Paying for Thai goods and services from a foreign account to reduce “income-looking” bank transfers

[EcureuilTenace]

Does anyone know what the position is if you reduce your “income-looking” bank transfers to Thailand by paying for Thai goods and services with a card/ account from your foreign bank?

I can see issues arising though. Opening a new account in UK or Europe is nigh impossible and keeping an existing one is extremely precarious (some UK banks have already started forced closure of non-residents accounts). Also, you get very high exchange commission rates that way. Any views? Other  issues?

 

Another more pointed question if I may:  “You must file a Thai tax return between 1 January and 31 March”. If I did one between this Jan and March 24, it would be to cover which period? Jan 23 to Dec 23?

 

Thank you

[freeworld]

 

For income 1st Jan 2024 to 31st Dec 2024 one files an income tax return in Jan to March 2025.

[Foxx]

1 hour ago, EcureuilTenace said:

Opening a new account in UK or Europe is nigh impossible

 

Generally true.  However, you can probably open an account with Wise and get a debit card, provided you've got a European address for delivery of the card.  They're less fussy, certainly, than UK banks.  Better exchange rates/lower fees, too.  I now use my Wise card for pretty much all my purchases here.

[treetops]

10 hours ago, EcureuilTenace said:

Does anyone know what the position is if you reduce your “income-looking” bank transfers to Thailand by paying for Thai goods and services with a card/ account from your foreign bank?

The information from your UK bank will be available to the Thai authorities but whether they have the resource or inclination to do anything with it is another matter.

[timendres]

I question if the transaction would count as "bringing money into Thailand".

The transaction you are describing is a loan, not an income, which is what Thailand is taxing.

In reality, money was handing to the Thai merchant by your bank. not by you.

And when you pay off that credit card with your home currency, that transaction does not get involved with Thailand.

Maybe someone knows better than me, and can clarify this point.

 

I did not read the details of the recent excellent post I saw, which may have answered this, so you might wish to consult that:

 

 

[Foxx]

5 hours ago, treetops said:

The information from your UK bank will be available to the Thai authorities

 

How? Not without a UK court order, I suspect.

[bamnutsak]

This option has been raised in most threads here, and debated without any sort of final definitive resolution.

 

Pending some sort of edict or rule from Revenue I think this will remain an open issue.

 

 

 

 

[Highlandman]

You'll be fine. Like others have said, you're spending your funds here, you're not remitting anything from abroad by using said approach.

[treetops]

8 hours ago, Foxx said:

How? Not without a UK court order, I suspect.

Both countries are participants in the Common Reporting Standard which means an annual transfer of data detailing bank account activity.

[ukrules]

6 minutes ago, treetops said:

Both countries are participants in the Common Reporting Standard which means an annual transfer of data detailing bank account activity.

 

Once a year, account balances on accounts at end of year, now this is the important bit this will happen where you have told them that you're a Thai tax resident.

 

If you have a bank account sitting in England with an English address on it like many of us do then they're not sending anything to anyone, ever.

 

Edited January 9 by ukrules

[Bobthegimp]

8 hours ago, Foxx said:

 

How? Not without a UK court order, I suspect.

 

Thailand joined some sort of OECD scheme whereby the governments of God knows how many countries share tax information with each other in order to get corporations and the wealthy to "pay their fair share".  Most of the little people love that kind of talk, but not this little person.  

[treetops]

8 minutes ago, ukrules said:

Once a year, account balances on accounts at end of year, now this is the important bit this will happen where you have told them that you're a Thai tax resident.

 

If you have a bank account sitting in England with an English address on it like many of us do then they're not sending anything to anyone, ever.

 

It's more detail than an end of year balance and it applies to anyone deemed a "Reportable Person".  If (and I think it's unlikely) Thailand decide you need a TIN, then you become a "Reportable Person".

[ukrules]

1 hour ago, treetops said:

 

It's more detail than an end of year balance and it applies to anyone deemed a "Reportable Person".  If (and I think it's unlikely) Thailand decide you need a TIN, then you become a "Reportable Person".

 

Yeah perhaps, I think they might also report account throughput but can't remember for sure, was a while back when I looked at it in any detail.

 

There's a lot of people who seem to think that whole transaction level bank statements are sent automatically - that's not what happens.

 

There was also something different about the volume of the account and how it's treated, if you have got like less than a million (dollars I think) in or going through your foreign account in a single year then it's treated differently to the big guys.

 

But what exactly are you talking about here? Thailand sending details to your 'home country' or your home countrys bank sending details to Thailand?

 

 

[treetops]

On 1/9/2024 at 10:43 AM, ukrules said:

But what exactly are you talking about here? Thailand sending details to your 'home country' or your home countrys bank sending details to Thailand?

 

My understanding is it goes both ways.

[ukrules]

1 hour ago, treetops said:

 

My understanding is it goes both ways.

 

If you have a Thai TIN then are they notifying the Revenue Department of Thailand from a Thai bank?

 

For sure if you have a TIN or not but don't tell your home countries bank then they're not sending anything anywhere as they won't know.

 

[treetops]

4 minutes ago, ukrules said:

If you have a Thai TIN then are they notifying the Revenue Department of Thailand from a Thai bank?

 

For sure if you have a TIN or not but don't tell your home countries bank then they're not sending anything anywhere as they won't know.

 

I agree if your home bank doesn't know you're a tax resident elsewhere they may not send any data.  If a Thai bank identifies you as tax resident then their data will be sent to your home country so that may close the loop in identifying you in the UK or wherever.

 

I don't know how or what the Thai banks notify the RD with.