Thailand to tax residents’ foreign income irrespective of remittance

[gearbox]

6 minutes ago, Neeranam said:

Out of interest, does a Thai resident in the UK or USA have to pay tax on foreign income?

Dunno about UK or US but in Australia if you are a Thai who is a tax resident you'll pay tax on your worldwide income, irrespectively whether the income is transferred to Australia or not. If there is a DTA you usually get a tax credit if tax was paid in the other country. If you are tax resident of both countries usually there is a "breaker" rule to decide which residency takes precedence.

[Hummin]

21 minutes ago, NoDisplayName said:

 

Okay..............let's say I have $75,000 "disallowed" exemptions and exclusions available in the US.

 

That's currently about ฿2,750,000 assessable income.

 

300,001 to 500,000	10
500,001 to 750,000	15
750,001 to 1,000,000	20
1,000,001 to 2,000,000	25
2,000,001 to 5,000,000	30

 

Sure, I'll get a few deductions according to the Thai tax code, but I'd probably be looking at an ANNUAL tax bill of ฿500,000.  Just an estimate, I'll do more precise calculations later.

 

It would be cheaper to buy a condo in Cambodia, commute every other month between there and the homestead in Issan.  But then I'd have to ask.........why?  We'll just sell the house here and move elsewhere. 

And............no more O-visa extensions in Thailand.

 

 

Spent almost 18 million the last 8 years in Thailand, and with the new tax rules as it look like today, I would not had settled here with a farm, car, motorbikes, but the land I bought for my wife, is soon more worth than all investments used on the farm itself. 

 

Living cost including travels, insurance, holidays inside Thailand comes down to roughly 1,5 million a year. Living cost in Isaan comes down to 350k only, so the rest is spent on travelling and other things in Thailand. 

 

Cant imagine paying tax for my investments. 

 

Still going to Cambodia is a long shot, because we do not know the future there either. 

 

Going back home and make 2 million a year the next decade sounds better to me, than living full time in Thailand. Free aircondition, fresh air and alot of fresh food to fish, hunt and pick  😉

[Neeranam]

2 minutes ago, Sheryl said:

For US depends on whether condidered a resident alien or non-resident alien.

 

Resident aliens are subject to same tax rules as US citizens and are taxed on worldwide income. 

 

2 minutes ago, gearbox said:

Dunno about UK or US but in Australia if you are a Thai who is a tax resident you'll pay tax on your worldwide income, irrespectively whether the income is transferred to Australia or not. If there is a DTA you usually get a tax credit if tax was paid in the other country. If you are tax resident of both countries usually there is a "breaker" rule to decide which residency takes precedence.

Thanks, interesting and maybe this is one reason the Thai government are planning the same. 

[BE88]

5 hours ago, nickmondo said:

its just one piece of bull<deleted> after the other in this country.

I always said i would never buy a house here, and in a moment of stupidness, I did.

Not that expensive though, at 5 million baht, so not a huge deal

For sure I will be using Thailand as my home base for 1 day under 6 mnths a year.

Vietnam for 3, maybe Philippines for 3 months also

Might even buy myself a cheap house in the north of England from Auction for under 10k GBP.

I have had it with the bull<deleted> here now...........its just ridiculous.

Still a lot to enjoy here however, the normal Thai people, the food, the countryside, the beaches, etc........and also my Thai GF.

So i will ljust cut myself off from this crap and enjoy for under 6 months.

Will keep Retirement Extension though, as cheaper and easier than any other method, unless they do actually bring n the 60 day visa, and that might be an option, but that does not work for six months, even with extensions.

 

Now you begin to understand why rich people (Including Thais) have several residences in various countries.

 

[gearbox]

3 hours ago, ChaiyaTH said:

This is the end of living in thailand fulltime, if it becomes true. This is the biggest potential scare news in like a decade plus.

As the eternal TVF wisdom states, never bring to Thailand more money that you can afford to lose. Have always plan B and C.

[freeworld]

30 minutes ago, Neeranam said:

Out of interest, does a Thai resident in the UK or USA have to pay tax on foreign income?

Do you mean a Thai citizen residing in the UK?

 

The basics are here

https://www.gov.uk/tax-foreign-income/residence

 

UK residence and tax

Your UK residence status affects whether you need to pay tax in the UK on your foreign income.

Non-residents only pay tax on their UK income - they do not pay UK tax on their foreign income.

Residents normally pay UK tax on all their income, whether it’s from the UK or abroad. But there are special rules for UK residents whose permanent home (‘domicile’) is abroad.

[gearbox]

5 minutes ago, Neeranam said:

 

Thanks, interesting and maybe this is one reason the Thai government are planning the same. 

I was actually surprised they were not planning to tax worldwide income, many countries do, one of the latest being Portugal from the beginning of 2024.

[CharlesHolzhauer]

2 hours ago, Presnock said:

The US Internal Revenue Service does offer foreign-language assitance in just about every language to assist filling workers.

That is moderately interesting but of little value to those residing in Thailand. The fact remains that Thailand is an independent and sovereign country with its own laws, rules and regulations. But you already knew that and acted accordingly.

[jonclark]

So I guess that means all of the foreigners who are currently classed as 'guests' can now claim residency. I am surprised that the ultra-nationalists have not put the brakes on the whole idea of using the words foreigner and resident in the same sentence...

[sabaijai]

I wonder how the Thai government intends to track income an individual earns but does not remit to Thailand. They'll have to establish a whole new gov't department with a staff of thousands skilled in espionage and hacking.

[black tabby12345]

 ..expand the tax base by requiring platforms with an income of 1 billion baht or more to report their sources of income.

------------------------------

It means he is not interested in anyone's foreign income less than 1B THB/year.

Seemingly targeting mega corporation/super-super rich individuals.

What make you guys worry so much?

 

Any of the readers/posters here earns that much money each year

I certainly don't LOL.

 

This stupid article is another form of Click Bait; trying to draw readers' attention with the scary headline.

Nothing more than that.

[Thingamabob]

4 hours ago, Grumpy one said:

The new submarine has to be paid for one way or another

..and the 10k baht giveaway vote bribe.

[Neeranam]

9 minutes ago, sabaijai said:

I wonder how the Thai government intends to track income an individual earns but does not remit to Thailand. They'll have to establish a whole new gov't department with a staff of thousands skilled in espionage and hacking.

Exactly what I was thinking. Nice to see you again btw 🙂 

[black tabby12345]

3 minutes ago, sabaijai said:

I wonder how the Thai government intends to track income an individual earns but does not remit to Thailand. They'll have to establish a whole new gov't department with a staff of thousands skilled in espionage and hacking.

 

I am quite sure  they certainly have no such resources or manpower to do that.

Unless they can fetch and torture every single innocent alien here brutally.

"Tell us all about your income outside our kingdom. Or your pain persists even longer..."

Land of the smile will rapidly turn into the state of another North Korea with the tropical climate.

 

Certainly bad for this country's reputation as the major tourist destination.

 

[BE88]

6 hours ago, Bangkok Barry said:

 

Would they tax me on money I spend using my UK credit card?

 

Forget this possibility as you would have to indicate all your banking details that you have all over the world

[CharlesHolzhauer]

1 hour ago, Everyman said:

but what has actually happened so far is NOTHING.

Are you going to reveal your arcane knowledge to this forum?

[Myran]

9 minutes ago, black tabby12345 said:

 ..expand the tax base by requiring platforms with an income of 1 billion baht or more to report their sources of income.

------------------------------

It means he is not interested in anyone's foreign income less than 1B THB/year.

Seemingly targeting mega corporation/super-super rich individuals.

What make you guys worry so much?

 

Any of the readers/posters here earns that much money each year

I certainly don't LOL.

 

This stupid article is another form of Click Bait; trying to draw readers' attention with the scary headline.

Nothing more than that.

The remark about platforms earning 1 billion is separate from the suggested change. Read the original article on BP, not the garbage from The Thaiger.

[gearbox]

11 minutes ago, sabaijai said:

I wonder how the Thai government intends to track income an individual earns but does not remit to Thailand. They'll have to establish a whole new gov't department with a staff of thousands skilled in espionage and hacking.

CRS data exchange....your interest, dividends, capital gains etc will be handed over by your home country.

[CharlesHolzhauer]

2 hours ago, John Drake said:

How is the Thai government going to get information from my US bank or the IRS? They don't have my social security number and my bank and the IRS don't have my passport number. And all my banking, tax returns, and 401K and other retirement are tied to my social security number. Is social security even allowed to give out my number to a foreign government?

Via CRS - a global financial reporting system where countries share financial data about each other’s residents.

[BigBruv]

9 hours ago, BarstoolChang said:

A massive stimulation in their local economys. I guarantee you foreigners pay more on average than a thai would. 94 percent of them pay no tax at all.

 

You dont need to sit online and lick the boot of this government, they aren't going to give you preferntial treatment mate.

 

 

I'm just pointing out the fact that the people drafting these changes don't care how much chang you buy or if you rent people from Isaan or not.

 

 

Probably asking themselves what they need to do to get rid of you right now.

 

 

 

[black tabby12345]

6 minutes ago, Neeranam said:

Exactly what I was thinking. Nice to see you again btw 🙂 

 

Are they planning to establish a new wing of the government?

Department of Men in Black.

Intended to investigate every 1st world alien's out space assets and income.

[NorthernRyland]

2 hours ago, Neeranam said:

Why should foreigners be able to utilize Thailand's public services in the same way as Thai taxpayers?

I mean services like roads, public transport, education, etc. 

 

the deal was we bring in money and spend it here and they let us use their roads and some public utilities like street lights. Very good deal for them. Everything else we pay for with imported cash. It's a much better deal than Thai's who spend already circulating money. We pay for 99% of the stuff we use anyways, we're not a burden by any stretch.

[pentagara]

7 minutes ago, sabaijai said:

I wonder how the Thai government intends to track income an individual earns but does not remit to Thailand. They'll have to establish a whole new gov't department with a staff of thousands skilled in espionage and hacking.

 

No need. The agency that ensures that Thailand gets the required information already exists and is called OECD. Thailand is just leverages that one, it joined the CRS scheme in 2023 with the first reporting conducted on financial information covering 2022. If they hadn't joined, they actually would have been bullied by the rich countries ('grey tax jurisdictions'), since the point is that the rich countries get information on all the global bank accounts and incomes of their tax residents. The associated hacking skill is called CRS, where banks / financial intermediaries automatically are legally required to report to the foreign tax authorities based on TIN. Thailand is simply leveraging this infrastructure created by other rich tax desperate countries. The concept was initiated by Obama (FATCA) to ensure US citizens can't escape paying tax on their foreign inome. The concept was then picked up in principle by all countries that are OECD members (CRS/AEOI).

[crazykopite]

Lucky me I’m just under that requirement I can sleep at night : )

[black tabby12345]

5 minutes ago, Myran said:

The remark about platforms earning 1 billion is separate from the suggested change. Read the original article on BP, not the garbage from The Thaiger.

 

I already read it yesterday.

The accounting firm I contacted out of curiosity several days ago kindly sent me the link with that news.

[freeworld]

41 minutes ago, salavan said:

Sound like it

Never. Business and Investment rely on DTA rules.

[NoDisplayName]

16 minutes ago, Tonyfarang said:

Cambodia does not tax worldwide income? I read that they do https://taxsummaries.pwc.com/cambodia/individual/taxes-on-personal-income  But I am reading about Phills tax exemption and Malaysia too. I am researching actively and I'd extremely appreciate your feedback too. Thank you!

 

It seems they have a "salary tax" paid monthly on income derived from employment worldwide.  Payable by residents (180+ days).  Rates vary from 0-20%.  Non-residents pay 20% on Cambodia sourced salary only.

 

I found one source that has their residency not based exclusively on calendar year.  "more than 182 days in any period of 12 months"

 

They have a new capital gains tax, delayed several times, supposedly to take affect this year.  Looks like it targets mainly properties sold in Cambodia....foreign stocks held outside, dunno.

 

 

[BE88]

6 hours ago, kuzmabruk said:

The information you will give will be to the Thai tax department.  Not your bank.

 

you will submit a tax return with your signature at the bottom.   If you lie you will have committed perjury.   If they audit you.  Good luck.  Perjury is punishable by prison time.  

 

The mere mention of prison in Thailand makes it much less attractive to expats now

[sabaijai]

1 minute ago, pentagara said:

 

No need. The agency that ensures that Thailand gets the required information already exists and is called OECD. Thailand is just leverages that one, it joined the CRS scheme in 2023 with the first reporting conducted on financial information covering 2022. If they hadn't joined, they actually would have been bullied by the rich countries ('grey tax jurisdictions'), since the point is that the rich countries get information on all the global bank accounts and incomes of their tax residents. The associated hacking skill is called CRS, where banks / financial intermediaries automatically are legally required to report to the foreign tax authorities based on TIN. Thailand is simply leveraging this infrastructure created by other rich tax desperate countries. The concept was initiated by Obama (FATCA) to ensure US citizens can't escape paying tax on their foreign inome. The concept was then picked up in principle by all countries that are OECD members (CRS/AEOI).

 

That makes sense. Sheer naivete on my part.

i assume Thai officials keen to chase down and assess will prioritize cases by estimated revenue to be harvested rather than attempt to go after every single individual. 

[BigBruv]

3 hours ago, Captor said:

A whole lot of money. Which they will loose now that expats move to Phillipines, Vietnam, home etc.

 

'A whole lot of money' maybe by your standards.

 

They are aspire to be another Singapore, not the giant asian benidorm that it currently is.

 

Thanksin will have done his homework while away so the changes will keep coming until many chuck the towel in.