Introduction to Personal Income Tax in Thailand

[Presnock]

7 hours ago, ChaiyaTH said:

Well he is actually right, almost none of the foreign business owners, for example restaurants bars and so on, never paid a dime of tax or minimal fake taxes. Same for all profits on property rentals etc etc etc. 

Thailand has basically made zero effort so far, to even enforce things for what was always applicable already. Let alone the new change to transfers to Thailand while being classed a tax resident, or let alone the fantasy pipe dream of overseas income. 

The country would be half empty in no time, the south would suddenly have property available and hurt property developers. All this while they are under high pressure already in general. 

Do you really think it is a magic trick or accident that the news went silence for so long already? Most of the entire news was all and only due to the new appointed woman boss of the TRD. Now she is in place, she will shut up. This happens all the time with police stations and immigration bureaus as well. Until the dust settles.

 

They might have a tiny chance of success if they allow us to first deduct the private education 100% before having to pay any taxes, if any taxes left. I'd accept a flat 10% not a .25% more + with a 3-5 yearly visa.

Yessir, guess we won't have any more definite ideas of what is to come until the court decision on the PM and party now in charge.  If they drop them and a new election is to be held, then we know that things will all be put on hold for a while.  

[chiang mai]

50 minutes ago, Presnock said:

Yessir, guess we won't have any more definite ideas of what is to come until the court decision on the PM and party now in charge.  If they drop them and a new election is to be held, then we know that things will all be put on hold for a while.  

Does anyone really think that in a best/worst case scenario that the remittance rule might might revert to what it was? I cannot imagine that scenario.

[Presnock]

2 minutes ago, chiang mai said:

Does anyone really think that in a best/worst case scenario that the remittance rule might might revert to what it was? I cannot imagine that scenario.

No, I agree as that has already been "vetted" and approved.  I read on the forum that someone has seen the "new" tax form but in Thai only and are awaiting that in English.  I guess if there are any further changes for expats then maybe some guidance will come shortly  but having to make any new rules, like making all tax residents get a tax ID whether they will ever have assessable income such as my situation so will never have to file a tax form in Thailand, any new rules might not be passed in time so.. who knows remains the case.

[chiang mai]

3 minutes ago, Presnock said:

No, I agree as that has already been "vetted" and approved.  I read on the forum that someone has seen the "new" tax form but in Thai only and are awaiting that in English.  I guess if there are any further changes for expats then maybe some guidance will come shortly  but having to make any new rules, like making all tax residents get a tax ID whether they will ever have assessable income such as my situation so will never have to file a tax form in Thailand, any new rules might not be passed in time so.. who knows remains the case.

By applying the letter of the law (Tax Code), there is probably no need to change the law in the way you have described. 60k baht per year of assessable income is a very very low threshold.

[Presnock]

1 hour ago, chiang mai said:

By applying the letter of the law (Tax Code), there is probably no need to change the law in the way you have described. 60k baht per year of assessable income is a very very low threshold.

Well no matter how low they go, those of us that only have US civil service retirement or those with LTR might not ever have assessable income so wouldn't have to file tax forms nor get a tax number unless the revenue department makes EVERY adult tax resident obtain a tax id number which has been alluded to by the RD folks and this would entail a change in the RD rule #1 for obtaining a tax id number.  Doesn't mean those of us in this category would ever have to pay taxes but they could demand that we get a tax ID number so we would be on file as to "why" we don't have to file.  Just more paperwork for "nothing".  Just like a possibility of cancelling the royal decree on tax exempt for LTR holders - would that mean a change in the law or just an adjustment within the RD? It still would not affect me unless they decide to withdraw from the treaty on DTA's which could always happen too but that surely would need Parlaimentary approval. But TIT and seeing how concerned they are about the trade agreements with the US and China while possibly joining BRICS next year.  Anyway, the other survey that indicates more than half the expats "claim" that they will not file any tax forms for 2024.  We'll see....

[sometimewoodworker]

On 11/20/2024 at 8:22 AM, Presnock said:

I read on the forum that someone has seen the "new" tax form but in Thai only

It is here https://www.rd.go.th/fileadmin/tax_pdf/pit/2567/271266PIT93.pdf

This is a link to the translated page https://www-rd-go-th.translate.goog/65971.html?_x_tr_sl=th&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=wapp

Edited 8 hours ago by sometimewoodworker

[chiang mai]

22 minutes ago, sometimewoodworker said:

It is here https://www.rd.go.th/fileadmin/tax_pdf/pit/2567/271266PIT93.pdf

This is a link to the translated page https://www-rd-go-th.translate.goog/65971.html?_x_tr_sl=th&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=wapp

The page is translated to English but the form is not.

[topt]

34 minutes ago, sometimewoodworker said:

It is here https://www.rd.go.th/fileadmin/tax_pdf/pit/2567/271266PIT93.pdf

This is a link to the translated page https://www-rd-go-th.translate.goog/65971.html?_x_tr_sl=th&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=wapp

 

12 minutes ago, chiang mai said:

The page is translated to English but the form is not.

Please correct me if I am wrong but neither of these are the forms 90 or 91 which I thought most of here would need to use?

[sometimewoodworker]

5 minutes ago, topt said:

 

Please correct me if I am wrong but neither of these are the forms 90 or 91 which I thought most of here would need to use?

It was never suggested that they were

[chiang mai]

9 minutes ago, sometimewoodworker said:

It was never suggested that they were

It's kinda pointless posting links to forms that aren't in English that nobody really needs, don't you think!.

[sometimewoodworker]

1 hour ago, chiang mai said:

It's kinda pointless posting links to forms that aren't in English that nobody really needs, don't you think!.

Hardly, the forms were referred to and it is hardly rocket science to use translation software to read an approximation of the meaning. It is also not useless to see the difference between what is being asked of in Thai compared to what will be asked in the English version.

Also while you may have no use for them you are hardly an indicator of those who have others who actually have a use for them.

 

A knee jerk denigration hardy enhances your standing.

[chiang mai]

10 minutes ago, sometimewoodworker said:

Hardly, the forms were referred to and it is hardly rocket science to use translation software to read an approximation of the meaning. It is also not useless to see the difference between what is being asked of in Thai compared to what will be asked in the English version.

Also while you may have no use for them you are hardly an indicator of those who have others who actually have a use for them.

 

A knee jerk denigration hardy enhances your standing.

Wake me when you uncover year 2024 PND90 and PND91 forms in English, till then, do not disturb. 

[oldcpu]

On 11/20/2024 at 10:48 AM, Presnock said:

Well no matter how low they go, those of us that only have US civil service retirement or those with LTR might not ever have assessable income so wouldn't have to file tax forms nor get a tax number unless the revenue department makes EVERY adult tax resident obtain a tax id number which has been alluded to by the RD folks and this would entail a change in the RD rule #1 for obtaining a tax id number.  Doesn't mean those of us in this category would ever have to pay taxes but they could demand that we get a tax ID number so we would be on file as to "why" we don't have to file.  Just more paperwork for "nothing".

 

I too am on an LTR but I think we will need to wait and see.  I have read and re-read translations of the LTR Royal Decree many times, and it states (for Wealthy Pensioners and Wealthy Global Citizens) that their foreign assessable income is tax exempt.  It does not state such foreign income is not assessable.

 

Does that make a difference in regards to having to file a Thai tax return (and thus obtain a Thai tax ID)?  I don't know.

 

I appreciate your  view that to file a tax return when zero money is legally owed  reads to be "paperwork for nothing" ... but there are countries (Canada in particular) that DO want want such paperwork for nothing -  so if Thailand does eventually demand tax returns for nothing, they won't be alone.

 

Given I already attempted to get a Thai tax ID (and was denied such as I don't bring in any more money into Thailand at the present time), my intent - as an LTR visa holder - is to wait a couple of years (and NOT bring money into Thailand), and see how any potential tax submission requirement for LTR visa holders may play out.

 

TIT and one never really knows.  

 

I do hope your sense is correct that no tax return will be required for the noted LTR visa holders,  who have no Thai income. .... ie a sense that such LTR visa holders will NOT have to file a Thai tax return for assessable foreign income brought into Thailand.  

 

Its clear (from the Royal Decree) there is no tax due for noted LTR visa holders foreign assessable income brought into Thailand - but for me it is not so clear that there is no requirement for a tax return.

.

 

 

Edited 4 hours ago by oldcpu

[The Cyclist]

7 minutes ago, oldcpu said:

.  It does not state such foreign income is not assessable.

 

Does that make a difference in regards to having to file a Thai tax return (and thus obtain a Thai tax ID)?  I don't know.

 

This is basically the question that I had a at this time last year.

 

It took me about 8 months to get a definitive  answer on whether I needed to file a tax return ( for administrative purposes ) on remitted income that was only taxable in the UK.

 

Thankfully in my case, the answer is no.

 

Not much to use to you, I know. You might have to go to your RD Office, visa in hand and ask them 😀😀

[JohnnyBD]

48 minutes ago, oldcpu said:

I too am on an LTR but I think we will need to wait and see.  I have read and re-read translations of the LTR Royal Decree many times, and it states (for Wealthy Pensioners and Wealthy Global Citizens) that their foreign assessable income is tax exempt.  It does not state such foreign income is not assessable

What are your thoughts on "derived in the previous tax year" meaning? For LTR-WP visa holders, does it mean we need to wait until the following year to remit income earned for it to be tax exempt? Or, can we remit income in the same year it was earned? I'm curious about the meaning of the wording. Thanks...

 

Wealthy Global Citizen, Wealthy Pensioner, or Work-from-Thailand Professional who is granted a Long-Term Resident Visa under immigration law for assessable income under section 40 of the Revenue Code derived in the previous tax year from an employment, or from business carried on abroad, or from a property situated abroad, and brought into Thailand.

Edited 3 hours ago by JohnnyBD

[Presnock]

51 minutes ago, oldcpu said:

 

I too am on an LTR but I think we will need to wait and see.  I have read and re-read translations of the LTR Royal Decree many times, and it states (for Wealthy Pensioners and Wealthy Global Citizens) that their foreign assessable income is tax exempt.  It does not state such foreign income is not assessable.

 

Does that make a difference in regards to having to file a Thai tax return (and thus obtain a Thai tax ID)?  I don't know.

 

I appreciate your  view that to file a tax return when zero money is legally owed  reads to be "paperwork for nothing" ... but there are countries (Canada in particular) that DO want want such paperwork for nothing -  so if Thailand does eventually demand tax returns for nothing, they won't be alone.

 

Given I already attempted to get a Thai tax ID (and was denied such as I don't bring in any more money into Thailand at the present time), my intent - as an LTR visa holder - is to wait a couple of years (and NOT bring money into Thailand), and see how any potential tax submission requirement for LTR visa holders may play out.

 

TIT and one never really knows.  

 

I do hope your sense is correct that no tax return will be required for the noted LTR visa holders,  who have no Thai income. .... ie a sense that such LTR visa holders will NOT have to file a Thai tax return for assessable foreign income brought into Thailand.  

 

Its clear (from the Royal Decree) there is no tax due for noted LTR visa holders foreign assessable income brought into Thailand - but for me it is not so clear that there is no requirement for a tax return.

.

 

 

I may be mistaken but I thought that I read about the tax forms having a space for exempted income - and while not tax may be charged, it seems that the tax form needs to be completed - but if one tries to get a TAX ID Number, maybe by explaining this to the revenue dept official, they may advise you differently or may say you need the ID number so you can file and indicate on the form that the remited income is exempt.  Maybe someone that has filed before or seen the current forms can attest to the "exempt" space on the form.  My income as noted previously is not assessable income under the DTA.  Good luck while we continue waiting.

 

[Presnock]

35 minutes ago, JohnnyBD said:

What are your thoughts on "derived in the previous tax year" meaning? For LTR-WP visa holders, does it mean we need to wait until the following year to remit income earned for it to be tax exempt? Or, can we remit income in the same year it was earned? I'm curious about the meaning of the wording. Thanks...

 

Wealthy Global Citizen, Wealthy Pensioner, or Work-from-Thailand Professional who is granted a Long-Term Resident Visa under immigration law for assessable income under section 40 of the Revenue Code derived in the previous tax year from an employment, or from business carried on abroad, or from a property situated abroad, and brought into Thailand.

that is the way the rule was interpreted previously but the new intepretation says anything earned  prior to 31 Dec 2023 could be non taxable but that changed in 2024 and that is the part of this new interpretation that should catch a lot of Thais.  We will see if it was worthwhile MAYBE.  Good luck.

[JohnnyBD]

44 minutes ago, Presnock said:

that is the way the rule was interpreted previously but the new intepretation says anything earned  prior to 31 Dec 2023 could be non taxable but that changed in 2024 and that is the part of this new interpretation that should catch a lot of Thais.  We will see if it was worthwhile MAYBE.  Good luck.

I should have been a little more specific:

What are your thoughts on the meaning of "derived in the previous tax year" as stated in Royal Decree 743 as it pertains to LTR visa holders? Not anything to do with Dec 31, 2023? In other words, can LTR visa holder's assessable income derived in 2024 be remitted in 2024 and still be tax exempt, or should we wait until 2025 to remit the income derived in 2024 for it to be tax exempt?

Edited 2 hours ago by JohnnyBD

[The Cyclist]

47 minutes ago, Presnock said:

I may be mistaken but I thought that I read about the tax forms having a space for exempted income - and while not tax may be charged, it seems that the tax form needs to be completed

 

If you have exempt income, there is no need to file a tax return

 

This is the Document currently being emailed out by KBank

 

https://www.kasikornbank.com/th/Download/Level4_doc/FATCA-CRS-FORM_INDIVIDUAL.pdf

 

Have a look at the bottom of part 2, where it says

 

Amount of income exempted from taxation / Type of income exempted from taxation /  Under issuing TIN

 

Write it in the box below, no doubt that information will be shared with the Revenue Department.

[Presnock]

todaY, 24 November, I received a note from the expattaxesthailand.com rep, indicating the KASIKORN bank is in the process of sending emails to their local customers requesting CSR information.  The tax consultant says this is the first they have heard of it so it looks possibly about what will come to pass soon.  I

[Presnock]

In response to the Kasikorn beginning, the expattaxesthailand,com is going to info on the CSR forms that the bank will ask account holders to fill out and forward.  The company will also host a webinar on 29 November at 1 PM to explain how the forms are to be filled out and what it means.  They will take early questions to be answered in the webinar and also have a FREE 15 minute consultation for folks.  You can send an email to Carl Turner of the expattaxesthailand.com web site to register for the webinar or to get further information.  They expect other local banks to also be contacting their customers to fill out the forms.  If get any further information on this I will of course pass it on.