Personal Income Tax Guide (for foreigners) Thailand

[Aforek]

My embassy ( France ) tells that because of the "Convention " ( DTA for English people ), we just have to do an income statement in the amphoe ( if we live outside Bangkok ) , but we don't have to pay anything 

who to believe ? 

[retarius]

What are the penalties for non compliance? Askin' for a friend. 

[dayo202]

29 minutes ago, Mike Lister said:

Have you read the document at the start of the thread because I think you ought to, there is information in there that you need to understand which I would rather not have to repeat here? It will also help me if you can come back and tell us if you understood the document or not because that will tell me if we need to make changes to it.

Mike, my apologies.

Just read through again.

Paragraph 8,9,and 10 answered my question.

🙏

[Mike Lister]

5 minutes ago, NoDisplayName said:

 

So, let's say Person X has a baseline statement from Dec 31, 2023 with a balance of $1 million.

 

Does this mean Person X can transfer into Thailand any of this amount free of tax?  And for how long?  Can X bring in $100K each year for the next ten years tax free, by showing the 2023 base balance along with a sum total of all monies transferred in until exhausted?

In theory yes, but how that would work in practice is not clear. Under the old rules the answer would be very clear, under the new one it is less so. The answer therefore once again is, wait and see until more is known.

[biervoormij]

2 hours ago, Mike Lister said:

 

 

23. Who must file a tax return? The English language translation of the RD rule says that, "You have to file a return on the income that you received if you meet one of the following conditions:

(1) Your total income exceeded 120,000 baht in the tax year.

(2) You were married and your income combined with that of your spouse exceeded 220,000 baht in the tax year."

 

This is understood to mean assessable income.

 

 

 

I transferred money into Thailand in 2023 to meet my needs for 2024. If I have income in 2024 outside of Thailand but transfer less than 120,000 into Thailand am I still required to file a tax return?

[Mike Lister]

9 minutes ago, retarius said:

What are the penalties for non compliance? Askin' for a friend. 

It depends on the nature of the non-compliance, anywhere from a fine for late filing when payment is due, up to 10 years and 200k fine for evasion.

[Mike Lister]

3 minutes ago, biervoormij said:

 

I transferred money into Thailand in 2023 to meet my needs for 2024. If I have income in 2024 outside of Thailand but transfer less than 120,000 into Thailand am I still required to file a tax return?

Pleas read the document at the start of the thread, your answer is in there.

[Aforek]

18 minutes ago, UKresonant said:

What type of income was / is the question about?

in my case, pension for retirement 

other question ;   my pension is too low to pay taxes in my country, so I don't pay anything ( but I do a statement ) , and I transfer about 500000 bahts a year ; it  means that I have to pay 50000 bahts taxes in Thailand because Thailand considers I have not paid taxes in my country ? 

Thanks  

[Mike Lister]

4 minutes ago, Aforek said:

in my case, pension for retirement 

other question ;   my pension is too low to pay taxes in my country, so I don't pay anything ( but I do a statement ) , and I transfer about 500000 bahts a year ; it  means that I have to pay 50000 bahts taxes in Thailand because Thailand considers I have not paid taxes in my country ? 

Thanks  

How old are you and are you married to a Thai? Assuming you are, it seems to me that if you are over 65 years of age and married, your allowances/deductions/exemptions will be 500,000 so there wouldn't be any tax to pay here.

[billd766]

1 hour ago, UKresonant said:

 

Info

 

2. = Taxed only in UK

 

"Article 19 Governmental Services...
 
(2) (a) Any pension paid by the Contracting State or a political subdivision or a local authority thereof to any individual in respect of services of a governmental nature rendered to that State or subdivision or local authority thereof shall be taxable only in that State."

https://www.gov.uk/hmrc-internal-manuals/international-manual/intm343040

 

(I'll have the same 3 Types of pension as you have in just over 6 years time hopefully , for DTA purposes).

 

 

 

 

 

However you will only be taxed on your military pension once you exceed the tax free personal allowance.

 

My company pension is taxed at 20% and my military pension is taxed on the balance of my tax free allowance and my state pension combined, minus the personal allowance. Probably because it is easier for HMRC than taxing a company pension.

[Negita43]

3 hours ago, scottiejohn said:

If your income is over 120,000 baht per year, you must file a Thai tax return between 1 January and 31 March.

The following year? ie for 2023 in 2024

[MistyBlue]

58 minutes ago, retarius said:

What are the penalties for non compliance? Askin' for a friend.

 

See pages 14 and 15 of this booklet:  https://www.pwc.com/th/en/tax/assets/thai-tax/thai-tax-2022-23-booklet.pdf

 

[Dan O]

3 hours ago, Mike Lister said:

Above is the latest version of the Simple Guide to Personal Income Tax (PIT) in Thailand. It was constructed using information gleaned from various threads about  tax but is still incomplete.

 

Readers are asked to contribute to its construction by suggesting new information that should be added or identifying information that is unclear or incorrect….all constructive and relevant comments are welcome. Some of the links in the document can be improved on, some of you will know of ones that are more appropriate and your suggestions will be appreciated. Any discussion issues that represent unknowns will be flagged and recorded at the end of the document and not discussed here, that way the thread can move forward. Separate threads are encouraged for those wishing to discuss topics such as CRS but they should not be discussed here.

 

The purpose of this document is to provide core PIT information to as many people as possible and to relieve the anxiety surrounding the tax issue. Inputs to the document should be generic to all nationalities rather than specific to just one nationality. Posts should be concise and to the point, brevity will be appreciated, as will focus on the particular issue being discussed. If anyone has country specific links to their DTA, please feel free to post it here for the benefit of your fellow countrymen/women.

 

We all start anew, and everyone contributes on an equal basis.

it would be helpful if you could tag or mark any new changes or additions to this guide as you've now published several versions, each one with new or edited info. While its great of you to compile this information it's becoming challenging to have to read the whole document each time you update to the next version to see what's changed or added. Other than that outstanding work

[Mike Lister]

1 minute ago, Dan O said:

it would be helpful if you could tag or mark any new changes or additions to this guide as you've now published several versions, each one with new or edited info. While its great of you to compile this information it's becoming challenging to have to read the whole document each time you update to the next version to see what's changed or added. Other than that outstanding work

I was highlighting changes in the previous thread but since we are starting again afresh, I thought I would establish a baseline and highlight changes once again from hereon out. My apologies for extra reading effort involved.

[Mike Lister]

17 minutes ago, Negita43 said:

The following year? ie for 2023 in 2024

Yes, the tax year is 1 January thru 31 December and you have until 31 March to file a return.

[Dan O]

1 minute ago, Mike Lister said:

I was highlighting changes in the previous thread but since we are starting again afresh, I thought I would establish a baseline and highlight changes once again from hereon out. My apologies for extra reading effort involved.

thanks Mike. Your effort in producing this has been outstanding just to gather the info and produce a readable document.

[Negita43]

Before Jan 01 2024 I transferred around 500K to my Thai bank (in several transactions) all this money came from my stocks and shares not from income so:

Do I have to declare tax a tax return before March 2024? (and I was out of the country from March 21st to Sept 16 which is exactly 180 days and to boot this legislation/new rule was not even mentioned when I left otherwise...)

Also (this may have been asked before) does someone moving 800K for a retirement visa have to pay tax on that? - a real incentive eh.

One more thing if it applies to 2023 and the legislation/new rule was only bought out in September isn't that a retrospective change (and slightly unfair since no=onw would have had the chance to be away for 180 days in that year.

Edited January 11 by Negita43
added another Q

[Mike Lister]

Just now, Negita43 said:

Before Jan 01 2024 I transferred around 500K to my Thai bank (in several transactions) all this money came from my stocks and shares not from income so:

Do I have to declare tax a tax return before March 2024? (and I was out of the country from March 21st to Sept 16 which is exactly 180 days and to boot this legislation/new rule was not even mentioned when I left otherwise...)

Also (this may have been asked before) does someone moving 800K for a retirement visa have to pay tax on that? - a real incentive eh.

Can I ask you to read the document at the start of the thread, please and then come back to me with any questions regarding what is not clear? Thanks. 

 

 

[Negita43]

Just now, Mike Lister said:

Can I ask you to read the document at the start of the thread, please and then come back to me with any questions regarding what is not clear? Thanks.

Yes I read it and  gave you a thumbs up but the Q stands tcan't understand about mony transfers in 2023 since this was not announced (as far as I know) until Sept 2023 see the edit on my post.

[StayinThailand2much]

3 hours ago, Mike Lister said:

A law already exists that requires foreigners to apply for Tax Clearance Certificates before being allowed to depart the country but it is not being enforced currently. 

 

So, if I have an income below the amount that requires me to file a tax return, then I would still have to do it if I wanted to leave the country?

[spidermike007]

Good summary. Thanks. 

 

What if one were to make one or two annual bank transfers to a Thai wife's bank account? Will that kind of thing be tracked, or raise a red flag of any sort? 

 

What if someone travels back and forth to their home country, and carries back 10 or $15,000 each trip? Will it only draw attention if deposited into an account here?

 

And lastly, how would they be able to monitor and account for ATM withdrawals? 

[Mike Lister]

3 minutes ago, StayinThailand2much said:

 

So, if I have an income below the amount that requires me to file a tax return, then I would still have to do it if I wanted to leave the country?

No, if you are below the threshold for filing a tax return, you do not have to file a return.

[Mike Lister]

5 minutes ago, Negita43 said:

Yes I read it and  gave you a thumbs up but the Q stands tcan't understand about mony transfers in 2023 since this was not announced (as far as I know) until Sept 2023 see the edit on my post.

The old rule was that income remitted in the year it was earned is taxable. Any income you earned in 2023 and remitted in the same year, should be reported in a tax return before 31 March this year, assuming you were Thai tax resident. You say you were out of the country for 180 days, does that mean you were in Thailand for the rest of the year which is 185 days. You need to count those day very carefully to be certain because if it is 185 days, yes, you were tax resident in Thailand.

 

Finally your question about the 800k. Whether or not it is taxable here will depend on when it was earned and when it is remitted. If it is from savings earned before 1 January 2024, not, it will  not be taxable.

[Mike Lister]

11 minutes ago, spidermike007 said:

Good summary. Thanks. 

 

What if one were to make one or two annual bank transfers to a Thai wife's bank account? Will that kind of thing be tracked, or raise a red flag of any sort? 

 

What if someone travels back and forth to their home country, and carries back 10 or $15,000 each trip? Will it only draw attention if deposited into an account here?

 

And lastly, how would they be able to monitor and account for ATM withdrawals? 

Gifts up to THB 20 mill. between husband and wife in Thailand are tax free, whether or not overseas gifts are tax free is not clear. 

 

Travelers can bring up to USD15k into Thailand without having to report it it to Customs, anything over that amount requires a Customs declaration. The question then is, what to do with that money next? If it is deposited into a bank it will register as a Foreign Currency Exchange and identification/passport will be required. Yes, technically that is assessable income that has been imported in cash.

 

The capability to monitor and report on foreign ATM transactions does exist since they all go through bank or visa/mastercard networks and then via a Central Clearing bank. Whether or not those transaction will be reported, is another matter entirely.

[Mike Lister]

4 minutes ago, StayinThailand2much said:

 

So, I'd just tell the IO: "No need..."?

There is no established link between the changes proposed by the RD and an application for a visa extension at present.

[Chivas]

Whilst not a helpful answer (and I fully acknowledge that) but can see so many people saying sod this for a game of soldiers lets wait and see what happens before I intentionally "red flag" myself

 

Perhaps that is a relevant addition !

[Mike Lister]

2 minutes ago, Chivas said:

Whilst not a helpful answer (and I fully acknowledge that) but can see so many people saying sod this for a game of soldiers lets wait and see what happens before I intentionally "red flag" myself

 

Perhaps that is a relevant addition !

Agreed, very much, that's a recurring feature of this whole thing, everyone needs to have patience and sit back and wait.

[Mike Lister]

1 minute ago, StayinThailand2much said:

 

I know. I always think well ahead. And I meant upon departing the country...

There is no requirement today for tax clearance certificates to exit the country. If a system is put in place I'm sure it will consider people such as yourself who don't need to file a return.

[spidermike007]

2 hours ago, Mike Lister said:

Gifts up to THB 20 mill. between husband and wife in Thailand are tax free, whether or not overseas gifts are tax free is not clear. 

 

Travelers can bring up to USD15k into Thailand without having to report it it to Customs, anything over that amount requires a Customs declaration. The question then is, what to do with that money next? If it is deposited into a bank it will register as a Foreign Currency Exchange and identification/passport will be required. Yes, technically that is assessable income that has been imported in cash.

 

The capability to monitor and report on foreign ATM transactions does exist since they all go through bank or visa/mastercard networks and then via a Central Clearing bank. Whether or not those transaction will be reported, is another matter entirely.

And what if the dollars were exchanged into baht, at a private exchange booth, then deposited into the wife's account, or kept in a safe? 

[UKresonant]

2 hours ago, Negita43 said:

Before Jan 01 2024 I transferred around 500K to my Thai bank (in several transactions) all this money came from my stocks and shares not from income so:

Do I have to declare tax a tax return before March 2024? (and I was out of the country from March 21st to Sept 16 which is exactly 180 days and to boot this legislation/new rule was not even mentioned when I left otherwise...)

Also (this may have been asked before) does someone moving 800K for a retirement visa have to pay tax on that? - a real incentive eh.

One more thing if it applies to 2023 and the legislation/new rule was only bought out in September isn't that a retrospective change (and slightly unfair since no=onw would have had the chance to be away for 180 days in that year.

If only you had gone out for another 6 days somewhere ! 

That first paragraph scenario has not changed, same as it was in 2022, just they may be more interested now.

 

The new rules may affect the 800k though maybe.....depends....