Introduction to Personal Income Tax in Thailand

[TroubleandGrumpy]

2 minutes ago, The Cyclist said:

Here is a list of assessable income

https://library.siam-legal.com/thai-law/revenue-code-assessable-income-and-income-tax-sections-40-64/

Written down in black and white, by the Thai Tax Authority.

Go and have a good sleep - we are not going doing that road that another poster dragged everyone - the one that is no longer here, who was proven wrong many times, and who the current proposal cuts off at the knees. 

 

Quote from the article "The new (proposed rule change) policy encourages Thai nationals to repatriate foreign income for domestic investment. Under these new rules, foreign income earned and remitted within the same or following year will not incur tax. For instance, income from 2025 brought into Thailand in either 2025 or 2026 would not be taxed. Beyond this timeframe, usual tax rules will apply."

 

They have made another mess of things obviously (what about after 2026), but the short and long of the current situation if that rule is implemented, is that it now looks AOK for retired Expats living in Thailand who are remitting money into the country.  If you want to go ahead and calculate your income taxes, then go to the Provincial Office and get a TIN and lodge a tax return - or pay someone else to do that for you - then go right ahead - if you have already done that then I feel for you. 

 

If you dont know what the proposed change means - then you dont know what is going on - so I will tell you this. They screwed up - they recognise this only because 'declared remittances' in the lodged tax returns for 2024 was drastically lower than previous years - overall the remittances into Thailand have also dramatically reduced - they will not apologise - they want money remitted into Thailand ASAP and are willing to let it in tax free - because the economy is tanking.  They are holding up the Baht as much as possible by using their reserves to buy the Baht whenever the value starts to drop - they are desperately trying to hold the Baht at 30-35 USD - otherwise their loan and financial repayments will be too much to cover up - and because those bringing in expensive items like machinery and luxury cars and military equipment etc etc, will have to pay more - and Thais wanting to buy overseas things like property or investments etc etc., will have to pay more.  I hope you now understand a bit of what is going on.    

[TroubleandGrumpy]

9 minutes ago, The Cyclist said:

Sure, I can fully understand that logic, all this foreigner stuff is new to the TRD, it probably scares them, and it increases their workload.

They have no capability or understanding - it will take years for them to be anywhere the Tax Offices in modern countries - probably decades.

 

10 minutes ago, The Cyclist said:

Yep. And that is when a lot of people are going to meet their WTF moment.

That is where we were dragged before - leave it alone mate - this proposal is good news and I think much more is coming. TRD are moving to global taxation - IMO they will implement exclusions for non-Thai citizens like most other countries have done.  As the Malaysian Minster said (paraphrase) - 'Why would be discourage Expats from bringing money into our country that they will spend in our country, by hitting them with income taxes. When they buy things here they are building the economy with 'new' money and they will also be paying sales taxes on many of the products they buy'. 

 

[The Cyclist]

11 minutes ago, TroubleandGrumpy said:

TRD are moving to global taxation

 

Agreed. That is why I just spent 3 months in the Philippines scoping out the SRRV.

 

15 minutes ago, TroubleandGrumpy said:

IMO they will implement exclusions for non-Thai citizens like most other countries have done.  As the Malaysian Minster said (paraphrase) - 'Why would be discourage Expats from bringing money into our country that they will spend in our country, by hitting them with income taxes.

 

I thought that was only valid until next year ?

[Yumthai]

4 minutes ago, The Cyclist said:

Agreed. That is why I just spent 3 months in the Philippines scoping out the SRRV.

You're worrying way too much for things that have not happened and most probably won't.

I hope your pre-planned move is not primarily motivated for tax reasons, that would be a mistake. PH is not TH.

[The Cyclist]

1 minute ago, Yumthai said:

You're worrying way too much for things that have not happened and most probably won't.

I hope your pre-planned move is not primarily motivated for tax reasons, that would be a mistake. PH is not TH.

 

I'm not worrying about anything.

 

It's not a pre-planned move, It was an initial recce to get a heads up on the SRRV and visit a couple of mates and get a feel for the place.

 

Initial phase of a Plan B, in case Thailand goes for global taxation.

[TroubleandGrumpy]

18 hours ago, The Cyclist said:

 

Agreed. That is why I just spent 3 months in the Philippines scoping out the SRRV.

 

 

I thought that was only valid until next year ?

 

How was it there and is the SSRV OK - any advice. Philippines is an option if Thailand goes to sheite for Expats.

 

 

Malaysia extended that exemption for another 10 years as per below. Apparently they cannot make it permanent under their current tax rules and by-laws - only 10 years at a time. 

Income Tax (Exemption) (No. 5) Order 2022 (Amendment) Order 2024

The Income Tax (Exemption) (No. 5) Order 2022 (Amendment) Order 2024 (“amendment order”) extends the income tax exemption for all types of foreign-source income received by resident individuals (except for income from a Malaysian partnership business that is received in Malaysia from outside Malaysia) until 31 December 2036, provided that the income has been subjected to tax in the jurisdiction of origin (the exemption was previously set to end on 31 December 2026, pursuant to the Income Tax (Exemption) (No. 5) Order 2022 (P.U.(A) 234/2022)). The amendment order will come into operation on 1 January 2027.

[TroubleandGrumpy]

17 hours ago, The Cyclist said:

I'm not worrying about anything.

 

It's not a pre-planned move, It was an initial recce to get a heads up on the SRRV and visit a couple of mates and get a feel for the place.

 

Initial phase of a Plan B, in case Thailand goes for global taxation.

Planning ahead - always a good idea. Sticking head in sand - not a good strategy.  It is good for now about income taxes, but Thailand might decide, when they do implement the global tax system, to tax all the foreign income of all tax residents (Expats included) - you never know.  Another coup might happen and the next Junta may want Expats out - who knows what is going to happen.  There are too many things that could happen here, and it is almost as foolish as not wearing a helmet on a bike, to not plan ahead for another option. I have a few Plan Bs, but plan C (go back to Australia) is my least preferred option - but I have a plan.

[TheAppletons]

21 hours ago, Yumthai said:

You're worrying way too much for things that have not happened and most probably won't.

I hope your pre-planned move is not primarily motivated for tax reasons, that would be a mistake. PH is not TH.

 

   Ssshhhhh.  Let's not spoil a good thing.