Thai gov. to tax (remitted) income from abroad for tax residents starting 2024 - Part II

[chiang mai]

14 minutes ago, shdmn said:

The question is what is considered remitted.  Some tax professionals seem to think that ATM withdrawals from a non-Thai bank account are not considered remitted.  I think it would be rather difficult for them to try track and enforce that as well, so they may not even bother trying.

This is not about the difficulty of enforcement, it's solely about whether it is assessable or not. 

 

As I said at the outset, there is little consensus on any aspect of Thai tax so different people will have different opinions, I have given you mine.

[Yumthai]

10 hours ago, ballpoint said:

With the new directive, I can well see each TRD office being given a target to look at a certain number of tax residents in their districts/areas.

Tax residents they are aware of, i.e. people who hold a Thai TIN.

[chiang mai]

10 hours ago, anrcaccount said:

 

Yet, Britain has a very similar set of deductions for rental property taxation as the US, which makes the advice/observations given that Thai deductions of 30% (gross) apply on foreign remitted rental incomes,  equally invalid and assumptive.

 

These type of statements, including ones like the below, are simply opinion, and not based on any established facts or professional accountancy advice:

 

It was discussed a long time ago that any rental income that is remitted to Thailand would be considered gross of all home country deductions which would be replaced by the 30% Thai standard deduction, or, if actual expenses were greater and all receipts were available, the greater amount

 

Which of the following are not facts:

 

There is only one TRD Code whose rules apply equally to everyone.

 

Thailand Revenue has no interest in knowing what deductions were made from overseas funds, prior to them being remitted to Thailand. TRD is only interested in knowing whether remitted funds are assessable income and of what category.

 

The TRD Code defines income in eight different categories that do not distinguish between overseas and domestic income.

 

Property rental income is defined as Category 5 income, it permits a standard deduction equal to 30% of gross rental income, or, if actual expenses are greater than 30%, the sum of actual expenses provided receipts are available.

 

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

 

https://sherrings.com/personal-tax-deductions-allowances-thailand.html

 

“It was discussed a long time ago that any rental income that is remitted to Thailand would be considered gross of all home country deductions/expenses which would be replaced by the 30% Thai standard deduction, or, if actual expenses were greater and all receipts were available, the greater amount, per the TRD Code”.

 

For example, gross rental income might expect to be reduced by agent fees, local taxes, cost of repairs etc. For Thai assessable income purposes, the amount of rental income remitted to Thailand is presumed to be gross and not to have been reduced by the value of those deductions/expenses.