Thai tax riddle: Elite Visa holders off the hook?

[webfact]

Whispers on Facebook’s Elite/Privilege Group suggest that holders of the controversial five to 20 years visa could dodge the Thai Revenue Department’s (TRD) new tax ruling.

 

Starting January 1 this year, assessable income sent from abroad by Thais or foreigners residing in Thailand for at least 180 days will be subject to personal income tax.

 

A group member claimed, after attending a webinar, that Elite members might be exempt from needing a tax number or filing tax forms, potentially aligning them with the tax-friendly Long Term Residence (LTR) visa holders, who enjoy no personal taxation on overseas income sent to Thailand. This revelation quickly spread like wildfire across Thai media outlets.

 

However, the excitement was short-lived. A group moderator stepped in, clarifying that the attachment shared during the webinar was merely a PowerPoint presentation, not an official document from the TRD.

“We’re not going to take comments on its accuracy or validity,” they stated, putting an end to the speculation. To date, neither the TRD nor the official Thai Privilege website has commented on the matter.

The TRD’s ruling applies to all tax residents, excluding those with the 10-year LTR visa, allowing overseas income to remain untaxed until December 31 last year. Thailand’s unique tax structure raises questions, especially for retirees relying on pensions already taxed in their home countries.

Additionally, many countries maintain double taxation agreements with Thailand, aimed at preventing individuals from being taxed twice on specific earnings.

 

As the TRD gears up to release new tax forms before Christmas for the 2024 calendar year, expectations run high. Some tax accountants predict clarifications in accompanying notes, while others remain sceptical. The primary aim of the TRD appears to be increasing revenue from untapped sources like cryptocurrency and offshore earnings, reported Pattaya Mail.

 

In related news, soon, Singaporeans and travellers from 92 other visa-exempt countries will need to apply for an electronic travel authorisation (ETA) before their trip to the Land of Smiles.

 

by Puntid Tantivangphaisal
Photo courtesy of Thailand Privilege Card

 

Source: The Thaiger 

-- 2024-09-28

 

[motdaeng]

... it's turning into an even bigger mess ... making things clear isn't exactly a thai strength ...

... if you can't convince someone, at least confuse them ... 

[Mike Teavee]

I do remember seeing a Video where it said Elite Holders were exempt from Tax if they stayed less than 180 days in Thailand during the calendar year (i.e. Exactly the same as any other kind of Visa holder!!!).

 

I believe Thai Elite is a Private company so it's difficult to see Thailand granting them "Special Tax Considerations" whereas LTR is run by BOI who have a history of providing "Special Tax Considerations" even before the introduction of the LTR & have a Royal Decree confirming that LTR holders are exempt from income tax brought into the country.   

 

 

Edit: Would be good to get the name of the Webinar to see if it's the same one that I watched (I've watched so many YT videos on Thailand Tax they blur into one!!!).

[Rolo89]

Thai tax riddle: Elite Visa holders off the hook?

 

No.

 

Of course that's not happening. Just nonsense chatter online.

[JBChiangRai]

I was met by thai privilege co. this morning who escorted me through checkin etc.

 

She confirmed sales of Elite Visa’s have dropped off a cliff.  

Dropping PIT to wealthy Elite Visa holders would seem like a good opportunity to kick-start sales again, IMHO.

[thaiowl]

What about Permanent Residents? Will they be exempt? I doubt it.

[Cabradelmar]

Gossip and netizen whining and conjecture, brought to you by Asean 😂 

[JBChiangRai]

8 minutes ago, thaiowl said:

What about Permanent Residents? Will they be exempt? I doubt it.

PR aren’t necessarily wealthy or bring benefit to the economy.

 

Some people would say if you’re stupid enough to spend 2 million on an Elite VISA, then you’re probably spending a fortune here and contributing to the economy and shouldn’t be scared away by stupid PIT changes that have been ill thought out.

[black tabby12345]

Starting January 1 this year, assessable income sent from abroad by Thais or foreigners residing in Thailand for at least 180 days will be subject to personal income tax...

 

----------------------------------------------------------------------------------------

Did they actually Clarify how it goes after all?

Do they impose levy on the remittance from outside Thailand when the money came into the Thai account?

 

Or does the individual need to lodge tax return?

 

By now, it only looks like tax chief is barking own wishful thinking though.

 

Did anyone here ever get any notice from your bank after you credited own money from abroad into your account here?

[Dan O]

5 hours ago, Mike Teavee said:

I do remember seeing a Video where it said Elite Holders were exempt from Tax if they stayed less than 180 days in Thailand during the calendar year (i.e. Exactly the same as any other kind of Visa holder!!!).

 

I believe Thai Elite is a Private company so it's difficult to see Thailand granting them "Special Tax Considerations" whereas LTR is run by BOI who have a history of providing "Special Tax Considerations" even before the introduction of the LTR & have a Royal Decree confirming that LTR holders are exempt from income tax brought into the country.   

 

 

Edit: Would be good to get the name of the Webinar to see if it's the same one that I watched (I've watched so many YT videos on Thailand Tax they blur into one!!!).

Might want to check and see who owns Thai Elite company .

[jcojco]

no matter what type of visa you're holding, let's get out of here.... quickly

[Robert Tyrrell]

Good afternoon,

 

I certainly do not understand why Thailand continuosly is shooting its foot off withforiegners whom put substaintail amounts of money into th Thai economy, Especially  with us expats 🙂Tourism is the major backbone of Thailands economy yet things like :1. Charging a travel fee for whatever its is between

300-500 Thai baht to foriegners enterinh Thailand. 2, This dta agreement or as called a double taxation agreement, Trying to tax foregners wealth and pensions which in my country is not allowed and is illegal !! Most countries  goverments tax there pension systems as you work through your life time and you certainly are not attracting expats especially to retire and many are reconsidering retirement elsewhere where this tax scam is nonexistent and cost of living are cheaper or similar to Thailand. How about using a attractive posture,Like retirees wave there taxation and any travel surcharges waive entering Thaoland with the valid retirement visa !! ?????

I'm glad my Nation does not allow double taxation and  any nation doing this should be ashamed of themselves !!! Allowing Thailand to tax there citizens after they worked all there life for retirement !!!

 

NOT GOOD THAILAND YOU WILL NOT ATTRACT BUSINESS OR EXPATS = ECONOMIC LOSS FOR THAILAND !!!! 🙂 

[retarius]

I don't know for certain and so I don't believe it. If it costs 30K, I want at least 60K in tax savings.....and with Thailand's ever changing tax and immigration laws I don't trust the Elite visa or whatever it is called now, and it's provisions for tax lasting 10 long years. Best to not be a tax resident.....spend 179 days here and don't bother about taxes, you don;t even need to file....then if anyone wants your TIN number....show them your passport 179 day in Thailand, 179 days in Bali, and a few days in Mauritius. 

[john donson]

why would they not pay?

[thaiowl]

1 hour ago, JBChiangRai said:

PR aren’t necessarily wealthy or bring benefit to the economy.

 

Some people would say if you’re stupid enough to spend 2 million on an Elite VISA, then you’re probably spending a fortune here and contributing to the economy and shouldn’t be scared away by stupid PIT changes that have been ill thought out.

There are four categories under which you can apply for PR, namely Investment, Business, Work and Humanitarian Reasons. By their very nature, the first three are of benefit to Thailand.

When i applied for PR, I had  to have three years uninterrupted income tax returns, which means I was paying personal income tax in Thailand and was therefore bringing benefit to the country. 

[JBChiangRai]

2 minutes ago, thaiowl said:

There are four categories under which you can apply for PR, namely Investment, Business, Work and Humanitarian Reasons. By their very nature, the first three are of benefit to Thailand.

When i applied for PR, I had  to have three years uninterrupted income tax returns, which means I was paying personal income tax in Thailand and was therefore bringing benefit to the country. 

I accept that, there are a lot of humanitarian applications, especially when people retire from jobs here or marry.

[gejohesch]

6 hours ago, motdaeng said:

... it's turning into an even bigger mess ... making things clear isn't exactly a thai strength ...

... if you can't convince someone, at least confuse them ... 

making things clear isn't exactly a thai strength

 

so true

[AhFarangJa]

According to an article about three weeks ago, Thai tax lawyers stated it was against the constitution to access foreign accounts, and that to change this law would take years. I guess that is in place so all the rich people can salt their wealth abroad with impunity.

[Frankie baby]

According to the BBC, the UK government were thinking of a similar taxation system for the rich with money held in the UK. After receiving a report from a top financial company which claimed the country would lose billions, they are now reviewing their policies.  (yesterday on the BBC)  

[Mike Teavee]

31 minutes ago, Frankie baby said:

According to the BBC, the UK government were thinking of a similar taxation system for the rich with money held in the UK. After receiving a report from a top financial company which claimed the country would lose billions, they are now reviewing their policies.  (yesterday on the BBC)  

The UK already has a similar remittance based Tax system for "The Rich" (Nom-Doms) which the Tories were planning to scrap & Labour said they would also scrap it. 

 

Recently a number of reports have cast doubts on the claims that it would raise £3Billion and have stated that it could cost the country £1Billion in lost taxes so it's likely to be watered down and not be a complete removal of Nom-Dom tax breaks  

 

https://news.sky.com/story/labours-plan-to-crack-down-on-non-doms-could-be-watered-down-amid-concerns-it-will-raise-no-money-13223264

[Mike Teavee]

2 hours ago, Dan O said:

Might want to check and see who owns Thai Elite company .

Apologies, Thai Elite is owned by Thailand Tourist Authority which is a government department, but I still maintain they're not as credible when it comes to tax matters as BOI. 

[Dan O]

8 minutes ago, Mike Teavee said:

Apologies, Thai Elite is owned by Thailand Tourist Authority which is a government department, but I still maintain they're not as credible when it comes to tax matters as BOI. 

No one is credible until they finish writing the legislation and how they go about applying it. Most will see little impact due to the DTA's that most developed countries have

[Liverpool Lou]

11 hours ago, webfact said:

...holders of the controversial five to 20 years visa...

Huh?  There is nothing "controversial" about the Elite visa, it is a legitimate visa that has no more controversy than any other visa/extension.

[BritScot]

5 hours ago, thaiowl said:

What about Permanent Residents? Will they be exempt? I doubt it.

Lol! Use are the ones they have their grubby little finger on. The 800/400k banking con, the produce your life history and 6 months bank statements every year and the on parole 90 day reporting. It will become part of your annual reporting documentation "Tax declaration". Easy pickings.  Question is: will they Tax your 800k/400k in the bank every year as new income? Welcome to Thailand.

[Spamhead]

13 hours ago, webfact said:

Starting January 1 this year, assessable income sent from abroad by Thais or foreigners residing in Thailand for at least 180 days will be subject to personal income tax.

 

I'm thoroughly confused. I thought their idea was to tax all assessable income on a worldwide basis, not just that brought into Thailand.

[ChasingTheSun]

Lots of countries don't tax personal worldwide income/cap gains. 
 

Singapore and HK are two prominent ones in Asia.

 

Thailand would be in good company if they just keep the system as is. Otherwise, they will lose most of their wealthy retired expats, killing the real estate industry and a big part of the consumption they represent.

[topt]

4 hours ago, Spamhead said:

I'm thoroughly confused. I thought their idea was to tax all assessable income on a worldwide basis, not just that brought into Thailand.

World Wide taxation was "suggested" as an objective by the current TRD head who said they were working on the specifics......

Since this should have to go through Parliament and be subject to much discussion even if it goes ahead it is almost impossible that the start point would be before 2025 (so returns in 2026) and realistically later.

[KimchiCurry]

16 hours ago, JBChiangRai said:

I was met by thai privilege co. this morning who escorted me through checkin etc.

 

She confirmed sales of Elite Visa’s have dropped off a cliff.  

Dropping PIT to wealthy Elite Visa holders would seem like a good opportunity to kick-start sales again, IMHO.

 

Sales must have took a huge dive.

 

Got one friend telling me that staff member told him "unofficially" that TAT/Privilege company are in discussion with gov. to get the tax exemption. 

 

[Yumthai]

3 hours ago, KimchiCurry said:

Got one friend telling me that staff member told him "unofficially" that TAT/Privilege company are in discussion with gov. to get the tax exemption. 

That would make sense, wealthy people do not have to pay tax.

[papersource]

I have spoken to two middle managers at Thailand Privilege over the last 3 months, and both confirmed that they are trying to get this tax exemption for us. One said the they hoped to have something for us by year’s end. But whether they succeed or not is anyone’s guess at this point.