Its Happening - Law to Tax Overseas Income Now in Progress

[FruitPudding]

3 hours ago, bkk6060 said:

A person would have to be clueless to not realize many people move here to meet younger women.  

The value to me is worth me staying here and paying some tax to enjoy what this country offers.

But, I guess Gottfrid if one does not like women they would not understand the value.  So glad that is not me.

 

Maybe Gottfrid has grown up. 👶 

 

Aside from that, the short time women are abhorrent creatures, yet the best this place has to offer.

 

Wrap your head around that.

[gearbox]

1 hour ago, John Drake said:

Question: Does this tax on worldwide income mean that you will be taxed for your salary, say, in the US, where you keep most of your money? And THEN when you move some of that money to Thailand that Thailand has already taxed you on, will they also tax the remittance? Tax the money a second time they've already taxed before?

If they tax worldwide income they don't need to tax remittances. You either can remit your income or leave it outside. This is how it works in Australia.

[Will B Good]

16 hours ago, 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...

 

 

Just bring cash.

[gearbox]

For the people who think they can do workarounds wrt CRS exchanges...it may work now but better be prepared for bad surprises in the future. In Australia the banks have been fined billions by the AML authorities. Nowadays they have become very cautious, if they have any slight suspicion that you are not supplying correct information, including the tax residency, your account would be suspended or even closed. This is especially true for non individual accounts - proprietary company, trust, self managed superannuation fund.

[Gecko123]

4 hours ago, Kerryd said:

And this is from an "ASEAN Briefing" dated 12 Feb 2024:

"Receive income inside or outside Thailand via:
 

Income from employment (wages, salaries, remuneration, etc.) assessable under Section 40 of the Revenue Code;

Income from business operations is assessable under Section 40.

Passive or property income (interest, dividends, rental income, goodwill, etc.) based on Article 41 paragraph 2 of the Revenue Code.
(I assume that covers "pension income" without them actually saying it. Goodwill includes "gifts" and "donations".)
 

Thai citizens and foreigners who are permanent residents will be subject to income tax, if they earn annual income at the following rates: 
(I'm guessing they changed "permanent residents" to "tax resident" at a later date.)
 

0 to 150,000 baht (US$4,177) is exempt from income tax;

More than 150,000 baht (US$4,177) and up to 300,000 baht (US$8,354) are subject to a 5 percent tax rate;

More than 300,000 baht (US$8,354) and up to 500,000 baht (US$13,923) are subject to a 10 percent tax rate;

More than 500,000 baht (US$13,923) and up to 750,000 (US$20,884) are subject to a 15 percent tax rate;

More than 750,000 (US$20,884) and up to 1 million baht (US$27,846) are subject to a 20 percent tax rate;

More than 1 million baht (US$27,846) and up to 2 million baht (US$55,683) are subject to a 25 percent tax rate;
 

Over 2 million baht (US$55,683) and up to 5,000,000 baht (US$139,201) are subject to a 30 percent tax rate; and

More than or more is subject to a 35 percent tax rate.

 

Thank you for posting this.

 

If those progressive tax rates were ever implemented, this would likely trigger an exodus of higher-income expats. This would have the effect of increasing the percentage of low or lower income expats, the exact opposite of the high income big spending expat profile Thailand has long dreamed of. Another strange aspect is that there doesn't seem to be any consideration for marital status or number of Thai dependants. This straight-off-the-top taxation would have to hit consumption and expenditure stats; seems like it could be a zero-sum game. Where are all these dual taxation, tax treaty, verification of income, and number of days residing in Thailand issues going to be resolved? God help us if the answer is at your local immigration office, especially if you live out in the countryside. This whole thing sounds like yet another classic example of one department coming up with a scheme without thinking through how it will be implemented and unintended side effects. I'm not going to let myself get worked up about this for the time being.

[Gottfrid]

37 minutes ago, FruitPudding said:

 

I dunno where you are from, but where I come from tax and social security are two different payments. They are not the same thing.

 

Generally, to get social security you have to be working, not merely paying tax on capital gains or foreign income.

 

That said, I despise taxation in general and socialism is inherently evil, IMHO

Ops! There you went out of the reservation, didn´t you? My sincere condolences to your comprehension technique. Where should I send the flowers?

[FruitPudding]

1 minute ago, Gottfrid said:

Ops! There you went out of the reservation, didn´t you? My sincere condolences to your comprehension technique. Where should I send the flowers?

 

What are you on about?

[Gottfrid]

3 minutes ago, FruitPudding said:

 

What are you on about?

My post you choosed to reply to, only had one meaning. That was they want us to pay tax, but they will not include us in anything or give us access to any benefits. The two things specified was just examples of many things. So the below still goes!

6 minutes ago, Gottfrid said:

Ops! There you went out of the reservation, didn´t you? My sincere condolences to your comprehension technique. Where should I send the flowers?

 

[FruitPudding]

Just now, Gottfrid said:

My post you choosed to reply to, only had one meaning. That was they want us to pay tax, but they will not include us in anything or give us access to any benefits. The two things specified was just examples of many things. So the below still goes!

 

Either you don't understand how tax works in other countries or maybe wherever you come from it's different. 

 

Where I come from, you don't get anything for the tax you pay, except whatever they choose to spend it on, which is (hopefully) for the good of the public, rather than lavish parties and war.

 

Social security payments are separate from tax - you pay those if you are working usually - and you get benefits, such as healthcare and pension.

 

Thailand is the same,  pretty much.

[aussienam]

2 hours ago, anchadian said:

All my income is sent directly to my Thai wife's bank account and I withdraw our living expenses each month and the balance of monies remaining is left in her account.

 

I have no other family members when I pass.

She is a tax resident.  If the money isn't classified as a gift it is tax assessable.  They may connect the dots too since you aren't remitting funds any other way so are living off money sent to her.  Not sure though.  But I'd guess she'd need to declare that remittance and have it tax assessed 

[Celsius]

3 minutes ago, FruitPudding said:

 

Either you don't understand how tax works in other countries or maybe wherever you come from it's different. 

 

Where I come from, you don't get anything for the tax you pay, except whatever they choose to spend it on, which is (hopefully) for the good of the public, rather than lavish parties and war.

 

Social security payments are separate from tax - you pay those if you are working usually - and you get benefits, such as healthcare and pension.

 

Thailand is the same,  pretty much.

 

Please do tell what stupid country do you come from because this isn't how it works in Canada, Australia or UK

[Ben Zioner]

26 minutes ago, Gecko123 said:

 

Thank you for posting this.

 

If those progressive tax rates were ever implemented, this would likely trigger an exodus of higher-income expats.

Unless they keep the LTR tax exemption.

[Will B Good]

59 minutes ago, FruitPudding said:

 

I dunno where you are from, but where I come from tax and social security are two different payments. They are not the same thing.

 

Generally, to get social security you have to be working, not merely paying tax on capital gains or foreign income.

 

That said, I despise taxation in general and socialism is inherently evil, IMHO

 

 

So for despise read...... do away with?

 

How would society function?

[FlorC]

24 minutes ago, Gecko123 said:

 

Thank you for posting this.

 

If those progressive tax rates were ever implemented, this would likely trigger an exodus of higher-income expats. This would have the effect of increasing the percentage of low or lower income expats, the exact opposite of the high income big spending expat profile Thailand has long dreamed of. Another strange aspect is that there doesn't seem to be any consideration for marital status or number of Thai dependants. This straight-off-the-top taxation would have to hit consumption and expenditure stats; seems like it could be a zero-sum game. Where are all these dual taxation, tax treaty, verification of income, and number of days residing in Thailand issues going to be resolved? God help us if the answer is at your local immigration office, especially if you live out in the countryside. This whole thing sounds like yet another classic example of one department coming up with a scheme without thinking through how it will be implemented and unintended side effects. I'm not going to let myself get worked up about this for the time being.

Yes I think there will be a big difference in provinces where very few farang live and  where maybe 10 thousands live like Bangkok , Chonburi , Phuket.

With a couple of hundred in a province like mine , the tax office will have more time .

 

I think I'm lucky , living off an inheritance received in 2023 and no income since 2008. Both I can prove with tax returns.

[FruitPudding]

17 minutes ago, Celsius said:

 

Please do tell what stupid country do you come from because this isn't how it works in Canada, Australia or UK

 

The UK.

 

We have 2 deductions:

 

1. Tax

2. National Insurance (for healthcare and pension)

 

They are not the same. You don't get a pension because you paid tax. You get it because you paid National Insurance.

 

Which part don't you understand?

 

Likewise, in Thailand tax and social security payments are separate. I know because I pay both (and get Thai healthcare because of the social security payments, not tax payments)

 

 

[Chris Daley]

This news makes me feel all warm and fuzzy inside.  Knowing that most of the users on here will have to pay taxes like the rest of us.  I come here and work hard for my money.  Welcome to the real Thailand.

[Will B Good]

1 minute ago, FlorC said:

Yes I think there will be a big difference in provinces where very few farang live and  where maybe 10 thousands live like Bangkok , Chonburi , Phuket.

With a couple of hundred in a province like mine , the tax office will have more time .

 

I think I'm lucky , living off an inheritance received in 2023 and no income since 2008. Both I can prove with tax returns.

 

 

None of my business....but it must be a tidy inheritance?.....living by drawing down capital is a 'dangerous' move....there is no substitute for income.......but maybe it is a tidy sum.

 

Even at 68 I would want at £500,000.

[Ben Zioner]

6 minutes ago, Chris Daley said:

This makes me smile and feel all fuzzy inside.  Knowing that most of the users on here will have to pay taxes like the rest of us.  I come here and work hard for my money.

I worked hard for my pension.. Paid 23.7% of my earnings for all my working life. Wish you the best for your old years AH.

[Celsius]

4 minutes ago, Chris Daley said:

This news makes me feel all warm and fuzzy inside.  Knowing that most of the users on here will have to pay taxes like the rest of us.  I come here and work hard for my money.  Welcome to the real Thailand.

 

Well, that's really dumb. You came to Thailand to work AND pay tax?

 

 

[FruitPudding]

9 minutes ago, Chris Daley said:

This news makes me feel all warm and fuzzy inside.  Knowing that most of the users on here will have to pay taxes like the rest of us.  I come here and work hard for my money.  Welcome to the real Thailand.

 

Thai income tax isn't much. I pay 4% overall.

 

That said, I am against tax in general and wouldn't wish it on anyone.

[FlorC]

11 minutes ago, Will B Good said:

 

 

None of my business....but it must be a tidy inheritance?.....living by drawing down capital is a 'dangerous' move....there is no substitute for income.......but maybe it is a tidy sum.

 

Even at 68 I would want at £500,000.

I have enough money of my own , but since inheritance (and received in 2023 , so before 2024) is not taxed , it comes in handy to avoid paying taxes in Thailand. In about 6 years , I will get a pension , if that is taxed here , 2030 will be my last year in Thailand. 

[Will B Good]

2 minutes ago, FlorC said:

I have enough money of my own , but since inheritance (and received in 2023 , so before 2024) is not taxed , it comes in handy to avoid paying taxes in Thailand. In about 6 years , I will get a pension , if that is taxed here , 2030 will be my last year in Thailand. 

 

 

Looking at the allowances and workarounds I'm not expecting to pay too much tax.....probably less than cost of a return flight to the UK.....touch wood it will all end up as no biggy...... unless people are moving megabucks.

 

 

[FruitPudding]

7 minutes ago, Will B Good said:

 

Looking at the allowances and workarounds I'm not expecting to pay too much tax.....probably less than cost of a return flight to the UK.....touch wood it will all end up as no biggy...... unless people are moving megabucks.

 

 

Considering how low Thai tax is, they are shooting themselves in the foot.

 

People with money will just stay here less and the economy will suffer, which I will enjoy.

[spidermike007]

One of the questions that comes to mind is what kind of enforcement are they going to be using? Is proof of payment of taxes going to become a prerequisite for renewing an annual visa?

 

Are we going to have to show tax information to continue using our bank accounts?

 

What methods can we imagine they will use to enforce the new tax laws? I assume it will not simply be the honor system. 

[GreasyFingers]

4 hours ago, Raindancer said:

More scaremongering.  Read the RD news.  And the videos by tax consultants Thailand. 

 

The renewed tax implementation, has nothing to do with immigration  and renewal of extensions 

Except if they enforce the Tax Clearance Certificate before you can leave the country.

[Will B Good]

1 minute ago, FruitPudding said:

 

Considering how low Thai tax is, they are shooting themselves in the foot.

 

People with money will just stay here less and the economy will suffer, which I will enjoy.

   

 

Racist? But I can't imagine the Chinese paying a penny in Thai taxes.......what will they do to avoid/evade it?

[Ben Zioner]

24 minutes ago, FruitPudding said:

Thai income tax isn't much. I pay 4% overall.

Looks like your earnings are below 1 Million.

[FruitPudding]

2 minutes ago, Will B Good said:

   

 

Racist? But I can't imagine the Chinese paying a penny in Thai taxes.......what will they do to avoid/evade it?

 

Racist what?

[Will B Good]

Just now, FruitPudding said:

 

Racist what?

 

I was accusing me, myself, I of being racist by singling out the Chinese as potential tax dodgers.

[Gottfrid]

53 minutes ago, FruitPudding said:

 

Either you don't understand how tax works in other countries or maybe wherever you come from it's different. 

 

Where I come from, you don't get anything for the tax you pay, except whatever they choose to spend it on, which is (hopefully) for the good of the public, rather than lavish parties and war.

 

Social security payments are separate from tax - you pay those if you are working usually - and you get benefits, such as healthcare and pension.

 

Thailand is the same,  pretty much.

Just lay it to rest. You still don´t understand what I meant. Looks like other people have managed that.