Thai tax tangle: Expats warned of new rules on overseas income

[NoDisplayName]

2 hours ago, The Cyclist said:

Why go to the hassle of changing PND 90 & 91, which is for employed people.

 

PN91 is for income from employment only.

PN90 is for income from employment AND all other forms.

[oldcpu]

10 minutes ago, NoDisplayName said:

 

According to the regulations, we only declare assessable income, which in most cases means claiming DTA benefits is accomplished by the taxpayer self-determining what is and what is not taxable by Thailand, and NOT declaring income that is exempt.

 

If not exempt, assessable income is declared.  If over the taxpayer's TEDA, tax may be due.

 

In rare instances a taxpayer may need to claim benefits under their DTA where it is not clear that the income is exempt.  The tax forms do not allow for this, so an in-person filing is required, potentially needing paid representation.  Tax office intervention is required, with a tax officially manually adjusting the filing.

 

yes - I am coming around to that view as well. 

 

Once I spotted article-42 in the Thai tax code , which notes some income is NOT to be included in the Thai tax calculation, it became very clear to me that there is a category of non-assessble income.  I also noted the footnote to the article-42(item-17) gets updated (typically a bit late) when there are changes, ... so I am coming around to the view that there is foreign remitted income to Thailand which is not to be included in a Thai tax calculation (per Thai law) and hence if that the only income then there is no need for a tax return.

 

Edit: Except perhaps I go a step further than you in believing for some no tax return submission needed

[The Cyclist]

2 minutes ago, NoDisplayName said:

According to the regulations, we only declare assessable income,

 

Yes, see Section 40, Para ( 1 ) where it says Pensions.

 

The various pensions mentioned in DTA' will

 

1. exempt your pension from Thai taxation.This does not exempt said pensions to filing, if you are a thai tax resident, it means they are exempt from thai tax.

 

2. TEDA's may mean that your pension is below the threshold for paying tax.

 

3. A combination of TEDA's and Tax credits, may also mean that you have no income tax to pay

 

So Assessable income is Pensions ( As Per Section 40, Para 1 ) of the RD and the threshold for tax filing is above the 120k / 220k Baht a year.

 

Others are free to cherry pick between the revenue Code and DTA's to come up with answer that suits them

[NoDisplayName]

23 minutes ago, The Cyclist said:

 

Yes, see Section 40, Para ( 1 ) where it says Pensions.

 

The various pensions mentioned in DTA' will

 

1. exempt your pension from Thai taxation.This does not exempt said pensions to filing, if you are a thai tax resident, it means they are exempt from thai tax.

 

2. TEDA's may mean that your pension is below the threshold for paying tax.

 

3. A combination of TEDA's and Tax credits, may also mean that you have no income tax to pay

 

So Assessable income is Pensions ( As Per Section 40, Para 1 ) of the RD and the threshold for tax filing is above the 120k / 220k Baht a year.

 

Others are free to cherry pick between the revenue Code and DTA's to come up with answer that suits them

 

Still at this, dawg?

 

I'm truly sorry for you that the misinformed TRD lady in Pak Chong's backwater office told you to declare your entire remitted non-assessable pension, and then proceeded to incorrectly deduct it from the wrong section, merely to avoid admitting her misteak.  Just remember, your personal anecdote does not determine the law.

 

There is no provision on the form to claim foreign tax credits.

There is no provision on the form to exclude excludable, non-taxable, non-assessable income once declared.

 

Yes, I know.........Kenya signed up for CRS!!!

[oldcpu]

2 minutes ago, NoDisplayName said:

 the misinformed TRD lady in Pak Chong's backwater office told you to declare your entire remitted non-assessable pension, and then proceeded to incorrectly deduct it from the wrong section, merely to avoid admitting her misteak. 

 

 

wow ... One needs to be careful as everyone can make mistakes.

 

My concern for Cyclist would be that if they file their income tax the way it was incorrectly suggested to file in, someone else in the RD will review the tax submission, reject the exemption (in the wrong place as there is no place)  and charge full Thai tax on the tax exempt pension.  Then one is into the annoyance of appeal territory.

 

... best hope would be that the RD official reviewing the tax submission phones and asks why was the exemption placed in a place in the tax form which was not designed for such an entry.  .. and then sort it out on the phone.  But even that would be a PIA.

 

2 minutes ago, NoDisplayName said:

There is no provision on the form to claim foreign tax credits.

There is no provision on the form to exclude excludable, non-taxable, non-assessable income once declared.

 

That comment is very relevant  IMHO

 

Again , that was one factor that lead me to modify my view,  ... and I now believe that non-assesable remitted income (due to Por.161/162, or due to a specific DTA clause, or due to a specific LTR visa exemption) is not to be included in a Thai tax calculation, and hence not included on a Thai tax form. 

 

That view is IMHO consistent with all Thai tax 'english' language tax forms going back to 2017 up to year 2023, and also consistent with all Thai language tax forms, including the year 2024 and year 2025 Thai language Thai tax forms.

 

The tax forms (both Thai and English language)  would need to be changed for such exemptions (and hence for the associated remitted tax exempt income) to be entered in the tax forms.

.

[pizzachang]

Interesting concept, and a ancient one - taxation without representation.  

As far as I know, "foreigners" do not get to vote or own land, so the "representation" is thinner than a hair.

[oldcpu]

3 minutes ago, pizzachang said:

Interesting concept, and a ancient one - taxation without representation.  

As far as I know, "foreigners" do not get to vote or own land, so the "representation" is thinner than a hair.

As the saying goes : TIT (This is Thailand).

 

If you wish representation, then try to become a Thai citizen or head back to your home country.  That is the harsh reality.