Taxation of worldwide income for Thailand Tax Residents

[Presnock]

2 November dateline:  BP has an article that does not add a lot to the worldwide income taxation scheme but does mention they are now drafting the law which will tax all foreign income of Tax residents beginning next year whether or not that income is remitted into Thailand so, BOI needs to find a  way to dull the "PAIN" of that new tax scheme.  No a whole lot more except on corporate taxes.  Looking more and more definite.  But then again, not even sure this govt will be around next month even.  Welcome winter as prediction is this week, temperatures in BKK might drop 1-3 degrees!  However, for three straight days the pollution has been over the healthy level in Prawet district anyway (where we have a lot of greenery/trees)!

[metisdead]

Please note that as of June 23, Bangkok Post is no longer prohibited content on this forum.  Feel free to use Bangkok Post's content as per the fair use rule:

 

27. You will not post any copyrighted material except as fair use laws apply (as in the case of news articles). Only post a link, the headline and three sentences from the article. Content in the public domain is limited to the same restrictions.

[Presnock]

1 hour ago, Presnock said:

2 November dateline:  BP has an article that does not add a lot to the worldwide income taxation scheme but does mention they are now drafting the law which will tax all foreign income of Tax residents beginning next year whether or not that income is remitted into Thailand so, BOI needs to find a  way to dull the "PAIN" of that new tax scheme.  No a whole lot more except on corporate taxes.  Looking more and more definite.  But then again, not even sure this govt will be around next month even.  Welcome winter as prediction is this week, temperatures in BKK might drop 1-3 degrees!  However, for three straight days the pollution has been over the healthy level in Prawet district anyway (where we have a lot of greenery/trees)!

https://www.bangkokpost.com/business/genral/s89466s/board-of-investment-eager-to-dull-minimum-tax-pain.

most of the article deals with investment but the opening paragraphs mention tax residents having to pay tax on all income whether remitted or not to Thailand and bill being drafted now.

[metisdead]

Sorry to advise you, that page is no longer available:

 

[Presnock]

30 minutes ago, metisdead said:

Sorry to advise you, that page is no longer available:

 

I corrected the webpage..as I made two mistakes in that original one.  Sorry!  Never been a link-er .

31 minutes ago, metisdead said:

Sorry to advise you, that page is no longer available:

 

https://www.bangkokpost.com/business/general/2894662/board-of-investment-eager-to-dull-minimum-tax-pain.

[Sophon]

That link doesn't work either.

Bangkok Post link

[Sheryl]

Moved to appropriate forum

[oldcpu]

5 hours ago, Sophon said:

That link doesn't work either.

Bangkok Post link

 

Thanks for the correct working link.

 

That article appears to me to indicate some contradictions.

It states:
 

Quote

" Under a new law being drafted by the Revenue Department, individuals residing in Thailand for 180 days or more must pay personal income tax on overseas earnings, regardless of whether that income is brought into Thailand."

OK - we have heard the head of the RD state that before.

 

Then the article notes ...

Quote

 

" The tax aligns with the principle of a global minimum tax (GMT), ensuring large multinational corporations pay a minimum tax rate of 15% worldwide in the countries where they operate.

"We expect the tax to affect foreign investors who expand their businesses into Thailand, so we need measures to deal with the impact," said Narit Therdsteerasukdi, secretary-general of the BoI.

 

.... it changes from a RD quote to BOI, and mixes "personal income tax" with "large multinational corporations" .... I find that VERY confusing.

 

It then refers to "relief measures":

Quote

"The tax is expected to be imposed by the government next year, so the BoI needs to speed up work on developing the relief measures, said Mr Narit."

and just what is meant by relief measure?

 

Further it states:

Quote

"The BoI offers investment incentive packages to help the government draw foreign investment here, in an effort to improve the country's economy."

Correct me if I am wrong, .... but promising to tax more typically is NOT the way to draw in foreign investment.

 

The article reads like a mishmash written by someone who is not trying to provide a clean reporting of the news.

 

In summary - I think a very poorly written article.

[Everyman]

The author of the article seems to not know what they are talking about and has conflated a bunch of different things such that it makes no sense.

 

But one fact we can be reminded of is that there is no global taxation law for tax residents in Thailand and there may never be one. 

 

Honestly, if there was one, what rich person in their right mind would open themselves up to the revenue department of a notoriously corrupt country to plunder whatever they wanted from their accounts? Nobody, of course, the wealthier they are the less likely they would be to stay. 

Edited Sunday at 02:20 PM by Everyman

[TheAppletons]

Just now, Everyman said:

The author of the article seems to not know what they are talking about and has conflated a bunch of different things such that it makes no sense.

 

But one fact we can be reminded of is that there is no global taxation law for tax residents in Thailand and there may never be one. 

 

 

  Exactly.  OP habitually posts inaccurate information such as this in his zeal to bring us all "breaking news", lol.

[khunPer]

On 11/3/2024 at 5:38 AM, Presnock said:

2 November dateline:  BP has an article that does not add a lot to the worldwide income taxation scheme but does mention they are now drafting the law which will tax all foreign income of Tax residents beginning next year whether or not that income is remitted into Thailand so, BOI needs to find a  way to dull the "PAIN" of that new tax scheme.  No a whole lot more except on corporate taxes.  Looking more and more definite.  But then again, not even sure this govt will be around next month even.  Welcome winter as prediction is this week, temperatures in BKK might drop 1-3 degrees!  However, for three straight days the pollution has been over the healthy level in Prawet district anyway (where we have a lot of greenery/trees)!

That was an old suggestion, not something that for sure happens. So far, it only income brought into Thailand after 1st January 2024 that shall be taxed; however, details about the procedure is to m y knowledge still missing.

[Presnock]

31 minutes ago, khunPer said:

That was an old suggestion, not something that for sure happens. So far, it only income brought into Thailand after 1st January 2024 that shall be taxed; however, details about the procedure is to m y knowledge still missing.

well so far all we know is that we need to get a Thai tax number if we have assessable income remitted or earned if we are tax residents here and need to file before the end of March 2025.  Supposedly new tax forms would be issued by the revenue department this month or next month.Other than that we know nothing else.  But if your country has a DTA with Thailand you should be familiar with the contents based on your financial situation.  Nothing is very definite here except changes...maybe even a new govt soon.

 

[wwest5829]

20 hours ago, Everyman said:

The author of the article seems to not know what they are talking about and has conflated a bunch of different things such that it makes no sense.

 

But one fact we can be reminded of is that there is no global taxation law for tax residents in Thailand and there may never be one. 

 

Honestly, if there was one, what rich person in their right mind would open themselves up to the revenue department of a notoriously corrupt country to plunder whatever they wanted from their accounts? Nobody, of course, the wealthier they are the less likely they would be to stay. 

Talk to the U.S. Embassy Thailand, this involves an International Treaty that will require being dealt with as it specifically addresses the apparent general goal of global taxation. Then get back to me. We have already discussed “Plan B”, there are other countries and they also allow international retirees to join their national healthcare schemes after a period of residency. There are alternatives for free citizens of various countries.