How Has Thailand’s New Income Tax Law Affected Your Spending Habits?

[1FinickyOne]

35 minutes ago, chiang mai said:

The tax is on income from any year, not just current year, EXCEPT that any savings earned prior to 31/12/2023 are not taxable.

Huh? When I mentioned savings I was implying that it was savings from prior years. Not yesterdays paycheck. My savings goes back decades and I am assuming from what I have read, that would not be taxable even if brought into the country. If you know differently, please let me know. 

[CygnusX1]

The spending habit of mine that’s changed is that since I’m now staying 2 months a year less in Thailand than originally planned, to see me under the 180 days, some of the money I would  have been putting into Thailand’s economy is now being spent in Europe and Australia.

[Mutt Daeng]

12 hours ago, RSD1 said:

 

Anyone who has a pink card already has a Thai TIN whether they like it or not. The 13 digit ID number on the pink card is also your TIN.

They can be the same number but in some cases (me for example) they are not. I presented my Pink card & YTB when I applied for a TIN and also attached copies to my Lor.Por.10.1 application form. I was given a TIN number which was NOT the same as my pink card number. Here is a thread discussing  Pink card number & TIN 

 

 

[phetphet]

My plan is to try and cut back on some day to day spending, bring in a large chunk of cash each time I return to home country, and use that to reduce what goes through bank account. Also try and pay any large bills with my home country credit card or the cash brought in. 

 

Maybe gift GF some money to pay daughters's annual school fees and extra curricular lessons she has.

 

[chiang mai]

34 minutes ago, 1FinickyOne said:

Huh? When I mentioned savings I was implying that it was savings from prior years. Not yesterdays paycheck. My savings goes back decades and I am assuming from what I have read, that would not be taxable even if brought into the country. If you know differently, please let me know. 

In which case, your savings are exempt under POR162.

 

Different people have different ideas of what constitutes savings, which is why I gave you chapter and verse on the issue related to savings.

 

But since we're here on the subject of savings.

 

Some Revenue domains consider savings to be income, minus taxes and expenditure, which I personally agree with. It's not completely clear to me that the TRD rules sees things the same way. I think they may look at remitted funds and if they are not assessable under POR162, they may wish to understand the source of income from which they are derived. That's nonsense of course, if those savings are years old, but as things stand, there is no clear cut set of rules to say that income earned after 12/31/23, minus tax and expense is considered savings and therefore not tax assessable (POR 162 excluded), when remitted.

[CapraIbex]

1 hour ago, Dogmatix said:

The missus has paid our son’s school fees and her life and health insurance premiums from gifts remitted to her from overseas.

I understand that there is currently a requirement for a gift contract, which may be reviewed by the Thai Revenue Department as proof that the funds are indeed a gift. Would you be willing to share the procedure you follow when gifting monetary funds to your wife?

[john donson]

people that say they will not live here for 6 months, so you still pay rent here and elsewhere? sounds expensive and you don't have  a job, wife, kids here, that you can be away for months?

[newnative]

      It hasn't made any difference in what my spouse and I purchase.  This year we made two big purchases--we built a new house and bought a new car.   Both were bought with money we already had in Thailand.  We are also just back from a trip to Europe--and we plan to do more international traveling in 2025.   I'm 72 with a 'the future is now' outlook so I will continue to live my life the way I want to live it no matter what happens, or doesn't happen, with the new tax law.  

[KannikaP]

2 hours ago, flexomike said:

Not true, only if you go to a tax office and have them activate the number for tax purposes. There is a form that you have to fill out to get this done.

I got a TIN before my Pink Card. The numbers are the same, so the Pink Card issuers knew and so used my TIN.

[kinyara]

I didn't bring in anything this year to see how it pans out enforcement/admin wise for others who did by March 2025.

 

I won't be making any changes to my spending in 2025, I own my condo so my annual spend is relatively modest. Looking at the annual allowances my potential tax liability would be around the 10k mark, I believe some on here pay around that for an agent for their visa renewal to save a bit of hassle and 40 minutes of time over a year, so I'm not going to affect a year of lifestyle for the same amount.

[Thingamabob]

To date there is no new law in effect.

[chiang mai]

6 minutes ago, Thingamabob said:

To date there is no new law in effect.

True, only the reinterpretation of the existing law, implemented last year.

[Thingamabob]

14 hours ago, anchadian said:

You didn't mention this in your initial post ', so anything I bring in has already had substantial tax paid in Australia' which now puts a different light on your foreign income although I believe that obtaining a TIN is a must, whether or not you file a tax return.

 

We'll have to wait and see what transpires.

 

 

 

 

 

 

 

 

Wait and see is the only sensible strategy at this point. Don't waste time and money seeking advice you may never have needed.

[chiang mai]

2 minutes ago, Thingamabob said:

Wait and see is the only sensible strategy at this point. Don't waste time and money seeking advice you may never have needed.

Very much agreed

[Celsius]

I thought I was paranoid 

[Surasak]

16 hours ago, ChumpChange said:

Like all the other past hare brained governmental brain farts intended to grab even more money out of the pockets of the people who come here and do nothing but spend money, this is just another disastrous misstep. 

 

And just wait until all the foreigners in the first three months of next year start showing up at their local TRD tax office to file a tax statement. Probably the majority of the people working in those government offices don't speak English, let alone Chinese, Arabic, Russian, etc. Not only that, many of the foreigners will be showing up with all kinds of financial documents written in various different foreign languages. I can imagine not only is this going to be a major headache, and an extra unwanted burden for the government employees who don't benefit at all from any of this, there will probably be a fair number of blowups with foreigners losing it when the locals don't understand their financial reporting questions. You will be sure to get a bunch irate foreigners souring the milk since emotions can easily turn hot when it's all about matters of money. 

You may well be correct, but will the TRD insist on either Thai or English only, written statements as do Immigration? This again will cause all kinds of problems for some. Getting translations and then having it verified by MoFA in BKK. That on its own can be a real hassle and possibly expensive?

[Airalee]

1 hour ago, john donson said:

people that say they will not live here for 6 months, so you still pay rent here and elsewhere? sounds expensive and you don't have  a job, wife, kids here, that you can be away for months?

No job, wife or kids in Thailand.  Currently with gf in Vietnam and will spend more time back in the US supporting the economy there.  The only additional cost is a bit of rent (cheaper here in Vietnam) and everything else is money that I would be paying in Thailand so it’s basically a sunk cost.  My beach holidays will now be abroad and not in Huahin, Krabi or Phuket so the hotels there also lose out.

 

I’ll gladly play by Thailands rules and stay less than 180 days.  Not only do they miss out on taxes but also 6 months of spending (doctors, meds, massages, taxis, restaurants, movies etc etc).   If it ends up costing a bit more, I’m ok with that as I believe in the old saying “no taxation without representation”.   Also, I can do my clothes shopping outside of Thailand, get my hair cut outside Thailand, dental care, etc etc etc.  I’ll even bring lots of snacks back with me when I return.

 

The people playing the “I’ll just wait and see” or the ones who say “they can chase me if they want the taxes” will possibly get stung by running afoul of the tax laws.  They should be doing the same thing as those of us who are bailing out for 6 months.

 

If more people voted with their feet and just left Thailand for 6 months maybe the government will reevaluate their decision to tax us because it’s not just the taxes that they won’t be getting, all of the people in Thailand who’s businesses we supported will be getting much less also.  I’ve already let my doctors know that I am just fine seeing a doctor in Vietnam so they’re not happy with the situation either and they support my decision because they too think the taxes are unfair and intelligent enough to know that it is nothing more than a money grab by the government.

 

It’s also worth it to not have to pay a Thai accountant and go through the headache of trips to the revenue department and all the additional forms, time and headache to deal with it.

[Surasak]

15 hours ago, KhunLA said:

IF it actually becomes law and instituted, being a Yank, it won't affect me at all.  Been here a while already, and all bought in already.  Don't need any big ticket items, and the money for, is already here.

 

Older married guys don't have much to worry about, and enough exemptions/allowances to barely get taxed, if any, if only bringing in about 800k to meet Imm requirements.

 

More than enough to live on, aside from any extra brought in would get hit with a minimum tax.  Not worth concerning one's self about.

A personal opinion only, but I believe the 800/400K for Imm requirements should not be included in a tax assessment. It is after all, a forced requirement, as in, No Money, No Visa.

[pomchop]

Just as soon as they begin to enforce helmet and one way street laws...then i will 'worry" aout their ability to track and enforce the money of average farangs in thailand.  Until then i will ignore it all. 

 

I suspect if you are some sort of biz guy bringing in big sums you "might" show up on somchai's radar.

[Airalee]

6 minutes ago, Surasak said:

A personal opinion only, but I believe the 800/400K for Imm requirements should not be included in a tax assessment. It is after all, a forced requirement, as in, No Money, No Visa.

Agreed….and when I popped back into Thailand for a few days in October to renew my 1 year extension I told immigration that I would be now spending time outside of Thailand and might not even be seeing them in the future as there is no real need for an extension based on retirement and it will be nice to close out my bank accounts in Thailand and bring all the money back to the US where I can actually get some interest on my funds (which are a lot more than the 800k)

[Surasak]

5 hours ago, chiang mai said:

Interpretation of the Thai tax rules is not the issue that I commented upon, the accuracy and appropriateness of your opening statement was. What you wrote was incorrect and set the stage of understanding for many people, inaccurately and inappropriately.

 

"the Thai government put a new law into affect that created a personal income tax on all cash transfers into Thailand which applies to all residents of Thailand",

 

I appreciate that you subsequently asked a question but you framed or preceded it with false information and not every reader is up to speed or aware of the issue.

This is not a NEW LAW! It has been in existence since the 1970s to my knowledge, but only this year been fully implemented.

[kinyara]

5 minutes ago, Airalee said:

Agreed….and when I popped back into Thailand for a few days in October to renew my 1 year extension I told immigration that I would be now spending time outside of Thailand and might not even be seeing them in the future as there is no real need for an extension based on retirement and it will be nice to close out my bank accounts in Thailand and bring all the money back to the US where I can actually get some interest on my funds (which are a lot more than the 800k)

 

I agree with your approach if that works better for you, I'd do it myself if it became too significant a liability or too onerous admin wise. You can shout it from the rooftops for your personal satisfaction, but I doubt your local immigration officer or government official gives a monkey's about your decision. You and maybe even a few thousand expats departing pale into insignificance in the grand scheme of things especially with tourist numbers growing by millions each year again.

[Airalee]

1 minute ago, kinyara said:

 

I agree with your approach if that works better for you, I'd do it myself if it became too significant a liability or too onerous admin wise. You can shout it from the rooftops for your personal satisfaction, but I doubt your local immigration officer or government official gives a monkey's about your decision. You and maybe even a few thousand expats departing pale into insignificance in the grand scheme of things especially with tourist numbers growing by millions each year again.

Up to them.  They can get their money from tourists (especially the luxury market they continually hang their hopes on) instead of trying to turn retirees upside down and shake the change from their pockets.

 

 

[ernji]

2 hours ago, phetphet said:

My plan is to try and cut back on some day to day spending, bring in a large chunk of cash each time I return to home country, and use that to reduce what goes through bank account. Also try and pay any large bills with my home country credit card or the cash brought in. 

 

Maybe gift GF some money to pay daughters's annual school fees and extra curricular lessons she has.

 

 

If you ever visit Cambodia consider opening an account at a bank there, its really easy even on a tourist visa, then transfer money from your home country to the USD account (they will open you both a KHR and USD one) using a service such as Wise. Pull out the USD in cash and go to one of the many money changers over there to buy THB cash, from what I understand a lot of dirty money flows in that way so they are happy to sell that THB at a better rate than you will get in Thailand, then just bring it in here making sure you are under the limit that you have to declare to customs (currently USD $20,000 I think). Then you have THB cash here and Thailand has no record of it entering. I've done it twice already and it won't be the last time as its so close and not a bad place to visit. Just a thought.

[LittleBear57]

Not really spending any less on a daily basis. Needed a new car and gifted the money to my wife who purchased it in her name. Paid for the families Healthcare insurance on my UK credit card, not mine though as I believe that is tax deductible.  Gifted my daughter the money for her expensive dental brace. When she hopefully goes to university I will gift her her accomodation fees and course fees if they are not tax deductible. 

I have a military pension as well as the UK state pension. I read somewhere that military pensions in Thailand are not taxable,  don't know if that's true or not.

Went to our local tax office about getting g a TIN no. and they didn't think I'd have to pay tax. They would give me a number if I wanted one, but suggested I wait and see what happens with immigration. Anyone renewed their visa extension recently?

[BangkokBernie]

Reading all the comments so far on my OP has been really interesting, thank you.
 

It has confirmed my suspicions that people are either using untraceable overseas payment methods for local purchases, spending less in Thailand in general and/or spending less time physically in Thailand as a result of the Thai taxation announcements that were made last year. Meaning that, very few foreigners are planning on paying any income tax to the Thai government at all under this new tax regime.

 

Although we know that the government doesn’t give a toss if a couple hundred thousand foreigners don't embrace this new tax policy because of the millions of tourists that are now coming back in again, but that is very shortsighted of them. A tourist spends money here for a week or two and doesn't contribute much whereas long-term residents need to spend money here 52 weeks a year, which does add up, even if it's not grand amounts of spending. In addition, those tourist dollars are not something that's guaranteed for the future, especially if the Indians or the Chinese change their mind about Thailand, whereas long-term residents can't avoid spending money in Thailand once they are living here full time. 

 

Well, as we said before, hopefully they eventually rethink all of this when they realize it isn't the big money maker they were hoping for, nor is it worth all the additional administrative hassles and burdens placed on their government systems. But it always takes time for the dumb eyed deers to figure out that they are simply dumb ideas. 

[kinyara]

They are likely attracting a lot of new longer term stayers under the new DTV visa, more flexible/mobile under 50's staying up 180 days as opposed to the over 50 retirees who may alter their personal spend. They may lose on one policy change and gain with another.

[Ralf001]

18 hours ago, BangkokBernie said:

Now that nearly a year has passed since the Thai government put a new law into affect that created a personal income tax on all cash transfers into Thailand which applies to all residents of Thailand, I’m curious how this change has affected your lifestyle and spending habits over the past year.

 

Has made zero difference.

[RSD1]

21 minutes ago, kinyara said:

They are likely attracting a lot of new longer term stayers under the new DTV visa, more flexible/mobile under 50's staying up 180 days as opposed to the over 50 retirees who may alter their personal spend. They may lose on one policy change and gain with another.

Good and bad. Hard to generalize. Once somebody moves to Thailand full-time, they usually buy a vehicle or two, which is a large purchase and often carries large import duties. Some also buy condos. These are all large sums that go into the economy. In addition, people above the age of 50 may spend a lot more money on private healthcare in Thailand over the next 20 to 30 years. They may also leave a sizable inheritance to a younger Thai wife, which then also eventually gets spent within the Thai economy. 

[kinyara]

16 minutes ago, BangkokBernie said:

Reading all the comments so far on my OP has been really interesting, thank you.
 

It has confirmed my suspicions that people are either using untraceable overseas payment methods for local purchases, spending less in Thailand in general and/or spending less time physically in Thailand as a result of the Thai taxation announcements that were made last year. Meaning that, very few foreigners are planning on paying any income tax to the Thai government at all under this new tax regime.

 

Although we know that the government doesn’t give a toss if a couple hundred thousand foreigners don't embrace this new tax policy because of the millions of tourists that are now coming back in again, but that is very shortsighted of them. A tourist spends money here for a week or two and doesn't contribute much whereas long-term residents need to spend money here 52 weeks a year, which does add up, even if it's not grand amounts of spending. In addition, those tourist dollars are not something that's guaranteed for the future, especially if the Indians or the Chinese change their mind about Thailand, whereas long-term residents can't avoid spending money in Thailand once they are living here full time. 

 

Well, as we said before, hopefully they eventually rethink all of this when they realize it isn't the big money maker they were hoping for, nor is it worth all the additional administrative hassles and burdens placed on their government systems. But it always takes time for the dumb eyed deers to figure out that they are simply dumb ideas. 

 

I don't even think there is even a couple of hundred thousand retired expats in the country. I'm sure I read a figure of 60,000 quoted by the head honcho a few years ago. I think we generally overstate our importance.