thomasfielk Posted March 30 Share Posted March 30 Hello, As far as I understand I can gift my thai girlfriend up to 10 000 000 THB Tax free, or up to 20 000 000 THB Tax free if we are married. Does that apply only for funds that are already in Thailand or I can gift her 7 000 000 THB from abroad so she can buy a house in Thailand? The money was already taxed abroad at around 18-20%, and I'm wondering if I can gift her exactly 7 Million baht and she won't need to pay tax here, or I would need to gift her more to cover for taxes? Link to comment Share on other sites More sharing options...
Mike Lister Posted March 30 Share Posted March 30 20 minutes ago, thomasfielk said: Hello, As far as I understand I can gift my thai girlfriend up to 10 000 000 THB Tax free, or up to 20 000 000 THB Tax free if we are married. Does that apply only for funds that are already in Thailand or I can gift her 7 000 000 THB from abroad so she can buy a house in Thailand? The money was already taxed abroad at around 18-20%, and I'm wondering if I can gift her exactly 7 Million baht and she won't need to pay tax here, or I would need to gift her more to cover for taxes? Please read the Simple Tax Guide linked below, the answer is in there. 2 Link to comment Share on other sites More sharing options...
Mike Lister Posted March 30 Share Posted March 30 Pay attention to assendents and descendents, your girlfriend is neither. Also, why Gift money that has already had tax paid on it, there is no need. 1 Link to comment Share on other sites More sharing options...
proton Posted March 30 Share Posted March 30 so what's the answer? 1 Link to comment Share on other sites More sharing options...
Popular Post Mike Lister Posted March 30 Popular Post Share Posted March 30 27 minutes ago, proton said: so what's the answer? Read the tax guide. 1 2 Link to comment Share on other sites More sharing options...
proton Posted March 30 Share Posted March 30 8 minutes ago, Mike Lister said: Read the tax guide. too confusing Link to comment Share on other sites More sharing options...
Sandboxer Posted March 30 Share Posted March 30 While not married yet, send your Thai gf/bf money in reasonable increments that won't trigger legal problems on her end (i.e. I'd say $100k/THB 3.5-ish mil per year should not rouse any heads). Just make sure she really loves ya 555 😀 1 Link to comment Share on other sites More sharing options...
freeworld Posted March 30 Share Posted March 30 1 hour ago, proton said: too confusing Then would suggest a consultation with a tax accountant. 1 Link to comment Share on other sites More sharing options...
proton Posted March 30 Share Posted March 30 1 hour ago, freeworld said: Then would suggest a consultation with a tax accountant. No chance Link to comment Share on other sites More sharing options...
Mike Lister Posted March 30 Share Posted March 30 1 minute ago, proton said: No chance Hmmm, interesting, let's recap shall we? Read the tax guide - can't, too difficult See a tax consultant - no chance That leaves: Hide behind a bush - awaiting response Go back home - awaiting response Feign death - probably no point waiting for a response on this one. Have I missed anything? 2 Link to comment Share on other sites More sharing options...
thomasfielk Posted March 30 Author Share Posted March 30 (edited) 3 hours ago, Mike Lister said: Please read the Simple Tax Guide linked below, the answer is in there. Hello Mike, First of all, I would like to thank you for putting this guide together, I actually read it earlier today. However I do have a question regarding the following information: " Pay attention to assendents and descendents, your girlfriend is neither. Also, why Gift money that has already had tax paid on it, there is no need." That's correct, however I believe it would be tax free under this rule: 43) c) Maintenance income derived under a moral obligation or gifts made in a ceremony or on occasions in accordance with established custom from persons who are not ascendants, descendants, or spouse, in the amount not exceeding THB 10 million throughout a tax year. We are not married, so I should be able to gift up to 10 Million Baht Per year. The money is already taxed abroad since it was dividends from a company that I co-own with other shareholders + salary I have saved up. And instead of sending it from my bank account abroad to my thai bank account(and having to pay taxes since it would then be remitted income/savings), and then gifting it to her through a local bank transfer, I was wondering if I can gift it to her directly from my foreign bank account to her local bank account here. Would that work and is it above board is the question? I got a consultation with a lawyer last week who told me ''Don't worry about it, sounds good to me'' but I wanted to get a second opinion. "Note: Only funds that are exempt from Thai tax or funds on which Thai tax has already been paid, can be Gifted. It is not possible to Gift funds that are assessable income, in order to avoid Thai tax." Foreign earnings/dividends which are kept abroad and not remitted to Thailand are exempt from Thai tax so it should be fine? Edited March 30 by thomasfielk 1 Link to comment Share on other sites More sharing options...
Mike Lister Posted March 30 Share Posted March 30 20 minutes ago, thomasfielk said: Hello Mike, First of all, I would like to thank you for putting this guide together, I actually read it earlier today. However I do have a question regarding the following information: " Pay attention to assendents and descendents, your girlfriend is neither. Also, why Gift money that has already had tax paid on it, there is no need." That's correct, however I believe it would be tax free under this rule: 43) c) Maintenance income derived under a moral obligation or gifts made in a ceremony or on occasions in accordance with established custom from persons who are not ascendants, descendants, or spouse, in the amount not exceeding THB 10 million throughout a tax year. We are not married, so I should be able to gift up to 10 Million Baht Per year. The money is already taxed abroad since it was dividends from a company that I co-own with other shareholders + salary I have saved up. And instead of sending it from my bank account abroad to my thai bank account(and having to pay taxes since it would then be remitted income/savings), and then gifting it to her through a local bank transfer, I was wondering if I can gift it to her directly from my foreign bank account to her local bank account here. Would that work and is it above board is the question? I got a consultation with a lawyer last week who told me ''Don't worry about it, sounds good to me'' but I wanted to get a second opinion. "Note: Only funds that are exempt from Thai tax or funds on which Thai tax has already been paid, can be Gifted. It is not possible to Gift funds that are assessable income, in order to avoid Thai tax." Foreign earnings/dividends which are kept abroad and not remitted to Thailand are exempt from Thai tax so it should be fine? Easy one first.....your last question......correct. Also easy....you wrote, "The money is already taxed abroad since it was dividends from a company that I co-own with other shareholders + salary I have saved up'. If those earnings are pre-31 December 2023, that money is free of Thai tax, only income earned after that date is assessable to Thai tax. More tricky.....I don't know enough about the practical application of Gift Tax here so I can't comment on whether your proposed approach is viable or not. Does it meet the definition of, "Maintenance income derived under a moral obligation or gifts made in a ceremony or on occasions in accordance with established custom"? I don't know, sorry! But if your lawyer says fine, that may be the right answer. However, I think if I was in your situation, I may want to spend a few hundred Baht on a consultation with a Thai Tax CPA to get their view since they will understand this aspect more clearly. 1 Link to comment Share on other sites More sharing options...
Etaoin Shrdlu Posted March 30 Share Posted March 30 There are really several questions here. In the event that the money would be taxable if remitted into Thailand but is intended to be a gift, then the gift may need to be completed prior to being remitted into Thailand. In other words, you would have to transfer the funds to your girlfriend's overseas account and then let her transfer from her overseas account to her Thai account. I don't think it is clear yet that funds transferred from your account abroad directly to her account in Thailand would be considered a gift until they were deposited in her account. In other words, when the funds crossed the threshold into Thailand, and not yet in her account, they were still your funds and could therefore potentially be assessable income for you and not yet a gift to her. I'm not sure whether this issue has been clarified yet. If it has, perhaps someone else can advise. If the remittance from your overseas account to her Thai account would be considered your remittance and not her gift, then all the issues involving timing, source, DTA, amounts of tax paid and more come into play. Just my opinion on this. You need to consult a tax expert. 1 Link to comment Share on other sites More sharing options...
thomasfielk Posted March 30 Author Share Posted March 30 Is there a particular tax expert/CPA that anyone can recommend in Bangkok for a paid consultation? Link to comment Share on other sites More sharing options...
Mike Lister Posted March 31 Share Posted March 31 7 hours ago, thomasfielk said: Is there a particular tax expert/CPA that anyone can recommend in Bangkok for a paid consultation? Nobody has mentioned one in the past, perhaps if anyone does know of one they can PM you rather than post the details publically. Link to comment Share on other sites More sharing options...
thomasfielk Posted March 31 Author Share Posted March 31 8 hours ago, Mike Lister said: Nobody has mentioned one in the past, perhaps if anyone does know of one they can PM you rather than post the details publically. I'll see if I manage to find one on Google and report back. Hopefully it will be tax free in Thailand, so the house she wants to purchase doesn't end up costing 30% extra because of tax, in that case I guess we will keep renting lol 1 Link to comment Share on other sites More sharing options...
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