Loan and tax for foreigners

[steph83]

Hello, my wife took out a loan 3 years ago to buy
a car. Today, I would like to close the loan by
repaying the remaining amount to be paid 
(250,000 baht). The problem is that I have
to transfer this amount from my account in Belgium.
Will I have to declare this amount in March 2025 ? 

Thanks for your reply 🙂

 

Edited 1 hour ago by steph83

[chiang mai]

4 minutes ago, steph83 said:

Hello, my wife took out a loan 3 years ago to buy a car. 
Today, I would like to close the loan by repaying the 
remaining amount to be paid (250,000 baht). The problem
is that I have to transfer this amount from my
account in Belgium. Will I have to declare this
amount in March 2025 ? 

Thanks for your reply 🙂

 

If you are not tax resident in Thailand (180 days per tax year or more) you do not have to file a tax return and the money is not assessable to Thai tax. If you are tax resident here, you could perhaps gift the money to your wife.

[steph83]

1 minute ago, chiang mai said:

If you are not tax resident in Thailand (180 days per tax year or more) you do not have to file a tax return and the money is not assessable to Thai tax. If you are tax resident here, you could perhaps gift the money to your wife.

Thanks, i'm a tax resident here. If i understand, you aren't sure if it could be a gift.

[Lacessit]

1 minute ago, steph83 said:

Thanks, i'm a tax resident here. If i understand, you aren't sure if it could be a gift.

If your wife is Thai, it's possible you will be below the taxable thresholds. IIRC it's about 550,000 baht in various allowances.

[chiang mai]

1 minute ago, steph83 said:

Thanks, i'm a tax resident here. If i understand, you aren't sure if it could be a gift.

First things first.

 

If you are tax resident, you must determine the amount of assessable income you will have this year, that is money that is potentially taxable that you've mostly bro8ight in from overseas. As a rough guide, if you're over 65, chances are that you'll have close to 500k in deductions and allowances, before Thai tax is due. If you then factor in your car loan payment, that will tell you whether the money is taxable and must be declared.

 

If the car loan repayment does take you into taxable income territory, you might consider gifting the money to your wife. The funds would need to be documented as a gift and the money sent directly to her, from overseas. You must not benefit from the gift, in any way.

 

Gift tax is not straight forward so a little reading wont hurt.

 

https://www.pwc.com/th/en/tax/assets/thai-tax/thai-tax-booklet-2024-25.pdf