Is this legal? No farangs welcome...

[snoop1130]

 

Thailand finds itself at a crucial juncture as it confronts the financial implications of an ageing population. Deputy Finance Minister Julapun Amornvivat underscores the urgency for a revamped tax structure to tackle future expenses. Central to this endeavour is the exploration of a negative income tax (NIT) system aimed at supporting low-income citizens below a government-defined threshold.

 

The country, which first crossed into an ageing society status in 2005, now sees its 60-and-older demographic swelling to 20% of its populace—a significant 13 million people. As Thailand edges towards the aged society category, the government acknowledges that existing welfare systems must be reconsidered to prevent budgetary strain.

 

Julapun revealed that the NIT proposal is in its infancy, but its eventual implementation could reshape financial assistance. The scheme promises aid to those who fall below current taxation thresholds, including reforming how income is measured and modifying existing revenue laws to accommodate the system.

Despite the potential benefits, the journey to NIT realisation remains extensive. Initial steps involve an inclusive tax system where everyone, irrespective of current taxable income, participates. Discussions with the Fiscal Policy Office and Revenue Department are ongoing to determine how NIT might replace some welfare measures, possibly phasing out the state welfare card programme to streamline support.

 

With an eye on international frameworks, Julapun assures that thorough studies will guide the cabinet’s decision-making. As Thailand navigates this demographic tide, such tax reforms offer a strategic pathway to bolstering its welfare mechanisms, ensuring sustainable support for its ageing citizens.

 

File photo for reference only

 

-- 2024-10-15

 

 

[Rolo89]

They're very quickly running out of money with their emptying of the coffers. Changes incoming. 

[TroubleandGrumpy]

Dare I say it - they will be coming after all to pay more taxes - including us - but the wealthy elite will duck and weave their way under, over and around it. 

[Rolo89]

1 minute ago, TroubleandGrumpy said:

the wealthy elite will duck and weave their way under

Wealthy foreigners will as the LTR visa guarantees tax exemptions by royal decree

[TroubleandGrumpy]

3 minutes ago, Rolo89 said:

Wealthy foreigners will as the LTR visa guarantees tax exemptions by royal decree

If 50+ and retired and you have over $80K USD income the year before apply, or $40K USD and spend $250K on bonds or property in Thailand. Not many fall under that bar - and that exemption is likely to be challenged/checked in Court by TRD once global taxation commences in a few years. 

[Rolo89]

1 minute ago, TroubleandGrumpy said:

If 50+ and retired and you have over $80K USD income the year before apply, or $40K USD and spend $250K on bonds or property in Thailand. Not many fall under that bar - and that exemption is likely to be challenged/checked in Court by TRD once global taxation commences in a few years. 

A tiny % worldwide fall under the wealthy citizen, or wealthy 50+ but globally there is a significant amount that have made Thailand their residence because of the tax breaks promised.

 

Tax free abroad income won't last forever, but probably still has quite a few years left and there's a lot of expensive condos to sell that no one will buy without thailand offering these tax breaks to the rich.

[Jenkins9039]

Problem with forced declaration is tax evasion charges are frequently applied.

[TroubleandGrumpy]

Just now, Rolo89 said:

A tiny % worldwide fall under the wealthy citizen, or wealthy 50+ but globally there is a significant amount that have made Thailand their residence because of the tax breaks promised.

 

Tax free abroad income won't last forever, but probably still has quite a few years left and there's a lot of expensive condos to sell that no one will buy without thailand offering these tax breaks to the rich.

True - but there are a lot of high end condos not being bought (demand is down). Plus they are not talking about how many wealthy expats have taken up the LTR (or highly paid Executives etc).  Speculation is that they have been a failure, or they would definitely be doing what TAT always does and be claiming the wins. The Thai Elite Visa has also gone cold - ever since they upped the prices - IMO because they have no exemptions from any taxes that will/may be implemented. And of course the absolute disaster after the election, the MFP being disbanded, the PM being sacked, etc etc etc. Thailand is throwing away a lot of things - and this time the Chinese aint coming to save them because they have enough problems of their own.  

[TroubleandGrumpy]

Just now, Jenkins9039 said:

Problem with forced declaration is tax evasion charges are frequently applied.

Pardon? Dont understand.

[Rolo89]

11 minutes ago, TroubleandGrumpy said:

True - but there are a lot of high end condos not being bought (demand is down). Plus they are not talking about how many wealthy expats have taken up the LTR (or highly paid Executives etc).  Speculation is that they have been a failure, or they would definitely be doing what TAT always does and be claiming the wins. The Thai Elite Visa has also gone cold - ever since they upped the prices - IMO because they have no exemptions from any taxes that will/may be implemented. And of course the absolute disaster after the election, the MFP being disbanded, the PM being sacked, etc etc etc. Thailand is throwing away a lot of things - and this time the Chinese aint coming to save them because they have enough problems of their own.  

Agree on that all.

 

I don't think they're anywhere near their target to get 1 million LTR visas by 2032, doubt they even have 1% of that target yet.

 

If anything I could see them making LTR less strict.