How does tax work for people in Thailand on the DTV?

[DD25]

An online article says:

 

Quote

The DTV offers visa exemptions on foreign income tax for stays up to 180 days. This results in significant savings for remote workers and digital nomads. If they extend their stay beyond this period, they can still enjoy Thailand's vibrant culture and scenic landscapes without added tax burdens on international earnings.

 

The first sentence seems to be saying that income from remote work counts as foreign income so is only taxable if you are tax resident. That seems to be the received wisdom but the principle in other jurisdictions is that the income is considered to arise wherever the work is actually done, which would make it domestic income that is taxable regardless of residency. So is there anything in the Thai legislation, or maybe an official announcement about the DTV, to confirm this either way?

 

Does anyone know what they mean by "without added tax burdens on international earnings"?

[shdmn]

28 minutes ago, DD25 said:

An online article says:

 

 

The first sentence seems to be saying that income from remote work counts as foreign income so is only taxable if you are tax resident. That seems to be the received wisdom but the principle in other jurisdictions is that the income is considered to arise wherever the work is actually done, which would make it domestic income that is taxable regardless of residency. So is there anything in the Thai legislation, or maybe an official announcement about the DTV, to confirm this either way?

 

Does anyone know what they mean by "without added tax burdens on international earnings"?

Quote

The DTV offers visa exemptions on foreign income tax....

 

The DTV offers no such thing, so that first sentence is completely wrong.   Visas and income tax are two completely separate things.  Different gov't agencies.

Edited September 5 by shdmn

[Lorry]

How does tax work for people in Thailand on the DTV?

like for everybody else, see post above.

The  only visa which gives tax exemptions is the LTR.

2 hours ago, DD25 said:

So is there anything in the Thai legislation, or maybe an official announcement about the DTV, to confirm this either way?

No imho

 

2 hours ago, DD25 said:

That seems to be the received wisdom but the principle in other jurisdictions is that the income is considered to arise wherever the work is actually done, which would make it domestic income that is taxable regardless of residency. 

Same in Thailand. Until now,  you needed a WP to work here. DTV doesn't need a WP.

 

2 hours ago, DD25 said:

Does anyone know what they mean by "without added tax burdens on international earnings"?

They think if you are employed by a company abroad,  you have to be a tax resident to be taxed,  so 179 days tax-free.

Because they look at Sec 41 (1) of the RC .

Sherrings mention a case from 2009 - those guys needed a WP which you don't need as a DTV holder.

https://sherrings.com/thailand-source-income-personal-tax.html

 

Good luck with that,  I don't know whether TRD will agree

This whole logic doesn't apply to freelancers.