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

[anrcaccount]

1 hour ago, chiang mai said:

Why do you even begin to suggest that getting the 30% deduction for expenses on overseas rental income, may not be possible, did you read something to suggest it wasn't or is it just your mistrust and fear? 

 

Because the rules are written for Thai rental income. Foreign remitted rental income has quite possibly, never been taxed in Thailand before. If you think about the different scenarios, in some of them applying that deduction defies logic. 

 

You wrote :

 

“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.

 

 

Then you said, you'll remit your own rental income less agent fees (net, not gross) which makes it "reduced by the value of those deductions or expenses", so going against the advice provided in your own tax guide. Anyway, as you say, you're under the TEDA so it is immaterial, to you.

 

If you take the Thai standard deductions on this, you're either remitting actual gross , or you're remitting net, then getting additional deductions on top of deductions you've already made ( that would be a nice scenario). 

 

Beyond your own situation, consider one where the property is in fact highly leveraged and makes no profit (common in property investing) : here, you could be faced with situation like this:

 

Gross rent: 20000. Foreign deductions including interest: 20000

 

If you take your guide as is worded above, you could then remit 20000 'gross income'  to Thailand , claim the "actual expense method" deduction , and have no liability. 

 

 

 

 

 

 

 

 

 

 

 

[chiang mai]

15 minutes ago, anrcaccount said:

 

Because the rules are written for Thai rental income. Foreign remitted rental income has quite possibly, never been taxed in Thailand before. If you think about the different scenarios, in some of them applying that deduction defies logic. 

 

You wrote :

 

“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.

 

 

Then you said, you'll remit your own rental income less agent fees (net, not gross) which makes it "reduced by the value of those deductions or expenses", so going against the advice provided in your own tax guide. Anyway, as you say, you're under the TEDA so it is immaterial, to you.

 

If you take the Thai standard deductions on this, you're either remitting actual gross , or you're remitting net, then getting additional deductions on top of deductions you've already made ( that would be a nice scenario). 

 

Beyond your own situation, consider one where the property is in fact highly leveraged and makes no profit (common in property investing) : here, you could be faced with situation like this:

 

Gross rent: 20000. Foreign deductions including interest: 20000

 

If you take your guide as is worded above, you could then remit 20000 'gross income'  to Thailand , claim the "actual expense method" deduction , and have no liability. 

 

What is this guide you're talking about? And why are you trying to divert away from the issue of why the expense deduction may not exist for overseas income, ditto pension expenses?

 

When I wrote what I did, I write the word "could: that doesn't mean that's what I do. If you see the spreadsheet I posted you'll se what I intend to do, which is remit partial gross rental income which includes any home country expense charges. I am however able to pass along those charges to a third party which in effect makes them part of the rental income, but I chose not to.

 

Your agenda is not to find the correct answer or even a reasonable potential answer. Your agenda is simply to disprove any scenario that has been proposed. 

 

 

Edited 4 hours ago by chiang mai

[chiang mai]

46 minutes ago, anrcaccount said:

 

Because the rules are written for Thai rental income. Foreign remitted rental income has quite possibly, never been taxed in Thailand before. If you think about the different scenarios, in some of them applying that deduction defies logic. 

 

You wrote :

 

“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.

 

 

Then you said, you'll remit your own rental income less agent fees (net, not gross) which makes it "reduced by the value of those deductions or expenses", so going against the advice provided in your own tax guide. Anyway, as you say, you're under the TEDA so it is immaterial, to you.

 

If you take the Thai standard deductions on this, you're either remitting actual gross , or you're remitting net, then getting additional deductions on top of deductions you've already made ( that would be a nice scenario). 

 

Beyond your own situation, consider one where the property is in fact highly leveraged and makes no profit (common in property investing) : here, you could be faced with situation like this:

 

Gross rent: 20000. Foreign deductions including interest: 20000

 

If you take your guide as is worded above, you could then remit 20000 'gross income'  to Thailand , claim the "actual expense method" deduction , and have no liability. 

 

I was just reading back over some of your earlier post of June where you were adamant that capital can be separated and remitted separately from gain, it tok pages before you finally went quiet on the subject, I suppose you're in that same mode yet again with the idea that foreigners can't use the 30% expense allowance for rental income. 

 

And subsequent to starting this post, I've now twigged what you're trying to say about tax guides. So now we really are done, I'm tired of being trolled by idiots on this game you dreamed up and have encouraged. Out

 

[stat]

2 hours ago, Lorry said:

He wrote several lengthy detailed accounts about  it! Hard to miss

Good to know that you know where it is in this thread, that really helps a lot. Will keep this in mind if ever you have question I could answer.

[Captain Flack]

A reported post and reply breaking forum rules, by publicly discussing another member has been removed. Multiple accounts by the same person are not permitted, please discuss the topic.