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I live in Thailand more than 2 decades on a Retirement Visa.
During all these years I paid Taxes, mostly from Interest over my money in the bank (800,000 baht) and shopping items.
With the new tax rules, I will be required to pay taxes on money transferts to Thailand and other things.
I never asked for a tax-id as I thaught that a foreigner only requires a tax-id when receiving money from working in Thailand.
Do I need to apply for a tax-id number or not?
What benefit do I have if requiring a tax-id number?

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11 minutes ago, Confuscious said:

Where is this thread?

Link please 

This list from a non-official guide (meaning not TRD approved so dont take as gospel) is very detailed and would also be useful for you - especially this list from the first page:

 

SUMMARY OF KEY POINTS

a) The tax year is the calendar year, tax returns must be filed the following year, before 31 March.

b) Only income remitted to Thailand is potentially taxable in Thailand, income that remains overseas is not taxable for foreigners.

c) You must spend more than 180 days per calendar year in Thailand before you are considered tax resident.

d) There is no double taxation but some income may be taxed at a different rate.

e) Dual Tax Agreements exist between Thailand and over 60 countries, each is different, you must read and understand yours.

f) Tax returns are filed using the honour system. You must declare your income, without any supporting paperwork and this will either be accepted or not, just as in the US and UK.

g) Income that is taxed overseas will not be re-taxed here. Tax paid on income overseas can be used to offset any Thai tax assessment on the same income.

h) Assessable income in Thailand may take many forms, bank transfers, cash, cheques, overseas debit card and ATM transactions etc.

i) Generous Tax Exemptions, Deductions and Allowances (TEDA) exist, along with a zero rated tax band,  to create a significant tax free buffer for many tax payers.

j) How you use your imported funds in Thailand is of no interest to the RD and does not change the taxation of those funds.

k) For the most part, the various tax treaties do not limit the extent to which pension, dividend, rental and interest income can be taxed by Thailand.

 

 

 

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55 minutes ago, Confuscious said:

Where is this thread?

Link please 

 

41 minutes ago, TroubleandGrumpy said:

This list from a non-official guide (meaning not TRD approved so dont take as gospel) is very detailed and would also be useful for you - especially this list from the first page:

 

SUMMARY OF KEY POINTS

a) The tax year is the calendar year, tax returns must be filed the following year, before 31 March.

b) Only income remitted to Thailand is potentially taxable in Thailand, income that remains overseas is not taxable for foreigners.

c) You must spend more than 180 days per calendar year in Thailand before you are considered tax resident.

d) There is no double taxation but some income may be taxed at a different rate.

e) Dual Tax Agreements exist between Thailand and over 60 countries, each is different, you must read and understand yours.

f) Tax returns are filed using the honour system. You must declare your income, without any supporting paperwork and this will either be accepted or not, just as in the US and UK.

g) Income that is taxed overseas will not be re-taxed here. Tax paid on income overseas can be used to offset any Thai tax assessment on the same income.

h) Assessable income in Thailand may take many forms, bank transfers, cash, cheques, overseas debit card and ATM transactions etc.

i) Generous Tax Exemptions, Deductions and Allowances (TEDA) exist, along with a zero rated tax band,  to create a significant tax free buffer for many tax payers.

j) How you use your imported funds in Thailand is of no interest to the RD and does not change the taxation of those funds.

k) For the most part, the various tax treaties do not limit the extent to which pension, dividend, rental and interest income can be taxed by Thailand.

 

 

 

 

Thank you for providing the information to that member but the link you used is to the original locked topic dated January and has been out of use for at least a month...the document in that link is four months old. The correct and current link is shown below:

 

 

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1 hour ago, TroubleandGrumpy said:

No you do not need a Tax ID - unless you need to lodge a tax return and pay income taxes.

There is a thread all about this issue - but basically if the money you remit into Thailand is not income, as defined by the TRD, then you dont need to lodge a tax return or pay income taxes.  There are a LOT of details and issues that the TRD has still not clarified, and my advice is to research and learn, and wait until you decide that you do need to lodge a tax return and pay income taxes. 

That is not correct. The rules governing TIN's are set out in the current version of the document and are shown below.

 

79) Before you can file a tax return in Thailand, you must obtain a Tax Identification Number or TIN from the RD offices in your area. You are required by law to obtain a TIN, within 60 days from when you first derive the minimum assessable income, which is 120,000 baht of income received from overseas, after becoming tax resident. For long stay residents that will be a minimum of 180 days plus 60 days in country, in the same tax year. The Thai ID card number serves as the TIN for the local population. It is not necessary for people who are not Thai tax resident to obtain a TIN, neither is it necessary to obtain one if you do not exceed the assessable income level threshold.

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22 minutes ago, Mike Lister said:

 

 

The links you were given are four months out of date (!), the correct and current version is linked below. If you are holding old links to the document, please do not post them again.

 

 

I dont have a link - I searched using Google and that was what I got.

 

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Just now, TroubleandGrumpy said:

I dont have a link - I searched using Google and that was what I got.

 

I have posted the correct and current link above, document dated 13 May Version 12.  

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Posted (edited)
42 minutes ago, Mike Lister said:

That is not correct. The rules governing TIN's are set out in the current version of the document and are shown below.

 

79) Before you can file a tax return in Thailand, you must obtain a Tax Identification Number or TIN from the RD offices in your area. You are required by law to obtain a TIN, within 60 days from when you first derive the minimum assessable income, which is 120,000 baht of income received from overseas, after becoming tax resident. For long stay residents that will be a minimum of 180 days plus 60 days in country, in the same tax year. The Thai ID card number serves as the TIN for the local population. It is not necessary for people who are not Thai tax resident to obtain a TIN, neither is it necessary to obtain one if you do not exceed the assessable income level threshold.

 

There are many clarifications and information updates that TRD are supposed to provide - the issue of what constitutes assesable income under this new loophole closure is just one of them.  The only rule that has changed is that the loophole whereby income such as capital gains and rent would be seasoned for 12 months and then remitted tax free.  Expats have been for decades remitting their pensions and savings into Thailand - nothing has changed with regards to that money.

 

If/when TRD specifies that under the new rule all long-term Expats who become tax residents and remit into Thailand more than 60/120K which is now defined as assessable income (which means taxable income) are required to get a TIN and lodge a tax return, then I and many others will agree.  At which time I would say those deciding whether to leave Thailand or not (and can), will make the decision to leave Thailand. Until then it is all about what constitutes income and what TRD intends to apply taxation to - especially Govt pensions.

 

The rues are not always the issue in Thailand - it is what they decide to enforce and how they interpret them.  There is a rule in the TRD Tax Code that states all foreigners leaving Thailand must first get a tax clearance certificate - what matters is that it is no longer enforced.  It would be wrong to tell any Expat leaving to Thailand they must get a tax clearance because it is the Law. 

 

Edited by TroubleandGrumpy
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31 minutes ago, Mike Lister said:

I have posted the correct and current link above, document dated 13 May Version 12.  

Thanks - my bad on posting the wrong one - the current one is now saved. 

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4 minutes ago, TroubleandGrumpy said:

 

There are many clarifications and information updates that TRD are supposed to provide - the issue of what constitutes assesable income under this new loophole closure is just one of them.  The only rule that has changed is that the loophole whereby income such as capital gains and rent would be seasoned for 12 months and then remitted tax free.  Expats have been for decades remitting their pensions and savings into Thailand - nothing has changed with regards to that money and yet you claim the change means this is now classified as assessable income by TRD.

 

If/when TRD specifies that under the new rule all long-term Expats who become tax residents and remit into Thailand more than 60/120K which is now defined as assessable income (which means taxable income) are required to get a TIN and lodge a tax return, then I and many others will agree.  At which time I would say those deciding whether to leave Thailand or not (and can), will make the decision to leave Thailand. Until then it is all about what constitutes income and what TRD intends to apply taxation to - especially Govt pensions.

 

The rues are not always the issue in Thailand - it is what they decide to enforce and how they interpret them.  There is a rule in the TRD Tax Code that states all foreigners leaving Thailand must first get a tax clearance certificate - what matters is that it is no longer enforced.  It would be wrong to tell any Expat leaving to Thailand they must get a tax clearance because it is the Law. 

 

We know with absolute certainty that foreign residents exiting Thailand do not have to provide a Tax Clearance Certificate, unless they belong to one of the few categories required to do so. In light of the foregoing, it is very safe to ignore the Tax Clearance Certificate rule, even though it exists on the books, because none of us have been asked to obtain one when we have exited the country or applied for a visa extention.

 

The TRD rule stating when a TIN must be acquired is far less obvious, there is no evidence, not even anecdotal evidence, suggesting that rule is not in force today. When a member asks whether they need to acquire a TIN, it is safe to quote the TRD rules on this but it is not safe to tell them to completely ignore them.

 

 

 

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3 minutes ago, Mike Lister said:

We know with absolute certainty that foreign residents exiting Thailand do not have to provide a Tax Clearance Certificate, unless they belong to one of the few categories required to do so. In light of the foregoing, it is very safe to ignore the Tax Clearance Certificate rule, even though it exists on the books, because none of us have been asked to obtain one when we have exited the country or applied for a visa extention.

 

The TRD rule stating when a TIN must be acquired is far less obvious, there is no evidence, not even anecdotal evidence, suggesting that rule is not in force today. When a member asks whether they need to acquire a TIN, it is safe to quote the TRD rules on this but it is not safe to tell them to completely ignore them.

 

I agree - it is not correct to advise Expats to ignore the rule - but it is also not correct to advise them to absolutely comply.  What is known, is that 100s of thousands of Expats over many decades in Thailand (past and present) have been remitting their pensions and acquired savings to Thailand for decades, and not one of them has been fined/charged by TRD for not getting a TIN and not lodging a tax return. I believe that in the absence of clear advice or action by TRD, I think it is better to say that this is the rule, but maybe 'wait and see' - because noone is certain that they will be taxing retired Expats' Govt pensions - or not. And if uncertain then seek professional taxation advice regarding your own specific situation.       

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4 hours ago, Confuscious said:

I live in Thailand more than 2 decades on a Retirement Visa.
During all these years I paid Taxes, mostly from Interest over my money in the bank (800,000 baht) and shopping items.
With the new tax rules, I will be required to pay taxes on money transferts to Thailand and other things.
I never asked for a tax-id as I thaught that a foreigner only requires a tax-id when receiving money from working in Thailand.
Do I need to apply for a tax-id number or not?
What benefit do I have if requiring a tax-id number?

good luck trying to get one if you don't work in Thailand

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2 minutes ago, TroubleandGrumpy said:

 

I agree - it is not correct to advise Expats to ignore the rule - but it is also not correct to advise them to absolutely comply.  What is known, is that 100s of thousands of Expats over many decades in Thailand (past and present) have been remitting their pensions and acquired savings to Thailand for decades, and not one of them has been fined/charged by TRD for not getting a TIN and not lodging a tax return. I believe that in the absence of clear advice or action by TRD, I think it is better to say that this is the rule, but maybe 'wait and see' - because noone is certain that they will be taxing retired Expats' Govt pensions - or not. And if uncertain then seek professional taxation advice regarding your own specific situation.       

Members are being advised what the law says regarding TIN's they are not being commanded to absolutely comply with anything and never have! You on the other hand advised the member in this thread, " No you do not need a Tax ID - unless you need to lodge a tax return and pay income taxes", which is contrary to what the law states and you have no idea whether that law is enforced or not.

 

You then stated, "100s of thousands of Expats over many decades in Thailand (past and present) have been remitting their pensions and acquired savings to Thailand for decades, and not one of them has been fined/charged by TRD for not getting a TIN and not lodging a tax return".

 

You are not in a position to know whether those things are fact or not, hence it cannot be the basis of any sort of recommendations to ignore the law on TIN's and tax filing.

 

Lastly you wrote: "noone is certain that they will be taxing retired Expats' Govt pensions - or not". 

 

Whether or not those government pensions are taxed will be determined by individual country DTA's all of which may differ. What we can say with some certainty is that the US and the UK DTA's at a minimum preclude the TRD from taxing their respective government pensions ergo it is likely that many other countries may be similar.

 

 

 

 

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7 minutes ago, Mike Lister said:

Members are being advised what the law says regarding TIN's they are not being commanded to absolutely comply with anything and never have! You on the other hand advised the member in this thread, " No you do not need a Tax ID - unless you need to lodge a tax return and pay income taxes", which is contrary to what the law states and you have no idea whether that law is enforced or not.

 

You then stated, "100s of thousands of Expats over many decades in Thailand (past and present) have been remitting their pensions and acquired savings to Thailand for decades, and not one of them has been fined/charged by TRD for not getting a TIN and not lodging a tax return".

 

You are not in a position to know whether those things are fact or not, hence it cannot be the basis of any sort of recommendations to ignore the law on TIN's and tax filing.

 

Lastly you wrote: "noone is certain that they will be taxing retired Expats' Govt pensions - or not". 

 

Whether or not those government pensions are taxed will be determined by individual country DTA's all of which may differ. What we can say with some certainty is that the US and the UK DTA's at a minimum preclude the TRD from taxing their respective government pensions ergo it is likely that many other countries may be similar.

Perhaps you are confused by what I meant when I said 'unless you need to lodge a tax return and pay income taxes'. If you read the section in the tax code about who needs to get a TIN it clearly states a 'taxpayer'  is required to get a TIN  "provides that a taxpayer or a payer of income shall obtain and use a taxpayer identification number (TIN)"  It does not say tax resident - it says taxpayer - and as per the abbreviations a taxpayer is someone that has to pay the taxes. I am not saying everyone does not have to get a TIN - I am saying IMO that you should only get a TIN in order to lodge a tax retrun and pay your income taxes. 

 

Your statement about no one is being fined or arrested for failing to get a tax clearance certificate before leave the country, is as valid as mine that Expats who are retired and on a pension are not being fined and charged.  They are both accepotable statements, because if they were we would have heard about them by now for sure. I have been active on Thailand Expat forums and news sites since 2010 and I have never heard of either happenning.  

 

Whether or not Thailand will tax Expat's pensions is not soley based on DTAs - although as you say they will have a big bearing on things (if the TRD accepts them as acceptable to use for exemptions).  However, I also make my statements in that rgerads because IMO before the end of this year the Thailand Govt will make the same sort of statement as the Malaysian Govt did before they implemnted the same rule change regarding FSI (foreign sourced income). This below are the words as quoted by PWC on the detailed website link provided.

 

Qualifying FSI is exempt from tax provided the income has been subjected to tax in the country of origin. FSI received from individuals is regarded as having been subject to tax in the country of origin if:

a) Income tax or withholding tax on the FSI has been paid or is payable; or

b) Tax is not imposed in the country of origin because of:

i) The taxation system of the origin country

ii) The FSI of the individual falling below the taxable threshold in the country of origin

iii) Income that is given an exemption through a tax incentive

iv) In the case of foreign dividend income, it has been subject to underlying tax

v) Foreign dividend income that is paid from underlying profits arising from  operating profits, which have not been subjected to tax due to:

- Unabsorbed losses or capital allowances

- Profit arising from capital gains

- Tax incentives that are in compliance with the country’s substance requirements; or

- Tax rules under a tax consolidation regime

 

Is your foreign-sourced income exempted from tax? (pwc.com)

 

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35 minutes ago, TroubleandGrumpy said:

Perhaps you are confused by what I meant when I said 'unless you need to lodge a tax return and pay income taxes'. If you read the section in the tax code about who needs to get a TIN it clearly states a 'taxpayer'  is required to get a TIN  "provides that a taxpayer or a payer of income shall obtain and use a taxpayer identification number (TIN)"  It does not say tax resident - it says taxpayer - and as per the abbreviations a taxpayer is someone that has to pay the taxes. I am not saying everyone does not have to get a TIN - I am saying IMO that you should only get a TIN in order to lodge a tax retrun and pay your income taxes. 

 

Your statement about no one is being fined or arrested for failing to get a tax clearance certificate before leave the country, is as valid as mine that Expats who are retired and on a pension are not being fined and charged.  They are both accepotable statements, because if they were we would have heard about them by now for sure. I have been active on Thailand Expat forums and news sites since 2010 and I have never heard of either happenning.  

 

Whether or not Thailand will tax Expat's pensions is not soley based on DTAs - although as you say they will have a big bearing on things (if the TRD accepts them as acceptable to use for exemptions).  However, I also make my statements in that rgerads because IMO before the end of this year the Thailand Govt will make the same sort of statement as the Malaysian Govt did before they implemnted the same rule change regarding FSI (foreign sourced income). This below are the words as quoted by PWC on the detailed website link provided.

 

Qualifying FSI is exempt from tax provided the income has been subjected to tax in the country of origin. FSI received from individuals is regarded as having been subject to tax in the country of origin if:

a) Income tax or withholding tax on the FSI has been paid or is payable; or

b) Tax is not imposed in the country of origin because of:

i) The taxation system of the origin country

ii) The FSI of the individual falling below the taxable threshold in the country of origin

iii) Income that is given an exemption through a tax incentive

iv) In the case of foreign dividend income, it has been subject to underlying tax

v) Foreign dividend income that is paid from underlying profits arising from  operating profits, which have not been subjected to tax due to:

- Unabsorbed losses or capital allowances

- Profit arising from capital gains

- Tax incentives that are in compliance with the country’s substance requirements; or

- Tax rules under a tax consolidation regime

 

Is your foreign-sourced income exempted from tax? (pwc.com)

 

"a taxpayer is someone that has to pay the taxes".

 

This is incorrect and has been covered many time previously. The term "taxpayer" refers to anyone within the tax system. People who receive tax credits or repayments of tax withheld on bank account interest are referred to as taxpayers, this is the case in many if not most countries. It is a generic term for anyone who is inside the tax net or who is capable of being inside.

 

The tax rules implemented by the Malaysian tax authorities are not any sort of  guide to the rules the Thai Revenue may enact, just as the rules implemented by any other country are not.

 

 

 

 

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12 minutes ago, Mike Lister said:

"a taxpayer is someone that has to pay the taxes".

 

This is incorrect and has been covered many time previously. The term "taxpayer" refers to anyone within the tax system. People who receive tax credits or repayments of tax withheld on bank account interest are referred to as taxpayers, this is the case in many if not most countries. It is a generic term for anyone who is inside the tax net or who is capable of being inside.

 

The tax rules implemented by the Malaysian tax authorities are not any sort of  guide to the rules the Thai Revenue may enact, just as the rules implemented by any other country are not.

Well you may be right about the term taxpayer - but you could also be wrong.  If the TRD specifies that someone who does not have to pay any income taxes is still a taxpayer, then I will accept your definition. But in the absence of that fact, then I will interpret it to mean what I have always said that it means - someone who is obliged to pay income taxes. It is clear that the TRD has not defined anywhere near enough what the meanings are of all the terms used in the Tax Code. 

 

Malaysia made that blanket exception because of the negative outcry from Expats when they first announced this new rule back in 2022 - and they even delayed the implementation for personal taxes (not business taxes) until 2025.  I am hoping/thinking that the Thailand Government will do the same - not exactly the same - but the same type of approach (fair and balanced). 

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47 minutes ago, TroubleandGrumpy said:

Well you may be right about the term taxpayer - but you could also be wrong.  If the TRD specifies that someone who does not have to pay any income taxes is still a taxpayer, then I will accept your definition. But in the absence of that fact, then I will interpret it to mean what I have always said that it means - someone who is obliged to pay income taxes. It is clear that the TRD has not defined anywhere near enough what the meanings are of all the terms used in the Tax Code. 

 

Malaysia made that blanket exception because of the negative outcry from Expats when they first announced this new rule back in 2022 - and they even delayed the implementation for personal taxes (not business taxes) until 2025.  I am hoping/thinking that the Thailand Government will do the same - not exactly the same - but the same type of approach (fair and balanced). 

All of these topics are circular debates that have been debated many times, concluded, laid to rest and then you bring them up again, for whatever reason. Poster Dogmatix explained in great detail the translation of the word "taxpayer", from Thai to English, in the English version of the Revenue code. Yet here you are again, questioning what the word means, just as you have constantly and repeatedly revisited every single debate in the long tax thread.  

 

It's enough for most of us to be able to take the parts that are understood and to file them as wins, before moving on to the next challenge. Most of us are happy to conclude the definition of assessable income, or what "taxpayer" means, of who should file a tax return when, given our understanding of the rules along with a whole host of other aspects. You seem unable to log any aspect as a win, you classify everything as uncertain and unsure, pending an announcement by the TRD, pending clarification by the TRD, subject to the mood of the TRD employee that day, etc etc. If we had adopted your style and approach to this whilst compiling the Introduction to Thai Tax, we'd still have a blank sheet of paper that said only.....pending, whilst none of the members would know anything more about Thai tax today than they did six months ago. Remember the list of unknowns and unclear points that was over a full page at one point? The readership worked its way through them and arrived at satisfactory answers to all the points bar three, except you want to populate the page once again, with those same points! It's as if the entire tax thread, all 8k+ posts, has uncovered or concluded absolutely nothing in you eyes, this is why we have no common ground.

 

 

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Posted (edited)

Whats a tax ID ?  lol    I certainly won't be volunteering for one,   unless it becomes absolutely necessary, which I personally doubt will ever happen , regardless of what a few on here think.  Its almost as if some welcome that scenario

Edited by Bday Prang
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8 minutes ago, Confuscious said:

 

I went this morning to the tax department to apply for a tax-id number and it was denied.
Their answer was that I had a RETIREMENT VISA which didn't allow me to work and thus I would not need a tax-id.
So, for me, that's the end of discussion with the tax department.

The Introduction to Tax says this about the refusal of staff to issue a TIN:

 

There is no valid reason why a TRD office should refuse to issue you with a TIN, as long as as you have all the required documents and they are all in order. If you are met with refusal, the head office in Bangkok will be most interested. If you continue to have problems obtaining a TIN, the Revenue Department Help Line number is 02 272 8000 and they will be able to assist you.

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On 5/15/2024 at 5:20 PM, Mavideol said:

good luck trying to get one if you don't work in Thailand

I guess it depends on which TRD staff you deal with.

 

I'm entered Thailand on non-Immigrant O and I am currently on extension based on retirement.

 

In 2021, after getting my first extension, I went to the TRD office in Nong Hoi.  I guessed which door to go in, was soon pointed to the correct door and was given my Thai tax ID within 15 minutes.  I told them SCB bank wanted my tax ID to open a new EZ Savings account.

 

I had my bank books, a residence certificate from Thai Imm. and my passport with me.

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