Must Read A SIMPLE GUIDE TO PERSONAL INCOME TAX IN THAILAND

[SbuxPlease]

Cost of living in Thailand year round is going up.

 

If there's even an ounce of enforcement on this scheme, I suspect many are going to measure that tax (and the PITA of filing a tax return) next to the cost of spending the other 181 days in other places.

[nickmondo]

and all this has been officially announced by the Gov?

No..........it has not.

Nice for you to try and help out, but not taking any notice.

When the Gov make an official announcement, I will sit up and take notice.

Whatever happens, it will be a curve ball..........and we can all deal with curve balls with planning and strategy

Remember, this is Thailand, there is always a way........

[nickmondo]

10 minutes ago, Lopburikid said:

My pensions both state and military are taxed in the UK. Plus, I have a fixed exchange rate The UK has a tax treaty with Thailand.

you DO NOT need to submit a tax return unless the Thai Gov tell you to apply for a tax number.

Do NOTHING.

[10baht]

8 minutes ago, peterrabbit said:

If you think, that then you had better read this:-

https://www.thaiexaminer.com/thai-news-foreigners/2024/01/06/new-tax-era-as-revenue-now-shares-data-with-138-countries/

Sorry I can't find where Bank Of America is sending information to The Revenue Department of Thailand

[timendres]

3 hours ago, Trippy said:

I'm in the same boat. If all my income is from US social security, do I need to still file a Thai tax return? Or get a Thai tax ID number?

 

Honestly, I cannot answer that question. Since the income is not subject to tax, that would suggest you do not need to file. However, since it is over the minimum income required to file, and it will register money transfers to Thailand (mine is deposited directly), then it might require the filing stating "no tax due". The only benefit to having to file, is if you are parking 800K like I do, it gives you the opportunity to reclaim the interest withheld by the bank. Not a lot of money, but if the filing is mandatory, then I will collect to offset the "expense" of producing the filing.

[10baht]

1 hour ago, KannikaP said:

The way I read it, someone over 65 gets a 190k allowance, plus 60k for himself, plus 60k if married, plus the first 150k @ 0%.

150k BAHT not euros or US$. That's 150000/35 = $4286 = next to nothing in the land of the Big PX.

[bkk6060]

Really good info thanks

[gargamon]

Great. Some real info. Sure glad I didn't follow the other thread that was just speculation.

Thanks. 

[Mike Lister]

54 minutes ago, Dogmatix said:

 

Interesting, if they have given the 50% allowance up to max 100,000 to foreign pension. Indeed this should be the case according to the letter of the RC but I assumed they might discriminate against foreign pensions. Technically it should only apply employment pensions but perhaps they will be generous enough to extend it to state pensions.  However, for most foreigners tax credits should be claimable for pension income and US social security is protected anyway.

 

Here's what the RD says about declaring Thai interest income and dividend income. 

 "Interest

The following forms of interest income may, at the taxpayer’s selection, be excluded from the computation of PIT provided that a tax of 15 per cent is withheld at source:

 

1. interest on bonds or debentures issued by a government organization;
2. interest on saving deposits in commercial banks if the aggregate amount of interest received is not more than 20,000 baht during a taxable year;
3. interest on loans paid by a finance company;
4. interest received from any financial institution organized by a specific law of Thailand for the purpose of lending money to promote agriculture, commerce or industry.

Dividends

Taxpayer who resides in Thailand and receives dividends or shares of profits from a registered company or a mutual fund which tax has been withheld at source at the rate of 10 per cent, may opt to exclude such dividend from the assessable income when calculating PIT. However, in doing so, taxpayer will be unable to claim any refund or credit as mentioned in 2.4."

 

So Thai bank interest is taxable if over 20,000, even if 15% tax already withheld but, if non-employment income is the only assessable income you have, I guess, no need to declare it, unless total non-employment income is over 120,000.  If your interest income is over 20,000, it seems you can avoid declaring it, if you keep your money in a finance company or in government bonds.  Potentially you could pay more than the 15% withholding tax, if you were in a higher tax bracket.  Even with such low interest rates in Thailand, it is not difficult to get more than 20,000 in bank interest.

 

But what I said about Thai dividends stands.  No limit to how much you can receive without declaring, if you are happy with the 10% withholding tax.  There is a sweet spot for filing tax credits on Thai dividends which is around 2-4 million dividend income a year. As long as you don't have any other income, you can get a tax rebate of over 4000,000 on dividend income of 3 million, if you do RMF and have other deductions too.  That means that you actually get more tax back than was deducted.  I guess these dividend tax credits will be abolished sooner or later though.  

 

 

Did you ever write a short post with a question where the post was less than a couple of lines, I get exhausted and lose interest in reading your posts and move on to the next person.

[Dmaxdan]

I know this new interpretation of existing taxation rules started on January 1st. 

But am I right in thinking that I, and indeed everybody else won't need to file a tax return until the start of next year?

So we will have all of this year to clarify how exactly this will effect us?

 

 

 

 

 

 

[Lopburikid]

37 minutes ago, nickmondo said:

you DO NOT need to submit a tax return unless the Thai Gov tell you to apply for a tax number.

Do NOTHING.

I heard that, but wasn't sure about how much truth there was to it. Just in case I calculated that with my pension's income and with  the B160,000 and without claiming any expenditure, such as rent, visa fees I would be required to pay B22,500. a year tax on my remaining income. But thanks for the heads up.

[Mike Lister]

11 minutes ago, Dmaxdan said:

I know this new interpretation of existing taxation rules started on January 1st. 

But am I right in thinking that I, and indeed everybody else won't need to file a tax return until the start of next year?

So we will have all of this year to clarify how exactly this will effect us?

 

 

 

 

 

 

Yes, pretty much. But this doesn't absolve you from filing a return this year, covering the past year, under the old rules.

[Mike Lister]

43 minutes ago, nickmondo said:

you DO NOT need to submit a tax return unless the Thai Gov tell you to apply for a tax number.

Do NOTHING.

So you are expecting a personal invite from the government to apply for a TIN and file a tax return......that's interesting and also completely wrong! Why do you think you don't have to file taxes, if you are tax resident and meet the threshold for filing a return, just because nobody came and told you to.......jeeze?

[Moonlover]

3 hours ago, TigerandDog said:

1 hour ago, 747man said:

Does this mean that my very poor U.K. State Pension is going to be Taxed HERE In Thailand, I Recieve a very POOR 130,000 Baht a Year ??

 

3 hours ago, TigerandDog said:

that will depend on your age. If you are under 65 the first 150k is tax free, older than 65 the first 190k is tax free. So it would seem that your 130k would be exempt from tax.

You cannot be under 65 years and draw state pension.

[Toby1947]

6 hours ago, Pickwick said:

I appreciate the link but I am not sure I understand the information. The last part specifically - does that mean if I remit money - let's say 5 million baht per year - from my overseas account to my Thai girlfriend's account in Thailand it is not assessable income for me and I do not need to file a tax return, as it is a gift? However, my Thai girlfriend will now need to file a tax return even though no tax is due (as it is under 10 million baht). Or have I completely missed something (I am guessing the latter!). Appreciate your time and efforts with this, many thanks.

If you are foolish enough to deposit 5 million baht into some Thai bird's account, she'll be long gone with that geezer who hangs around. You know the one she tells you it's her brother. Don't worry there's thousands of you mugs out there. 😂🤣😂

[sambum]

And if I should have to pay TAX in Thailand, presumably I will also be entitled to subsidised HEALTH CARE? 

[scottiejohn]

5 minutes ago, Moonlover said:

 

You cannot be under 65 years and draw state pension.

May go up to 68 in the next decade!

Proposed new timetable for State Pension age increases - GOV.UK (www.gov.uk)

 

 

[scottiejohn]

3 minutes ago, sambum said:

And if I should have to pay TAX in Thailand, presumably I will also be entitled to subsidised HEALTH CARE? 

Why!

How many countries subsidise health care?

An overview of countries that offer free healthcare (skuad.io)

[Thingamabob]

Perhaps best to avoid presenting a tax return to the authorities until it is formally requested. Up to now extensions of stay are still being granted without any reference to tax. 

[scottiejohn]

15 minutes ago, Toby1947 said:

If you are foolish enough to deposit 5 million baht into some Thai bird's account, she'll be long gone with that geezer who hangs around. You know the one she tells you it's her brother. Don't worry there's thousands of you mugs out there. 😂🤣😂

How many sick buffaloes does she have?

[Mike Lister]

2 minutes ago, Thingamabob said:

Perhaps best to avoid presenting a tax return to the authorities until it is formally requested. Up to now extensions of stay are still being granted without any reference to tax. 

Formally requested, you mean like a state opening of Parliament type event!

 

There is no connection (at present) between immigration affairs and tax affairs, they are different government departments that deal with totally different areas. 

 

I have news for you, you were given a formal request to file a tax return, the second you met the criteria for filing one, the fact that you didn't means you ignored that (implied) request. The criteria are:

 

- You became tax resident

- you had assessible income over 60k baht in the tax year.

[miketu]

Am I understanding this correctly? -  my income is only taxable if I bring/import  it into Thailand?  If I do not bring my income into Thailand it is not taxable?  Is this the correct interpretation?

 

[Mike Lister]

18 minutes ago, sambum said:

And if I should have to pay TAX in Thailand, presumably I will also be entitled to subsidised HEALTH CARE? 

Nope, because you haven't paid into the social security system and neither will you, until you get a work permit and a job.. 

[Mike Lister]

Just now, miketu said:

Am I understanding this correctly? -  my income is only taxable if I bring/import  it into Thailand?  If I do not bring my income into Thailand it is not taxable?  Is this the correct interpretation?

 

Yes

[Mike Lister]

1 hour ago, 10baht said:

What are the penalties if anything is mistakenly reported or forgotten to report by mistake. Also if toy make $40,000.00 - jointly - and it is all Social Security income and only bring $39,000.00 to Thailand to live on, what do you report??? ZERO?

$40k per tax year in SSc income from the US would be zero tax in Thailand because all excluded by DTA - it's all excluded income (or so the experts on the US DTA have posted).

[kingstonkid]

6 hours ago, Mike Lister said:

Sorry but I can't help with gift tax.

Mike doyou know of any tax accounts in the country that are going ot be able to help us.  I would rather set something up to pay tax quarterly then get hit iwth the lump sum

[KannikaP]

2 hours ago, Will B Good said:

Suffering from a good mix of stupidity, early onset dementia and laziness my friend asks......is anyone clever enough or even willing to interpret all of this tax malarkey purely from a UK expat perspective.......??? 

Didn't Charlie & Mike do this at the start?

[Mike Lister]

Just now, kingstonkid said:

Mike doyou know of any tax accounts in the country that are going ot be able to help us.  I would rather set something up to pay tax quarterly then get hit iwth the lump sum

Sorry, no I don't.

 

You have time on this, there is no need to panic like some are doing. A tax return is due this quarter for the previous tax year that ended 31 December 2023. But a tax return has been due every first quarter, for all the years that you've been here for as far back as you've been here so this quarter is no different from any previous first quarters. If you were tax resident last year and you had assessible income over 60k Baht, you should file a tax return, exactly the same as in previous years. If you haven't and didn't, oh well, that water under the bridge.

 

The new tax rule started on 1 January this year, this means when you file a tax return Next first quarter, you will need to consider the new rule, but not until then. 

 

 

[KannikaP]

3 hours ago, Dogmatix said:

 

To get the spouse allowance you have to do a joint tax filing and the first time you claim you will be asked to submit a marriage certificate. So no. Common law marriages are not recognized for this purpose.  

 

No sure how you get to allowances and deductions over the following without having deductions for things like investment in RMF/SSF or insurance and stuff.

Basic allowance  60,000

Senior allowance 190.000

Totals                   270,000.

 

Adding the tax free threshold of 150,000, tax would start 420,000.

 

When I was at school 60 + 190 = 250, not 270 !

[Sheryl]

Am I correct in assuming that where it says "if your income does not exceed 120,000 baht per year, you do not need to file a tax return" it really means if your assessable income income does not exceed..."

 

?