Filing taxes on DTV / DTV and PR

[s_jess]

I'd been intending to apply for a retirement visa when I turn 50 in January. I have investment income that would cover the cost of living in Thailand and wasn't planning on working.

 

I now have an opportunity to pick up some remote work that I would take if I was certain it wasn't going to cause visa problems. More money, something useful to do.

 

With the retirement visa, my understanding is that remote work is likely to be tolerated but since it's not strictly legal, it's better to keep it under the radar, which means you don't file taxes, which means you don't pay your Thai income tax. That makes me uncomfortable.

 

Practically speaking, a tax history is also required for PR, although up to now this has always been linked with a work permit and a Thai employer.

 

The DTV seems to be specifically aimed at people working remotely, so there doesn't look to be the same need to stay under the radar.

 

Against that background I was wondering:

 

Do you see a risk in filing taxes on work done in Thailand on a DTV?

 

Do you think that that type of work/tax history would be acceptable if I later applied for PR?

 

[Caldera]

The DTV is explicitly made for remote workers, so filing tax returns in Thailand with income from abroad should be perfectly fine.

 

I haven't seen anything about whether or not having a DTV would allow you to apply for permanent residency. I'd say probably not, as it's considered as pretty much a special tourist visa.

[Presnock]

31 minutes ago, s_jess said:

I'd been intending to apply for a retirement visa when I turn 50 in January. I have investment income that would cover the cost of living in Thailand and wasn't planning on working.

 

I now have an opportunity to pick up some remote work that I would take if I was certain it wasn't going to cause visa problems. More money, something useful to do.

 

With the retirement visa, my understanding is that remote work is likely to be tolerated but since it's not strictly legal, it's better to keep it under the radar, which means you don't file taxes, which means you don't pay your Thai income tax. That makes me uncomfortable.

 

Practically speaking, a tax history is also required for PR, although up to now this has always been linked with a work permit and a Thai employer.

 

The DTV seems to be specifically aimed at people working remotely, so there doesn't look to be the same need to stay under the radar.

 

Against that background I was wondering:

 

Do you see a risk in filing taxes on work done in Thailand on a DTV?

 

Do you think that that type of work/tax history would be acceptable if I later applied for PR?

 

The DTV can allow one to work - you can read the requirements/type of work etc but supposedly not for a Thai company.  If you work for a company outside of Thailand, then any foreign income you remit into Thailand might become taxable if you stay over 180 days - that is not totally known at this time if the Thai revenu department will allow assessable funds to enter without taxes if the DTV holder stays over 180 days in a calendar year.  If you qualify for one of the 4 categories of the LTR, you may still be able to get a work permit to allow you to work in Thailand paying taxes to the Thai govt or no taxes on remitted foreign income.  One thing you want to avoid is to break the law - that is one of the reasons  stated for the new tax interpretations too, those earning money without paying taxes anywhere.  As for any possibly changes in the tax law to worldwide income taxation, that too is unknown at this time.  In fact, the government leaders might change sooner too due to some court challenges.  Since your plans concern a January 2025 timeframe, by that time hopefully we all will know what is happening and when.  Just continue to monitor this forum, ask any questions you might have about ANYTHING and someone will provide an answer or that might just be

a guess too.  Best of luck

[Cuchulainn]

Yeah, but will Immigration start poking its nose in and asking for proof of a tax filing when your next Non O visa extension is due next year?

[Rob Browder]

16 minutes ago, Cuchulainn said:

Yeah, but will Immigration start poking its nose in and asking for proof of a tax filing when your next Non O visa extension is due next year?

Probably not if using an agent - only as punishment for doing your application honestly / in-person, as with most other extension-applicant requirements. 

But what about when attempting to exit the country, if you have been here over 180 days?   Without that step, I don't see how this new tax-rule is enforce-able for those on Tourist-type entries, DTV, etc.

[TroubleandGrumpy]

Others have answered the questions - so my advice is this.

 

Check out if those 'investment earnings' you had planned on living on, will be taxable income in the future under Thailand's new tax regime.

If they are (and they probably are), then calculate how much that is cost you, and then decide if that is acceptable to you.

If not, then base yourself elsewhere where they dont tax retired Expat's money, and visit Thailand for under 180 days total each year.

 

[TroubleandGrumpy]

37 minutes ago, Cuchulainn said:

Yeah, but will Immigration start poking its nose in and asking for proof of a tax filing when your next Non O visa extension is due next year?

Extremely unlikely, because many Expats do not exceed the thresholds and or after TEDA, like 30+ million Thais, they dont have to pay taxes and so they dont lodge a tax return. 

[Cuchulainn]

27 minutes ago, TroubleandGrumpy said:

Extremely unlikely, because many Expats do not exceed the thresholds and or after TEDA, like 30+ million Thais, they dont have to pay taxes and so they dont lodge a tax return. 

I hope you're right, but Immigration is a law unto itself!!

 

"Ah ha,  another hurdle for Johnny Westerner to jump over. Let's do or say nothing about it now and then rigidly implement it starting April next year"!!🤣