Thailand to tax residents’ foreign income irrespective of remittance

[AreYouGerman]

Just now, 0ffshore360 said:

Ja ja ja.

" Tax income regardless " ?

 

Don't you understand what a DTA is? I don't want to bicker with you.

 

It's very simple.

 

You paid tax anywhere in the world and this country has a DTA with Thailand? You don't pay tax but have to file for tax anyway but will pay 0 tax.

 

You didn't pay tax anywhere on some money you got and put it  in some Swiss bank? You have to file for tax and pay Thai taxes on it. Or hide it and be a criminal.

 

 

[Amethyst]

1 hour ago, beammeup said:

So this only affects individuals with income over 1 billion Baht?

 

That's the 1 billion baht question, and IMHO the OP article simply isn't clear.

 

I have no idea what they're talking about when they use the term "platforms."

 

And I can't tell whether the reference to that income level only means that's who their going to seek out info about, OR, that the only group the supposed tax policy will apply to.

 

It also leaves unaddressed, at the individual taxpayer level, the whole category of all the many countries Thailand has tax treaties with that generally preclude double taxation.

 

 

 

[0ffshore360]

1 minute ago, AreYouGerman said:

 

If you didn't pay tax anywhere for it - yes.

The legislation for that  already exists ( it has been said .)

Proposed  new  legislation  suggests  a step up  from that .

What happens for tax exempt at source funds ?

As far as I am concerned income tax on religious orgs.  would offset  government  fund requirements in most countries.

[Myran]

4 minutes ago, 0ffshore360 said:

Ja ja ja.

" Tax income regardless " ?

Regardless if it was remitted to Thailand, yes. Not regardless of DTA's.

[Presnock]

1 hour ago, Djinn91 said:

Laughable and will only affect those companies with 1 billion baht in foreign income. (good luck enforcing it anyways)

 

Not sure why all the Farang get scared. they're not coming for you 200-800K baht...

Who knows what evil lurks in the hearts of the TRD folks when it comes to finding another possible source of income.  Seems unworkable and the 1 billion baht is for local industries...they seem to be looking at the funds overseas of all THAI TAX RESIDENTS.  We will be watching this closely for sure....

[Presnock]

1 hour ago, beammeup said:

But she says "This principle taxes individuals based on their residency within the country, irrespective of whether the income is sourced domestically or internationally". So I am a little confused. Will this affect individuals or just platform(whatever that is)?

just like information on the other tax interpretation...we will be notified when (you don't have a need to know yet!) and if or not.

[John Drake]

Imagine you're one of those people with a frozen pension (almost wrote pizza) and now the Thai government comes along and taxes that.

[AreYouGerman]

Just now, Presnock said:

we will be notified when

 

In deportation jail when it's too late?

[Presnock]

28 minutes ago, timendres said:

An article on Bangkok Post clearly shows that they are discussing taxing worldwide income.

Currently, only two countries on the planet do this. The USA and Eritrea.

This is a desperate act by the Thai government, and demonstrates that things are not good.

One difference on the USA taxation - It is for any tax resident earning in the US and for ALL US citizens worldwide.  US IRS would not try to tax Thai earned income on Thai citizens.

[JimGant]

55 minutes ago, bg53 said:

If Thailand taxes on a worldwide basis, there will be a mass exodus of expats.

Why's that? The US already taxes my worldwide income. If Thailand wants a piece of the pie, their share, per the Double Taxation Agreement, will be a credit against my US taxation. Except for a very few outlier scenarios, there will be no change in my total annual tax bill under this new policy.

[Everyman]

1 minute ago, JimGant said:

Why's that? The US already taxes my worldwide income. If Thailand wants a piece of the pie, their share, per the Double Taxation Agreement, will be a credit against my US taxation. Except for a very few outlier scenarios, there will be no change in my total annual tax bill under this new policy.

 

you are forgetting that you will have to pay whichever tax rate ends up being higher. The top tax rate in Thailand is 35% and it kicks in at a much lower income that the same rate in the U.S. 

[redwood1]

15 minutes ago, medina21 said:

This article sows more confusion. Are we now going to be taxed on overseas income, irrespective of whether that income is remitted to Thailand? And, when are we going to receive clarification on whether funds remitted to Thailand to purchase a condo will be regarded as income, and therefore subject to income tax, or as already taxed savings/capital. An agent in Pattaya told me he has just lost a sale because of doubts surrounding this. Surely the developers want an answer too. Clarification is required.

 

Nope... Keeping every one confused is the point of all of this...And I would say they have been pretty successful...

[0ffshore360]

4 minutes ago, JimGant said:

Why's that? The US already taxes my worldwide income. If Thailand wants a piece of the pie, their share, per the Double Taxation Agreement, will be a credit against my US taxation. Except for a very few outlier scenarios, there will be no change in my total annual tax bill under this new policy.

There seems to be  some level of  gloating over the probability you will need to spend a percentage of that  non Thai taxable income  in Thailand to prove  you do not need to pay tax  on income already  taxed  at source !

Whoopee the accountancy  brigade !

[AreYouGerman]

But in all fairness, isn't it fair that you give Thailand a fair share of you money for allowing you stay in their country? You should actually ask to have this applied retroactively!

[Presnock]

2 hours ago, Djinn91 said:

Laughable and will only affect those companies with 1 billion baht in foreign income. (good luck enforcing it anyways)

 

Not sure why all the Farang get scared. they're not coming for you 200-800K baht...

You need to read it more carefully.  The 1 billion baht platform is a Thai based platform and has nothing to do with expats unless they work there and they were supposed to be paying taxes already.  This new bit is saying that all tax residents (180+ days a calendar) year, no matter where they are from, the Thais want to tax all of their income, not just that money remitted to Thailand.  This seems totally absurd to me for them to even consider it.  I thought that they had not even totally come to terms with the original new tax interpretation and then to come up with this...some strange ideas and I really don't think it is workable and if approved will drive many folks away instead of garnering more taxes from expats in my opinion only of course as I am not any kind of financial wizard.  Good luck to us all

[Presnock]

2 minutes ago, 0ffshore360 said:

There seems to be  some level of  gloating over the probability you will need to spend a percentage of that  non Thai taxable income  in Thailand to prove  you do not need to pay tax  on income already  taxed  at source !

Whoopee the accountancy  brigade !

Yes the US taxes on worldwide income but if you earn a salary overseas, the US govt allows a deduction on the taxes for that salary if I am not mistaken...Called foreign earned income reduction!

[TallGuyJohninBKK]

fyi, the BKK Post -- which cannot be linked to or posted here under forum rules -- has an article on this topic today.. It basically clarifies a couple things:

 

1. This is just a proposal under discussion for now, and no timeframe for action.

 

2. The 1 billion baht platform reference refers to their intention to tax online vendors who have that level of income...

 

3. The Thai government tax person is claiming going to the worldwide income approach will bring Thailand into compliance with international norms -- which seems to be exactly the opposite to what in fact is reality, where most countries don't do that.....

 

 

[freeworld]

8 minutes ago, Presnock said:

You need to read it more carefully.  The 1 billion baht platform is a Thai based platform and has nothing to do with expats unless they work there and they were supposed to be paying taxes already.  This new bit is saying that all tax residents (180+ days a calendar) year, no matter where they are from, the Thais want to tax all of their income, not just that money remitted to Thailand.  This seems totally absurd to me for them to even consider it.  I thought that they had not even totally come to terms with the original new tax interpretation and then to come up with this...some strange ideas and I really don't think it is workable and if approved will drive many folks away instead of garnering more taxes from expats in my opinion only of course as I am not any kind of financial wizard.  Good luck to us all

Seems Thailand is moving to a residence based tax system rather than a territorial one, like most countries have.

 

[rocketboy2]

1 hour ago, redwood1 said:

Well....Lucky for me I have less than 1 billion baht in income....

 

Cheap Charlie, balloon chaser.

go home. 

 

 

 

[AreYouGerman]

2 minutes ago, TallGuyJohninBKK said:

3. The Thai government tax person is claiming going to the worldwide income approach will bring Thailand into compliance with international norms -- which seems to be exactly the opposite to what in fact is reality, where most countries don't do that.....

 

I know only a handful of countries who don't tax residents (ie. 183 days+ residency) on their worldwide income. It is common - as a resident of a country - that you pay tax on your worldwide income.

 

 

[TallGuyJohninBKK]

5 minutes ago, AreYouGerman said:

 

I know only a handful of countries who don't tax residents (ie. 183 days+ residency) on their worldwide income. It is common - as a resident of a country - that you pay tax on your worldwide income.

 

 

 

"The United States and the East African nation of Eritrea are the only two countries that tax the worldwide income of all citizens and permanent residents regardless of where they live or where they earn money."

 

https://brighttax.com/blog/citizenship-based-taxation/

 

https://www.taxesforexpats.com/expat-tax-advice/Citizenship-Based-Taxation-International-Comparison.html

 

 

[AreYouGerman]

Just now, TallGuyJohninBKK said:

 

"The United States and the East African nation of Eritrea are the only two countries that tax the worldwide income of all citizens and permanent residents regardless of where they live or where they earn money."

 

https://brighttax.com/blog/citizenship-based-taxation/

 

 

You're mixing those things. Citizenship is something different than residency.

[Gottfrid]

2 hours ago, John Drake said:

It was slowly at first, but now more and more people are coming to understand that:

 

Prayuth was better.

You seem to have a scratch in the record.

[freeworld]

Residence-based taxation

The residential tax system or residency-based tax system is the most widely used tax system in the world today.

Over 130 countries use this tax system today. Among them are pretty much all major industrialized nations. Most of the EU, Canada, Australia, New Zealand, Japan, Korea, and the list goes on.

 

This is how it works:

As soon as an individual becomes a tax-resident in the country, he automatically becomes liable to pay taxes on his total worldwide income. You can avoid being taxed by giving up your primary residence in those countries, often by cutting your residential ties (houses, apartments, and other dwellings, memberships) and spending less than 183 days there.

[FruitPudding]

This will be interesting 

[Jenkins9039]

Bali it is for part of the year then.

[TallGuyJohninBKK]

2 minutes ago, AreYouGerman said:

 

You're mixing those things. Citizenship is something different than residency.

 

Gotcha.... Examples:

 

If you live in Portugal for 183 or more days in a calendar year, you'll be considered a resident and must pay income tax on your worldwide income. If you live in Portugal for fewer than 183 days, you'll only need to pay on income earned within Portugal.

 

https://www.expatica.com/pt/finance/taxes/guide-to-taxes-in-portugal-105742/

 

A resident individual is subject to Australian income tax on a worldwide basis,

 

https://taxsummaries.pwc.com/australia/individual/taxes-on-personal-income

 

 

[FruitPudding]

14 minutes ago, rocketboy2 said:

 

Cheap Charlie, balloon chaser.

go home. 

 

 

So, you're just another sucker overpaying for local turds?

[AreYouGerman]

5 minutes ago, Jenkins9039 said:

Bali it is for part of the year then.

 

Or remember the Philippines with VIP treatment with territorial tax only for foreigners.

 

Who are Required to File Income Tax Returns?

Aliens, whether resident or not, receiving income from sources within the Philippines.

 

https://www.bir.gov.ph/index.php/tax-information/income-tax.html

 

🥰

[sqwakvfr]

11 minutes ago, TallGuyJohninBKK said:

 

"The United States and the East African nation of Eritrea are the only two countries that tax the worldwide income of all citizens and permanent residents regardless of where they live or where they earn money."

 

https://brighttax.com/blog/citizenship-based-taxation/

 

https://www.taxesforexpats.com/expat-tax-advice/Citizenship-Based-Taxation-International-Comparison.html

 

 

As an American I have had earned income while working in other countries.  At the time IRS rules allowed me to have almost $100,000 of that income exluded from US Income taxes. It is known as the exclusionary rule.