Please, please help me to understand

[Benjamin1975]

I have read and re-read. I have seen video after video and still I don't understand anything. At the moment I am in Thailand to look for a house to rent for February, because I will be moving permanently between the end of January and the beginning of February. My question is about the new taxes rules: once I am here in Thailand, I will have an amount equal to 150,000 thb every month transferred to my Thai account. It is an amount deriving from the rent of my house and my shop. Do I have to fill out the tax form on this amount or am I exempt? Here in Thailand I will not work and I will not have any income other than that from abroad. Thank you.

[Delight]

 If you live in Thailand for 180 days or more in a calendar year -then you will have to declare your income to the TRD (Tax Revenue Dept.)

 

The process requires that you volunteer to your local office.

 

I live in Chonburi . The local TRD being in Jomtien

 

I paid them a visit 

 

They advised that 

 

1) I can only apply  in 2025-and this must be done before 31stMarch 2025

 

2)I must have in my possession  a TM 30 plus copies of passport pages. This will facilitate the  acquisition of a  TIN (Taxation Identity Number)

 

3) The English language is in the main not used.

I speak basic Thai -that helped. If I go again then my Q's will be translated onto word document.

 I am not sure how the volunteers will be press ganged

[Benjamin1975]

1 minute ago, Delight said:

 

 

The process requires that you volunteer to your local office.

 

 

And if I decide not to do it, what would be the consequences? Could they freeze my bank account, for example?

[KhunLA]

Being it's going to be transferred into a Thai bank account, they will know about the funds.  Technically, you are liable for income tax.  How that would be collected, and or info given to TRD is a bit of an unknown now, but rest assured, they will know, and you will have a tax due.

 

Obviously the easiest way would be evidence of taxes paid when renewing / extending any visa at Immigrations every year.

 

This is a good thread, well, first page or 2 before all the silly questions, from people not reading, or knowing their country DTA (dual tax agreement).

 

Has the present income tax per income increments.  150k a month puts you in the higher tax burden of 25% (page 7).  Married & deductions help lowering that.

[Benjamin1975]

2 minutes ago, KhunLA said:

  150k

Its 150,000 thb

[KhunLA]

4 minutes ago, Benjamin1975 said:

Its 150,000 thb

Yes, and read it as such.  (Did an edit while you were typing)

 

150 X 12 = 1.8M, and falls in th 1M-2M income bracket, taxable @ 25%, if I read it correctly, at link provided in my first reply.

 

[Benjamin1975]

3 minutes ago, KhunLA said:

Yes, and read it as such.  (Did an edit while you were typing)

 

150 X 12 = 1.8M, and falls in th 1M-2M income bracket, taxable @ 25%, if I read it correctly, at link provided in my first reply.

 

I have to give them 115,000? Oh gosh.

And if I decide not to do it, what would be the consequences? Could they freeze my bank account, for example?

[KhunLA]

13 minutes ago, Benjamin1975 said:

I have to give them 115,000? Oh gosh.

And if I decide not to do it, what would be the consequences? Could they freeze my bank account, for example?

That would be ~315k tax, as the 115k is base, and need to tax the addition 800k also @ 25%.   Built in was the 150k exempt income, I think.

 

 

 

Of course you need to read your countries DTA to see if that helps, as guessing you home country, if knowing of your income, will be taxing that also.

 

I sure there is some heavy duty fines and or prison for tax evasion, just like any country.

[JohnnyBD]

1 hour ago, Benjamin1975 said:

I have read and re-read. I have seen video after video and still I don't understand anything. At the moment I am in Thailand to look for a house to rent for February, because I will be moving permanently between the end of January and the beginning of February. My question is about the new taxes rules: once I am here in Thailand, I will have an amount equal to 150,000 thb every month transferred to my Thai account. It is an amount deriving from the rent of my house and my shop. Do I have to fill out the tax form on this amount or am I exempt? Here in Thailand I will not work and I will not have any income other than that from abroad. Thank you.

If you move here in Feb 2025 and stay for 180 days or more, then you will become a tax resident in 2025. If you remit assessable income above the filing threshold, you will need to file a tax return for tax year 2025 between Jan 01, 2026 and Mar 31, 2026. You have over a year to figure things out. Enjoy your move...

[FritsSikkink]

1 hour ago, Benjamin1975 said:

I have to give them 115,000? Oh gosh.

And if I decide not to do it, what would be the consequences? Could they freeze my bank account, for example?

You get a huge fine and have to pay interest: Thailand Non-Filing of Tax Returns - SHERRINGS

[ukrules]

2 hours ago, Benjamin1975 said:

Its 150,000 thb

 

The most important consideration here is how much tax has been paid on this 150,000 per month income already?
 

If it's been taxed and you're from a country with a double taxation agreement then things will alter a lot.

[Delight]

3 hours ago, Benjamin1975 said:

And if I decide not to do it, what would be the consequences? Could they freeze my bank account, for example?

 The TRD have to decide to employ an inspectorate- not cheap.

The temptation for the inspectorate to justify it's existence -it will go for the big money.

If you are big money -then maybe you should volunteer.

If caught -150,000 Baht fine.

AS they say -up to you.

[sometimewoodworker]

11 hours ago, Benjamin1975 said:

I have to give them 115,000? Oh gosh.

And if I decide not to do it, what would be the consequences? Could they freeze my bank account, for example?

There are various allowances and deductions available along with possible deductions from your countries DTA you tax bill will be some amount under ฿275,000  how much under depends on your personal circumstances it is possible, though unlikely, that you may owe no tax. The TRD has 10 years to decide if they want to audit you (only 3 if you file a return), the penalties for deliberate evasion can be severe and include prison time. One almost immediate action is to hold you in Thailand until they are satisfied that any tax due is paid. Your travel can be restricted, even if you owe no tax, until the TRD happy that your filings, or non filings, are correct and any tax due is paid.

[timendres]

10 hours ago, ukrules said:

If it's been taxed and you're from a country with a double taxation agreement then things will alter a lot.

 

This is important. Most people in your situation have already been taxed. They will need to file the paperwork to show that, but they will owe little or no tax here in Thailand.

 

24 minutes ago, sometimewoodworker said:

There are various allowances and deductions available

 

In my case, I get 190,000 THB for being old. I get up to 100,000 THB as "expenses" computed against 50% of the income. And finally the 60,000 THB allowance everyone gets. In total, a deduction of 350,000 THB - in other words, I would need to report more than that to even begin to owe tax. Then I get to deduct the already paid taxes mentioned above.

 

12 hours ago, Benjamin1975 said:

And if I decide not to do it, what would be the consequences? Could they freeze my bank account, for example?

 

As @FritsSikkink mentioned, you are exposing yourself to a potential fine. How would they enforce it? If they get sophisticated enough the revenue department will inform immigration of people not paying their taxes. As @KhunLA pointed out, the banks will be reporting the cash flows. So, when you go to renew the extension....

[Thingamabob]

I strongly suggest, if you wish to continue to pursue your investigation, that you do so with a Thai adviser who is both  experienced and legally qualified to give such advice.

 

[CFCol]

19 hours ago, Benjamin1975 said:

I have to give them 115,000? Oh gosh.

And if I decide not to do it, what would be the consequences? Could they freeze my bank account, for example?

Under the UK double taxation agreement, any income tax paid in UK can be offset against tax due in Thailand. In your case you should only declare any monies remitted to Thailand, ie 150k to per month.

[TigerandDog]

19 hours ago, KhunLA said:

Yes, and read it as such.  (Did an edit while you were typing)

 

150 X 12 = 1.8M, and falls in th 1M-2M income bracket, taxable @ 25%, if I read it correctly, at link provided in my first reply.

 

You've misread the tax chart.  Tax on 1.8m is NOT at 25%. Its Tax =115k PLUS 25% on income in EXCESS of 1m, viz 800k x 25%= 200k. Total tax payable = 315k.  Of course this is with NO deductions and NOT taking a DTA into account if there is one with the OP's home country.

[worrab]

I would advise to speak with an advisor. Here is a contact for you.

 

Need some advice on your situation? Book a free 15-minute call with our team. We’ve helped hundreds of expats clarify their new tax obligations. Book your free call here If there is anything we can do to assist, please get in touch. We're here to help in any way we can.

+66 869 955 071. carl(at)expattaxthailand.com  WhatsApp

[john donson]

here is a free tip... bring in.... less money... lol

[maxcorrigan]

Where in Jom thien is the tax office? an what would i need to take with me to abtain the reqired info., an lastly being not very mobile wheelchair bound) could my wife do this alone, being 86 yr old i am at a loss trying to get my old brain around this new requirement !

Any help would be very much appreciated and thank you all

[NorthernRyland]

21 hours ago, Benjamin1975 said:

I have read and re-read. I have seen video after video and still I don't understand anything. At the moment I am in Thailand to look for a house to rent for February, because I will be moving permanently between the end of January and the beginning of February. My question is about the new taxes rules: once I am here in Thailand, I will have an amount equal to 150,000 thb every month transferred to my Thai account. It is an amount deriving from the rent of my house and my shop. Do I have to fill out the tax form on this amount or am I exempt? Here in Thailand I will not work and I will not have any income other than that from abroad. Thank you.

Do nothing and wait until they ask you directly for money. All these people here rushing out to pay taxes are acting on hearsay and speculation. We've ALWAYS been liable for taxes in Thailand and there has  been no new laws passed, nothing has changed in regards to enforcement. 

[KhunLA]

1 hour ago, TigerandDog said:

You've misread the tax chart.  Tax on 1.8m is NOT at 25%. Its Tax =115k PLUS 25% on income in EXCESS of 1m, viz 800k x 25%= 200k. Total tax payable = 315k.  Of course this is with NO deductions and NOT taking a DTA into account if there is one with the OP's home country.

 

20 hours ago, KhunLA said:

That would be ~315k tax, as the 115k is base, and need to tax the addition 800k also @ 25%.   Built in was the 150k exempt income, I think.

 

 

 

Of course you need to read your countries DTA to see if that helps, as guessing you home country, if knowing of your income, will be taxing that also.

 

I sure there is some heavy duty fines and or prison for tax evasion, just like any country.

 

[KhunLA]

@Benjamin1975 May want to rethink living in TH for 180 days a year, if it's going to cost you 315k a year, just for the privilege.   I think if I was looking for a place tor retire, TH wouldn't be it.  Maybe break up your time to TH, Nam & Cambo.

 

Living on the cheap, it would be hard for me to even spend 315k as a yearly budget 

 

I'm settled in, with family, and enforced Tax code shouldn't affect me.  If not, I'd probably wouldn't consider living in TH, at least not for 180 days.

[Sheryl]

OP is this 150k a month your sole income or do you have other income you won't remit to Thailand? Because if you can show total invome of US $80,000 a year ، you could apply for the LTT visa which provides tax exemption.

 

Otherwise you will indeed have to pay tax unless the inome is already taxed in yolur home country to an equivalent or greater amount.

 

Please  ignore those advising tax evasion, could come back to bite you badly. 

[WDSmart]

I apologize if these questions are too basic and have been answered before, but after reading most of the remarks above, here is what I think I understand. Are they correct?
- Thai taxes are only applied to an income of over THB 150,000 per month.

- And the source of this income has to be from employment, not from retirement benefits.

 

Thanks...Bill!

[Crossy]

9 minutes ago, WDSmart said:

- Thai taxes are only applied to an income of over THB 150,000 per month.

 

It's 150k per YEAR Bill 😞

[WDSmart]

5 minutes ago, Crossy said:

 

It's 150k per YEAR Bill 😞

@Crossy, Thanks for your prompt reply and correction of my assumption.

But is my assumption that this ONLY applies to INCOME FROM EMPLOYMENT and not retirement income?

I assume you're not a Thai tax expert, but I'd appreciate your understanding of this.

Thanks...WDSmart

[kingstonkid]

22 hours ago, Delight said:

 If you live in Thailand for 180 days or more in a calendar year -then you will have to declare your income to the TRD (Tax Revenue Dept.)

 

The process requires that you volunteer to your local office.

 

I live in Chonburi . The local TRD being in Jomtien

 

I paid them a visit 

 

They advised that 

 

1) I can only apply  in 2025-and this must be done before 31stMarch 2025

 

2)I must have in my possession  a TM 30 plus copies of passport pages. This will facilitate the  acquisition of a  TIN (Taxation Identity Number)

 

3) The English language is in the main not used.

I speak basic Thai -that helped. If I go again then my Q's will be translated onto word document.

 I am not sure how the volunteers will be press ganged

 

Great info. I am truly surprised that there are no accountants who are searching for Expats.  You would think there is a very large market especially for an English speaking accountant or tax specialist

[The Cyclist]

9 minutes ago, WDSmart said:

But is my assumption that this ONLY applies to INCOME FROM EMPLOYMENT and not retirement income?

 

Retirement income is very ambiguous and unclear, as a term for tax purposes is meaningless.

 

There are 8 Categories to consider.

 

Category 1 will apply to most

 

Quote

(1) Income derived from employment, whether in the form of salary, wage, per diem, bonus, bounty, gratuity, pension, house rent allowance, monetary value of rent-free residence provided by an employer, payment of debt liability of an employee made by an employer, or any money, property or benefit derived from employment.⁴

 

You can read the 8 Categories here

 

https://www.rd.go.th/english/37749.html#section40

[Samh]

Can I jump in here. If I pay 20% tax in the UK on my pension are the Thais going to take another 25%?