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Expat Tax Twists in Thailand: Navigating the New Landscape in 2024


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Posted
17 minutes ago, Mike Lister said:

DTA's provide a lot of relief for many people, including the fact that any tax paid on income in the home country can be used to offset any tax liability in Thailand. Because Thailand's tax rates are generally lower than most in the West, this means that few people will pay additional tax on income that has already be en taxed overseas. You might want to read this:

 

 

 

 

 

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Yes, and the two main takeaways from this are that:

#1 - You have to get insight into the content of the DTA between your home-country (or the country where you earned the income) and Thailand, to determine whether the types of income you earned are ASSESSABLE income or whether they are exempt according to the terms of the DTA.

#2 - Irrespective whether as a result of the above research, you fall under the tresshold that you will effectively be taxed by the Thai IRS, you would have to submit an income declaration when your assessable income is above 120K (or 220K when combined with the income of your Thai wife). 

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Posted
4 minutes ago, Red Phoenix said:

~

Yes, and the two main takeaways from this are that:

#1 - You have to get insight into the content of the DTA between your home-country (or the country where you earned the income) and Thailand, to determine whether the types of income you earned are ASSESSABLE income or whether they are exempt according to the terms of the DTA.

#2 - Irrespective whether as a result of the above research, you fall under the tresshold that you will effectively be taxed by the Thai IRS, you would have to submit an income declaration when your assessable income is above 120K (or 220K when combined with the income of your Thai wife). 

There is an even more important one that comes before those two and that is if your income has already been taxed in your home country, that tax can be used to offset any tax liability here. Please read this:

 

 

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Posted
6 minutes ago, retarius said:

Thank you for this. I have a 401K account in the US into which untaxed funds went during my working life. It is really deferred income, and so the US taxes any distributions you take. Up to age 70 you can opt not too take any distributions. As I understand it (and I may be wrong), under the US DTA, you can opt to pay the tax in either jurisdiction, Thailand or US. So I suppose the challenge is then, where do you want your tax dollars to go? Here to build roads and schools (and supply all those whose noses are trough) or in the US where I get zero benefit, and where they spend too much money, imho, warmongering. My choice boils down to supporting endless war or endless corruption.

Poster @JimGant will be best placed to advise on this.

Posted
15 minutes ago, retarius said:

I have wondered about 'gifts' to my partner here, and to whom I am not married. My situation is specific in that I wish to gift my partner as I have life shortening disease and cognitive impairment. I would like to gift her now so as to avoid her possibly having to fight for a share of my US assets when I am gone.

My ex-wife and kids are nice people but I don't really think I can trust them to look after my current partner (of 18 years) when I am not around physically or mentally to police things. 

Note there are valid, logical and legal reasons, which I will not go into here, as to why my partner and I are not married.

The position on gifts might end up murky.

Whether or not the gift is taxable and the rate, depends on the relationship between the parties involved. 

 

https://sherrings.com/gift-tax-law-in-thailand.html

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Posted
1 hour ago, ikke1959 said:

most Thais don't even have to fill in a tax form, while some as we have seen last months ear a lot of money without any taxpaying, again double standards for the foreigners

All Thais with income are obliged to declare it and pay tax if applicable - many are within the exempt bracket.  Income-earning Thais do not have any exemption from filing a tax return.   Who are "the Thais earning a lot of money" who are exempted from tax to whom you refer?

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Posted

Let's say my rich aunt wants to give me B2 million to buy a house for me and my spouse....

 

Will that be taxed?

 

And if it won't be taxed, how will the Thai govt. know what is "a gift" compared to what is income?

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Posted

Nothing new... Anyone who did their research already knows about the gifting tax laws in Thailand (which areof little help useless you are married to Thai or supporting your child with a Thai)... This poor old horse is beat and dead. 

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Posted

Now that we pay tax do we have representation in parliament.....thought not. The deductions you can make on your taxable income are quite generous, my tax would work out to be around 1200 Baht per month so it's not debilitating.

Posted
3 minutes ago, Liverpool Lou said:

An good article extolling the virtues of the LTR visa supplemented by anecdotal "case studies" and the usual "we'll have to wait and see speculation, ending with the disclaimer that it is for informational purposes only and should not be considered professional financial or tax advice and that readers are strongly encouraged to consult with a qualified financial advisor. 

The authors interesting SEC licencing/approval details can be seen here...

https://market.sec.or.th/public/orap/PersonProfile01.aspx?lang=en&personrunid=0000092919

 

Of course... they want to raise anxiety to sell more LTRs. That entire program has been a resounding failure since its launch. Less then 7000 sold and most to NonOs getting off of retirement extensions (under the weather pensioner category). Very few net new takers for any of the other 3 categories. 

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