Thailand to tax residents’ foreign income irrespective of remittance

[snoop1130]

 

The Revenue Department of Thailand will amend a law to tax individuals with foreign income, even if that income is not brought into Thailand.

 

Director-General of the Revenue Department, Kulaya Tantitemit stated that the current tax law mandates individuals residing in Thailand for over 180 days per year to pay taxes on foreign income if it is brought into the country.

 

This income is currently subject to personal income tax payments to the department. The department is now working to amend the law based on the principle of worldwide income.

 

This principle taxes individuals based on their residency within the country, irrespective of whether the income is sourced domestically or internationally.

 

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

 

She added that the department will use this information to verify their tax compliance.

 

Previously, the department revised the criteria for tax residency, mandating that individuals residing in Thailand for at least 180 days per year and earning foreign income must pay personal income tax if that income is brought into the country within the same year it was earned.

 

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.

 

By Ryan Turner

Image courtesy of Thailand Elite Visas

 

Source: The Thaiger 2024-06-05

 

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[johng]

5 minutes ago, snoop1130 said:

requiring tax payment on foreign income regardless of when it is brought into the country,

That seems totally unworkable  crazy and unjust !

[Djinn91]

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...

[yang123]

Double Taxation Agreements to be nixed?

[John Drake]

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

 

Prayuth was better.

[Dmaxdan]

Goodness, we've only got 3 and a bit weeks to pack up and get the hell out of here!

[sqwakvfr]

Hypothetical conversation between a Thai Revenue Employee and a foreign resident:  "What was your income from the US last year?"  "None of your businessa and if want to know contact the IRS".  "What is the IRS?". "Information Release Service".  

[beammeup]

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

[Bday Prang]

1 minute ago, beammeup said:

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

only "platforms" apparently

[beammeup]

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)?

[beammeup]

I just read an article in another paper and this is what it said "It is still in the discussion stage and it is not known when it might take effect."

 

[bg53]

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

[redwood1]

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

 

I have a ways to go, to go from my 1,800 dollars a month to reach 1 billion baht.......

[redwood1]

Whats funny is any big company like Google or Microsoft with way over 1 billion baht income in Thailand, You can bet your last dollar their army of lawyers will make sure they dont pay, Jack....

[beammeup]

I think it will apply to all individuals. Also they will look at platforms that earn 1 billion Baht.

[CRUNCHER]

The heading says that tax will be levied even if not brought into Thailand.  The last paragraph of the article talks about regardless of when it is brought into Thailand.

 

The heading seems to be scare mongering.

[timendres]

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.

[Liverpool Lou]

28 minutes ago, beammeup said:

I just read an article in another paper and this is what it said "It is still in the discussion stage and it is not known when it might take effect."

The Bangkok Post reported that also.

[lordgrinz]

42 minutes 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)?

I'm guessing "platform" means financial institutions sending money into Thailand, like Wise/Banks/Etc, so they can track money from individuals.

[0ffshore360]

To do as the headline suggests would nullify dual tax agreements.

Maybe, just maybe, this is another undetailed  amendment to original declarations that would be enough to drive Thai Tax Office employees crazy with the volume of work entailed . This new declaration involving a change in the existing legislation will probably take years to pass objections anyway but does publicly focus attention on "big Money".

[AreYouGerman]

Hahahahaha. The Phillippines look better every day.

 

And the best part is, even if you are covered by a Double Taxation Agreement (meaning you got fleeced already in your passport country or wherever your money is taxed already) you have to file for taxes every year which will cost 10,000 - 20,000 THB done by an accountant.

 

[AreYouGerman]

Just now, 0ffshore360 said:

To do as the headline suggests would nullify dual tax agreements.

 

No it does not.

[bob smith]

Folks, if ever any evidence was needed that those in charge haven't got a bleedin' clue then surely this is it..

 

Don't break a sweat fellas, no need to worry, these jokers couldn't find their ar$e from their elbow, let alone force you into paying tax!

 

bob.

[AreYouGerman]

2 minutes ago, lordgrinz said:

I'm guessing "platform" means financial institutions sending money into Thailand, like Wise/Banks/Etc, so they can track money from individuals.

 

No, they mean you have to show your income and that you filed already for taxes.

[0ffshore360]

1 minute ago, AreYouGerman said:

 

No it does not.

Going by what you posted above your rebuttal  I would say  it does ! BUt  never mind me .

[AreYouGerman]

1 minute ago, 0ffshore360 said:

Going by what you posted above your rebuttal  I would say  it does ! BUt  never mind me .

 

A DTA is essentially there to prevent - here it comes - double taxation. This means, if you paid taxes in A, you should be able to prevent to pay taxes in B, according to the specific DTA. Thailand's step to tax resident foreign income irrespective of remittance does not 'nullify a DTA' as you claimed.

[medina21]

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.

[AreYouGerman]

Just now, 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?

 

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

[0ffshore360]

1 minute ago, AreYouGerman said:

 

A DTA is essentially there to prevent - here it comes - double taxation. This means, if you paid taxes in A, you should be able to prevent to pay taxes in B, according to the specific DTA. Thailand's step to tax resident foreign income irrespective of remittance does not 'nullify a DTA' as you claimed.

Ja ja ja.

" Tax income regardless " ?

[Foxx]

22 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.

 

That is incorrect.  The USA and Eritrea tax worldwide income based upon nationality - not upon residence.  Plenty of other countries tax the worldwide income for their resident nationals, including the UK.