Introduction to Personal Income Tax in Thailand

[RocketDog]

15 hours ago, JimGant said:

Mike disappeared from this forum on July 21, 2024. There have been no "latest versions" since.

Thanks.

I quit reading several months ago waiting for the dust to settle. It has now I think. No urgency on my part since I won't owe and won't get a TIN until I have to.

I saved the post for reference.

In any event Lister did a wonderful job.

 

I hope he doing well. 

[TroubleandGrumpy]

On 5/12/2025 at 1:19 PM, Jingthing said:

This is totally ridiculous.

Again USA retirement accounts are not on any planet the same thing as mutual funds.

That's like saying a bag of groceries which may contain carrots is a carrot.

 

Listen Closely - YOU COULD BE WRONG.  I am bothering to write this is information to anyone interested - not just in reply to you (it is not all about you).

 

What Thailand decides is a Mutual Fund is what Thailand decides is a 'mutual fund'. This is not the West where interpretation of Laws and the meaning of phrases/words in that Law, are based upon the legal system of Common Law. Common Law is based upon past Court Precedent (decisions) and higher Courts up to the Supreme/High Court rulings on those Precedents.  But every single legal definition in Thailand is what the appropriate delegated Officer decides it is.  And if you take it all the way to the Supreme Court - listen closely again - whatever that decision is ONLY APPLIES TO YOUR CASE !!!  Thailand does not have a Common Law based legal system.

 

The legal system here is that what one Govt Officer's interpretation of a Law and the meaning of any phrase or word in a particular situation - is valid - and is the decision. Everyone here has the right to get a Govt Officer ruling changed by Appeal (in Thai), but again - that change is only valid for that case. Everyone here has the right to then take the matter (in Thai) to Court to get the ruling changed, but again - that change is only valid for that case. What usually happens what that happens is that the Court decision is then advised to all the appropriate Officers for their future assessments of each case - but it is still their authority to make whatever decision they make - every case is different here. What often happens here in Thailand is that the Govt Dept (TRD in this case) will take the matter to Court and get them to make a decision.

 

Unless you can provide a link to a Tax related Court case where the definition of what is a mutual fund has been decided, AND the directive subsequently issued by the TRD stating this definition is appropriate in most situations, then YOU COULD BE WRONG.  I could be wrong too - but my statement is based upon what research I have done (a lot) and there aint no definition of a mutual fund and TRD directive that I have found, plus my understanding of the legal system here - minimal, but obviously much more than yours. 

 

The Thai legal system (including tax laws and rules) is extremely difficult and complex. Unfortunately Thailand was never fully colonised and given a legal system based upon the western system from UK/USA/France.   This is an example of what is a Mutal Fund in Thailand - "Notification of the Office of the Securities and Exchange Commission - No. Sor Nor. 88/2558' (which has not relation to or impact upon TRD). 

https://publish.sec.or.th/nrs/7209se.pdf

 

This is what Google AI states - which I tend to also agree with in this case:

 

In Thailand, a mutual fund is an investment vehicle where multiple investors pool their money, and that pooled money is then invested in a diverse range of securities (like stocks, bonds, etc.) by professional fund managers. These funds are managed by asset management companies according to their stated investment policies, aiming to generate returns for the investors. Retirement Mutual Funds (RMFs) are a specific type of mutual fund designed for long-term savings and retirement planning, and they do offer tax benefits. 

 

Go Fish (that is for you).

 

[Jingthing]

14 minutes ago, TroubleandGrumpy said:

 

Listen Closely - YOU COULD BE WRONG.  I am bothering to write this is information to anyone interested - not just in reply to you (it is not all about you).

 

What Thailand decides is a Mutual Fund is what Thailand decides is a 'mutual fund'. This is not the West where interpretation of Laws and the meaning of phrases/words in that Law, are based upon the legal system of Common Law. Common Law is based upon past Court Precedent (decisions) and higher Courts up to the Supreme/High Court rulings on those Precedents.  But every single legal definition in Thailand is what the appropriate delegated Officer decides it is.  And if you take it all the way to the Supreme Court - listen closely again - whatever that decision is ONLY APPLIES TO YOUR CASE !!!  Thailand does not have a Common Law based legal system.

 

The legal system here is that what one Govt Officer's interpretation of a Law and the meaning of any phrase or word in a particular situation - is valid - and is the decision. Everyone here has the right to get a Govt Officer ruling changed by Appeal (in Thai), but again - that change is only valid for that case. Everyone here has the right to then take the matter (in Thai) to Court to get the ruling changed, but again - that change is only valid for that case. What usually happens what that happens is that the Court decision is then advised to all the appropriate Officers for their future assessments of each case - but it is still their authority to make whatever decision they make - every case is different here. What often happens here in Thailand is that the Govt Dept (TRD in this case) will take the matter to Court and get them to make a decision.

 

Unless you can provide a link to a Tax related Court case where the definition of what is a mutual fund has been decided, AND the directive subsequently issued by the TRD stating this definition is appropriate in most situations, then YOU COULD BE WRONG.  I could be wrong too - but my statement is based upon what research I have done (a lot) and there aint no definition of a mutual fund and TRD directive that I have found, plus my understanding of the legal system here - minimal, but obviously much more than yours. 

 

The Thai legal system (including tax laws and rules) is extremely difficult and complex. Unfortunately Thailand was never fully colonised and given a legal system based upon the western system from UK/USA/France.   This is an example of what is a Mutal Fund in Thailand - "Notification of the Office of the Securities and Exchange Commission - No. Sor Nor. 88/2558' (which has not relation to or impact upon TRD). 

https://publish.sec.or.th/nrs/7209se.pdf

 

This is what Google AI states - which I tend to also agree with in this case:

 

In Thailand, a mutual fund is an investment vehicle where multiple investors pool their money, and that pooled money is then invested in a diverse range of securities (like stocks, bonds, etc.) by professional fund managers. These funds are managed by asset management companies according to their stated investment policies, aiming to generate returns for the investors. Retirement Mutual Funds (RMFs) are a specific type of mutual fund designed for long-term savings and retirement planning, and they do offer tax benefits. 

 

Go Fish (that is for you).

 

I have not heard even one "expert" in these matters say IRAs and 401ks are mutual funds under Thai law.

Sure they could be anything under Thai law.

They could be pop tarts.

 

[No Forwarding Address]

I have a question, any hope there will be a waiver of taxes for any money brought in to purchase a Condominium in Thailand……….all the ‘don't buy anything in Thailand’ crowd can stay out of this.  I own one already and am interested in buying another, but if I have to pay taxes on the money brought in, I will opt out.   Any insight on this??      Peace

[JimGant]

1 hour ago, Jingthing said:

I have not heard even one "expert" in these matters say IRAs and 401ks are mutual funds under Thai law.

Sure they could be anything under Thai law.

 

Somehow I've lost the whole point of this discussion. Money remitted to Thailand from an IRA has lost any identity it may of had in the IRA. If it was a stock mutual fund, those stocks were sold, and it is now fungible cash, with no mutual fund identity. This cash is remitted to Thailand, and the DTA says Thailand has exclusive taxation rights on this remitted income -- because it represents IRA income. There's no mutual fund identity to this remittance -- it's strictly nondescript cash representing income deemed assessable, per DTA, for Thai tax purposes. So, how do you play the "mutual fund" card in this scenario, particularly if only a small percentage of your IRA withdrawal represents mutual fund holdings in your IRA?

[treetops]

1 hour ago, No Forwarding Address said:

I have a question, any hope there will be a waiver of taxes for any money brought in to purchase a Condominium in Thailand……….all the ‘don't buy anything in Thailand’ crowd can stay out of this.  I own one already and am interested in buying another, but if I have to pay taxes on the money brought in, I will opt out.   Any insight on this??      Peace

 

Depends on your residential status, source of funds, DTA etc etc.

[JimGant]

55 minutes ago, No Forwarding Address said:

I have a question, any hope there will be a waiver of taxes for any money brought in to purchase a Condominium in Thailand……

Sure. If that money is not assessable income per the DTA, like govt pensions and Social Security. Or pre 2024 income, as found in savings accounts, CDs, IRAs, etc (exempt per Por 162 decree). Or a loan from your bank, or a loan from mortgaging your house or other assets. Inheritances. Gift from Aunt Agnes.

 

Still short, 'cause you only have assessable income, like from a 2024 or later private pension? Instead of remitting it to Thailand (and thus subject to taxation), buy an asset you can collateralize, then take a loan and send that money to Thailand.

 

By the way, no one is going to scrutinize the assessability of your remittances. It would be too resource intensive -- with few gains -- to talk to everyone with large remittances. Besides, BoI is doing all they can to encourage Foreign Direct Investment. And harassing potential investors ain't in the cards.

 

Just curious: Why do you think the money you might forward to Thailand for a condo purchase -- would be assessable for Thai tax purposes? Are you cashing out a large chunk of IRA? If so, literal reading says Por 162 exempts all pre 2024 monies in this IRA -- just pay Uncle Sam.

[TroubleandGrumpy]

1 hour ago, Jingthing said:

I have not heard even one "expert" in these matters say IRAs and 401ks are mutual funds under Thai law.

Sure they could be anything under Thai law.

They could be pop tarts.

 

We have a name for people like you in Australia - <removed> suffering richardcraniums. Lets block EO. 

[TroubleandGrumpy]

20 minutes ago, treetops said:

 

Depends on your residential status, source of funds, DTA etc etc.

@No Forwarding Address

That above - and also whether it is 'taxable income' under the Thailand tax laws.  Dont ask me for any certainty - it is all very 'interpretive' as to what means what, here in Thailand.  My position as stated many times is to wait until TRD moves to a global taxation system - they are currently working on it. Until then - perhaps not a good idea unless you have 'clear proof' that the source of the money is not income earned after 1 Jan 2024 - such as a Bank Account records showing the source and that the funds have been in that account since before 1 Jan 2024.  Otherwise, you must have 'clear proof' that the money was not income as defined under Thai tax laws.  "Clear Proof' is not defined - it is basically whatever the TRD Officers decides is acceptable. The only definite exemption is living in Thailand for less than 180 days in any calendar year - buy then and all is good - everything else is 'interpretive'. 

[TroubleandGrumpy]

Just now, TroubleandGrumpy said:

@No Forwarding Address

That above - and also whether it is 'taxable income' under the Thailand tax laws.  Dont ask me for any certainty - it is all very 'interpretive' as to what means what, here in Thailand.  My position as stated many times is to wait until TRD moves to a global taxation system - they are currently working on it. Until then - perhaps not a good idea unless you have 'clear proof' that the source of the money is not income earned after 1 Jan 2024 - such as a Bank Account records showing the source and that the funds have been in that account since before 1 Jan 2024.  Otherwise, you must have 'clear proof' that the money was not income as defined under Thai tax laws.  "Clear Proof' is not defined - it is basically whatever the TRD Officers decides is acceptable. The only definite exemption is living in Thailand for less than 180 days in any calendar year - buy then and all is good - everything else is 'interpretive'. 

 

Another point - I saw an interview recently where the 'expert' said that TRD is seeking as part of its implementing of a global taxation system, a compulsory bank rule (by the Bank of Thailand) that all banks must report to them any accounts that have 2+ million baht remitted from overseas in any calendar year.  That request will go (or has gone) to the Ministry of Finance who if they approve, will then be required to make a change to the Financial Institutions Businesses Act.  There is a LOT going on and TRD is very busy - but until they are finished and have all the rules established for the new global taxation system - IMO Expats should carry on as they have for the last 20-30 years.