New tax era in Thailand begins as Revenue now shares data with 138 countries within the OECD

Sato · January 8

4 minutes ago, jerrymahoney said:

That's OK. He said that he is creative

Just follow the roule 😉

Mike Lister · January 8

21 minutes ago, bradiston said:

I'm not sure the tax in Thailand on 400k is 0%. Up to 150k is exempt. The next blocks are taxable at increments of 5%. So 150,001 - 300k is taxed at 5%, 300,001 - 500k at 10%, etc.

Tax for me in Thailand on 400k is 0%, in fact, tax for in Thailand on 525k is 0%. Why would you think it is not so? Have you read the following:

A SIMPLE GUIDE TO PERSONAL INCOME TAX IN THAILAND

8 January, 2024

Version 5, Rev A

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 reduce 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. Note: If the taxpayer income is sourced in one country but the tax payer is resident in a second country, use of a DTA can result in increased tax being paid, if the second country has a higher rate of tax on the type of income in question, than the other.

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 variable factors 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 your assessable income in Thailand exceeds the threshold and 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 that 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 as a guide.

26. https://aseannow.com/topic/1312534-taxation-of-ex-pats-pensions-etc/?do=findComment&comment=18532562

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 evading 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. A law already exists that requires foreigners to apply for Tax Clearance Certificates before being allowed to depart the country but it is not being enforced currently. These things are possible because similar things have been adopted in several countries in the past, including the US.

28. The RD tax return requires taxpayers to report assessable income, the tax rules even list some types of income that are not assessable to help in this. In addition, some types of income, from some locations, for some nationalities, are also known to be not assessable.

29. If a taxpayer is certain that some of their income is not assessable, they may not want to declare it on their Thai tax return. Alternatively they may wish to ask the RD or employ specialist tax advisor's. It should go without saying that some taxpayers may try to suggest that some of their income is not assessable when really they don’t know for sure, or, they know that it is and say it that it isn’t, a sort of, chancing your arm and hoping you wont get found out. In that situation, the RD will not look favourably on such people and penalties are likely.

30. 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

*** END ***

Edited January 8 by Mike Lister

Mike Lister · January 8

5 minutes ago, paddypower said:

Bang on. I keep arguing that the Revenue Dept ought to hire a bunch of talented auditors and send theme out there, doing net worth audits on the top 10%. My Thai massage lady has 7 bungalows for holiday rentals. she put it to me like this - if they ask me to pay more tax than I am getting away with paying, I would rather die.

Seriously, the potential exists to almost double GDP, just by collecting taxes from the 50+ that are working cash in hand and the rest of the self employed who are understating their income.

samtam · January 8

2 hours ago, Presnock said:

we the resident here, I think they will eventually instruct us that we must have a Tax Number, and that to extend a stay in the country, we have to provide that tax number and money remitted into Thailand by a copy of one's bank book (s) and that local banks will need to provide names of resident aliens and then, we will need to also provide our income and any taxes paid to our home country. For me is is easy, just need to print out an additional page or two when I do my 1-year long stay extension. I have plenty of documentation from my US payers of my govt pension and the amount of taxes withheld by the government. I used to have to provide these same documents to immigration along with my Embassy letter which disappeared a few years ago.

Until they want it officially translated.

1 hour ago, Presnock said:

well, since the ltr are supposedly under royal exemption, you shouldn't worry for 8 more years.

Tax exempt LTR under Royal Decree, until it's not.

Ben Zioner · January 8

18 minutes ago, Mike Lister said:

Perhaps I'm missing something but what is the difference between, 180 days or more, and, more than a cumulative 180 days?

n≥180 vs n>180, or one day.

Yumthai · January 8

23 minutes ago, Ben Zioner said:

I think it is "more than 179 days" or "180 days or more".

We all understand that "more than a cumulative 180 days" means "181 days or more" but shhh, please don't be pedantic.

The great Mike L. poster joined this forum on 07 Oct 2023, 94 days to date, and accounts 2,124 posts until now, that's an amazing average of 22+ posts per day.

You can't reasonably contradict the voice of truth.

Mike Lister · January 8

2 minutes ago, Yumthai said:

We all understand that "more than a cumulative 180 days" means "181 days or more" but shhh, please don't be pedantic.

The great Mike L. poster joined this forum on 07 Oct 2023, 94 days to date, and accounts 2,124 posts until now, that's an amazing average of 22+ posts per day.

You can't reasonably contradict the voice of truth.

I joined in 2006, but that's another story!

Mike Lister · January 8

4 minutes ago, Ben Zioner said:

n≥180 vs n>180, or one day.

Yes, fair enough, I'll change it. Thanks

TheAppletons · January 8

10 minutes ago, Mike Lister said:

I joined in 2006, but that's another story!

Yinn? Is that you? :-D

StayinThailand2much · January 8

8 hours ago, quake said:

8 hours 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.

Getting a government pension in a couple years from now. Thailand was on the list of places to have it transferred to. It isn't anymore. Thank you, Thailand, for giving me a very early warning, so that I have plenty of time to find an alternative place.

StayinThailand2much · January 8

1 hour ago, Sato said:

Easy, married with a rich Thai woman !

And/or transfer only 400'000 Bath a year to Thailand and have to pay 0 Tax because of the allowed tax deductions.

Not married, but you gave me an idea. I will just say that I have a Thai sugar mommy...

bradiston · January 8

40 minutes ago, Mike Lister said:

Tax for me in Thailand on 400k is 0%, in fact, tax for in Thailand on 525k is 0%. Why would you think it is not so? Have you read the following:

A SIMPLE GUIDE TO PERSONAL INCOME TAX IN THAILAND

8 January, 2024

Version 5, Rev A

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 reduce 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. Note: If the taxpayer income is sourced in one country but the tax payer is resident in a second country, use of a DTA can result in increased tax being paid, if the second country has a higher rate of tax on the type of income in question, than the other.

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 variable factors 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 your assessable income in Thailand exceeds the threshold and 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 that 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 as a guide.

26. https://aseannow.com/topic/1312534-taxation-of-ex-pats-pensions-etc/?do=findComment&comment=18532562

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 evading 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. A law already exists that requires foreigners to apply for Tax Clearance Certificates before being allowed to depart the country but it is not being enforced currently. These things are possible because similar things have been adopted in several countries in the past, including the US.

28. The RD tax return requires taxpayers to report assessable income, the tax rules even list some types of income that are not assessable to help in this. In addition, some types of income, from some locations, for some nationalities, are also known to be not assessable.

29. If a taxpayer is certain that some of their income is not assessable, they may not want to declare it on their Thai tax return. Alternatively they may wish to ask the RD or employ specialist tax advisor's. It should go without saying that some taxpayers may try to suggest that some of their income is not assessable when really they don’t know for sure, or, they know that it is and say it that it isn’t, a sort of, chancing your arm and hoping you wont get found out. In that situation, the RD will not look favourably on such people and penalties are likely.

30. 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

*** END ***

Yes, I read it when I came to it, which was after I posted my comment.

bradiston · January 8

8 minutes ago, StayinThailand2much said:

Getting a government pension in a couple years from now. Thailand was on the list of places to have it transferred to. It isn't anymore. Thank you, Thailand, for giving me a very early warning, so that I have plenty of time to find an alternative place.

Philippines

BritScot · January 8

7 hours ago, topt said:

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

Rather arrogant of you without knowing someone's circumstances. Looking down on people is rather pathetic. I know a guy in bkk who lives in what I would describe as poverty however he has many millions of baht invested. Only fools invest/ bring mass money into Thailand. Clever people keep the majority well out of thailands grip.

freeworld · January 8

Deleted

Edited January 8 by freeworld

StayinThailand2much · January 8

5 minutes ago, freeworld said:

The govt govt pension is not taxable in Thailand.

Well, things are not as clear-cut in Thailand. (I don't buy lottery tickets either.)

StayinThailand2much · January 8

31 minutes ago, bradiston said:

Philippines

I will definitely check out the Philippines, not only for taxation reasons.

Dogmatix · January 8

They didn't change the tax status of all foreign residents. They changed the tax status of all Thai and foreign tax residence who remit foreign source income. Foreigners who don't remit any foreign source income have no change in tax status.

StayinThailand2much · January 8

36 minutes ago, bradiston said:

Yes, I read it when I came to it, which was after I posted my comment.

Wonder, whether the RD department has read the guide...

Ben Zioner · January 8

1 hour ago, Mike Lister said:

Yes, fair enough, I'll change it. Thanks

Well we need more loke you. No sarcasm..

placnx · January 8

7 hours ago, koolkarl said:

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.

Not true, you only have to report to Thailand the funds remitted to Thailand The problem for Americans is whether a tax credit can be claimed if they don't have foreign income. This is possible in the case of certain tax treaties the US has with other countries.

CartagenaWarlock · January 8

If somebody lives on withdrawing from ATMs only, it is possible for the RD to track the total of ATM withdrawals, but is it practical out of millions of transactions between tourists and non-tourists?

crazykopite · January 8

7 hours ago, mikebell said:

Don't tell DWP you're living in Thailand. I did & my pension has been frozen for 16 years! Worse HMRC have been taxing me as if I was on the full rate (presently 100% more than I get.)

Had a friend living in Thailand who used a UK address he got caught after 5 years they reduced his monthly pension until he had paid off the debt he ended up on the destitute living on dried noodles is it worth it I think not if I have to pay tax in Thailand on top of my UK tax I will move to the Philippines where the oap is not frozen

hotchilli · January 8

1 hour ago, StayinThailand2much said:

Getting a government pension in a couple years from now. Thailand was on the list of places to have it transferred to. It isn't anymore. Thank you, Thailand, for giving me a very early warning, so that I have plenty of time to find an alternative place.

I'm already looking around, Vietnam or PH look good do far.

scottiejohn · January 8

7 minutes ago, crazykopite said:

Had a friend living in Thailand who used a UK address he got caught after 5 years they reduced his monthly pension until he had paid off the debt

My understanding is that the worst they can do is to stop any further increases, unless you "permanently" return to the UK, and revert you back to the rate that you were on/entitled to when you left the UK!

PS; This aspect (pension penalties) is off topic and should be discussed in the UK pension threads if you wish to continue it!

Edited January 8 by scottiejohn

placnx · January 8

6 hours ago, TheAppletons said:

This is factually incorrect. If he's bringing personal savings accumulated prior to 2024, it is not subject to taxation in Thailand.

The usual way of looking at things is that if you have income, that is counted first, before any savings you might have. Anyway, the new rule/interpretation doesn't seem to care when the funds were earned.

VBF · January 8

3 hours ago, Dan O said:

4 hours ago, NZAMBOY said:

Altho many of us will not have to pay additional tax, we will still have to file, which will mostly be done by accountancy firms...a real windfall for them!!!...the way i see it, the banks will hold back 15% of our offshore deposit and we'll have to file in order to have it returned...

That's not the banks responsibility and they won't touch that in any way so you can forget that idea

I wouldn't be too sure of that!

SCB pays me interest twice a year and deducts tax from the Gross amount, leaving me with the Net amount of interest.

They are, of course assuming that the account holder (me) is / was liable for income tax. I imagine that up to now, as I'm not liable, I could claim it back at the end of the tax year in some way. I choose not to bother as the amount is so small, it's not worth the effort of doing whatever is required - I am, after all just a tourist.

My point is that the mechanism for the banks to withhold estimated tax already exists. Whether they will or not I have no idea.

The Cyclist · January 8

3 minutes ago, VBF said:

I wouldn't be too sure of that!

SCB pays me interest twice a year and deducts tax from the Gross amount, leaving me with the Net amount of interest.

I think that you will find that tax being withheld on interest payments is standard practice.

4 minutes ago, VBF said:

My point is that the mechanism for the banks to withhold estimated tax already exists. Whether they will or not I have no idea.

Plenty of people, myself included have had income remitted already this year and nothing was withheld.

Burma Bill · January 8

10 hours 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

During my 20 years in Thailand, I never paid tax to the Thai Govt. As a UK citizen, I was taxed at source (UK) on the amount exceeding the tax allowance on my 3 pensions. Glad I moved to Cambodia almost 4 years ago and I still pay tax at source in the UK - no dual taxation.

VBF · January 8

59 minutes ago, The Cyclist said:

I think that you will find that tax being withheld on interest payments is standard practice.

Plenty of people, myself included have had income remitted already this year and nothing was withheld.

Exactly my point!

The fact that it is indeed standard practice in Thailand and elsewhere, shows the the mechanism is in place. My reply was to @NZAMBOY comment that "That's not the banks responsibility and they won't touch that in any way so you can forget that idea"

If the banks are instructed by the government to withhold a percentage of foreign remittances, they'll have no choice but to obey. As I said, I have no idea IF this is likely but just an observation / opinion.

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New tax era in Thailand begins as Revenue now shares data with 138 countries within the OECD

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