New Thai Tax On Remittances??

[giogio]

Dear tax expats and experts

 

i live in thailand with “retirement visa”, here i have no wife, no business, no work, no money in thai bank that produces interest. I do nothing in thailand that produces money and i will stay single forever.

 

i only have my savings in europe (and in few years a little pension), so every month i transfer what s needed to pay bills overhere.

Per year my remittances to thailand are over the threshold of 120.000 baht

 

with this new thai tax in mind, does anyone can point me to to where i should be looking the answers to the following questions:

 

-will i need to apply for a thai TIN by december 2024?

-will i need to file a tax return by march 2025?

-will i pay taxes on this remittances?

-how much would i be expected to pay?

 

Thank you all for contributions

Edited January 20 by metisdead
ALL CAPS removed from topic title.

[Mike Lister]

3 minutes ago, giogio said:

Dear tax expats and experts

 

i live in thailand with “retirement visa”, here i have no wife, no business, no work, no money in thai bank that produces interest. I do nothing in thailand that produces money and i will stay single forever.

 

i only have my savings in europe (and in few years a little pension), so every month i transfer what s needed to pay bills overhere.

Per year my remittances to thailand are over the threshold of 120.000 baht

 

with this new thai tax in mind, does anyone can point me to to where i should be looking the answers to the following questions:

 

-will i need to apply for a thai TIN by december 2024?

-will i need to file a tax return by march 2025?

-will i pay taxes on this remittances?

-how much would i be expected to pay?

 

Thank you all for contributions

You will almost certainly not have to pay tax on your remittances but you you will have to wait until the new rules are announced before your other questions can be accurately answered, with any confidence. In the meantime I suggest you read the simple guide to personal income tax, in an adjacent thread.

[KannikaP]

17 minutes ago, giogio said:

i only have my savings in europe (and in few years a little pension), so every month i transfer what s needed to pay bills overhere.

Do you need to transfer 65k per month to keep your Retirement Extension?

 

65k x 12 = 780k. There is a 190k allowance, plus 60k = 250k. Then the first 150k is at 0% tax, and then 150 - 300k at 5%. So you are liable for 5% on 300k plus 10% on 80k. Total tax = 15k + 8k = 23k for the year.

Edited January 20 by KannikaP

[giogio]

2 minutes ago, KannikaP said:

Do you need to transfer 65k per month to keep your Retirement Extension?

No

 

and i use a specialized agent  for “ret visa”

 

i really keep no money here

[KannikaP]

4 minutes ago, giogio said:

No

 

and i use a specialized agent  for “ret visa”

 

i really keep no money here

Using the above tax allowances etc, anything over 400k is liable for tax.

You must register for a TIN if your income is over 120k.

[Mike Lister]

18 minutes ago, KannikaP said:

Do you need to transfer 65k per month to keep your Retirement Extension?

 

65k x 12 = 780k. There is a 190k allowance, plus 60k = 250k. Then the first 150k is at 0% tax, and then 150 - 300k at 5%. So you are liable for 5% on 300k plus 10% on 80k. Total tax = 15k + 8k = 23k for the year.

This is not correct if the transfers are made from savings earned before 1 Jan 2024.

[giogio]

14 minutes ago, Mike Lister said:

You will almost certainly not have to pay tax on your remittances but you you will have to wait until the new rules are announced before your other questions can be accurately answered, with any confidence. In the meantime I suggest you read the simple guide to personal income tax, in an adjacent thread.

I will read your mentioned guide

 

what new rules need to be announced? (Or, did u mean to say: we hope changes of current new rules?)

 

i visited a provincial inland revenue last week, spoke in depth with chief director. First he told me was: “foreigners seem to misinterpret the rule”. Provincial Inland revenues have already been instructed by govnmt that remittances will be taxed according to certain criterias. He gave me copy of govnmt instructions, the forms to apply for TIN and told me to come back by march 2025 to file tax return.

 

that s why i posted on forum

[Mike Lister]

2 minutes ago, giogio said:

I will read your mentioned guide

 

what new rules need to be announced? (Or, did u mean to say: we hope changes of current new rules?)

 

i visited a provincial inland revenue last week, spoke in depth with chief director. First he told me was: “foreigners seem to misinterpret the rule”. Provincial Inland revenues have already been instructed by govnmt that remittances will be taxed according to certain criterias. He gave me copy of govnmt instructions, the forms to apply for TIN and told me to come back by march 2025 to file tax return.

 

that s why i posted on forum

What you were told is correct, some transfers may be taxed, depending on various factors. Please read the document and come back with any questions

[Will B Good]

3 minutes ago, Mike Lister said:

This is not correct if the transfers are made from savings earned before 1 Jan 2024.

I find that very confusing.....my pensions, rentals, dividends, interest payments etc.....all go into one bank account.....who is to say what comes to Thailand came from what savings???

[Presnock]

5 minutes ago, giogio said:

I will read your mentioned guide

 

what new rules need to be announced? (Or, did u mean to say: we hope changes of current new rules?)

 

i visited a provincial inland revenue last week, spoke in depth with chief director. First he told me was: “foreigners seem to misinterpret the rule”. Provincial Inland revenues have already been instructed by govnmt that remittances will be taxed according to certain criterias. He gave me copy of govnmt instructions, the forms to apply for TIN and told me to come back by march 2025 to file tax return.

 

that s why i posted on forum

And what pray tell were the "certain criterias'?

[Hamus Yaigh]

13 minutes ago, KannikaP said:

You must register for a TIN if your income is over 120k.

 

The guy said he has no income. Generally, transferring cash from one savings account to another, even if those accounts are in different countries, is not considered income for tax purposes.

[Mike Lister]

5 minutes ago, Will B Good said:

I find that very confusing.....my pensions, rentals, dividends, interest payments etc.....all go into one bank account.....who is to say what comes to Thailand came from what savings???

Your statements covering all the various accounts, based on what you declare on the tax return. Suggest you read the simple guide to tax thread and the document in the op.

[giogio]

Just now, Mike Lister said:

What you were told is correct, some transfers may be taxed, depending on various factors. Please read the document and come back with any questions

Can you allow me a final question? (then i go and read “tax guide”

 

if i stay here all of 2024 (and i will transfer money to thailand) then before march 2025 i leave thailand moving on to cambodia/Philippines. 

Can i simply ignore this new red tape situation?

[giogio]

20 minutes ago, KannikaP said:

Using the above tax allowances etc, anything over 400k is liable for tax.

You must register for a TIN if your income is over 120k.

I dont produce income nowhere

 

i use my saving in europe which i transfer here monthly

[Mike Lister]

1 minute ago, giogio said:

Can you allow me a final question? (then i go and read “tax guide”

 

if i stay here all of 2024 (and i will transfer money to thailand) then before march 2025 i leave thailand moving on to cambodia/Philippines. 

Can i simply ignore this new red tape situation?

Depends on the source of the funds, from where, how much etc.GO READ THE DOCUMENT please

 

[KannikaP]

9 minutes ago, Hamus Yaigh said:

 

The guy said he has no income. Generally, transferring cash from one savings account to another, even if those accounts are in different countries, is not considered income for tax purposes.

The guy said that he transfers what is need into Thailand. So that is considered as income. 

[KannikaP]

13 minutes ago, Will B Good said:

I find that very confusing.....my pensions, rentals, dividends, interest payments etc.....all go into one bank account.....who is to say what comes to Thailand came from what savings???

I would argue that my State Pension comes from savings taken from my salary 50+ years ago

[Mike Lister]

2 minutes ago, KannikaP said:

The guy said that he transfers what is need into Thailand. So that is considered as income. 

No, those transfers are inbound remittances which may or may not be income, which in turn may or may not be taxable.

[KannikaP]

20 minutes ago, Mike Lister said:

This is not correct if the transfers are made from savings earned before 1 Jan 2024.

Do you mean savings which I put in my UK bank in say year 2000?

 

[Mike Lister]

2 minutes ago, KannikaP said:

I would argue that my State Pension comes from savings taken from my salary 50+ years ago

You would be wrong as far as tax law and every Revenue department in the world was concerned.

[Mike Lister]

Just now, KannikaP said:

Do you mean savings which I put in my UK bank in say year 2000?

 

Yes, you really do need to go and read the simple tax guide also.

[Chivas]

I think as in other threads this is a very much wait and see situation until it all becomes clearer

 

I definately would not be "red flagging" myself at this stage

[KannikaP]

Just now, Mike Lister said:

Yes, you really do need to go and read the simple tax guide also.

Please post a link to this Guide. Thanks.

[Mike Lister]

1 minute ago, KannikaP said:

Please post a link to this Guide. Thanks.

Will somebody please oblige this poster, I'm away from my PC and travelling, it's a pinned thread in the finance section

[MJCM]

2 minutes ago, KannikaP said:

Please post a link to this Guide. Thanks.

 

[Will B Good]

If I transfer my 400,000 each year for my extension and then just use a credit card for any further expenditure does that avoid tax? Is it legal? Or will the costs associated with transferring money like this be greater than the tax?

 

I travel once or twice a year to the UK.....can I just bring in a suitcase full of cash each time?

 

Or should I just read the tax laws...555

[Chivas]

1 minute ago, Will B Good said:

 

 

I travel once or twice a year to the UK.....can I just bring in a suitcase full of cash each time?

 

 

 

Suspect you wont be the only one !  Declare it outbound to Border Force though otherwise a tug on final gate by a money dog may be painful lol

[Mike Lister]

2 minutes ago, Will B Good said:

If I transfer my 400,000 each year for my extension and then just use a credit card for any further expenditure does that avoid tax? Is it legal? Or will the costs associated with transferring money like this be greater than the tax?

 

I travel once or twice a year to the UK.....can I just bring in a suitcase full of cash each time?

 

Or should I just read the tax laws...555

Read the simple guide and please don't post about tax avoidance and, if you don't understand something, please ask a question rather than posting confused emojis. Thanks

[Will B Good]

How can the Thai government insist you transfer money for an extension and then jump on it as income and tax it?

 

Seems a tad unfair?

[KannikaP]

8 minutes ago, MJCM said:

 

Thank you Mike.