Its Happening - Law to Tax Overseas Income Now in Progress

[mania]

1 hour ago, anchadian said:

Revenue Department preparing legislation as new Expat tax regime may link visas and tax returns

 

Thailand’s Revenue Department drafts global tax legislation. It may link visa issuance to tax returns soon. Expats staying over 180 days must file by March 2025, impacting residency decisions. It also raises concerns about tax treaty interpretations and compliance.

 

https://www.thaiexaminer.com/thai-news-foreigners/2024/09/08/revenue-department-preparing-legislation-as-new-expat-tax-regime-may-link-visas-and-tax-returns/

Thank You that was the best thing written so far about all this taxing requirements!  Very Helpful & a lot of truth there too.

[Dan SG]

2 hours ago, anchadian said:

Revenue Department preparing legislation as new Expat tax regime may link visas and tax returns

 

Thailand’s Revenue Department drafts global tax legislation. It may link visa issuance to tax returns soon. Expats staying over 180 days must file by March 2025, impacting residency decisions. It also raises concerns about tax treaty interpretations and compliance.

 

https://www.thaiexaminer.com/thai-news-foreigners/2024/09/08/revenue-department-preparing-legislation-as-new-expat-tax-regime-may-link-visas-and-tax-returns/

Thanks for the link to the article.  Worth pointing out that there seem to be a couple of inaccuracies in the article.  The main one is the authors belief that income from property is exempt under the UK - Thai treaty.  I don't think that's right.  The treaty says that income from immoveable property may be taxed in the state the property is situated; however, that doesn't preclude it from being taxed in the state the individual is resident too.  Of course, though, the same income can't be taxed twiced under the treaty.  I think all this underscores for those that qualify a long term resident visa is the way to go!

[thesetat2013]

On 9/7/2024 at 9:26 PM, CallumWK said:

Time to empty my Thai bank accounts

They won't care about what is in your Thai bank accounts. That is not considered income except for the interest you get yearly. 

[gearbox]

4 hours ago, TimBKK said:

What do you mean by “as long as you admit in your country you are a Thai tax resident”?

In Australia your banks etc won't provide CRS summaries unless you indicate you are a tax resident of a specific country. The Thai tax office won't get the income details of all Australians, only those who declared they are Thai tax residents.

[gearbox]

41 minutes ago, Owiee said:

Yes but unfortunately the exchange rates are very poor 

I don't know what card you use and what your home country bank.charges you, but for me the fees are comparable with Wise on 30k withdrawal from a Krungsri ATM. If you withdraw 2k the equivalent exchange rate impacted by the ATM and bank charges can become really bad indeed.

[CharlesHolzhauer]

On 9/8/2024 at 1:32 AM, ukrules said:

The Thai tax system isn't evolved enough for this kind of global taxation.

Don't bet on it!

[gearbox]

5 hours ago, Jingthing said:

More confusion for me.

So if you had 500K USD in a retirement account on that date, you could then bring in up to 500K for the rest of your life Thai tax free?

Seperate from government pensions which are another thing.

If you prove it is not an income you can, but it would be a pretty dumb thing to do financially. 500k in your country could generate quite a bit of income and be better protected as you are a citizen there. Everywhere in the world capital is not taxed, the income from the capital is taxed.

[geisha]

18 hours ago, redwood1 said:

 

I have never in my life seen any government or business for that matter that backtracks, flip flops, changes policy at the drop of a hat , with healthy doses of it was all a big misunderstanding....Like Thailand.

 

What the government is likely or unlikely to do is a crapshoot that changes day to day.....So the LTR is in no way a safe haven AT ALL....

That will hit the Senior homes  and Care homes  which rely on foreigners incomes too.,My uncle has been waiting for the details. I know for a fact he won’t accept these conditions.,

[Danderman123]

7 minutes ago, geisha said:

That will hit the Senior homes  and Care homes  which rely on foreigners incomes too.,My uncle has been waiting for the details. I know for a fact he won’t accept these conditions.,

As we found with marijuana recriminalization, once real money is at risk, legislative proposals vanish into the ether.

[gearbox]

9 hours ago, Danderman123 said:

If we live in a world where TRD has insight into undistributed income within foreign bank accounts, we're dead any way.

 

You guys are living in a dream world where Somchai down at the local TRD office is an international tax expert.

 

BTW, let me know when Somchai discovers million baht remittances to bargirls in the village.

 

I wouldn't rely on the local Somchai being dumb or smart. These days many audit leads and cases are generated automatically by data matching software. However it may take years for the Thais to integrate all the data feeds properly.

[Jingthing]

19 minutes ago, gearbox said:

If you prove it is not an income you can, but it would be a pretty dumb thing to do financially. 500k in your country could generate quite a bit of income and be better protected as you are a citizen there. Everywhere in the world capital is not taxed, the income from the capital is taxed.

I have no idea what you're talking about.

500K in IRAs trad or Roth or 401ks are almost always invested in something. Not just sitting there. If not Roth, taking out huge chunks gets a huge US tax bill so the incentive is to only withdrawal what you actually need or are forced to under IRA rules at about age 72.

[gearbox]

1 minute ago, Jingthing said:

I have no idea what you're talking about.

500K in IRAs trad or Roth or 401ks are almost always invested in something. Not just sitting there. If not Roth, taking out huge chunks gets a huge US tax bill so the incentive is to only withdrawal what you actually need or are forced to under IRA rules at about age 72.

Your post was implying that you are cashing in retirement accounts overseas and transferring the proceeds to Thailand.

[Kenneth White]

I wonder if the Thai government intends to tax Social Security from America. That would be considered a double tax. 

[CharlesHolzhauer]

19 hours ago, lordgrinz said:

Give us land ownership, Permanent Residency, no more TM47/TM30/COR's/TM6/Etc., make farang pricing illegal, treat us like tax paying Thai citizens and then maybe being taxed on WorldWide income might make sense.

...and after a 'dump' wipe off our proverbial behind, all that and more while on a Non-Immigrant visa.

[JimboB4]

US government pensions and military retirement is off limits for taxes under the US Thai tax treaty 

[JimboB4]

2 minutes ago, Kenneth White said:

I wonder if the Thai government intends to tax Social Security from America. That would be considered a double tax. 

They can’t. The tax treaty prohibits it. Just more misinformation from this particular sight. 

[chiang mai]

4 minutes ago, Kenneth White said:

I wonder if the Thai government intends to tax Social Security from America. That would be considered a double tax. 

US SSc is tax exempt in Thailand by treaty.

[JimboB4]

15 minutes ago, Danderman123 said:

As we found with marijuana recriminalization, once real money is at risk, legislative proposals vanish into the ether.

Except they’re not recriminalizing it. There’s a new government in place now that support it and I told you all on here that this was happening. 

[Jingthing]

5 minutes ago, gearbox said:

Your post was implying that you are cashing in retirement accounts overseas and transferring the proceeds to Thailand.

No.

The point was look at the value at the end of 2023 and a member seemed to be saying as that amount was earned before then, ALL of it was not Thai taxable, for life.

Withdrawing as needed, for life.

But don't look at me for definitive advice on these matters.

I am completely confused and probably will remain so for a very long time.

[Srikcir]

On 9/8/2024 at 1:47 AM, NoDisplayName said:

Your income may already be taxed, but Thailand will tax at a higher rate.  It's then up to you to (try to) claim Thai tax credit on your US returns.

In the US your foreign tax credit can't exceed your US tax liability. In other words on your US tax return you can't have a negative tax liability. 

[cedel]

On 9/8/2024 at 1:21 AM, ikke1959 said:

They don't have a clue what the local Thai people are doing and earning, how can they know what foreigners are earning/Where and how do they get the information from? I am  not sure if all financial institutions are giving all informations as may countries have a law to protect the personal information. And besides that how do they use all the different languages, forms, etc Almost nobody can speak or read English here.. I think it will be just as everything a lot of screaming but in reality nothing will  happen.

Thais don't like to work

CRS/FATCA: https://web-archive.oecd.org/tax/automatic-exchange/international-framework-for-the-crs/exchange-relationships/index.htm

[cedel]

22 hours ago, redwood1 said:

There are 195 countries on Earth...I bet there are expats in Thailand from 100 of them...

 

I will say there is no way the disorganize, corrupt, flip flopping mess that is the Thai government could ever in a million years track and keep up with the personal finances of the expats from all these countries..

 

Folks its just not going to happen EVER......

 

Especially when the mega rich leaders of the country avoid taxes like the plague...

 

 

CRS and FATCA: https://web-archive.oecd.org/tax/automatic-exchange/international-framework-for-the-crs/exchange-relationships/index.htm

[sandrew33]

On 9/7/2024 at 10:16 PM, Pouatchee said:

happy days... not

so now the nightmare begins

 

 

so now they will have access to our home records... big brother... reallyyyy. 

 

double taxation? these matters really need to be cleared up and imho double taxation is just plain wrong... hope tere will be provisions blocking this.

 

NO TAXATION WITHOUT REPRESENTATION!!!

The Big Brother cross border information sharing was started by the US with FATCA, then the Common Reporting Standard for pretty much everyone else. It’s been around for years. 
 

This is Thailand simply adopting a law that’s common in most other jurisdictions. If you live in Thailand for tax law purposes then you pay tax on worldwide income. Thailand has many double tax agreements to avoid double taxation already. Of course if you are avoiding tax in your country of origin (I.e currently paying zero tax) a DTA won’t help you much 🙂 

 

The notion that you should pay tax in Thailand if you live in Thailand isn’t a terrible one but it will certainly cause some chaos over the next few years. 

[kuzmabruk]

On 9/7/2024 at 10:51 PM, Kinnock said:

Thailand can't tax its own people, so they want to tax foreigners.

 

This new tax is on all tax residents of Thailand.   This hurts the rich Thais with trillions of baht offshore that have been tax free, much more than you. 

[sandrew33]

1 hour ago, gearbox said:

In Australia your banks etc won't provide CRS summaries unless you indicate you are a tax resident of a specific country. The Thai tax office won't get the income details of all Australians, only those who declared they are Thai tax residents.

Well, yes and no. 
 

CRS works across revenue authorities and the Thai revenue authority can make a request of the Australian revenue authority about “Joe Smith” who they believe is a resident of Thailand. 
 

The Aussie revenue authority can then share that information under CRS. 
 

I understand this is less likely than them getting the info if you are honest about Tax residency 🙂 

[Tom100]

On 9/7/2024 at 8:51 AM, Kinnock said:

Thailand can't tax its own people, so they want to tax foreigners.

 

Correct. Only 11 million Thais paid tax in 2023, or 1 in 6.

[Dogmatix]

I wonder what happens to Brits who fraudulently claim the index linked UK state pension and winter fuel allowance (if that survives under Stammer), using a correspondence address in the UK while living in the Thai sunshine. Will they claim tax credits from HMRC to show the RD?

[Jonathan Swift]

On 9/7/2024 at 11:35 AM, Pouatchee said:

i dunno if this can work out, but i am offered a new job back home and i plan on sending money to my bank account here. i will only be visiting my better half 1-2 months a year... dont think they can tax me sending myself money here if i dont live here...

nope

[Dogmatix]

1 minute ago, Tom100 said:

Correct. Only 11 million Thais paid tax in 2023, or 1 in 6.

 

That's why they want the windfall of adding a couple of hundred thousand foreigners to the payroll.  Could add 2% more taxpayers.

[Jonathan Swift]

So how are they going to find the money? All bank accounts are password protected, and Thailand has no jurisdiction to enforce laws in the US. Nope.