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

[The Cyclist]

1 hour ago, chiang mai said:

I was thinking about this thorny old issue of who needs to file when, if tax is due, regardless if tax is not due, TEDA etc etc.

 

It is said that 24% of the workforce (36 million) file tax returns whilst only 11% pay taxes, that equates to around 12% of the population (72 million) filing a return and around 6% paying taxes.  If those numbers are correct, it seems that over half those returns are null returns where no tax is due. I know that self employed people MUST file twice a year, regardless of whether tax is due or not. Self employed folks are no different really from individual Personal Income Tax payers, they gave slightly different TEDA in some areas but essentially they are the same.

 

So the question becomes, if it is only common sense that the TRD does not want null returns, why are so many people filing them and why are so many people forced to file them? It seems that there are almost 4.5 million null returns being filed already, why is that?  You can argue whether the percentages are exact or just close enough but I don't think it changes the fundamental question.

 

Nothing to do with " Nil Returns "

 

Because the Revenue Code dictate that Thais ( and foreigners working in Thailand ) require to file  a tax return if they earn over

 

* 120,000 Baht annually

 

* 220,000 Baht annually if it is a joint filing.

 

Simple and straight forward.

 

Now apply TEDA's, and you might have no tax liability.

 

It's nothing to do with a " Nil Returns  " the levels for filing are clear and simple, either 120,000 or 220,000 baht, you file. a tax return.

[The Cyclist]

32 minutes ago, chiang mai said:

If the average wage in Thailand is 15,000 baht nationwide, that's only 200k baht per year, under the threshold to pay tax for most people (60k personal allowance and 150k zero rated band) That means that on average, Thai's don't qualify to pay tax.

 

See post above, forget allowances, zero rated bands and anything else.

 

This is why you are getting confused.

[chiang mai]

3 minutes ago, The Cyclist said:

 

Nothing to do with " Nil Returns "

 

Because the Revenue Code dictate that Thais ( and foreigners working in Thailand ) require to file  a tax return if they earn over

 

* 120,000 Baht annually

 

* 220,000 Baht annually if it is a joint filing.

 

Simple and straight forward.

 

Now apply TEDA's, and you might have no tax liability.

 

It's nothing to do with a " Nil Returns  " the levels for filing are clear and simple, either 120,000 or 220,000 baht, you file. a tax return.

Yes, I agree with all of what you wrote. I would only add to it that the threshold is 60k Baht where the income is from other than employment.

 

The issue being discussed is whether or not forigners need to file a return where the threshold, be it 60k, 120k or 220k has been breached but there is no tax to pay. I believe they do, others believe that doesn't make sence and that the TRD doesn't want null returns where no tax is due and no refunds are being claimed. 

 

Others also believe that TEDA can be factored iunto the equation, where as, as we have already discussed, I dont think it can. That's the background to the exchnage in play currently.

[chiang mai]

8 minutes ago, The Cyclist said:

 

Nothing to do with " Nil Returns "

 

Because the Revenue Code dictate that Thais ( and foreigners working in Thailand ) require to file  a tax return if they earn over

 

* 120,000 Baht annually

 

* 220,000 Baht annually if it is a joint filing.

 

Simple and straight forward.

 

Now apply TEDA's, and you might have no tax liability.

 

It's nothing to do with a " Nil Returns  " the levels for filing are clear and simple, either 120,000 or 220,000 baht, you file. a tax return.

Ok and fine once again. But some members feel strongly that if adfter all of that, there is no tax to pay, they don't need to file.

[The Cyclist]

1 minute ago, chiang mai said:

The issue being discussed is whether or not forigners need to file a return where the threshold, be it 60k, 120k or 220k has been breached but there is no tax to pay. I believe they do, others believe that doesn't make sence and that the TRD doesn't want null returns where no tax is due and no refunds are being claimed. 

 

The issue being discussed was the Thai work force

 

That is why I gave you the earning thresholds from the RD

 

* 120,000 Baht for an individual

 

* 220,000 Baht for a couple filing jointly.

 

4 minutes ago, chiang mai said:

The issue being discussed is whether or not forigners need to file a return where the threshold, be it 60k, 120k or 220k has been breached but there is no tax to pay.

 

Foreigners  who are tax residents ( But not earning income in Thailand ) abide by the relevant DTA.

 

* if they remit income that is exempt Thai taxation, they do not need to file anything.

 

* If they remit other income that is not specifically excluded from Thai taxation by the DTA, then they abide by the Revenue code. And file a tax return as even a basic UK State Pension exceeds the limits given in the revenue code.

 

Keep copies and let the RD Office tell you that there is no need to file or no tax to pay.

[The Cyclist]

10 minutes ago, chiang mai said:

Ok and fine once again. But some members feel strongly that if adfter all of that, there is no tax to pay, they don't need to file.

 

Then let them crack on.

 

If someone who is a tax resident, and after nearly 18 months of breaking the internet, cannot work out if they are required to file a tax return or not, there is not really much hope for them.

 

* Exempt by A DTA no need to file anything.

 

* Potentially taxable in Thailand. Waste 30 minutes of your life and get the RD Office to put you on the straight and narrow.

[chiang mai]

1 minute ago, The Cyclist said:

 

The issue being discussed was the Thai work force

 

That is why I gave you the earning thresholds from the RD

 

* 120,000 Baht for an individual

 

* 220,000 Baht for a couple filing jointly.

 

 

Foreigners  who are tax residents ( But not earning income in Thailand ) abide by the relevant DTA.

 

* if they remit income that is exempt Thai taxation, they do not need to file anything.

 

* If they remit other income that is not specifically excluded from Thai taxation by the DTA, then they abide by the Revenue code. And file a tax return as even a basic UK State Pension exceeds the limits given in the revenue code.

 

Keep copies and let the RD Office tell you that there is no need to file or no tax to pay.

Just to be crystal on this point:

 

A foriegner has 300k of assessable income that is not exempt or in any way excluded. He also has TEDA worth 500k. This means he has no tax to pay: Should he file a tax return?

 

I say he should.

 

Some others feel strongly that he doesn't need to because TRD doesn't want null returns where no tax is due and no refund requested.

 

From what you have written, you think he should file and if the TRD doesn't want him to file, they will tell him. BUT this is not a decison that an indivudal taxpayer can make in isolation.

 

 

[chiang mai]

1 minute ago, The Cyclist said:

 

Then let them crack on.

 

If someone who is a tax resident, and after nearly 18 months of breaking the internet, cannot work out if they are required to file a tax return or not, there is not really much hope for them.

 

* Exempt by A DTA no need to file anything.

 

* Potentially taxable in Thailand. Waste 30 minutes of your life and get the RD Office to put you on the straight and narrow.

Agreed

[The Cyclist]

1 minute ago, chiang mai said:

Just to be crystal on this point:

 

A foriegner has 300k of assessable income that is not exempt or in any way excluded. He also has TEDA worth 500k. This means he has no tax to pay: Should he file a tax return?

 

I say he should.

 

Just to be crystal clear, I cannot and will not give tax advice to others.

 

So this is what I will be doing.

 

I remit over 1 million Baht a year from my Government Pension. I will not be filing a tax return for this remittance ( As it can only be taxed in the UK as per the UK - Thai DTA )

 

If I was also emitting 600,000 Baht a year from the UK State pension. I would ( Try and ) file a tax return on this pension ( As it is potentially taxable  in Thailand according to the same DTA )

 

I will let the RD Office decide if this State Pension requires a tax filing, what my TEDA's are, and what tax if any I am required to pay.

 

The same would apply to your example of 300,000

 

The filing limits are 120,000 for an individual and 220,000 baht for a couple. So I would be attempting to file and take direction from the RD Office.

[chiang mai]

1 minute ago, The Cyclist said:

 

Just to be crystal clear, I cannot and will not give tax advice to others.

 

So this is what I will be doing.

 

I remit over 1 million Baht a year from my Government Pension. I will not be filing a tax return for this remittance ( As it can only be taxed in the UK as per the UK - Thai DTA )

 

If I was also emitting 600,000 Baht a year from the UK State pension. I would ( Try and ) file a tax return on this pension ( As it is potentially taxable  in Thailand according to the same DTA )

 

I will let the RD Office decide if this State Pension requires a tax filing, what my TEDA's are, and what tax if any I am required to pay.

 

The same would apply to your example of 300,000

 

The filing limits are 120,000 for an individual and 220,000 baht for a couple. So I would be attempting to file and take direction from the RD Office.

Thank you, we agree.

 

To be clear, none of this is advice to anyone, it is solely  opinion. 

[JimGant]

55 minutes ago, chiang mai said:

If you are registered as self employed, my wife confirms the TRD is quite strict about reminding you to file when needed.

So all the self-employed in Thailand are supposed to register with TRD? And many do? All those street vendors? I guess I'll just have to take your word for it, 'cause I only have a two-sample situation -- the rice farmer husbands of my domestic workers. And they've never heard of TRD. And, as far as the domestic workers -- they've never filed a tax return, tho' their assessable income exceeds the markers. And, maybe I have some obligation, as their employer, to file/withhold.... However, I don't think so, as I don't employ the minimum number required.

 

Anyway, this numbers game is suspect -- to include numbers of expats who file. But, obviously, our opinions differ. And you have a newspaper article to back you up -- I only have my logic -- which says, once again, the press is way off. Oh well. 

[chiang mai]

Just now, JimGant said:

So all the self-employed in Thailand are supposed to register with TRD? And many do? All those street vendors? I guess I'll just have to take your word for it, 'cause I only have a two-sample situation -- the rice farmer husbands of my domestic workers. And they've never heard of TRD. And, as far as the domestic workers -- they've never filed a tax return, tho' their assessable income exceeds the markers. And, maybe I have some obligation, as their employer, to file/withhold.... However, I don't think so, as I don't employ the minimum number required.

 

Anyway, this numbers game is suspect -- to include numbers of expats who file. But, obviously, our opinions differ. And you have a newspaper article to back you up -- I only have my logic -- which says, once again, the press is way off. Oh well. 

Self employed in Thailand are supposed to register with TRD, yes.

 

I don't know how many do, my wife did, a nearby neighbour did, two of our friends have.

 

I have no idea what street vendors do on this score, I don't think that's relevant to how may people file null returns and whether or not people who exceed the threshold but have no tax to pay are required to file.

[oldcpu]

2 hours ago, The Cyclist said:

If someone who is a tax resident, and after nearly 18 months of breaking the internet, cannot work out if they are required to file a tax return or not, there is not really much hope for them.

 

* Exempt by A DTA no need to file anything.

 

 

With respect ...  the DTAs are not written in a language that is easy for the every day person to understand ... and their use of contracting state, other contracting state, and the word "may" can be confusing at times.

.

[chiang mai]

9 minutes ago, oldcpu said:

 

With respect ...  the DTAs are not written in a language that is easy for the every day person to understand ... and their use of contracting state, other contracting state, and the word "may" can be confusing at times.

.

If you get stuck, post your query and others will help clarify the terms.

[oldcpu]

4 minutes ago, chiang mai said:

If you get stuck, post your query and others will help clarify the terms.

 

Good suggestion.

 

I restarted an old thread on Canada/Thai DTA  with THAT EXACT SUGGESTION in mind - but the interest was pretty minimal - not surprising I think, as there are not that many Canadian expats in Thailand.

Edited Sunday at 01:10 PM by oldcpu

[gamb00ler]

19 hours ago, stat said:

Same here, my tax liability is zero for the year but I need the damm tax certificate. I can prove the 180 days in Thailand via 90 day reports and my passport. The German IRS demands a tax certificate and does not accept to my understanding the passport stamps. This is what is written in the german tax law to my understanding. However I am not sure if there is no other way to get Germany to accept my tax residence in TH as TRD makes such a fuss about a simple statement that I was longer then 180 days in TH.

I no longer know the details of who provides it.... but there is a Thai government department that will provide a list of entry/exit dates for Thai citizens.  We needed this document for my Thai wife when we imported our household goods when moving to Thailand in 2020.  Perhaps that same department can provide the dates for you.  We did have to send the two most recent passports for my wife to the customs broker and they looked after getting the appropriate document.

 

Sorry I can't provide more details than the above.

[The Cyclist]

20 minutes ago, oldcpu said:

 

With respect ...  the DTAs are not written in a language that is easy for the every day person to understand ... and their use of contracting state, other contracting state, and the word "may" can be confusing at times.

.

 

Also coming back at you with respect.

 

* The UK' - Thai DTA states that Government Pensions are only taxable in the UK.

 

* Any other forms of Income, that comes across as might, could, or possible be taxed elsewhere, or is even not mentioned.

 

Is the very reason that I suggest people should should go their RD Office, armed with relevant paperwork and let the RD direct you as to whether you need to file a tax return, how to apply DETA's, and how much, if anything, you may have to pay in tax. If that income exceeds

 

* 120,000 Baht for a single person

 

* 220,000 Baht for a couple who file jointly.

 

I cannot say that I have read the Canada - Thai DTA, but if you have a specific question, I would certainly dig into it and give you my opinion on a route that you might care to go down.

 

 

[oldcpu]

Deleted - finger trouble premature post

Edited Sunday at 02:22 PM by oldcpu

[oldcpu]

 

1 hour ago, The Cyclist said:

 

Also coming back at you with respect.

 

* The UK' - Thai DTA states that Government Pensions are only taxable in the UK.

 

This is good for those from the UK - but as you note further , many of us are not from UK.

 

However I would like to make a minor point here. 

 

Many read 'Government pension' and confuse that with a pension to a government civil servant with a pension given to a qualified UK citizen or UK resident.  The differences between "government" pension and "state" pension are lost on many.  So just referring to a DTA can often simply not clarify due to there not being a full definition of the terminology used.

 

 

 

 

1 hour ago, The Cyclist said:

Is the very reason that I suggest people should should go their RD Office, armed with relevant paperwork and let the RD direct you as to whether you need to file a tax return, how to apply DETA's, and how much, if anything, you may have to pay in tax. If that income exceeds

... snipped ...

I cannot say that I have read the Canada - Thai DTA, but if you have a specific question, I would certainly dig into it and give you my opinion on a route that you might care to go down.

 

 

 

Thanks for the offer.  The German-Thai DTA is actually more of interest to me at present than the Canada-Thai DTA - although I am curious about both, but not in need of immediate help.

 

When 161 and 162 came out, before the end of calendar year 2023, I made an effort to bring into Thailand enough funds to last me for more than a few years in Thailand  - while the tax situation became more clear.  So at present - I bring no money into Thailand.

 

Also, as noted I may go to the Phuket tax office next year and sit on their door step until they give me a TIN.  But a local Phuket RD official made it clear that for the tax year 2024 as long as I brought no foreign money into Thailand (and given my Thai sourced income too small), that I did not need to file a Thai tax return for the tax year 2024 nor did he want to give me a TIN.

 

I obtain foreign income in Canada and in Germany (which I am not bringing into Thailand at present) so I need to be aware of both German and Canadian DTAs with Thailand - and further I obtain a pension from a European government organization (where at the moment I leave that money in Europe),  which as a European Government organization is not a singular country when dealing with Thailand. Possibly the German DTA applies there (as I lived in Germany at the time when I qualified for that pension) and possibly not.  

 

Also my being on an LTR visa may (or may not) exempt me from filing a tax return IF I were to bring money into Thailand - and maybe it won't exempt me from filing a tax return IF I bring money into Thailand. Again, I have the luxury to sit this out and wait.

 

Possibly the only thing to make me want a TIN sooner, is some income I will get on a life-insurance/investment/pension plan that comes to maturity in Germany next year (2025 tax year), and I need to decide how to handle that tax wise (as it may be to my taxation benefit to have a Thai tax # then for the year-2025 tax year).

Edited Sunday at 02:45 PM by oldcpu

[Lorry]

5 hours ago, chiang mai said:

I'll give you the benefit of the doubt this time and pretend that you don't understand and will try to explain it to you.

 

If the average wage in Thailand is 15,000 baht nationwide, that's only 200k baht per year, under the threshold to pay tax for most people (60k personal allowance and 150k zero rated band) That means that on average, Thai's don't qualify to pay tax.

 

If Thai's are working and are registered as self employed, it's easily possible to earn three times that amount and still not qualify to pay tax, this is because of the generous deductions allowed for the self employed. If you are registered as self employed, my wife confirms the TRD is quite strict about reminding you to file when needed. Fortunately she does but no doubt they have a follow up system in place if you don't.

 

So yes, it's very probable that many of those rice farmers that you pass, maybe are filing returns twice a year and none are paying tax, legally.

 

I wonder why it is you don't know these things having lived in Thailand as long as you have, especially since you tell us you're a numbers person who knows about taxation. I would have thought some of these things would have rubbed off on you over the years, who knows, maybe it did and perhaps you just forgot, recall isn't what it once was, as we age.

 

Lastly as I see it we have 12 million people filing return, 3 million people paying tax and 4 million people looking for refunds, that's 5 million returns that are...dare I say it, null returns, possible? And if they are not null returns, what are they?

 

https://www.expatica.com/th/work/law/thailand-minimum-wage-2172841/#:~:text=The average monthly salary in,that of Malaysia and Singapore.

 

 

All the rice farmers I know don't file  taxes. But I don't know 12 million. 

Some do claim WHT refunds,  most don't, as fixed term deposits are not popular with farmers. 

The word  ภาษี "tax" for them  means VAT. This one they all know. 

[JimGant]

1 hour ago, The Cyclist said:

you may have to pay in tax. If that income exceeds

 

* 120,000 Baht for a single person

 

* 220,000 Baht for a couple who file jointly.

 

You're confused. Taxation begins when your assessable income exceeds all your allowances, deductions, and the 150k freebie -- so called TEDA. The 120 and 220 figures for assesable income were arbitrary numbers picked by some bureaucrat to establish when you're supposed to file a tax return. Absolutely no bearing on what your taxable income is -- if any -- and thus what income taxes you might owe.

 

2 hours ago, The Cyclist said:

Is the very reason that I suggest people should should go their RD Office, armed with relevant paperwork and let the RD direct you as to whether you need to file a tax return

 

Somchai at TRD isn't going to be conversant in 61 DTAs, specifically yours. That's why you have to self-assess based on your knowledge of your country's DTA; and whether or not any income remitted -- and not exempt per DTA -- was from pre- 2024 sources. Again, you should be able to do this -- but if nervous, go see an agent. Bottom line: You either arrive at the conclusion you owe taxes, and thus file a tax return. Or not. Somchai's involvement would be an unnecessary distraction.

[JimGant]

7 hours ago, chiang mai said:

It is said that 24% of the workforce (36 million) file tax returns whilst only 11% pay taxes

CM, you never gave me a reference for that -- only a Bangkok Post article that didn't say anything about 24% of workforce. Please clarify. Thanx.

[chiang mai]

5 hours ago, JimGant said:

CM, you never gave me a reference for that -- only a Bangkok Post article that didn't say anything about 24% of workforce. Please clarify. Thanx.

Yes I did, it was the second post in this exchange, I wrote:

 

"Bangkok Post says over 11.9 million Personal Income Tax forms were filed in 2023. Of those, 4.5 million were requests for refunds so therein lies part of the answer. But the 4.5 mill was unusually high as fraud was suspected. 

 

https://www.bangkokpost.com/business/general/2799906/tax-refunds-delayed-by-surge-in-fake-submissions

 

12 million PIT returns were filed in 2023. The workkforce is 38 million and 12 million represent 31% of the workforce. Or if you want to take it as a percentage of the population, which is 72 million, that's 17%. I used 24% because that's the mumber I have seen used in other discussions. 

 

Regardless, it's still 12 million tax returns, of which around 4 million are for refunds, "Of the total tax filings, 4.25 million were requests for tax refunds". 

 

The second link in that earlier post says," There were 9.55 million people in the tax system for fiscal 2020", which means 12 million returns, four years later, sounds about right. It goes on to say, "Out of 9.55 million taxpayers, there were 3.3 million people who had a monthly income of 25,000 baht, the minimum threshold to file tax forms, while the remaining 6.25 million earn less than the threshold".



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[The Cyclist]

10 hours ago, JimGant said:

You're confused. Taxation begins when your assessable income exceeds all your allowances, deductions, and the 150k freebie -- so called TEDA. The 120 and 220 figures for assesable income were arbitrary numbers picked by some bureaucrat to establish when you're supposed to file a tax return. Absolutely no bearing on what your taxable income is -- if any -- and thus what income taxes you might owe.

 

I dont think I am. The Revenue code is very clear.

 

Whether it is arbitrary numbers picked out the sky, is of no consequence. These are the figures laid out in the Revenue Code ( Thai Tax Law )

 

Earnings above these thresholds ( you are aupposed ) to file a tax return.

 

120,000 baht for an individual

 

220,000 for a couple ( If filing jointly )

 

No mention of TEDA's or any other freebies alongside these figures.

 

I believe that you are confusing the limits for tax filing ( 120 & 220k ) with a certainty that someone will have a tax liability.

 

For all the foreigners ( Tax Resident in Thailand but remitting income from overseas ) The Revenue Code is a red herring. The relevant DTA applies to them.

 

If they are remitting income that is not specifically excluded from Thai taxation, then a combination of what is stated in various DTA's and the Revenue Code would apply.

 

10 hours ago, JimGant said:

You either arrive at the conclusion you owe taxes, and thus file a tax return. Or not.

 

You do understand the concept of filing a Tax Return, but do not necessarily have any Tax Liability ?
 

I should not have to remind you at this stage. That this is about reporting overseas income remitted to Thailand by Tax Residents in Thailand, or why it has come about.

 

Collecting tax from foreigners who are tax resident is a by-product of why it is happening. And I still happen to believe that in the spirit of what a DTA is for, If the money that is remitted has already been taxed in the home Country it will not be taxed again in Thailand.

 

But we will have to wait out on that one.

[Enzian]

On 11/10/2024 at 5:45 PM, The Cyclist said:

The filing limits are 120,000 for an individual

So if during this calendar year I remit to Thailand only (1) US SS monies from a dedicated account in the US, and (2) 100,000 baht profits from my business in the US (operated by my son), I should not have to file a Thailand personal income tax return. Correct?

[The Cyclist]

12 minutes ago, Enzian said:

So if during this calendar year I remit to Thailand only (1) US SS monies from a dedicated account in the US,

 

To the best of my understanding

 

US Social Security is exempt / Not taxable in Thailand. Therefore no need to file a tax return.

 

A direct Deposit of US SS to Thailand is easy to prove, from a personally account in the US to a Thai bank account, not so easy to prove.

 

If your US SS and profits are coming from the same account in the US to a Thai Bank account. You need to take whatever route you think you need to go down.

 

The potential for conflict is easy to see and understand.

[chiang mai]

24 minutes ago, Enzian said:

So if during this calendar year I remit to Thailand only (1) US SS monies from a dedicated account in the US, and (2) 100,000 baht profits from my business in the US (operated by my son), I should not have to file a Thailand personal income tax return. Correct?

The SSc payments are free and clear but the business profits need to thought. Is that money income, dividend payment, a Gift, support or is it investment return? The way in which you classify those payments by your son determines their assessability. On the surface, I would say a tax return is needed, unless those funds are a gift.

[JimmyTobacco]

I am thinking about the following situation:

 

Let's say an expat on a DTV visa were to spend more than 180 days in Thailand in one calendar year. That would mean they would legally be required to pay tax in Thailand. However, let's say that this person is a digital nomad, with a self-employed status somewhere in Europe. Since this person is not living in their own country anymore, they would be required to give up their domicile and self-employed status and/or business in their home country. However, they would not be able to easily open a business in Thailand for the same purposes, because they wouldn't even have a working permit. Also, I believe opening a business in Thailand for an expact involves the obligatory hiring of Thai nationals and quite a large some of money that needs to be put into the company at first. This means that if the nomad were to want to send invoices to companies and continue their business, they would be more or less forced to setup business somewhere else, or "offshore". Say Hong Kong, Dubai, etc.

 

So how is Thailand expecting to reinforce taxation for someone who is not doing any work with or for Thai businesses and is not even allowed to open a business in Thailand or even open a Thai bank account? I find the whole situation rather absurd.

[oldcpu]

5 minutes ago, JimmyTobacco said:

So how is Thailand expecting to reinforce taxation for someone who is not doing any work with or for Thai businesses and is not even allowed to open a business in Thailand or even open a Thai bank account? I find the whole situation rather absurd.

 

I don't think the Thai RD cares.

 

I have read (and I could be wrong) that one is supposed to self assess if their income is "assessable income" by the Thai definition of such, and after 31-Dec-2023 if that income (from year 2024 tax year and later) is brought into Thailand it is to be considered taxable, if it is also 'assessable' income. 

 

In defining assessable income, things like a DTA (between Thailand and another country) with a foreign company come in to play  which could be tricky ?? for a digital nomad to show a DTA.

 

If the foreigner does (or does not) submit a tax form, then only if there is an audit by the Thai RD could the foreigner land into trouble if they did not correctly report their assessable income brought into Thailand (after 31-Dec-2023).

 

However I am VERY FAR from being knowledgeable on this topic - so let see what others chime in and say.

 

 

 

[JimmyTobacco]

18 minutes ago, oldcpu said:

 

I don't think the Thai RD cares.

 

I have read (and I could be wrong) that one is supposed to self assess if their income is "assessable income" by the Thai definition of such, and after 31-Dec-2023 if that income (from year 2024 tax year and later) is brought into Thailand it is to be considered taxable, if it is also 'assessable' income. 

 

In defining assessable income, things like a DTA (between Thailand and another country) with a foreign company come in to play  which could be tricky ?? for a digital nomad to show a DTA.

 

If the foreigner does (or does not) submit a tax form, then only if there is an audit by the Thai RD could the foreigner land into trouble if they did not correctly report their assessable income brought into Thailand (after 31-Dec-2023).

 

However I am VERY FAR from being knowledgeable on this topic - so let see what others chime in and say.

 

 

 

 

Well, how would the Thai RD even find out that the person in question has a business elsewhere, say HK, Dubai, Estonia, etc., one of the countries where non-residents can quite easily setup a company? Probably in order not to have to pay tax in those countries the nomad would have to show tax-residency/tax documents from Thailand. But the nomad might even consider doing that and filing 0. Or the nomad could consider paying tax in a country like Dubai also, which might be 0% or close to 0%.

 

Ok, we are talking about possible tax evasion here, which I would not recommend to anyone, but it is quite proposterous that the Thai RD thinks it will collect taxes on all expats' foreign earned income, when it is not easy or even possible for several categories of expats to legally open a business or even a simple bank account in Thailand.

Edited 19 hours ago by JimmyTobacco