Thai national tax liability on incoming foreign transfers

[TroubleandGrumpy]

Advisory Notice | The Revenue Department (English Site) (rd.go.th)

 

Section 38_64 | The Revenue Department (English Site) (rd.go.th)

 

Year 2023 | The Revenue Department (English Site) (rd.go.th)

 

Anyone wanting to know how things are 'technically' they need to read the above website documents. Advice from eole on this forum is OK, but if you are really concerned then you should (after reading above  talk to a tax exert later this year.  No one knows the details yet.

 

When I refer to 'technical' I am referring to the rules nand regs, but as anyone here a while knows, that is not how things always work here.  Example = read Section 4 of the link below and the rules and regs require Exats exiting Thailand to get a tax clearance certificate. But how it axctually works is that the rule is not enforced anymore.  There are some people here that are experts in the rules, and there are some who know how things work.  But no one knows what the Thai Yax Office will do under this changed rule.  

Section1_4 | The Revenue Department (English Site) (rd.go.th)

 

[Dogmatix]

On 5/2/2024 at 1:27 PM, JBChiangRai said:

if it’s a gift 10 million baht, double that if you are husband and wife or parent and child.

 

However, for no tax to be due, it is important that you never benefit from the gift, which means if you are closely related, then the recipient needs to be able to prove where the money was spent, and none of it went back to the giver.

 

Can you cite any references for this this or is it just your own assumption?

[JBChiangRai]

12 minutes ago, Dogmatix said:

 

Can you cite any references for this this or is it just your own assumption?

 

Thailand - Individual - Income determination (pwc.com)

[Yumthai]

1 hour ago, JBChiangRai said:

1 hour ago, Dogmatix said:

 

Can you cite any references for this this or is it just your own assumption?

 

Thailand - Individual - Income determination (pwc.com)

Where in the PwC link is there a reference of your statement: "However, for no tax to be due, it is important that you never benefit from the gift, which means if you are closely related, then the recipient needs to be able to prove where the money was spent, and none of it went back to the giver." ?

[JBChiangRai]

 

It is a fairly common assumption in most tax authorities that a gift must be for the use of the person to whom they are gifted.  If you receive some benefit from them you must be able to defend it, and defend it from tax evasion, which it is if you did it to avoid tax and intended to benefit from.

 

For example, if you gift the money to your wife, and you both live off it and you appear to have no income then the tax authorities would say it is not a real gift.  There is another issue with gifts in Thailand, they can be reclaimed, and since married couples are treated as a special case, you would be advised to take professional advice.

 

I would point you at Mike Lister's excellent practical tax guide on this forum, you will need to find it yourself, but the appropriate part is 

 

65) Two additional points on this subject are: 1) Funds that are gifted, must be for the use of the person to whom they are gifted.

 

If you care to give me some details of your specific case, I will try and help you more accurately.

 

 

[Yumthai]

3 hours ago, JBChiangRai said:

It is a fairly common assumption in most tax authorities that a gift must be for the use of the person to whom they are gifted.  If you receive some benefit from them you must be able to defend it, and defend it from tax evasion, which it is if you did it to avoid tax and intended to benefit from.

 

For example, if you gift the money to your wife, and you both live off it and you appear to have no income then the tax authorities would say it is not a real gift.  There is another issue with gifts in Thailand, they can be reclaimed, and since married couples are treated as a special case, you would be advised to take professional advice.

 

I would point you at Mike Lister's excellent practical tax guide on this forum, you will need to find it yourself, but the appropriate part is 

 

65) Two additional points on this subject are: 1) Funds that are gifted, must be for the use of the person to whom they are gifted.

 

If you care to give me some details of your specific case, I will try and help you more accurately.

OK, so it's a fairly common (sense) assumption in most tax authorities.

Not sure however, as there is no official reference, that Thai tax authority common assumption would be equal or divergent.

Real-life history would rather point out Thai administration inconsistency and unpredictability but who knows...