Introduction to Personal Income Tax in Thailand

[JB300]

9 minutes ago, Jingthing said:

I'll look into those tools but this task is a simple one by accounting standards and I'm wondering if there's a super easy tool for "idiots" that would work for someone that has never done spreadsheets or bookkeeping of any kind.

Google Sheets sounds like exactly what you need, though if you wanted to manage it on your mobile check out “Spending Tracker” doesn’t come much easier 

 

[chiang mai]

5 minutes ago, Jingthing said:

Thanks.

Ideally I'm looking for a tool that would highlight the assessable portion in some distinctive visual way so in the context of my original example I could always see when the withdraws were heading from exempt into assessable territory.

I assume any tool could be used to print reports.

Don't go sexy, this is not a sexy application, it's a simple 1+1+1 exercise, keep it very simple..

[JimGant]

51 minutes ago, Jingthing said:

Does this example reflect a correct understanding of "First In First Out" or not?

You've nailed it. You've  got a goulash of fungible monies -- whose character is determined by the time lines of the deposited tranches. Simple enough to begin at the bottom, and end your time line marker when you reach amount sent. Total tranches sent, plus the partial tranche at the end -- will allow you to easily determine assessable vs non assessable monies remitted.

 

The use of FIFO was discussed in a Bangkok Post article in 2012 (link, below). A  totally sound article, about how to deal with non specific (i.e., fungible) remittances. Lacking anything otherwise definitive from the TRD, I'd certainly feel comfortable putting this article in your notes, should TRD come knocking with an audit.

https://www.bangkokpost.com/business/general/299691/when-the-revenue-department-changes-its-mind-the-taxpayer-gets-the-headache

 

[scottiejohn]

18 minutes ago, Jingthing said:

Thanks.

Ideally I'm looking for a tool that would highlight the assessable portion in some distinctive visual way so in the context of my original example I could always see when the withdraws were heading from exempt into assessable territory.

I assume any tool could be used to print reports.

Why bother until you actually know what the rules/facts are going to be.  it is still all conjecture!

[Aforek]

Just now, scottiejohn said:

Why bother until you actually know what the rules/facts are going to be.  it is still all conjecture!

so far, end of year, and nothing official 

what happens ? they decide not to do anything and forget ...?

[Jingthing]

Just now, scottiejohn said:

Why bother until you actually know what the rules/facts are going to be.  it is still all conjecture!

Because I think it's highly likely that having a record of my "mixed" source account is going to be a useful thing to have.

[Jingthing]

Just now, Aforek said:

so far, end of year, and nothing official 

what happens ? they decide not to do anything and forget ...?

We already know that according to TR things are different starting Jan 1, 2024.

Everyone for example should know the balance of their savings on Dec. 31, 2023.

[chiang mai]

You just know that there will still be members, in the new year, who will continue to say that the whole thing isn't real, because they haven't heard anything.........it's both funny and sad at the same time.

[scottiejohn]

17 minutes ago, Jingthing said:

Because I think it's highly likely that having a record of my "mixed" source account is going to be a useful thing to have.

You think!

That is not a fact!

[scottiejohn]

18 minutes ago, Aforek said:

so far, end of year, and nothing official 

what happens ? they decide not to do anything and forget ...?

Exactly my point!

[Jingthing]

26 minutes ago, Aforek said:

so far, end of year, and nothing official 

what happens ? they decide not to do anything and forget ...?

"They" already did something which you would know if you had been paying attention.

If you're talking about details of enforcement, etc. regarding typical retired expats, then you're correct, we don't know the details about that yet.

As far as I can tell, they haven't been auditing typical retired expats living on remittances up till now.

Maybe that golden age will continue.

But they have solid grounds now to look at that demographic more closely now as they did close the wide as the Grand Canyon loophole about timing of remittances.

[Jingthing]

4 minutes ago, scottiejohn said:

You think!

That is not a fact!

I find this line of "debate" tedious.

[chiang mai]

26 minutes ago, Aforek said:

so far, end of year, and nothing official 

what happens ? they decide not to do anything and forget ...?

You mean you didn't get your personal invite, sent to your home address?

 

Or did you not hear the starting pistol, almost one year ago?

[jayboy]

21 minutes ago, chiang mai said:

You just know that there will still be members, in the new year, who will continue to say that the whole thing isn't real, because they haven't heard anything.........it's both funny and sad at the same time.

 

I agree with your comment.I wonder however what the consequences will be  for those who simply ignore the updated tax regime.It could be, since the Thai tax system works on an honour system, that they continue to fly under the radar with no real world consequences at all.Even a tax link with visa extensions could take a few years to be implemented.I doubt whether the RD regards moderately well off elderly expats as a priority.

 

But i could be wrong and personally am playing it very safe.

[scottiejohn]

20 minutes ago, Jingthing said:

I find this line of "debate" tedious.

I find "non" facts nonfactual and very tedious!

Let us get some actual facts first before making pointless fact less posts!

[scottiejohn]

23 minutes ago, Jingthing said:

I find this line of "debate" tedious.

Then why post?

[chiang mai]

1 hour ago, jayboy said:

 

I agree with your comment.I wonder however what the consequences will be  for those who simply ignore the updated tax regime.It could be, since the Thai tax system works on an honour system, that they continue to fly under the radar with no real world consequences at all.Even a tax link with visa extensions could take a few years to be implemented.I doubt whether the RD regards moderately well off elderly expats as a priority.

 

But i could be wrong and personally am playing it very safe.

What they could do is lots of nasty things, what they would do will probably depend on the individual and their circumstances.....age, remitted funds, tax evaded, years here (should have known). Like you, I am playing it safe because I know from experience that these things can come back and bite you later, when you're not expecting it.

[scottiejohn]

2 minutes ago, chiang mai said:

What they could do

More conjecture!

Where are the facts?

[chiang mai]

1 hour ago, jayboy said:

 

I agree with your comment.I wonder however what the consequences will be  for those who simply ignore the updated tax regime.It could be, since the Thai tax system works on an honour system, that they continue to fly under the radar with no real world consequences at all.Even a tax link with visa extensions could take a few years to be implemented.I doubt whether the RD regards moderately well off elderly expats as a priority.

 

But i could be wrong and personally am playing it very safe.

Talking of consequences, the following link was published in another thread many months ago, in case you didn't see it.

 

https://sherrings.com/tax-evasion-not-filing-tax-returns-thailand.html#:~:text=Whoever intentionally avoids (evades) payment,Both*.

[Aforek]

I follow the story, but not every detail, I just say that so far, there is nothing official with details ; they are late 

 

The Thai authorities have assured that they will comply with the signed agreements. However, they have specified that the large number of bilateral agreements has not yet allowed them to examine in detail all the consequences of the application of their decree for each agreement.

[chiang mai]

3 minutes ago, Aforek said:

I follow the story, but not every detail, I just say that so far, there is nothing official with details ; they are late 

 

The Thai authorities have assured that they will comply with the signed agreements. However, they have specified that the large number of bilateral agreements has not yet allowed them to examine in detail all the consequences of the application of their decree for each agreement.

The first part of that is all you need to know, the TRD will comply with existing DTA's......that fact and the fact that Por161 was enacted in September last year, the onus is now on the taxpayer.

[jayboy]

25 minutes ago, chiang mai said:

What they could do is lots of nasty things, what they would do will probably depend on the individual and their circumstances.....age, remitted funds, tax evaded, years here (should have known). Like you, I am playing it safe because I know from experience that these things can come back and bite you later, when you're not expecting it.

 

The penalties are a matter of record.My observation however related to the practical likelihood of any elderly expatriate who simply ignored the requirement to file and pay tax. After all many should have filed tax returns in the past and didn't, without the RD noticing or apparently caring.

[chiang mai]

Just now, jayboy said:

 

The penalties are a matter of record.My observation however related to the practical likelihood of any elderly expatriate who simply ignored the requirement to file and pay tax. After all many should have filed tax returns in the past and didn't, without the RD noticing or apparently caring.

Your guess is as good as mine, it's about as easy and simple as trying to figure out the wife's thinking. 🙂

[jayboy]

14 minutes ago, chiang mai said:

Talking of consequences, the following link was published in another thread many months ago, in case you didn't see it.

 

https://sherrings.com/tax-evasion-not-filing-tax-returns-thailand.html#:~:text=Whoever intentionally avoids (evades) payment,Both*.

 

I did see them at the timeand the penalties are a matter of record.However my observation was on another matter, namely whether some will fly under the radar.

[jayboy]

I have no special insight or knowledge.However if I was pressed, I would guess that there will eventually be a tax clearance requirement to secure retirement  visa rights.But I could be completely wrong.

[chiang mai]

5 minutes ago, jayboy said:

I have no special insight or knowledge.However if I was pressed, I would guess that there will eventually be a tax clearance requirement to secure retirement  visa rights.But I could be completely wrong.

I think so also, I feel that is inevitable, eventually. The question then becomes for those who decide to ignore the current situation, what will happen to them when that link is made, will TRD/Immi start to ask questions and how to answer them.

[anrcaccount]

3 hours ago, JimGant said:

You've nailed it. You've  got a goulash of fungible monies -- whose character is determined by the time lines of the deposited tranches. Simple enough to begin at the bottom, and end your time line marker when you reach amount sent. Total tranches sent, plus the partial tranche at the end -- will allow you to easily determine assessable vs non assessable monies remitted.

 

The use of FIFO was discussed in a Bangkok Post article in 2012 (link, below). A  totally sound article, about how to deal with non specific (i.e., fungible) remittances. Lacking anything otherwise definitive from the TRD, I'd certainly feel comfortable putting this article in your notes, should TRD come knocking with an audit.

https://www.bangkokpost.com/business/general/299691/when-the-revenue-department-changes-its-mind-the-taxpayer-gets-the-headache

 

 

Surely you can see the irony here of:

 

Trying to rely on a decade year old media article as a source...

 

for a remittance rule that's never been applied...

 

where a bunch of people are trying to preempt and voluntarily calculate their own taxation payments.....

 

In a complete absence of any real clarity from the actual revenue authority.....

 

As a Thai would say - JING LOR?? 

[scottiejohn]

1 hour ago, chiang mai said:

Talking of consequences, the following link was published in another thread many months ago, in case you didn't see it.

 

https://sherrings.com/tax-evasion-not-filing-tax-returns-thailand.html#:~:text=Whoever intentionally avoids (evades) payment,Both*.

They are making reference to 2016!

What is the relevance to the unknown so called pending apocalypse?

[scottiejohn]

1 hour ago, chiang mai said:

The first part of that is all you need to know, the TRD will comply with existing DTA's......that fact and the fact that Por161 was enacted in September last year, the onus is now on the taxpayer.

How do you know that?

[scottiejohn]

1 hour ago, chiang mai said:

Your guess is as good as mine, it's about as easy and simple as trying to figure out the wife's thinking. 🙂

My point exactly!

You and the rest of you doom mongers do not know for sure what is going to happen!