Legal Strategies to Reduce Thai Tax

[Robin]

Hoping that this is not off topic:

How do the TRD count days n Thailand for Non Resident purposes?

Is it the number of nights in Thailand as UK,(HMCR), does or is here a 'Thai way' of counting days?

[Yellowtail]

2 minutes ago, Robin said:

Hoping that this is not off topic:

How do the TRD count days n Thailand for Non Resident purposes?

Is it the number of nights in Thailand as UK,(HMCR), does or is here a 'Thai way' of counting days?

I assume it's stamped in to stamped out. Any part of a day counts as a day.

[chiang mai]

37 minutes ago, Robin said:

Hoping that this is not off topic:

How do the TRD count days n Thailand for Non Resident purposes?

Is it the number of nights in Thailand as UK,(HMCR), does or is here a 'Thai way' of counting days?

Stamps in your passport. Even 5 minutes still counts as a day.

[jmd8800]

On 7/30/2024 at 1:47 PM, JimGant said:

If your SS is $1800, that would cover the whole 65k monthly remittance, i.e., no Thai tax. In fact, with your TEDA now at 500k, you could transfer another $1160 per month with still no Thai taxable income. Send an extra $3000 per month -- Thai taxes would be $2900. Assuming you're paying more than this in US taxes -- this $2900 would be a one-for-one tax credit against your US taxes. Yes, Forms 1116 and 8833 would need to be filed. But you say you use an accountant, so no big deal.

 

You seem to be the average American. So, as has been said all along, Yanks, already taxed on all our income, won't be financially affected by this new situation (nor most, if worldwide income taxation comes in). Unpack your bags.

Is there a chart somewhere that describes all possible TEDA that I can read and show to others who ask?

[placnx]

On 5/18/2024 at 9:19 PM, Ben Zioner said:

Most people don't realise that they are supposed to pay IT on the gift they make, while the wife will be exempt.

IT means inheritance tax, I guess. It depends on which is your home country. The exemption in the US for now is $11mn (lifetime and at death). I believe that Thailand has a large exemption as well (Baht20mn per year), and the rate above that is 5%. So presumably one can wire the gift to the spouse's account in Thailand, but if only joint tax returns are permitted, wouldn't that still be a problem?

[chiang mai]

On 8/10/2024 at 7:42 PM, jmd8800 said:

Is there a chart somewhere that describes all possible TEDA that I can read and show to others who ask?

https://sherrings.com/personal-tax-deductions-allowances-thailand.html

[chiang mai]

1 hour ago, placnx said:

IT means inheritance tax, I guess. It depends on which is your home country. The exemption in the US for now is $11mn (lifetime and at death). I believe that Thailand has a large exemption as well (Baht20mn per year), and the rate above that is 5%. So presumably one can wire the gift to the spouse's account in Thailand, but if only joint tax returns are permitted, wouldn't that still be a problem?

There's no relationship between Gift Tax Thailand and whether tax return is filed jointly.

[Jesse123]

On 5/21/2024 at 1:26 AM, Yumthai said:

For those who think a gift remitted from overseas between spouses could be assessable income just use the gift rules as being the giftee when possible: A non Thai tax resident parent or child can send to the Thai tax resident child/parent giftee up to THB20M/year tax-free.

 

 

A gift without conditions made outside Thailand to a family member residing outside Thailand who later remits to a Spouse or Partner residing in Thailand would require some convoluted interpretation to tax the donor. UK tax planning using an offshore trust with UK resident and non-resident benficiaries can still result in the UK resident receiving gifts from the non resident's distributions. Does rely on family harmony though. 🙂

[scorecard]

On 5/18/2024 at 6:35 AM, Mike Lister said:

Several members are itching to discuss ways of avoiding paying tax in Thailand and have been asked not to. This is because discussions about legal ways to mitigate/reduce/avoid tax, nearly always end up discussing illegal ways to evade tax, which must not be discussed here. Part of the problem is that these things are not always black and white and the area of grey that exists in the middle is often open to interpretation, which differs from person to person.

 

If everyone promises to behave and not cross the line or play word games, we can discuss ways to legally mitigate/reduce/avoid tax. If however the discussions start to go in the wrong direction, not even a portable defibrillator will save it. It is therefore in members best interests to ensure no lines are crossed and ensure the debate is self managed. 

 

I’ll start, if you want to avoid paying tax in Thailand:

 

1) Do not become Thai tax resident by remaining in Thailand more than 179 days in any calendar year.

2) Do not remit more assessable income to Thailand than your tax allowances/deductions/zero rated tax band (TEDA) allow.

 

Over to you!

 

QUOTE:

 

"1) Do not become Thai tax resident by remaining in Thailand more than 179 days in any calendar year."   This is not relevant to all foreigners living n Thailand. Foreigners who have no business activity, and bring only state pensions into Thailand are mostly under the Thai personal tax threshold for personal tax liability after the various allowances are applied, therefore have no need to be serious about 'Am I a tax resident for Thailand?'. 

[chiang mai]

3 minutes ago, scorecard said:

 

QUOTE:

 

"1) Do not become Thai tax resident by remaining in Thailand more than 179 days in any calendar year."   This is not relevant to all foreigners living n Thailand. Foreigners who have no business activity, and bring only state pensions into Thailand are mostly under the Thai personal tax threshold for personal tax liability after the various allowances are applied, therefore have no need to be serious about 'Am I a tax resident for Thailand?'. 

Source of your quote, please?

 

What is quoted is, in practical terms largely true but technically and legally is not. The quote is also a generalisation which doesn't apply to everyone.

 

"Foreigners earning state pensions are mostly under under the tax threshold", is simply not true. Plus there is no rule that says a taxpayer can apply their own TEDA and if no tax is due, decide not to file. That may or may not be a s sensible thing to do that deploys some logic but it is no the law and it's not what SIAM Legal has said in a video posted last night, in the tax thread. Also, a person is automatically tax resident after 180 days so saying that a person has no need to be serious about it, is totally meaningless.

[placnx]

On 10/5/2024 at 2:34 PM, chiang mai said:

There's no relationship between Gift Tax Thailand and whether tax return is filed jointly.

The point is that if there is a joint income, then the Thai tax dept might interpret a transfer to spouse from abroad as part of the joint income. Better to check with a tax expert.

[Expat68]

8 minutes ago, placnx said:

The point is that if there is a joint income, then the Thai tax dept might interpret a transfer to spouse from abroad as part of the joint income. Better to check with a tax expert.

I think you are looking into this too deeply, most people I know are in the waiting and see categories 

[siam55]

I do the same with my sister-in-law

[Rimmer]

A post in German Language has been removed as this is an English language only forum, thank you

[Lorry]

Many people write, one should gift money to spouse or other relatives, and then live off this money.

This is illegal, because its not a gift if it's actually used by the "gifter".

It's also very stupid to publish such criminal plans on AN for the TRD to read. 

The most stupid would be transferring the "gifted" money, once it is in Thailand,  to one's own Thai bank account. 

 

A real gift means,  the receiver uses the money for whatever he wants. 

He doesn't transfer it back. 

Real gifts: the receiver buys land/a car in his own name/gold/pays uni.

Edited November 2 by Lorry