Thailand to tax residents’ foreign income irrespective of remittance

[FruitPudding]

23 minutes ago, AreYouGerman said:

And the next step is most likely to get the AEOIs from other countries into Thailand going which means your bank/broker outside of Thailand will submit data to Thailand, automatically

 

They already do.

 

My broker has been sending my data to Thailand for years 

[Dmaxdan]

49 minutes ago, BigBruv said:

On the plus side, if implemented sufficiently aggressively, this will clear out an awful lot of 'farang riff raff' (tm).

 

If so, I might actually move out there full time : )

It might also "clear out" a lot of good people. Spouses, fathers and mothers etc. Real people (not sexpats) who are prepared to make sacrifices and devot their lives for the greater good of their families. And because of this many may no longer be able to do so, not at the same level anyway.

 

The riff raff you speak of are, in real terms a very small minority.

 

And let's not forget that Thailand is almost completely incapable of taxing it's own citizens.

[freeworld]

Just think for those who stay and pay taxes, after 3 years of paying taxes the possibility should be there to apply for perm residence or nationality.

[Ben Zioner]

3 hours ago, snoop1130 said:

However, this rule will be revised again, effective from 2024, requiring tax payment on foreign income regardless of when it is brought into the country, reported Bangkok Post.

So this means that the "remittance tax" will never be applicable as they makes this retroactive to this year. So much for all the people who did their planning for 2024.

[FruitPudding]

53 minutes ago, BigBruv said:

On the plus side, if implemented sufficiently aggressively, this will clear out an awful lot of 'farang riff raff' (tm).

 

If so, I might actually move out there full time : )

 

Not likely.

 

It'll be the wealthy who won't stay here more than 6 months a year.

 

They can go anywhere.

 

[freeworld]

Countdown to 180 days and then being considered tax resident arrives about 29th June 2024.

Edited June 5 by freeworld

[FruitPudding]

6 minutes ago, Dmaxdan said:

It might also "clear out" a lot of good people. Spouses, fathers and mothers etc. Real people (not sexpats) who are prepared to make sacrifices and devot their lives for the greater good of their families. And because of this many may no longer be able to do so, not at the same level anyway.

 

But where would they go?

 

Leave their family over tax?

 

Or take their family abroad where life would likely be harder financially?

 

6 minutes ago, Dmaxdan said:

 

The riff raff you speak of are, in real terms a very small minority.

 

Minority of the farang community!

 

6 minutes ago, Dmaxdan said:

 

And let's not forget that Thailand is almost completely incapable of taxing it's own citizens.

 

This is the hilarious part.

 

They can't govern themselves. It's like the Wild West 

 

Edited June 5 by FruitPudding

[bg53]

1 hour 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.

 

Other contributors have given full reasons.

 

I will add one more.

 

Retirees and married people do not want to mess with taxes. To file on both ends and work out tax avoidance (especially on the Thai side) will be a fustercluck.

 

Ergo, mass exodus to friendlier skies.

 

[herfiehandbag]

I doubt that this will have any impact on the vast majority of us.

 

Let's face it, despite various TMxxs, 90 day reports, computerised systems and so forth they fail to keep track of some spectacular overstayers!

 

This is, I suspect, aimed at those Thai nationals who have significant often inexplicable assets overseas, and receive income from them.

 

Mind you, it could be entertaining - those people are often themselves " influential" or well connected to people who are!

[AreYouGerman]

10 minutes ago, FruitPudding said:

This is the hilarious part.

 

They can't govern themselves. It's like the Wild West

 

It's easier to tax foreigners than Thais, though. It's just so easy to add it to requirements of the long term visas.

 

Also, Thailand is still not a real democracy so it's more important to actually do something for Thais instead against Thais and enforcing taxes to be paid is democratic but not pro Thais.

[FruitPudding]

2 minutes ago, AreYouGerman said:

and enforcing taxes to be paid is democratic but not pro Thais

 

How is that democratic?

[AreYouGerman]

3 minutes ago, herfiehandbag said:

This is, I suspect, aimed at those Thai nationals who have significant often inexplicable assets overseas, and receive income from them.

 

Read the room. Thais looking at foreigner residents in Thailand not paying taxes will scream 'dirty falang'. You can be sure to face the full wrath of Thailand's tax authority.

[AreYouGerman]

Just now, FruitPudding said:

How is that democratic?

 

The most strict tax authorities are to be found in Democracies.

[beammeup]

So more confusion and uncertainty about the future. All the tax planning I had for the last bomb shell is out the window. Now need to wait again for clarity.

[lordgrinz]

7 minutes ago, AreYouGerman said:

 

Read the room. Thais looking at foreigner residents in Thailand not paying taxes will scream 'dirty falang'. You can be sure to face the full wrath of Thailand's tax authority.

Most Thai's don't pay taxes, they should look in the mirror first.

[beammeup]

I cant see this happening any time soon. Maybe 2026?

[CallumWK]

1 hour ago, BigBruv said:

On the plus side, if implemented sufficiently aggressively, this will clear out an awful lot of 'farang riff raff' (tm).

 

We gonna miss you. NOT

[Ben Zioner]

19 minutes ago, beammeup said:

I cant see this happening any time soon. Maybe 2026?

Probably for the 2026 return of 2025 income. But that's asap.

[JackGats]

3 hours 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....

 

Not true. Most countries do this in fact.

 

Your are confusing with paying taxes to your home country even if you don't reside there. That is not the same as paying taxes on your worldwide income in the country of residence;

[Ned]

A lot of Chinese citizens investing in real estate and moving here. Maybe they're the prime target? Just guessing like most of us.

[JackGats]

3 hours 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.

Not true. Most countries do this in fact.

 

Your are confusing with paying taxes to your home country even if you don't reside there. That is not the same as paying taxes on your worldwide income in the country of residence.

[EVENKEEL]

Well pg 4 now, bet tomorrow morning its 34 pages.

[John Drake]

11 minutes ago, Ben Zioner said:

Probably for the 2026 return of 2025 income. But that's asap.

 

With the Shins going to court and Srettha under investigation, the government might be different before 2025.

[vangrop]

As I stated before, I won't declare anything and they won't find anything because I will do all my transactions in cash. When I run out of cash, I will go to neighbouring countries for refueling. I will lose on the exchange but this will be peanuts compared to what is ongoing. The only issue would be if they start a taxing system on your cash at the border, but good luck with that one

[FruitPudding]

54 minutes ago, AreYouGerman said:

 

The most strict tax authorities are to be found in Democracies.

 

Why would people vote for that? Lol

[AreYouGerman]

Just now, FruitPudding said:

 

Why would people vote for that? Lol

 

Yeah it's perfidious. Voting means you accept whatever they will do to you and you can't do anything about it. Just vote harder, bro!

[Antti]

I don't believe this will actually happen but if it did, do they really think that they can tax foreigners on worldwide income and not give anything in return (i.e. health care, social security etc.)? At least in Europe, generally speaking, if you pay taxes you are entitled to same benefits as native citizens.  

[FruitPudding]

19 minutes ago, Antti said:

I don't believe this will actually happen but if it did, do they really think that they can tax foreigners on worldwide income and not give anything in return (i.e. health care, social security etc.)? At least in Europe, generally speaking, if you pay taxes you are entitled to same benefits as native citizens.  

 

Tax and social security are different payments in the West, no?

 

And to get social security, you have to be working to make contributions, right? Or pay a higher rate to make voluntary contributions 

[Dmaxdan]

15 minutes ago, Antti said:

I don't believe this will actually happen but if it did, do they really think that they can tax foreigners on worldwide income and not give anything in return (i.e. health care, social security etc.)? At least in Europe, generally speaking, if you pay taxes you are entitled to same benefits as native citizens.  

I agree but the cynics will just say to the Thai revenue department aren't interested in anything like that, all they care about is just bleeding you dry. Whilst completely ignoring that the vast majority of Thai people will never pay so much as one baht of tax in their entire lives, no matter how much they earn. 

Supporting the Thai population through taxation and getting sweet FA in return isn't a very attractive proposition.

[Foxx]

1 minute ago, Dmaxdan said:

the vast majority of Thai people will never pay so much as one baht of tax in their entire lives, no matter how much they earn. 

 

Well, apart from the 7% they pay on every purchase they make.