60k then?

As written before, anyone residing in Thailand for more than 180 days a year will have to file a Thai tax return reporting their world income,

all thanks to Obama.  Thai tax people will have knowledge of what you have and earn in most countries, every year.  Dual taxation will be addressed on the Thai tax return.  As for foreigners, who will not be granted immigrant status nor given health care, etc., you will be paying income tax and getting nothing in return. I am not sure if it is even legal to force a tourist who resides here more than 180 days a year to file a tax return.  They can keep their country.

7 minutes ago, KannikaP said:

From my taxman, for an over 65 year old....first 190,000 is free, plus a 60k allowance, so there's 250k. After that 0 - 150k is at 0%, 150 - 300k is at 5%, 300 - 500k is at 10%, and so on.

So in my case I can have 400k before I pay any tax, then I have 80k @ 5% = 4000 baht.  

you can work that out, how are they going too

 

good luck with that

 

if I have to do a border run every 180 days  - i will, ## them, but it won't happen, too complex to administer