Tax Impact on Spending in Thailand - who opted offshored to overseas services providers?

[Jenkins9039]

As mentioned on the numerous feeds pre-tax introduction (changes) that we would offshore most of our transactions to overseas service providers rather than remitting and paying domestic (think insurances etc) and reduce our expenditure in Thailand so as to not be impacted by the taxes (focus around the tax bands).

 

Well 1 month in and 10 days.

 

After well over a decade, this is the impact.

 

 

I can't imagine we are the only house hold, and I imagine their revenue department will have a fit in the services industry tax revenues, lifestyle VAT Collections when all is said and done next tax season on reality hitting.

 

How about anyone else 'sticking it to the man'. 

[Mike Lister]

For the benefit of those who only speak English, let me try to decipher what you wrote.

 

If I understand you correctly, in order to avoid having to pay tax in Thailand under the new tax rule, you decided to pay for some things using overseas money, perhaps even an offshore account or a foreign credit card....is that what you did?

 

Whilst I'm happy that you're pleased with what you've done, it should be pointed out that paying for goods and services in Thailand, using offshore accounts/cards, is still regarded as taxable income in Thailand. The fact that you're doing things that way and presumably not reporting that "income" is also known as tax evasion. Perhaps I've misunderstood, in which case I think I can be forgiven because of the complexity of your post, so please do feel free to clarify. 

[jayboy]

6 hours ago, Mike Lister said:

t should be pointed out that paying for goods and services in Thailand, using offshore accounts/cards, is still regarded as taxable income in Thailand. The fact that you're doing things that way and presumably not reporting that "income" is also known as tax evasion.

 

I agree that the original post is hard to decipher but your interpretation of it seems correct.

 

In my view there needs to be applied a degree of common sense to this subject, and it's simply inappropriate to describe the use of offshore cards for Thailand services as "tax evasion", not least because there's no certainty payment would be made out of taxable income.It all depends on the circumstances particularly the frequency and intent.As far as the Thai RD department is concerned I would be astonished if they had any problem with a retired expatriate occasionally using an offshore card - not that they would ever know, at least for the foreseeable future.

 

 

[Jenkins9039]

6 hours ago, Mike Lister said:

For the benefit of those who only speak English, let me try to decipher what you wrote.

 

If I understand you correctly, in order to avoid having to pay tax in Thailand under the new tax rule, you decided to pay for some things using overseas money, perhaps even an offshore account or a foreign credit card....is that what you did?

 

Whilst I'm happy that you're pleased with what you've done, it should be pointed out that paying for goods and services in Thailand, using offshore accounts/cards, is still regarded as taxable income in Thailand. The fact that you're doing things that way and presumably not reporting that "income" is also known as tax evasion. Perhaps I've misunderstood, in which case I think I can be forgiven because of the complexity of your post, so please do feel free to clarify. 

Nope, i used overseas providers for insurances etc, list goes on, they operate within Thailand, but you can purchase from overseas companies, that is not tax evasion.

 

For example, instead of paying 60,000 THB for insurance for myself inside Thailand i opted for a overseas insurance company. Instead of paying 150,000 THB insurance for my kids to a Thai company i opted for a overseas provider.

 

etc etc.

[Jenkins9039]

6 minutes ago, jayboy said:

 

I agree that the original post is hard to decipher but your interpretation of it seems correct.

 

In my view there needs to be applied a degree of common sense to this subject, and it's simply inappropriate to describe the use of offshore cards for Thailand services as "tax evasion", not least because there's no certainty payment would be made out of taxable income.It all depends on the circumstances particularly the frequency and intent.As far as the Thai RD department is concerned I would be astonished if they had any problem with a retired expatriate occasionally using an offshore card - not that they would ever know, at least for the foreseeable future.

 

 

It's not tax evasion, its using offshore funds with offshore service providers rather than remitting to purchase a service onshore.

 

I.e instead of utilising a onshore insurance service for car insurance, or for boat insurance, or health insurance etc opt for their overseas company or an alternative overseas.

 

That's not tax evasion, as its a overseas company (service) that operates world wide.

 

I am sorry you don't understand the English language, it's quite clear.

 

 

Edited February 11 by Jenkins9039

[Jenkins9039]

6 hours ago, Mike Lister said:

Whilst I'm happy that you're pleased with what you've done, it should be pointed out that paying for goods and services in Thailand, using offshore accounts/cards, is still regarded as taxable income in Thailand. The fact that you're doing things that way and presumably not reporting that "income" is also known as tax evasion. Perhaps I've misunderstood, in which case I think I can be forgiven because of the complexity of your post, so please do feel free to clarify. 

 

No, you've miss read that.

 

I am using offshore funds with a offshore provider (think insurances as an example).

They operate world wide, the funds are no longer remitted and paid to x onshore company, but instead are paid to a offshore provider that operates world wide.

 

That by definition isn't tax evasion, it's paying a overseas company from overseas savings for a service which is world-wide.

If however i were to utilise a offshore debit/credit card for a onshore transaction that would be tax evasion.

Instead i've opted to go via overseas companies for the same thing (think insurances) rather than domestic companies.

 

[Mike Lister]

13 minutes ago, Jenkins9039 said:

 

No, you've miss read that.

 

I am using offshore funds with a offshore provider (think insurances as an example).

They operate world wide, the funds are no longer remitted and paid to x onshore company, but instead are paid to a offshore provider that operates world wide.

 

That by definition isn't tax evasion, it's paying a overseas company from overseas savings for a service which is world-wide.

If however i were to utilise a offshore debit/credit card for a onshore transaction that would be tax evasion.

Instead i've opted to go via overseas companies for the same thing (think insurances) rather than domestic companies.

 

OK, now it's more clear.