Thailand as home, roaming the world tax free - the pipe dream

[Everyman]

22 minutes ago, ronnie50 said:

I'm not American, but that is indeed news to me. So you're saying Americans working abroad are exempt from taxation up to USD 99,000 per year? (provided they do some extra paperwork?). Wouldn't that be kind of common knowledge?

 

It basically is common knowledge in the sense that the information is easy to find. The American tax system is big and complicated though and not everyone has personal finance as a hobby. 

 

Here is the IRS page about it https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion

 

It can be a bit confusing with the “tax home,” thing, but the important part is the “physical presence test.” 

 

And the amount for the 2023 tax year is $126,500. I was just being approximate with the “six figures.” 

 

As I mentioned however, if you are self employed and your income comes from the US you’re on the hook for at least about 15% and there’s nothing you can legally do about that. 

[ronnie50]

6 minutes ago, Everyman said:

Here is the IRS page about it https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion

 

[...]

 

As I mentioned however, if you are self employed and your income comes from the US you’re on the hook for at least about 15% and there’s nothing you can legally do about that. 

Interesting, didn't know that. Thanks. So then it's not so bad for most, provided their overseas employer is not paying the individual's salary from funds sourced in the US. Dual nationals would probably gain quite nicely from this if they prove they live and work in a 3rd country (other than Canada, which I think has some treaty with US making it harder to avoid US tax abroad).

[Letseng]

On 12/24/2024 at 7:48 AM, newbee2022 said:

As far as I know EU members have to pay taxes to their home countries wherever they live.

Only if you have an income from the country like pension.

From any income from investment they take 35% tax at source.

[newbee2022]

25 minutes ago, Letseng said:

Only if you have an income from the country like pension.

From any income from investment they take 35% tax at source.

I said this. Thank you to confirm my post👍

[topt]

34 minutes ago, Letseng said:

Only if you have an income from the country like pension.

From any income from investment they take 35% tax at source.

Which specific country is that or are you suggesting that is Euro wide?

 

UK for example does not have that - and didn"t even when it was in the bloc.

And @newbee2022 there is no capital gains tax payable (other than property) if non resident for tax. So you could trade shares to your hearts content and any gains would not be taxable.

[newbee2022]

1 minute ago, topt said:

Which specific country is that or are you suggesting that is Euro wide?

 

UK for example does not have that - and didn"t even when it was in the bloc.

And @newbee2022 there is no capital gains tax payable (other than property) if non resident for tax. So you could trade shares to your hearts content and any gains would not be taxable.

UK is not EU. And of course you have to pay taxes if the source of your income is a state pension eg.

[Thingamabob]

I'm not going anywhere. 

[KhunHeineken]

6 hours ago, Thingamabob said:

I'm not going anywhere. 

No one has said, including the Thai government, that you have to leave. 

 

However, you MAY have to be prepared to pay more to continue to reside in Thailand. 

[KhunHeineken]

I am giving Thailand one year of this.  Early next year we will all get to see how this unfolds. 

 

If I feel the tax bill is to a point where I think it's a rip off, it's 179 days in Thailand, and the rest in Vietnam.  Simple.

[gamb00ler]

11 hours ago, ronnie50 said:

I'm not American, but that is indeed news to me. So you're saying Americans working abroad are exempt from taxation up to USD 99,000 per year? (provided they do some extra paperwork?). Wouldn't that be kind of common knowledge?

The income that is excluded from taxation by US is only wage/salary income.  Business income, investment income and other non-wage earnings are not included in the foreign earned income exemption.

 

In another post you indicated that this US exemption would be of benefit to dual nationality tax payers.  I don't think that's true as it only exempts the earner from US taxes not all taxation.

[MartinBangkok]

12 hours ago, ronnie50 said:

Maybe it's the word 'tax resident' - I know what you mean though, you must pay taxes at source if it was earned in your country of nationality.  However, I'm not considered a tax resident of my country(ies) for example.. but if I earned money there, regardless of where I am resident, they'd tax it at source.

You are both wrong regarding salaries. Pension is a grey area. 

[KhunHeineken]

13 minutes ago, MartinBangkok said:

Pension is a grey area. 

Can you quote some legislation, even a DTA, that states pensions are exempt?