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

[Yumthai]

10 minutes ago, NoDisplayName said:

You missed "he can become non-resident for a year."

Sell and remit during that non-resident year.

Sorry but I don't get it. He surely can do what you say but he can also sell during a tax resident year and remit tax free during a later non-resident year.

[NoDisplayName]

5 minutes ago, Yumthai said:

Sorry but I don't get it. He surely can do what you say but he can also sell during a tax resident year and remit tax free during a later non-resident year.

 

Maybe, but why take the chance?

Wait until we know how this will work in the reality.

[anchadian]

 

[ukrules]

2 hours ago, Yumthai said:

Sorry but I don't get it. He surely can do what you say but he can also sell during a tax resident year and remit tax free during a later non-resident year.

 

I did read something, some kind of clarification by one of the big accountancy firms about this very issue as it is important.

If you realise any asset during a resident year then they will tax it on remittance in any future year when it is remitted, regardless of whether you're resident or not during the year of remittance.

 

The important thing is the date when the assets were converted from whatever they are (shares, bonds, etc) into cash. If you were tax resident in that year then you are liable on that money for the rest of your life if it is traced back to that transaction.

The clarification / interpretation was by Mazars and here's a link to it :

https://www.forvismazars.com/th/en/insights/doing-business-in-thailand/tax/revenue-department-s-guidance-on-foreign-income

 

Back in the original threads on this tax change it was suggested that being non resident in both the year or asset realisation and remittance might be prudent but it does appear that all that really matters is that you were non resident during the year the assets were sold.

However, remitting large amounts of money in a year when you are a resident may attract more attention and personally I would avoid it as I suspect it may be an event that triggers an audit depending on the amount, and they likely won't know when the assets were realised until they dig deeper by inspecting past statements from previous years, etc.

 

[Yumthai]

4 hours ago, ukrules said:

I did read something, some kind of clarification by one of the big accountancy firms about this very issue as it is important.

If you realise any asset during a resident year then they will tax it on remittance in any future year when it is remitted, regardless of whether you're resident or not during the year of remittance.

 

The important thing is the date when the assets were converted from whatever they are (shares, bonds, etc) into cash. If you were tax resident in that year then you are liable on that money for the rest of your life if it is traced back to that transaction.

The clarification / interpretation was by Mazars and here's a link to it :

https://www.forvismazars.com/th/en/insights/doing-business-in-thailand/tax/revenue-department-s-guidance-on-foreign-income

 

Back in the original threads on this tax change it was suggested that being non resident in both the year or asset realisation and remittance might be prudent but it does appear that all that really matters is that you were non resident during the year the assets were sold.

However, remitting large amounts of money in a year when you are a resident may attract more attention and personally I would avoid it as I suspect it may be an event that triggers an audit depending on the amount, and they likely won't know when the assets were realised until they dig deeper by inspecting past statements from previous years, etc.

There is no law backing what you mention.

 

There is nowhere in the Mazars link mentioning non tax residents, it is always question of taxpayers i.e. tax residents.

You will note that in the example Mr. A is always tax resident including in 2026, it would have been mentioned if otherwise.

 

Third-parties stating: "If you realise any asset during a resident year then they will tax it on remittance in any future year when it is remitted, regardless of whether you're resident or not during the year of remittance." is nothing less than their opinion/interpretation.

 

Again, to me, the current rule "A non-resident is, however, subject to tax only on income from sources in Thailand." prevails in any case until a potential amendment.

 

[oldcpu]

5 hours ago, ukrules said:

 

I did read something, some kind of clarification by one of the big accountancy firms about this very issue as it is important.

If you realise any asset during a resident year then they will tax it on remittance in any future year when it is remitted, regardless of whether you're resident or not during the year of remittance.

 

 

I don't believe that correct.   Its only for income realized (earned) in the year in which one was a resident of Thailand. That is consistent with Por.161.162, where it notes the remitted income must be assessable income to be taxed.

 

Please note, and this is very important .... Income earned, when one was not a resident is not assessable income, and it does not magically change to assessable income when brought into Thailand if one still a non-resident.

 

However income earned abroad, when one was a resident, will be assessable income when remitted to Thailand.

 

The officials from those 'big accounting firms' whose names you do not mention, would be well served to call the Thai RD help line and get their interpretation straightened.

 

Further,  ... don't forget with the caveat it needs to be income from 1-Jan-2024 onward, and it needs to be assessable in consideration as to what is in the foreign source income country's DTA with Thailand ... and also one's Visa (such as an LTR-WP, LTR-WGC, and LTR-WFTP) needs to be taken into account.

 

If what you type is accurate re accounting firm interpretations, it is disheartening to read of big accounting firms making such errors.

[redwood1]

1 hour ago, oldcpu said:

 

I don't believe that correct.   Its only for income realized (earned) in the year in which one was a resident of Thailand. That is consistent with Por.161.162, where it notes the remitted income must be assessable income to be taxed.

 

Please note, and this is very important .... Income earned, when one was not a resident is not assessable income, and it does not magically change to assessable income when brought into Thailand if one still a non-resident.

 

However income earned abroad, when one was a resident, will be assessable income when remitted to Thailand.

 

The officials from those 'big accounting firms' whose names you do not mention, would be well served to call the Thai RD help line and get their interpretation straightened.

 

Further,  ... don't forget with the caveat it needs to be income from 1-Jan-2024 onward, and it needs to be assessable in consideration as to what is in the foreign source income country's DTA with Thailand ... and also one's Visa (such as an LTR-WP, LTR-WGC, and LTR-WFTP) needs to be taken into account.

 

If what you type is accurate re accounting firm interpretations, it is disheartening to read of big accounting firms making such errors.

 

it is disheartening to read of big accounting firms making such errors.

 

 

Hey errors can be very profitable to the accounting firms when the errors convince the weak they need to shell out $$$ to the firms for their tax services....

[KhunHeineken]

2 minutes ago, redwood1 said:

Hey errors can be very profitable to the accounting firms when the errors convince the weak they need to shell out $$$ to the firms for their tax services....

Errors can also be very costly for individuals who have convinced themselves this Thai tax policy is all a big NOTHING. 

 

They talked themselves into not shelling out anything, and perhaps will have to shell out what's owed, and more, in the future.  

[Jinxed1]

On 2/4/2025 at 5:04 PM, Jingthing said:

If the sold investment was sold into cash in a bank account before 2024, then yes that is exempt in any future year you might remit it.

If it was in a cash bucket portion in a brokerage account, I am not sure about that though. 

Is there any certified information on that last part? looks like all lawyers don't agree

does anyone know a reliable tax advisor regarding this topic?

[ukrules]

3 hours ago, oldcpu said:

I don't believe that correct.   Its only for income realized (earned) in the year in which one was a resident of Thailand.

 

That's literally what I said to the word and is included in your quote.

 

Specifically this point is about someone earning a load of money whilst resident but remitting it in a later year when non resident - they're going to tax that.

So lets say you were resident in 2024, made $2 million in profit, remitted nothing as you don't want to pay tax on that.

Then in 2025 you go to some other country for 7 months becoming non resident - and during this subsequent non resident year remit prior earnings from 2024 - they're going to want to tax that as it was money made in a year when you were resident.

Now - would they know? - Who knows - unlikely unless you're audited but if audited they're going to want to trace that money back to the profit event and when they find you were resident when making it even though you didn't remit it in that year they will realise they have hit a bullseye

 

[ukrules]

8 hours ago, oldcpu said:

The officials from those 'big accounting firms' whose names you do not mention

 

The company name is in my post in the link and the link goes directly to their website.

They are a global giant with 40k employees in over 100 countries - : Forvis Mazars

Forvis Mazars is a prominent professional services firm in Thailand, ranking in the top 5 position in the market and holding the #1 position specifically in accounting outsourcing services

 

They are pretty much one of the most knowledgeable companies in the world.

 

Quote

The clarification / interpretation was by Mazars and here's a link to it :

https://www.forvismazars.com/th/en/insights/doing-business-in-thailand/tax/revenue-department-s-guidance-on-foreign-income

 

[roobaa01]

23 hours ago, anchadian said:

 

Thank you very much

Wbr

Roobaa01

[redwood1]

9 hours ago, KhunHeineken said:

Errors can also be very costly for individuals who have convinced themselves this Thai tax policy is all a big NOTHING. 

 

They talked themselves into not shelling out anything, and perhaps will have to shell out what's owed, and more, in the future.  

 

Well lucky we had Mike Lister.Chang Mai, and The Cyclist to keep us in line....Except it looks like they have abandoned ship....

 

[roobaa01]

2 minutes ago, redwood1 said:

 

Well lucky we had Mike Lister.Chang Mai, and The Cyclist to keep us in line....Except it looks like they have abandoned ship....

 

Gday 

My tax income return after deduction of the 560000 is minus THB 22000 , how do they treat a negative income at the Thai revenue department? Is that rolled over like in Austria to the next tax return?

 

Wbr

Roobaa01

[Yumthai]

8 hours ago, ukrules said:

Now - would they know? - Who knows - unlikely unless you're audited but if audited they're going to want to trace that money back to the profit event and when they find you were resident when making it even though you didn't remit it in that year they will realise they have hit a bullseye

If you're (unlikely, especially as a non tax resident) audited, TRD will disregard foreign sourced income remittances occurred during all back years you were not tax resident in Thailand, focusing only on local Thai income if any. Why? Because this is what the written law still says.

 

For anyone walking in a TRD office asking to file a tax return/get a TIN, what are the first and foremost questions the official asks?

"Do you live/reside in Thailand?" (implying: Are you a tax resident?), and "Do you work in Thailand?" (implying: Do you have local income?)  Then, non tax residents (often dismissed) and tax residents will be treated differently.

 

[jwest10]

24 minutes ago, Yumthai said:

If you're (unlikely, especially as a non tax resident) audited, TRD will disregard foreign sourced income remittances occurred during all back years you were not tax resident in Thailand, focusing only on local Thai income if any. Why? Because this is what the written law still says.

 

For anyone walking in a TRD office asking to file a tax return/get a TIN, what are the first and foremost questions the official asks?

"Do you live/reside in Thailand?" (implying: Are you a tax resident?), and "Do you work in Thailand?" (implying: Do you have local income?)  Then, non tax residents (often dismissed) and tax residents will be treated differently.

 

Precisely and been up to my local revenue office and stating the same and me deductibles higher than my non Tas income and "So you work in Thailand" 
If not again you do not need to file a tax form and also  and stated this before my Thai friend who knows someone ther confirmed a number of times.