Introduction to Personal Income Tax in Thailand

[RocketDog]

On 12/10/2024 at 5:17 PM, mudcat said:

When I do my FBAR reporting, I report the highest balance in each account during the year. I use the US Treasury exchange rates which are published in January to convert to USD. When I report my Thai bank interest on my tax return, I use the spot exchange rates on the day the interest posts.

 

Report of Foreign Bank and Financial Accounts (FBAR) | Internal Revenue Service

For each account you must report on an FBAR, you must keep records with this information: 

• Name on the account, 
• Account number,
• Name and address of the foreign bank, 
• Type of account, and 
• Maximum value during the year. 

It is easy to get crossways with the different U.S. government reporting of foreign assets.

 

FATCA dates back to 2014 - FBAR is reported on FinCEN 114 which is filed with the Treasury and not with your taxes (blank atta.  As JohnnyBD posted, the threshold is pretty low  aggregate balance >$10,000 at any point during the year, so many if not most of us will need to file at some point during our stay here.  I have filled out templates for my wife and myself that we complete and file at the same time as we file our taxes.  

 

There is a program to 'get right with the IRS' called streamlined filing which requires filing back FinCEN 114 forms and amended f1040s.  I went through that process and it was not fun, but doable on your own if you have good records.

 

The other requirement is to disclose on overseas assets anywhere on f8938 which is filed along with your taxes.  The thresholds are complicated but most of us will not be required to file. 

https://www.irs.gov/businesses/corporations/do-i-need-to-file-form-8938-statement-of-specified-foreign-financial-assets

If your overseas financial assets are getting up into the 100s of thousand USD I suggest that you also take a look at the instructions https://www.irs.gov/pub/irs-pdf/i8938.pdf.  

 

NOTE "If you do not have to file an income tax return for the tax year, you do not need to file Form 8938, even if the value of your specified foreign assets is more than the appropriate reporting threshold." 

We will not need to file a f8938 as most of our assets remain in the U.S., and my U.S. citizen wife will not need to file after I die when she is living on SSA survivor benefits and Thai bank account interest, but the transition year after she inherits will included in the final tax return.

Good info. Thanks

[chiang mai]

On 12/8/2024 at 4:57 PM, MrMuddle said:

Thanks for the reply. When I bring money over I usually transfer it from my UK  savings account to my UK current account, then send it here by SWIFT transfer, leaving the current account balance the same as it was, before I moved the savings into it. I assume that will be OK for the Thai Tax people. I'd already planned to download a 12 month statement from my UK Bank accounts on 31 December, good advice though,
and thanks again for the reply.

'

I came across the following which you may find useful. Some people have said that the TRD has not said anything about the new tax rules but the Bangkok Metropolitan Administration has and they have gone to the trouble of producing a guide, specifically  for foreigners.

 

https://iao.bangkok.go.th/storage/files/Personal Income Tax.pdf

[The Cyclist]

33 minutes ago, chiang mai said:

I came across the following which you may find useful. Some people have said that the TRD has not said anything about the new tax rules but the Bangkok Metropolitan Administration has and they have gone to the trouble of producing a guide, specifically  for foreigners.

 

https://iao.bangkok.go.th/storage/files/Personal Income Tax.pdf

 

Don't understand why you bother 😀😀

 

Clearly it is just the BMA wasting their time, whilst trying to scare foreigners 😀😀

 

Sarcasm may have been used in the making of this comment.

[Yumthai]

43 minutes ago, chiang mai said:

I came across the following which you may find useful. Some people have said that the TRD has not said anything about the new tax rules but the Bangkok Metropolitan Administration has and they have gone to the trouble of producing a guide, specifically  for foreigners.

 

https://iao.bangkok.go.th/storage/files/Personal Income Tax.pdf

This pdf appears to be old as it contains outdated information (deductions, allowances,...). 

 

 

[chiang mai]

4 minutes ago, Yumthai said:

This pdf appears to be old as it contains outdated information (deductions, allowances,...). 

 

 

Specifically which ones

[topt]

4 minutes ago, chiang mai said:

Specifically which ones

Not sure about his comment but single persons allowance says only 30,000 and 60k combined(spouse) unless I am reading it wrong?

[chiang mai]

9 minutes ago, Yumthai said:

This pdf appears to be old as it contains outdated information (deductions, allowances,...). 

 

 

Yes it is out of date, apologies, please disregard 

[scottiejohn]

3 hours ago, chiang mai said:

I came across the following which you may find useful. Some people have said that the TRD has not said anything about the new tax rules but the Bangkok Metropolitan Administration has and they have gone to the trouble of producing a guide, specifically  for foreigners.

 

https://iao.bangkok.go.th/storage/files/Personal Income Tax.pdf

It lists 8 categories' of assessable income but not one of those 8 categories' includes pensions of any kind!

PS; The article appears to be undated!