Taxation of foreighners in S/E Asia?

[ukrules]

7 hours ago, KhunHeineken said:

The  extra "x 30 x 30" is not enforceable at Thai law.

 

Isn't it potentially far worse than that?

 

What usually happens when the language in a contract is illegal?

 

The contract is simply null and voided isn't it?

[Henryford]

On 8/20/2024 at 7:02 AM, Ralf001 said:

 

There is no 25% tax on vehicles for foreigners.

 

But there is tax on remittances which you would need to buy the vehicle

[Ralf001]

1 minute ago, Henryford said:

 

But there is tax on remittances which you would need to buy the vehicle

 

 

I'll repeat my post becuase some struggle to comprehend.

 

There is no 25% tax on vehicles for foreigners..

 

 

[Henryford]

1 minute ago, Ralf001 said:

 

 

I'll repeat my post becuase some struggle to comprehend.

 

There is no 25% tax on vehicles for foreigners..

 

 

 

So where have you seen that remittances for the purchase of vehicles are not assessable income and not taxable?

[chiang mai]

3 minutes ago, Henryford said:

 

But there is tax on remittances which you would need to buy the vehicle

There is no tax on remittances if non-assessable funds are remitted, eg savings or tax exempt income.

[chiang mai]

1 minute ago, Henryford said:

 

So where have you seen that remittances for the purchase of vehicles are not assessable income and not taxable?

Thai Revenue law.

[Ralf001]

8 minutes ago, Henryford said:

 

So where have you seen that remittances for the purchase of vehicles are not assessable income and not taxable?

 

Show me where the remitance of money for the purposes of purchasing a motor vehicle will be taxed at 25% .

[ThaiPauly]

On 8/20/2024 at 7:22 AM, Ralf001 said:

 

I, as a foriegner, have purchased numerous new cars in Thailand.

 

There is no "foreigner" tax... I pay the same out the door price as a Thai.

 

what you are babbling on about has nothing to do with buying a car, the tax is on the remittance.... If you spend more than 180days during the calendar year  in country.

 

I too have brought many cars in my 21 years here.

I'm not babbling ,you are just rude

 

If you bring 2m baht a year into the country you will be taxed. Whatever you buy be it a car  a boat or a plane, you will have to do it with money that you have, or are going to pay tax on.

 

So, you will indirectly pay tax for purchasing that car, the dealer is  not gonna send you a bill, but you will pay ,just the same

 

 

[chiang mai]

9 minutes ago, ThaiPauly said:

I too have brought many cars in my 21 years here.

I'm not babbling ,you are just rude

 

If you bring 2m baht a year into the country you will be taxed. Whatever you buy be it a car  a boat or a plane, you will have to do it with money that you have, or are going to pay tax on.

 

So, you will indirectly pay tax for purchasing that car, the dealer is  not gonna send you a bill, but you will pay ,just the same

 

 

Not if it's savings, exempt or any other form of non-assessable funds, eg savings acquired before 21/12/23.

[ThaiPauly]

16 minutes ago, chiang mai said:

Not if it's savings, exempt or any other form of non-assessable funds, eg savings acquired before 21/12/23.

But it won't be long before 2023 is history

 

Then what?

 

 

[chiang mai]

15 minutes ago, ThaiPauly said:

But it won't be long before 2023 is history

 

Then what?

 

 

Income that is exempt by treaty and/or income on which tax has already been paid overseas and none is due in Thailand. Inheritance and Gifts are also mostly not taxable.

[retarius]

On 8/16/2024 at 9:53 PM, KhunHeineken said:

So, expats pay more VAT that 70 million Thai's.  Really? 

Per capita 

[ThaiPauly]

I'm currently watching a video by Siam Legal

 

Thier MD is saying that the TRD just don't have the manpower to enforce anything this year and are likely to postpone everything for another year.

They have spent 18 months trying to sort out one person's tax credit!!!

 

Sorry it's off topic but it's interesting

[chiang mai]

2 minutes ago, ThaiPauly said:

I'm currently watching a video by Siam Legal

 

Thier MD is saying that the TRD just don't have the manpower to enforce anything this year and are likely to postpone everything for another year.

They have spent 18 months trying to sort out one person's tax credit!!!

 

Sorry it's off topic but it's interesting

It was said early in the year that TRD was in the process of hiring one new lawyer per regional /district offices, in order to take care of treaty related issues, some 40+ new staff in total. It makes sense that process and the associated training would take time. But the new tax process can't really be stopped, only ignored or deferred and it makes sense that it might be. But that doesn't imply that taxpayer liability is also delayed or deferred, that continues to exist and that's the risk.

[motdaeng]

24 minutes ago, ThaiPauly said:

But it won't be long before 2023 is history

Then what?

 

the rule about saving before 31.12.2023 will remain in place; it is not just a one-time or one-year provision.

even in 2025 and so on, you can transfer savings made before 31.12.2023 to thailand without paying any taxes.

[Ralf001]

4 hours ago, Henryford said:

 

So where have you seen that remittances for the purchase of vehicles are not assessable income and not taxable?

 

taxes on remittance into the country has zero to do with with purchase taxes on new vehicles other than the existing taxes as mandated that ALL new car buyers have to pay...

All this babbling about forgeiner taxes on car purchases is beyond the rediculous.

Why are you (any many others it seems) too stupid to understand this ?

[KhunHeineken]

1 hour ago, Ralf001 said:

 

taxes on remittance into the country has zero to do with with purchase taxes on new vehicles other than the existing taxes as mandated that ALL new car buyers have to pay...

All this babbling about forgeiner taxes on car purchases is beyond the rediculous.

Why are you (any many others it seems) too stupid to understand this ?

I think what the member is suggesting is that the money remitted into Thailand to purchase the car is taxed early next year, thus, the car has costed you more than a Thai.

 

Example:

 

A Honda dealer is selling a new Honda for  say 1 million baht. 

 

The Thai pays 1 million baht for it, and the foreigner pays 1 million baht for it.  No two tier pricing at the Honda dealer. 

 

However, the 1 million baht the foreigner remitted into Thailand MAY make up part of the foreigner's tax liability with the TRD between 1st Jan and 31st March the following year. 

 

Should that be the case, it's only logical to factor in that tax liability to the total cost of the vehicle for a foreigner, which then make the vehicle more expensive for the foreigner to buy than the Thai.  

 

Or, are you suggesting remitting the money from your home country directly into the Honda dealer's bank account?

 

Just on this point, we are using a car as an example because it is a large purchase, but if you have a tax liability, basically, living in Thailand in general has become more expensive, because to buy that beer, or that meal, or those groceries etc etc, involves remitting funds in order to be able to do so.

 

Another one to consider is medical.  One could have a medical episode that require immediate major medical intervention.  It could cost hundreds of thousands of baht, or into the millions.  The money remitted to pay for it MAY attract tax the next year, thus, basically making the operation / treatment more expensive for the foreigner than the Thai.

 

Yes, we can all bang on about "savings" the previous year, and pensioners paying minimal tax, thresholds and gifts blah blah blah. but we don't know how this will play out.  Maybe the TRD will not be interested in any documents you have showing savings from your home country.  Maybe they will just give us all a flat rate tax bill based on the total money that was deposited into your account/s.  Pay it, and continue to pay it, or leave Thailand for 6 months of the year.  

 

Interesting times ahead. 

[KhunHeineken]

4 hours ago, retarius said:

Per capita 

I would agree with that, but the wealthy Thai elite most likely pay more VAT than many expats combined. 

[KhunHeineken]

17 hours ago, ukrules said:

 

Isn't it potentially far worse than that?

 

What usually happens when the language in a contract is illegal?

 

The contract is simply null and voided isn't it?

True.  It's an axe that could fall at any time and thousands of foreign condo owners will be left holding the can. 

 

Of course, like cannabis and tax, Thailand would never do it. 

 

 

[KhunHeineken]

23 hours ago, topt said:

Depends if it comes from savings pre 31/12/2023..............

As I said in another post, we don't know how this will all unfold.  The TRD MAY not be interested in your pre 2024 "savings" or any other exemption or threshold. 

 

Time will tell. 

[KhunHeineken]

On 8/21/2024 at 5:47 AM, chiang mai said:

both ended up putting their property in the name of friends who are Thai

What could possibly go wrong? 

[RupertIII]

43 minutes ago, KhunHeineken said:

Another one to consider is medical.  One could have a medical episode that require immediate major medical intervention.  It could cost hundreds of thousands of baht, or into the millions.  The money remitted to pay for it MAY attract tax the next year, thus, basically making the operation / treatment more expensive for the foreigner than the Thai. 

And don't forget that the PM under the last military coup dictated that western foreigners have to pay 3x for treatment at a Government hospital and 2x at a private hospital. For a 1 million baht treatment at a Govt hospital  and assuming a 35% tax rate that would cost a little in excess of 4.5 million!

[jacob29]

On 8/15/2024 at 11:32 AM, Henryford said:

 

Ever heard of the term no taxation without representation. I am just a glorified tourist, do they pay taxes?

What representation? Voting for a party that later gets disbanded by a court?

[ukrules]

4 hours ago, KhunHeineken said:

 

The Thai pays 1 million baht for it, and the foreigner pays 1 million baht for it.  No two tier pricing at the Honda dealer. 

 

However, the 1 million baht the foreigner remitted into Thailand MAY make up part of the foreigner's tax liability with the TRD between 1st Jan and 31st March the following year. 

 

Should that be the case, it's only logical to factor in that tax liability to the total cost of the vehicle for a foreigner, which then make the vehicle more expensive for the foreigner to buy than the Thai.  

 

Well not really, the Thai would have already paid his tax on the 1 million used to buy the car and the tax 'bands' are the same for everyone.

 

You could say that many of us have been buying cars at a large discount due to not paying tax at all

[Ralf001]

5 hours ago, KhunHeineken said:

I think what the member is suggesting is that the money remitted into Thailand to purchase the car is taxed early next year, thus, the car has costed you more than a Thai.

 

 

 

Tax on remittance is irrelevant.

 

Car cost same both Thai and Farnag.

[Cardano]

On 8/15/2024 at 9:15 AM, jaywalker2 said:

Are they really going to start auditing foreign retirees bringing a few hundred thousand baht into the country each year? Considering the fact that only about 25 percent of Thais file income tax.

Less than 15% actually, maybe they should get their own house in order first.

[chiang mai]

2 minutes ago, Cardano said:

Less than 15% actually, maybe they should get their own house in order first.

11% file, actually, only 6% pay tax.

[Bday Prang]

12 hours ago, Henryford said:

 

So where have you seen that remittances for the purchase of vehicles are not assessable income and not taxable?

 Its been explained clearly in several recent comments on this thread.    one directly above by @topt and one slightly earlier by  @Ralf001  its not rocket science

[topt]

57 minutes ago, Bday Prang said:

 Its been explained clearly in several recent comments on this thread.    one directly above by @topt and one slightly earlier by  @Ralf001  its not rocket science

That's not what I actually said.

I said if it was existing savings from pre 31/12/2023 then it, under current regulations, is not assessable and therefore not taxable.

So depends on where it comes from as to whether it is assessable and then all the other calculations if assessable......

 

[ThaiPauly]

22 hours ago, KhunHeineken said:

I think what the member is suggesting is that the money remitted into Thailand to purchase the car is taxed early next year, thus, the car has costed you more than a Thai.

 

Example:

 

A Honda dealer is selling a new Honda for  say 1 million baht. 

 

The Thai pays 1 million baht for it, and the foreigner pays 1 million baht for it.  No two tier pricing at the Honda dealer. 

 

However, the 1 million baht the foreigner remitted into Thailand MAY make up part of the foreigner's tax liability with the TRD between 1st Jan and 31st March the following year. 

 

Should that be the case, it's only logical to factor in that tax liability to the total cost of the vehicle for a foreigner, which then make the vehicle more expensive for the foreigner to buy than the Thai.  

 

Or, are you suggesting remitting the money from your home country directly into the Honda dealer's bank account?

 

Just on this point, we are using a car as an example because it is a large purchase, but if you have a tax liability, basically, living in Thailand in general has become more expensive, because to buy that beer, or that meal, or those groceries etc etc, involves remitting funds in order to be able to do so.

 

Another one to consider is medical.  One could have a medical episode that require immediate major medical intervention.  It could cost hundreds of thousands of baht, or into the millions.  The money remitted to pay for it MAY attract tax the next year, thus, basically making the operation / treatment more expensive for the foreigner than the Thai.

 

Yes, we can all bang on about "savings" the previous year, and pensioners paying minimal tax, thresholds and gifts blah blah blah. but we don't know how this will play out.  Maybe the TRD will not be interested in any documents you have showing savings from your home country.  Maybe they will just give us all a flat rate tax bill based on the total money that was deposited into your account/s.  Pay it, and continue to pay it, or leave Thailand for 6 months of the year.  

 

Interesting times 

Very good post

 

You have addressed this very well.it all makes sense