I'm planning to stay in Thailand over 6 months. Would Thai government try to tax me?

[ppatrick]

Hi,

I've been visiting and staying Thailand every year, normally 3 months of every year, for the last 6-7 years. This year I already did 3 months around the beginning of the year. I'm planning to visit and stay again from September to end of the year. So that would be the total of 7 months for this year. Not sure whether this would trigger the "residency rule" (an individual is considered a resident when staying in a country for 6 months or more) and qualify me to be taxed as a Thai resident. I think it's kind of an international rule, including Thailand. The question is whether Thailand enforce it? Would they check the entry visa (two 90 day visa in my case) and go after people who stay in Thailand more than 6 months out of  a year? Please share your experiences or opinions. Thank you.

[ukrules]

It's 180 days or more for Thailand that makes you a tax resident.

But you will only be taxed on money you remit into the country at the moment, maybe that changes in the future - they said they want to change it so they can tax your global income after 180 days which is how a lot of countries operate but who knows if they manage to get that through parliament.

 

[Chivas]

2 minutes ago, ukrules said:

It's 180 days or more for Thailand that makes you a tax resident.

But you will only be taxed on money you remit into the country at the moment, maybe that changes in the future - they said they want to change it so they can tax your global income after 180 days which is how a lot of countries operate but who knows if they manage to get that through parliament.

 

 

Playing devils advocate (and having proof of origin of  cash funds) if I or anybody depart the UK and bring say £5,000 hard cash into Thailand how on earth is that going to be taxed  if I stay 181 days

 

Am not advocating tax evasion as such. This legislation is so full of holes

[ukrules]

5 minutes ago, Chivas said:

 

Playing devils advocate (and having proof of origin of  cash funds) if I or anybody depart the UK and bring say £5,000 hard cash into Thailand how on earth is that going to be taxed  if I stay 181 days

 

Am not advocating tax evasion as such. This legislation is so full of holes

 

Nobody's taxing you on 5k of cash.

 

But lets say you bought large amounts of cash in on a regular basis and went to one of the surrounding countries twice a week for a year and then attempted to change it all into Baht - how are you going to do that without raising an eyebrow?

When you change money they ask for your passport for a reason and it all goes into a computer.
 

I knew a couple of guys who were successfully attempting to convert a lot of illicit funds from GBP into Euro in England until the day when they were confronted about all their other transactions at diffferent branches around the region - it's all tracked, and this was more than 15 years ago.

At this point it becomes laundering and tax evasion which is highly illegal and something to be avoided at all costs.

 

Edited August 23 by ukrules

[Chivas]

3 minutes ago, ukrules said:

 

Nobody's taxing you on 5k of cash.

 

 

 

Right so where does the entry level actually start ??

[chiang mai]

4 minutes ago, Chivas said:

 

Right so where does the entry level actually start ??

It is the responsibility of the individual to self assess and declare where appropriate, during each year for which they are tax resident. If they are not tax resident in a particular year, or, they don't have the minimum amount of assessable income that requires them to file a tax return, it is not necessary to file. The minimum amount of assessable income required to file a tax return is different from person to person, based on their age, marital status, the deductions and allowances they can claim. Technically, anyone who is tax resident, is married and has assessible income of 220k baht or greater must file. In practise, if no tax is due, the TRD isn't interested in you filing (although you can if you wish). In practise, a person over aged 65 years, married and importing pension income, can expect to remit over 500k baht per year, before they begin to pay tax. A single person under age 65 years who remits other form of income, may begin to pay tax after 60k baht per year.  There are many variables.

[DrJack54]

 

Good luck with Thailand enforcing the "changes" in the OP situation.

 

 

[JimTripper]

Unless you have ties here just don't pay. If they push the issue the worst that would happen is you would have to leave the country, as long as you don't have an account here. So have a plan B.

Edited August 23 by JimTripper

[chiang mai]

7 minutes ago, JimTripper said:

Unless you have ties here just don't pay. If they push the issue the worst that would happen is you would have to leave the country, as long as you don't have an account here. So have a plan B.

The worst that would happen is the person will be fined and potentially sent to jail. The idea that a person can just leave the country to escape taxes that are due is laughable. If the TRD has determined taxes are owed, they are payable immediately and the person will be prevented from leaving until they are paid.

[DrJack54]

3 minutes ago, chiang mai said:

The worst that would happen is the person will be fined and potentially sent to jail. The idea that a person can just leave the country to escape taxes that are due is laughable. If the TRD has determined taxes are owed, they are payable immediately and the person will be prevented from leaving until they are paid.

No. Your post is laughable.

Absolute nonsense.

"Prevented from leaving" 

Provide proof of ridiculous claim.

 

 

[chiang mai]

17 minutes ago, DrJack54 said:

No. Your post is laughable.

Absolute nonsense.

"Prevented from leaving" 

Provide proof of ridiculous claim.

 

 

The penalty for evading taxes, that means intentionally not paying tax, is 200k baht and/or 1 year in jail. If taxes are owed and not paid, those are the possible penalties, per the TRD. 

 

If anyone thinks they can be assessed for tax and then say they are just popping overseas for a while and will pay later, good luck with that!

 

https://sherrings.com/tax-evasion-not-filing-tax-returns-thailand.html#:~:text=Punishment for Intentionally Avoiding (Evading) Tax&text=Whoever intentionally avoids (evades) payment,Both*.

 

and for anyone interested in reading it, here's the law:

 

https://www.thailandlawonline.com/revenue-code/tax-law-revenue-code-general-provisions

Edited August 23 by chiang mai

[novacova]

3 minutes ago, chiang mai said:

The penalty for evading taxes, that means intentionally not paying tax, is 200k baht and/or 1 year in jail. If taxes are owed and not paid, those are the possible penalties, per the TRD. 

 

If anyone thinks they can be assessed for tax and then say they are just popping overseas for a while and will pay later, good luck with that!

 

https://sherrings.com/tax-evasion-not-filing-tax-returns-thailand.html#:~:text=Punishment for Intentionally Avoiding (Evading) Tax&text=Whoever intentionally avoids (evades) payment,Both*.

Oh please, stop the tax fear mongering. The op has nothing to be concerned about unless they are generating income in TH.

[chiang mai]

1 minute ago, novacova said:

Oh please, stop the tax fear mongering. The op has nothing to be concerned about unless they are generating income in TH.

I have no interest in the op or his circumstances, I was answering a question raised by another poster....if you would but bother to read the thread!

[DrJack54]

7 minutes ago, chiang mai said:

I have no interest in the op or his circumstances, I was answering a question raised by another poster....if you would but bother to read the thread!

This thread has been moved to business finance forum that has extensive tax discussion.

By accident i did not post link to change.

Move to there to continue your input. 

[chiang mai]

In practical terms op, there is little risk at present in people not filing tax returns, although there is a significant risk of being assessed for tax and it being due but not paid.

 

At some point in the future it is likely that tax clearance certificates will be required by Immigration in order to extend or obtain a new visa. If tax clearance certificates are implemented across the board, they will be required in order to exit the country. Tax Clearance certificates are in force currently for certain professions but there are no plans I'm aware of currently to roll them out to all foreigners. It should be noted that several countries require tax clearance certificates from resident foreigners, they were in operation in the US when I lived there as a resident green card holder.

[DrJack54]

20 minutes ago, chiang mai said:

I have no interest in the op or his circumstances, I was answering a question raised by another poster....if you would but bother to read the thread!

You are not a tax expert.

Along with no idea how Thailand can remotely enforce tax collection.

It hardly even works in western countries.

 

[chiang mai]

1 minute ago, DrJack54 said:

You are not a tax expert.

Along with no idea how Thailand can remotely enforce tax collection.

It hardly even works in western countries.

 

I have worked for PWC as an audit senior for three years and am formally trained in tax, but modesty prevents me from referring to myself as expert in anything. I have also studied Thai tax and the Thai Revenue Code extensively for nine months so I do know a little about the topic.

[DrJack54]

On 8/23/2024 at 8:57 PM, chiang mai said:

At some point in the future it is likely that tax clearance certificates will be required by Immigration in order to extend or obtain a new visa

Stop making stuff up from your imagination.

Guess you are aware that for years that agents  have avoided financial requirements for extensions.

Find your posts naive at best.

All your posts are guess work.

That translates to scaremongering in my book. 

 

[chiang mai]

Just now, DrJack54 said:

Stop making stuff up from your immigration.

Guess you are aware that for years that agents  have avoided financial requirements for extensions.

Find your posts naive at best.

All your posts are guess work.

That translates to scaremongering in my book. 

 

The Thai Revenue uses tax clearance certificates today.

 

Tax Clearance Certificate   is a certificate issued by the Director-General of the Revenue Department or the Provincial Governor or the delegated authority to a foreigner who is departing Thailand to indicate that he has already paid taxes or that he has provided a guarantor or securities as guarantee for tax liabilities and tax payable.

 

https://www.rd.go.th/english/23518.html

[DrJack54]

15 hours ago, chiang mai said:

I have also studied Thai tax and the Thai Revenue Code extensively for nine months so I do know a little about the topic.

I suggest you know nothing regards how things will pan out in 2025.

Just puffing chest

[chiang mai]

1 minute ago, DrJack54 said:

I suggest you know nothing how will things will pan out in 2025.

Just puffing chest

Nobody has a crystal ball but there are plenty of educated informed guess on this aspect, in the various tax threads.

[bob smith]

26 minutes ago, chiang mai said:

Nobody has a crystal ball but there are plenty of educated informed guess on this aspect, in the various tax threads.

you are digging yourself a big hole now.

 

please stop it.

 

before you make yourself look like a complete clown!

 

bob.

[hunkidori]

39 minutes ago, chiang mai said:

Nobody has a crystal ball but there are plenty of educated informed guess on this aspect, in the various tax threads.

There are also plenty of opportunists who think there is a fast buck to be made out of this nonsense and scare mongering helps their cause.

[chiang mai]

5 minutes ago, bob smith said:

I will leave these three words for you to digest at your leisure :

 

LACK OF ENFORCEMENT.

 

bob.

I'm not aware of any enforcement on 90 day reports or TM30's but nearly everyone does them!

[JimTripper]

1 hour ago, chiang mai said:

The worst that would happen is the person will be fined and potentially sent to jail. The idea that a person can just leave the country to escape taxes that are due is laughable. If the TRD has determined taxes are owed, they are payable immediately and the person will be prevented from leaving until they are paid.

I think that's only if you are a citizen. If you are just on a visa I think they can only deport. I could be wrong though. If it happened in the USA I think you would just get deported if you were not a citizen of the country. Again, I'm not a lawyer, just my opinion.

Edited August 23 by JimTripper

[Lorry]

Some people who are now boasting that they will not pay taxes in Thailand may be in for a rude awakening (I mean those that are not just trolling).

 

@chiang mai is right in every respect. 

 

For practical purposes:

OP should check,  how much he could bring in tax-free. If it's 500,000, the next question would be, does he spend more than 500,000 in 6 months?

If so, how much more?  

If it's a trivial amount - see @ukrulespost.

If its millions,  I would definitely plan my trip in a way that I spend 179 days in Thailand,  not 181. Yes, they can and sometimes do count days from the immigration stamps. 

[chiang mai]

1 minute ago, JimTripper said:

I think that's only if you are a citizen. If you are just on a visa I think they can only deport. I could be wrong though. If it happened in the USA I think you would just get deported if you were not a citizen of the country. Again, I'm not a lawyer, just my opinion.

I'm not aware of any instances of Thai Tax Law or the Legal Code where the law is varied based on nationality.

[DrJack54]

1 minute ago, chiang mai said:

I'm not aware of any enforcement on 90 day reports or TM30's but nearly everyone does them!

What is your point 

TM30 is required for change of address.

TM47 is required if staying longer than 90 days in Thailand.

What  bit don't you understand 

[Lorry]

1 minute ago, chiang mai said:

I'm not aware of any instances of Thai Tax Law or the Legal Code where the law is varied based on nationality.

Agreed.

But if this is a one-off trip, and OP doesn't have a bank account or condo, I wouldn't worry too much. 

If, however,  he plans to spend more and more time here, possibly settle down in a couple of years,   he may sooner or later meet the TRD - a d then a clean start would be good.

[ppatrick]

2 hours ago, Chivas said:

 

Right so where does the entry level actually start ??

Do we know for sure that 5K won't be taxed? I thought someone just brought that up as a example.