Money from abroad

[Mika78]

Good morning

For months I received a monthly 30000 THB from abroad from a guy who is renting something in my country. With the new rules, how it will works? Money will come in the bank as usual? They will apply some sort of taxes and will get less than the usual? Thank you if someone can help me to understand. Appreciate.

[CharlieH]

MOVED to Finance forum

[freeworld]

Theoretically tax should be paid in your home country on that.

[Gottfrid]

8 minutes ago, freeworld said:

Theoretically tax should be paid in your home country on that.

It depends what country it is. Is there a tax treaty? Does the OP live in Thailand more than 180 days in a calendar year?

[Mike Lister]

The money will not be taxed by the bank when it is received. If anything, that money should be reported on a Thai tax return as income but that will depend on whether you are Thai tax resident in the year it is received and whether your total income exceeds the threshold for filing a return.  There is a separate thread on this subject and a document at the start of it that you may wish to read:

 

 

 

[freeworld]

5 minutes ago, Gottfrid said:

It depends what country it is. Is there a tax treaty? Does the OP live in Thailand more than 180 days in a calendar year?

Depend on the laws where the income is generated and who has taxing rights in the dta.

[Gottfrid]

1 minute ago, freeworld said:

Depend on the laws where the income is generated and who has taxing rights in the dta.

Hmmm.... ??? Think you should read up on things a little bit. I could just say, that´s what I posted, but you seem to not be aware of some things. If there is no tax treaty between Thailand and the country you are referring to, and the OP stays more than 180 days in Thailand during a calendar year then the sum earned and transferred to Thailand WILL be subject to Thai tax if the total amount earned reach the taxable income amount. As you posted it is 30k baht per month, which would total 360k in one calendar year. Then it will be subject for tax as the threshold is 150k baht, assuming you have no other deductions to make.

[freeworld]

11 minutes ago, Gottfrid said:

Hmmm.... ??? Think you should read up on things a little bit. I could just say, that´s what I posted, but you seem to not be aware of some things. If there is no tax treaty between Thailand and the country you are referring to, and the OP stays more than 180 days in Thailand during a calendar year then the sum earned and transferred to Thailand WILL be subject to Thai tax if the total amount earned reach the taxable income amount. As you posted it is 30k baht per month, which would total 360k in one calendar year. Then it will be subject for tax as the threshold is 150k baht, assuming you have no other deductions to make.

He is renting something out in the other country where the income is generated.

 

Immoveable property? He does not say.

Edited January 12 by freeworld

[Gottfrid]

3 minutes ago, freeworld said:

He is renting something out in the other country where the income is generated.

 

Immoveable property?

I give up! Still depends on if there is a tax treaty between the country and Thailand as well as the OP´s length of stay in one calendar year.

[freeworld]

Just now, Gottfrid said:

I give up! Still depends on if there is a tax treaty between the country and Thailand as well as the OP´s length of stay in one calendar year.

Take the uk for eg

 

INTM153070 - Description of double taxation agreements: Income from immovable property

The Article dealing with income from immovable property gives the primary taxing rights to the country in which the property is situated. But the income is also taxable in the country of residence of the taxpayer. In the United Kingdom `immovable property’ means, generally, land, the buildings erected on land, minerals in the soil and rights over land.

[Gottfrid]

1 minute ago, freeworld said:

Description of double taxation agreements:

Agreements? So, you are then referring to a tax treaty between the UK and Thailand, right?

Beacause if there is none, then this little thing will go in to action:

The Article dealing with income from immovable property gives the primary taxing rights to the country in which the property is situated. But the income is also taxable in the country of residence of the taxpayer.

[freeworld]

31 minutes ago, Gottfrid said:

Agreements? So, you are then referring to a tax treaty between the UK and Thailand, right?

Beacause if there is none, then this little thing will go in to action:

The Article dealing with income from immovable property gives the primary taxing rights to the country in which the property is situated. But the income is also taxable in the country of residence of the taxpayer.

The UK was only referred as an example. The op needs to read the laws of the country where the property is situated and how the income from that property is treated there regarding his residence or non residence.

 

Usually for immoveable property the primary taxation rights are with the country in which the property is situated. Taxes should be paid there and he theoretically should declare the income where he is resident as well, if it is remitted to Thailand, and claim a rebate on Thai taxes to be paid on the taxes paid where the property is situated.

 

If there is no DTA then needs to read the laws on tax of income where the property is situated and the remittance of income to Thailand, may have to pay tax twice unless Thailand gives a pass.

Edited January 12 by freeworld

[Gottfrid]

7 minutes ago, freeworld said:

The UK was only referred as an example. The op needs to read the laws of the country where the property is situated and how the income from that property is treated there regarding his residence or non residence.

 

Usually for immoveable property the primary taxation rights are with the country in which the property is situated. Taxes should be paid there and he theoretically should declare the income where he is resident as well, if it is remitted to Thailand, and claim a rebate on Thai taxes to be paid on the taxes paid where the property is situated.

 

If there is no DTA then needs to read the laws on tax of income where the property is situated and the remittance of income to Thailand, may have to pay tax twice unless Thailand gives a pass.

 

Yeah tax is complicated.

Ok, so then it is like in my original post, then.

[Everyman]

no changes. 

[freeworld]

13 minutes ago, Gottfrid said:

Ok, so then it is like in my original post, then.

Yes reading your post again, understood, and if there is a dta then theoretically he will claim a rebate against Thai taxes.

Edited January 12 by freeworld

[Mika78]

He is renting in France a covered parking lot (we call it garage) for his car and bikes.

And he using "family expenses" as transfer porpouse.

Edited January 12 by Mika78

[Mika78]

1 hour ago, Gottfrid said:

 Does the OP live in Thailand more than 180 days in a calendar year?

Maybe it's a stupid question, but how the bank now how long I leave in Thailand?

[foreverlomsak]

21 minutes ago, Mika78 said:

Maybe it's a stupid question, but how the bank now how long I leave in Thailand?

Nothing to do with the bank, the requirements to submit income data for tax purposes is wholly with the Thai Revenue Department.

This is why some people are suggesting that annual extensions from Immigration will become dependent in the future on having a completed tax certificate from the Revenue Department.

[Gottfrid]

4 hours ago, Mika78 said:

Maybe it's a stupid question, but how the bank now how long I leave in Thailand?

Nah, not stupid question at all. The bank will be obligated to inform the revenue department of foreign transactions to different accounts. After that there will be information about your time in Thailand from immigration according to the stamps in your passport. How they will manage to put all that together, is something I am not able to answer, though. ;-) 

[NE1]

 It would be easier to have the money put into a home land account and then use an ATM when ever you need cash ?

Edited January 12 by NE1

[treetops]

1 hour ago, NE1 said:

It would be easier to have the money put into a home land account and then use an ATM when ever you need cash ?

 

Information on debit card ATM withdrawals will also be in the data communicated from his overseas bank to Thailand.

[NE1]

9 minutes ago, treetops said:

Information on debit card ATM withdrawals will also be in the data communicated from his overseas bank to Thailand.

How is the contents of your bank in your homeland any business of the Thai taxation dept.

You would not enter information of your homeland accounts on a Tax form in Thailand would you !

 

[treetops]

24 minutes ago, NE1 said:

How is the contents of your bank in your homeland any business of the Thai taxation dept.

You would not enter information of your homeland accounts on a Tax form in Thailand would you !

 

Both countries have signed up to the OECD Common Reporting Standard which allows for this information to be shared.

[Scouse123]

11 hours ago, treetops said:

 

Information on debit card ATM withdrawals will also be in the data communicated from his overseas bank to Thailand.

Don't believe that for one minute.

 

You are guessing methinks!

[Scouse123]

11 hours ago, treetops said:

 

Both countries have signed up to the OECD Common Reporting Standard which allows for this information to be shared.

 

All this would overwhelm the primitive Thai tax authorities and bog them down forever.

 

And nobody knows yet what is going to occur as information has been noticeable by its absence

[CANSIAM]

15 hours ago, Gottfrid said:

Nah, not stupid question at all. The bank will be obligated to inform the revenue department of foreign transactions to different accounts. After that there will be information about your time in Thailand from immigration according to the stamps in your passport. How they will manage to put all that together, is something I am not able to answer, though. ;-) 

Rest easy, they will not be able to handle the workload.........

[Mike Lister]

1 hour ago, Scouse123 said:

Don't believe that for one minute.

 

You are guessing methinks!

When somebody from the UK, for example, places their HSBC UK debit  card into a Bangkok Bank ATM card in Thailand and withdraws 10,000 baht in foreign currency, details of that transaction, card holder and card number remain with Bangkok Bank, HSBC UK, the visa/mastercard bank network that drives the ATM and the Thai central bank (because a foreign currency transaction is involved). All those entities need to capture that information so that the transaction can be reconciled and settled.

[Mike Lister]

21 hours ago, freeworld said:

Depend on the laws where the income is generated and who has taxing rights in the dta.

 

21 hours ago, Gottfrid said:

Hmmm.... ??? Think you should read up on things a little bit. I could just say, that´s what I posted, but you seem to not be aware of some things. If there is no tax treaty between Thailand and the country you are referring to, and the OP stays more than 180 days in Thailand during a calendar year then the sum earned and transferred to Thailand WILL be subject to Thai tax if the total amount earned reach the taxable income amount. As you posted it is 30k baht per month, which would total 360k in one calendar year. Then it will be subject for tax as the threshold is 150k baht, assuming you have no other deductions to make.

You are both correct and both broadly saying the same things! 

 

(except the threshold is 120k, not 150k)

[NE1]

24 minutes ago, Mike Lister said:

When somebody from the UK, for example, places their HSBC UK debit  card into a Bangkok Bank ATM card in Thailand and withdraws 10,000 baht in foreign currency, details of that transaction, card holder and card number remain with Bangkok Bank, HSBC UK, the visa/mastercard bank network that drives the ATM and the Thai central bank (because a foreign currency transaction is involved). All those entities need to capture that information so that the transaction can be reconciled and settled.

That is every ATM withdrawal by any foreigner on holiday in Thailand.

Man they are going to be swamped.

Edited January 13 by NE1

[Mike Lister]

1 minute ago, NE1 said:

That is every ATM withdrawal by any foreigner on holiday in Thailand.

Man they are going to be swamped.

It's a lot of data for sure. But if you think about it, everyone involved in the chain needs a record in order to balance their respective books and update accounts and to retrace their steps, in case an issue arises.