Exemption of withholding tax in home country

[CallumWK]

My EU bank just emailed me this.

 

Certificate
As a result, the client confirms that he requests the exemption from withholding tax regarding:
• dividends and other income spread by a Belgian investment company2 (art. 106§7 and art. 117§6 AR/CIR 92);
• Income of bonds, cash vessels and other similar instruments 3 (art. 107 §2, 5 °, Ben 10 °, 113 §3, C and art. 118 §1, 1 ° AR/CIR 92);
• income of money deposits (art. 110, 4 °, B and 117§6 AR/CIR 92);
• Foreign movable income (art. 230, 2 ° CIR 92).

 

So I can be exempt of withholding tax on my savings accounts in my home country. The money in those accounts will not be emitted to Thailand.

What does this mean for me in Thailand?

Will the Thai revenue office automatically charge me withholding tax on my interests in the EU, or only if I tell them?

The bank obviously knows my Thai TIN, because I have to fill that on the document?

I have no income in Thailand, and don't plan to transfer money either, as I have enough savings here already. Every year I claim back the withholding tax on my Thai interests, so can I claim the foreign ones as well?

I understand that I can claim back up to 60K baht in total per year?

Edited November 19 by CallumWK

[KhunHeineken]

Many countries are moving towards the worldwide income taxation model. 

 

Worldwide income means any and all income earned in any and all countries, regardless of where you reside, and where the money is earned.

 

Interesting times ahead. 

Edited November 19 by KhunHeineken

[georgegeorgia]

6 hours ago, CallumWK said:

My EU bank just emailed me this.

 

Certificate
As a result, the client confirms that he requests the exemption from withholding tax regarding:
• dividends and other income spread by a Belgian investment company2 (art. 106§7 and art. 117§6 AR/CIR 92);
• Income of bonds, cash vessels and other similar instruments 3 (art. 107 §2, 5 °, Ben 10 °, 113 §3, C and art. 118 §1, 1 ° AR/CIR 92);
• income of money deposits (art. 110, 4 °, B and 117§6 AR/CIR 92);
• Foreign movable income (art. 230, 2 ° CIR 92).

 

So I can be exempt of withholding tax on my savings accounts in my home country. The money in those accounts will not be emitted to Thailand.

What does this mean for me in Thailand?

Will the Thai revenue office automatically charge me withholding tax on my interests in the EU, or only if I tell them?

The bank obviously knows my Thai TIN, because I have to fill that on the document?

I have no income in Thailand, and don't plan to transfer money either, as I have enough savings here already. Every year I claim back the withholding tax on my Thai interests, so can I claim the foreign ones as well?

I understand that I can claim back up to 60K baht in total per year?

Where is this Belgian place?

 

[CallumWK]

9 hours ago, KhunHeineken said:

Many countries are moving towards the worldwide income taxation model. 

 

Worldwide income means any and all income earned in any and all countries, regardless of where you reside, and where the money is earned.

 

Interesting times ahead. 

 

Thanks for your reply, but it doesn't answer my question.

I believe that there still isn't any clarity that money earned abroad, and not remitted to Thailand, will be taxed here.

The withholding tax in my country is also 15%, only that I can't claim it back. The first 1020 euro in interests is exempted from withholding tax.

So if I get the exemption, will I automatically get taxed here, and can I claim it back, similar to the withholding taxes on my Thai accounts?

[chiang mai]

If the money is never remitted to Thailand, the Thai Revenue cannot tax that income.

[CallumWK]

1 minute ago, chiang mai said:

If the money is never remitted to Thailand, the Thai Revenue cannot tax that income.

 

But what about the withholding tax? On the certificate I have to include my TIN, so it is assumed that I pay the withholding tax elsewhere. Not?

[chiang mai]

1 minute ago, CallumWK said:

 

But what about the withholding tax? On the certificate I have to include my TIN, so it is assumed that I pay the withholding tax elsewhere. Not?

All you are telling them is that you have a tax registration in another jurisdiction, that's what they want to know and that information satisfies them. That doesn't automatically mean you actually pay tax there because the tax rules vary from country to country. Thailand cannot tax your income unless you remit it to their jurisdiction.

[foreverlomsak]

1 minute ago, chiang mai said:

Thailand cannot tax your income unless you remit it to their jurisdiction.

Correct, and IMHO any change to be able to tax "World Wide Income", will be years away as laws will need to be rewritten after obtaining  initial approval from the Government to proceed, and I don't think that approval will be obtained easily, as it would most probably hit many of them hard in their own pockets.

[KhunHeineken]

1 hour ago, CallumWK said:

I believe that there still isn't any clarity that money earned abroad, and not remitted to Thailand, will be taxed here.

As another member said, currently, if you don't move the money to Thailand, it can not be taxed in Thailand.  Similarly, if you are in Thailand under 180 days, you are not a tax resident of Thailand, thus, no tax to pay in Thailand. 

Edited November 20 by KhunHeineken

[CallumWK]

59 minutes ago, chiang mai said:

All you are telling them is that you have a tax registration in another jurisdiction, that's what they want to know and that information satisfies them. That doesn't automatically mean you actually pay tax there because the tax rules vary from country to country. Thailand cannot tax your income unless you remit it to their jurisdiction.

 

That sounds good lol

[KhunHeineken]

53 minutes ago, foreverlomsak said:

Correct, and IMHO any change to be able to tax "World Wide Income", will be years away as laws will need to be rewritten after obtaining  initial approval from the Government to proceed, and I don't think that approval will be obtained easily, as it would most probably hit many of them hard in their own pockets.

I agree, but like I said, interesting times ahead.  I wouldn't rule it out. 

[topt]

On 11/19/2024 at 11:55 PM, KhunHeineken said:

Many countries are moving towards the worldwide income taxation model. 

Which other ones are looking at it who don't currently have it on the books other than Thailand?

[KhunHeineken]

3 hours ago, topt said:

Which other ones are looking at it who don't currently have it on the books other than Thailand?

https://www.ey.com/en_gl/technical/tax-guides/worldwide-personal-tax-and-immigration-guide

 

"Governments worldwide continue to reform their tax codes at a historically rapid rate. Taxpayers need a current guide, such as the Worldwide Personal Tax and Immigration Guide, in such a shifting tax landscape, especially if they are contemplating new markets."

 

Click on the country of your choice. 

 

Why would a government, provided it's not a tax haven nation, chose to miss out on taxing worldwide income, especially when many other countries are taxing it? 

[topt]

4 hours ago, KhunHeineken said:

Click on the country of your choice. 

Why would I need to do that. You are the one who claimed "many countries"' were moving towards a worldwide income taxation model so I asked which other countries.......Since you must have come across something which tells you that in order to make the statement you made?

Or is just more hyperbole.........

[KhunHeineken]

On 11/21/2024 at 3:18 PM, topt said:

Why would I need to do that. You are the one who claimed "many countries"' were moving towards a worldwide income taxation model so I asked which other countries.......Since you must have come across something which tells you that in order to make the statement you made?

Or is just more hyperbole.........

Plenty on the net about it. 

 

Some countries looking at the US citizen based taxation model, other countries looking at going through the back door to implement a similar model. 

 

 

 

[KhunHeineken]

On 11/21/2024 at 3:18 PM, topt said:

Why would I need to do that. You are the one who claimed "many countries"' were moving towards a worldwide income taxation model so I asked which other countries.......Since you must have come across something which tells you that in order to make the statement you made?

Or is just more hyperbole.........

Same guy.  Video only 3 weeks old.  France looking to implement it. 

 

France is interesting, and this is just my opinion, but if implemented in France, it could spread to other EU countries. 

 

 

[topt]

3 hours ago, KhunHeineken said:

Plenty on the net about it. 

The first video is I believe over a year old and is specifically about Australia but he brings Canada into the conversation.........So what in Australian tax regs has actually changed since then which could well be more relevant to some members on here?

 

The second video is specifically about France and based on this article -

https://www.imidaily.com/europe/french-finance-committee-adopts-bill-aiming-to-introduce-citizenship-based-taxation/

 

Also the guy doing the vids isn't exactly unbiased in his opinions but yes he may well be proven right in the long run.

 

However "many countries" becomes a few which is what I was querying.

[KhunHeineken]

7 minutes ago, topt said:

The first video is I believe over a year old and is specifically about Australia but he brings Canada into the conversation.........So what in Australian tax regs has actually changed since then which could well be more relevant to some members on here?

 

The second video is specifically about France and based on this article -

https://www.imidaily.com/europe/french-finance-committee-adopts-bill-aiming-to-introduce-citizenship-based-taxation/

 

Also the guy doing the vids isn't exactly unbiased in his opinions but yes he may well be proven right in the long run.

 

However "many countries" becomes a few which is what I was querying.

Like I said, plenty on the net about it, and for more than just "a few" countries.  Do your own research.