Elite Visa Holders exempt from paying personal income tax in Thailand

[churchill]

I think this is new ?

 

' Taxation regulations in 2024

Thailand Privilege membership holders are exempt from paying personal income tax in Thailand if they remit funds from a personal bank account abroad into a local bank account in Thailand and can provide proof that the money is not personal income in the same calendar year. 

Additionally, if your country has a Double Tax Agreement (DTA) with Thailand, no tax is required in Thailand, even if the income is transferred within the same calendar year it was earned. For further clarification, please refer to the attached summary prepared by the Revenue Department. '

 

see https://go.thailandprivilege.co.th/b/17863/4625/2000460/F/F/F/F/F

 

[MART]

12 minutes ago, churchill said:

I think this is new ?

 

' Taxation regulations in 2024

Thailand Privilege membership holders are exempt from paying personal income tax in Thailand if they remit funds from a personal bank account abroad into a local bank account in Thailand and can provide proof that the money is not personal income in the same calendar year. 

Additionally, if your country has a Double Tax Agreement (DTA) with Thailand, no tax is required in Thailand, even if the income is transferred within the same calendar year it was earned. For further clarification, please refer to the attached summary prepared by the Revenue Department. '

 

see https://go.thailandprivilege.co.th/b/17863/4625/2000460/F/F/F/F/F

 

 

No, nothing new. It pertains to 2024 only and is the case for any type of visa or permission to stay. Any income earned before January 1st, 2024 is not assessable income. However, in 2025, 2026, etc. it will not be "not in the same calendar year" but "before January 1st, 2024".

[Alldar]

13 minutes ago, MART said:

No, nothing new. It pertains to 2024 only and is the case for any type of visa or permission to stay.

Well this part is definitely new and it is not true for any type of visa:

20 minutes ago, churchill said:

Additionally, if your country has a Double Tax Agreement (DTA) with Thailand, no tax is required in Thailand, even if the income is transferred within the same calendar year it was earned.

Also the wording about income from the same calendar year is a bit strange. Why they wouldn't say even now that income earned before 1st January 2024?

[ukrules]

I got this same email from TE today.

Nobody pays any tax on remitted funds for 2024 if they came from any previous year, this is just a result of the clarification memo they issued.

 

This would be big news if it also carries over into 2025 and applies to 2024 foreign income gained whilst resident in Thailand, which I very much doubt.

Suspect that cut off date at the end of 2023 is going to apply to everyone.

[MART]

51 minutes ago, Alldar said:

Well this part is definitely new and it is not true for any type of visa:

Also the wording about income from the same calendar year is a bit strange. Why they wouldn't say even now that income earned before 1st January 2024?

 

I think you're wrong. Read it carefully. The headline is "Taxation regulations in 2024", but it should read "Taxation regulations for 2024", and then it makes perfectly sense.

It pertains to 2024 only that income not earned in the same year is not assessable. In 2025, 2026, etc. this statement will not be true any longer and it will have to read "income earned before 2024". 

 

I suspect the strange wording is made on purpose for readers to think that their income made in another calendar year is not assessable. The statement about DTAs is also very vague and misleading. All DTAs are different and none applies to all types of income.

[Alldar]

3 minutes ago, MART said:

I suspect the strange wording is made on purpose for readers to think that their income made in another calendar year is not assessable. The statement about DTAs is also very vague and misleading. All DTAs are different and none applies to all types of income.

The part about the DTAs made me believe that it is something new because even if the country has DTA with Thailand you are usually paying difference of the taxes in the target country and exactly every DTA is different and different sources of income is treated differently as well. Why would official statement be misleading like this?

 

But yeah probably it is nothing new. It will be interesting what would be the statement for 2025.

[MART]

12 minutes ago, Alldar said:

Why would official statement be misleading like this?

 

The Thai Elite Privilege scheme is a private business AFAIK. So it's not an official statement from the Thai government.

[Pattaya57]

Just some fancy worded PR to give the Elite Visa members some hope that they didn't entirely waste their millions of baht when they could have just got a DTV for 10,000 baht instead 😀

[Presnock]

15 hours ago, MART said:

 

No, nothing new. It pertains to 2024 only and is the case for any type of visa or permission to stay. Any income earned before January 1st, 2024 is not assessable income. However, in 2025, 2026, etc. it will not be "not in the same calendar year" but "before January 1st, 2024".

In addition as noted, it states that if your country has a DTA with Thailand even that earned in this the same calendar year is exempt - I think that they believe that the individual paid taxes on that income in the country that has a DTA with Thailand.  I could be wrong but it sure seems strange that they even brought up the taxation bit.  ANsd, we must recall TIT and next year might be worldwide income taxation and it will be interesting to see how they handle all the exemptions if they are still valid.  Best of luck to all.

[Karma80]

There are zero special tax regulations or allowances for Thai Elite Visa holders. Their statement is misleading people into thinking there is, or a marketing spin at best.

 

Yes, some DTAs can impact a Thai tax resident. And yes, there is some transitory provision regarding money transfers before 2024. In some circumstances, an elite visa may make sense in someone's tax strategy compared to that of their home country.

 

The government should consider aligning Thai Elite revenue allowances with the LTR. It would undoubtedly make it more attractive to higher-worth people. But TiT and who knows what vague tax ideas will be wafted out in public before any tax reform will be firm in future years. Until then, the only solid thing is the actual RD tax provisions - and concessions for Thai Elite Elite visas do not exist right now.

[andre47]

17 hours ago, churchill said:

I think this is new ?

 

' Taxation regulations in 2024

Thailand Privilege membership holders are exempt from paying personal income tax in Thailand if they remit funds from a personal bank account abroad into a local bank account in Thailand and can provide proof that the money is not personal income in the same calendar year. 

Additionally, if your country has a Double Tax Agreement (DTA) with Thailand, no tax is required in Thailand, even if the income is transferred within the same calendar year it was earned. For further clarification, please refer to the attached summary prepared by the Revenue Department. '

 

see https://go.thailandprivilege.co.th/b/17863/4625/2000460/F/F/F/F/F

 

Your information is quite useless.

This regulation applies to all taxpayers in Thailand, not just Privilege membership holders.

[Presnock]

17 hours ago, churchill said:

I think this is new ?

 

' Taxation regulations in 2024

Thailand Privilege membership holders are exempt from paying personal income tax in Thailand if they remit funds from a personal bank account abroad into a local bank account in Thailand and can provide proof that the money is not personal income in the same calendar year. 

Additionally, if your country has a Double Tax Agreement (DTA) with Thailand, no tax is required in Thailand, even if the income is transferred within the same calendar year it was earned. For further clarification, please refer to the attached summary prepared by the Revenue Department. '

 

 

17 hours ago, churchill said:

 

I checked the Revenue Dept webbsite, google RD tax alerts etc, regarding this issue.,...as for same year earned (post 2023) the RD linterpretation of the tax law only says that even if an elite's income has been taxed already, when remitted into Thailand that person is required to file for taxes too in Thailand and can be offered tax credits for taxes paid in one's home country.    So, seems to me that thre is no special exemption for the elite visa holder when it comes to taxation on income.  Since the elite holder also more likely has a higher income, the taxing percentage could be lower in another country as oppo Thailand so the holder might have a Thai obligation too.  

[oneupiswhatwedo]

38 minutes ago, Karma80 said:

There are zero special tax regulations or allowances for Thai Elite Visa holders. Their statement is misleading people into thinking there is, or a marketing spin at best.

 

Yes, some DTAs can impact a Thai tax resident. And yes, there is some transitory provision regarding money transfers before 2024. In some circumstances, an elite visa may make sense in someone's tax strategy compared to that of their home country.

 

The government should consider aligning Thai Elite revenue allowances with the LTR. It would undoubtedly make it more attractive to higher-worth people. But TiT and who knows what vague tax ideas will be wafted out in public before any tax reform will be firm in future years. Until then, the only solid thing is the actual RD tax provisions - and concessions for Thai Elite Elite visas do not exist right now.

They are working toward that, I guess, but are facing a lot of scrutiny and bureaucracy. The whole point of the Elite was to act as a filter to attract wealthy non-domiciled individuals to spend their money from abroad, and wealthy individuals are typically well aware of tax obligations.

[Moti24]

6.  Taxation regulations in 2024 (paragraph 2 below):

 

Additionally, if your country has a Double Tax Agreement (DTA) with Thailand, no tax is required in Thailand, even if the income is transferred within the same calendar year it was earned. For further clarification, please refer to the attached summary prepared by the Revenue Department.

 

Most replies above refer to Thai privilege membership holders, but I'm not so sure about that.  The paragraph begins with the word, "Additionally", and refers to countries that have a DTA with Thailand.  The DTA can't differentiate between different visa holders; a DTA is a DTA, full stop.  It seems quite clear to me that all countries with a DTA will not be subject to tax in Thailand.  Yes, I know, TiT, and the title refers to 2024.  

 

Stand-by for further unsubstantiated news from the Thai Revenue Department.

 

 

 

[Rob Browder]

1 hour ago, Moti24 said:

It seems quite clear to me that all countries with a DTA will not be subject to tax in Thailand.  Yes, I know, TiT, and the title refers to 2024.  

It is not that simple, unfortunately.  If the type of income one has - say, a pension / social-security - AND the specific DTA states that income is excluded, then yes.   

But, if one has other types of income, then one can only deduct the taxes paid in their home-country from the taxes one would need to pay in Thailand - then, maybe zero due, or maybe not.

 

Also, as-is, only remitted money would be subject to tax, and ONLY if those funds were earned on/after Jan 1, 2024. 

[Ben Zioner]

9 hours ago, oneupiswhatwedo said:

The government should consider aligning Thai Elite revenue allowances with the LTR. It would undoubtedly make it more attractive to higher-worth people.

Why? The Higher worth people, those who have nothing to hide, should apply for the LTR and save a heap of Dough.

[bigt3116]

On 9/25/2024 at 4:03 PM, Pattaya57 said:

Just some fancy worded PR to give the Elite Visa members some hope that they didn't entirely waste their millions of baht when they could have just got a DTV for 10,000 baht instead 😀

 

Please explain to me how someone in 2003 could have got the DTV instead of the Elite?

[HarrySack]

 “For further clarification, please refer to the attached summary prepared by the Revenue Department.”

 

I’m pretty sure this attached summary was missing on purpose. 
I have asked them to send it to me and I got a 37 page pdf file. 
It makes things much more clear... in a Thai way 

[Presnock]

16 hours ago, Moti24 said:

6.  Taxation regulations in 2024 (paragraph 2 below):

 

Additionally, if your country has a Double Tax Agreement (DTA) with Thailand, no tax is required in Thailand, even if the income is transferred within the same calendar year it was earned. For further clarification, please refer to the attached summary prepared by the Revenue Department.

 

Most replies above refer to Thai privilege membership holders, but I'm not so sure about that.  The paragraph begins with the word, "Additionally", and refers to countries that have a DTA with Thailand.  The DTA can't differentiate between different visa holders; a DTA is a DTA, full stop.  It seems quite clear to me that all countries with a DTA will not be subject to tax in Thailand.  Yes, I know, TiT, and the title refers to 2024.  

 

Stand-by for further unsubstantiated news from the Thai Revenue Department.

 

 

 

Earned income although taxed in one's home country even if that country has a DTA with Thailand, may still be taxed by Thailand if that person is also a tax-resident in Thailand and tax credits can be given for those taxes paid in one's own country but if the Thai tax is higher than that paid to one's own country, the higher amount could also be paid to Thailand i.e. if your country tax on your earned income is 20%  but that income is higher in Thailand and the % is 10% higher, then you might have to fork over an additional 10% to Thailand.  That is why one must read their country's DTA to see which country exempts any income from foreign taxes or if the tax-resident in a foreign country must pay secondary tax too.  Best to read all the documentation from the revenue department of Thailand, where one can also find all the DTA's and read that for your country to get a better understanding.  If still not fairly sure, check with some of the tax agencies as they might give a shore (15 minute)  free consultation and some advertize tha they will figure your tax situation free but when doing the tax forms, will then charge you. Good luck.

[Ben Zioner]

16 minutes ago, Presnock said:

if your country tax on your earned income is 20%  but that income is higher in Thailand and the % is 10% higher, then you might have to fork over an additional 10% to Thailand.

Likely scenario as modest incomes in the 1 to 4 Million are taxed 25 to 30%. Which is obscene for pensioners who don't have the capacity to "work more".

[Presnock]

1 minute ago, Ben Zioner said:

Likely scenario as modest incomes in the 1 to 4 Million are taxed 25 to 30%. Which is obscene for pensioners who don't have the capacity to "work more".

The  original on this subject was the elite visa holders - most of them are financially well off and would probably be in the Thai 35% bracket ...just sayiing, as I also realize that many folks may have only a pension which probably would be of lesser value tax wise for the Thai RD.  

[Phillip9]

1 hour ago, Ben Zioner said:

Likely scenario as modest incomes in the 1 to 4 Million are taxed 25 to 30%. Which is obscene for pensioners who don't have the capacity to "work more".

 

Most (probably all) double taxation agreements state that pensions and other similar retirement income are only taxable in the country of origin.   So pensions are not taxable in Thailand unless you are from a country without a DTA.

[4MyEgo]

On 9/25/2024 at 5:28 PM, churchill said:

I think this is new ?

 

' Taxation regulations in 2024

Thailand Privilege membership holders are exempt from paying personal income tax in Thailand if they remit funds from a personal bank account abroad into a local bank account in Thailand and can provide proof that the money is not personal income in the same calendar year. 

Additionally, if your country has a Double Tax Agreement (DTA) with Thailand, no tax is required in Thailand, even if the income is transferred within the same calendar year it was earned. For further clarification, please refer to the attached summary prepared by the Revenue Department. '

 

A little contradiction there, e.g.

 

1st sentence, "can provide prove that the money is not personal income"

 

2nd sentence, "even if the income is transferred"

 

Remember, income is assessable for tax if remitted to Thailand, regardless of when it is now remitted.

 

Perhaps the 2nd line should have been replaced with, "even if the money is not personal income" 

 

The above said, I couldn't see this being an exclusive Elite Visa deal, but the 6. Taxation regulations in 2024 heading, I take to misleading, if anything.

 

As far as I have read elsewhere, if you remit savings that were earned prior to 31 December 2023, and remit the savings into Thailand after that date, e.g. 2024/2025/2026 etc etc, you can remit them to Thailand every year without fear of paying any tax, that said, the proof is on the individual to show those savings were earned prior to 2023, any savings earned after that date and remitted, is taxable. 

 

[4MyEgo]

16 hours ago, Rob Browder said:

Also, as-is, only remitted money would be subject to tax, and ONLY if those funds were earned on/after Jan 1, 2024. 

 

My understanding is if those funds are savings, earned prior to 31 December 2023 and can be proven, then no tax is payable in any year thereafter, provided the "savings" were in the account prior to 1 January 2024.

 

An example I will provide would be, I have a million $'s in my account back home, if I could be so lucky....LOL. I earned those funds from the sale of a property back in 2019 and those funds have been my savings since that date, and I have been remitting 1,000,000 baht per annum to Thailand to live off, those funds/savings are not taxable IMO.   

 

[Ben Zioner]

47 minutes ago, Phillip9 said:

 

Most (probably all) double taxation agreements state that pensions and other similar retirement income are only taxable in the country of origin.   So pensions are not taxable in Thailand unless you are from a country without a DTA.

That's not so, not there is a wide variety of situations. And as @Presnock pointed out the topic is Thailand Elite, and I doubt there are many holders of this visa who would rely on state pensions to survive in Thailand.

[Presnock]

1 hour ago, Ben Zioner said:

That's not so, not there is a wide variety of situations. And as @Presnock pointed out the topic is Thailand Elite, and I doubt there are many holders of this visa who would rely on state pensions to survive in Thailand.

Also, unless the DTA specifically says "government or civil service pension" it may not be taxed only by that government.  In the DTA for US I believe it states only that the civil serve/govt pension is taxed ONLY by the US govt and that state pensions can be taxded by the tax-resident govt.  I haven't read any DTA's other than that of the US but have seen mention that the pensions of some countries are not taxed ONLY by that country but can be taxed by the country of  tax-residency.  Hope though, Thailand does do as the PI does, that is does not tax pensions of any kind is what I have read, making it a very attractive retirement

location once a country begins taxing worldwide income.

[Unamerican]

On 9/25/2024 at 3:39 PM, ukrules said:

Nobody pays any tax on remitted funds for 2024 if they came from any previous year, this is just a result of the clarification memo they issued.

What memo is that?  Where can we find it? 

[Unamerican]

2 hours ago, 4MyEgo said:

I have been remitting 1,000,000 baht per annum to Thailand to live off, those funds/savings are not taxable IMO.   

But is it necessary, anyway, to declare such remittances to the Thai tax system? 

[Pattaya57]

5 minutes ago, Unamerican said:

What memo is that?  Where can we find it? 

Read the OP? 

Elite Visa holders got the Memo

[Unamerican]

4 hours ago, Ben Zioner said:

Likely scenario as modest incomes in the 1 to 4 Million are taxed 25 to 30%. Which is obscene for pensioners who don't have the capacity to "work more".

Some of that 4 million would, in many countries, be taxed at 40 or 59%.  So how is this related to working?