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

[oldcpu]

29 minutes ago, giddyup said:

Just spoke to next door neighbor, who is French, he went to revenue office yesterday and even though he has not transferred any money from France in the last 12 months he was still charged 5000 baht. The Revenue officer started at 11,000 baht and my neighbor negotiated his way down to 5000 baht. It seems pretty obvious to me that this whole procedure is open to corruption.

Taxation in Thailand is by calendar year. Not by past 12 months. Also local income needs to be considered. Likely there is more details that you were not told.

[giddyup]

1 minute ago, oldcpu said:

Taxation in Thailand is by calendar year. Not by past 12 months. Also local income needs to be considered. Likely there is more details that you were not told.

No, I believe 100% what he said is true. I thought the tax year was from Jan 1 2024 to Jan 1 2025? 

[oldcpu]

5 minutes ago, giddyup said:

No, I believe 100% what he said is true. I thought the tax year was from Jan 1 2024 to Jan 1 2025? 

Yes, but that is not the last 12 months. Last I checked this month is March.  Past 12 months is Feb 2024 to Feb 2025. If  your friend brought money into Thailand in Jan 2024, that is not past 12 months,  but it is still part of 2024 tax year.

[motdaeng]

8 minutes ago, giddyup said:

What proof would you like, video evidence of the encounter?

 

yes, that would be great ... 

[giddyup]

Just now, oldcpu said:

Yes, but that is not the last 12 months. Last I checked this month is March.  Past 12 months is Feb 2024 to Feb 2025. If  your friend brought money into Thailand in Jan 2924, that is not past 12 months,  but it is still part of 2024 tax year.

What I understand is that he had no need to transfer any money for the last calendar year, and he had no income from local earnings, so what were they trying to tax him on? And how was he able to negotiate the amount down from 11000 baht to 5000 baht?

[giddyup]

2 minutes ago, motdaeng said:

 

yes, that would be great ... 

Hang on, I'll check if they have CCTV at the Revenue Office.

[oldcpu]

20 minutes ago, giddyup said:

What I understand is that he had no need to transfer any money for the last calendar year, and he had no income from local earnings, so what were they trying to tax him on? And how was he able to negotiate the amount down from 11000 baht to 5000 baht?

 

I confess i struggle to believe he would  be taxed for the 2024 tax year in Thailand if he had no local income for the 2024 tax year, and if he brought no money into Thailand for the 2024 tax year.  So that is why I am skeptical and I believe that there is more to this story. 

 

Perhaps they are taxing him on previous years when he needed to, and failed to, file a tax return for some reason?

[TheAppletons]

2 minutes ago, oldcpu said:

 

I confess i struggle to believe he would  be taxed for the 2024 tax year in Thailand if he had no local income for the 2024 tax year, and if he brought no money into Thailand for the 2024 tax year.  So that is why I am skeptical and I believe that there is more to this story. 

 

Perhaps they are taxing him on previous years when he needed to, and failed to, file a tax return for some reason?

 

  Or they saw another mark who just couldn't wait to line up and pay tax so they obliged him.

 

  Seriously, why else would someone with no local income and no remittances go to the TRD office?

[giddyup]

5 minutes ago, TheAppletons said:

 

  Or they saw another mark who just couldn't wait to line up and pay tax so they obliged him.

 

  Seriously, why else would someone with no local income and no remittances go to the TRD office?

He went to get a clearance certificate that could be presented to Immigration if that becomes a requirement.

[giddyup]

9 minutes ago, oldcpu said:

 

I confess i struggle to believe he would  be taxed for the 2024 tax year in Thailand if he had no local income for the 2024 tax year, and if he brought no money into Thailand for the 2024 tax year.  So that is why I am skeptical and I believe that there is more to this story. 

 

Perhaps they are taxing him on previous years when he needed to, and failed to, file a tax return for some reason?

I thought this new law just came into effect for the last tax year, or are they going to start taxing people from their first arrival in Thailand? In my case 15 years of back taxes.

[Antti]

15 minutes ago, oldcpu said:

 

I confess i struggle to believe he would  be taxed for the 2024 tax year in Thailand if he had no local income for the 2024 tax year, and if he brought no money into Thailand for the 2024 tax year.  So that is why I am skeptical and I believe that there is more to this story. 

 

Perhaps they are taxing him on previous years when he needed to, and failed to, file a tax return for some reason?

 

Many government officials here are mostly interested in lining their own pockets. This is a country where civil servants have exotic car collections. It's wishful thinking to think that the RD would be an exception. I think it’s obvious that there will be many cases where foreigners are scammed by RD officials, especially elderly ones intimidated by fear-mongering.

[TheAppletons]

3 minutes ago, giddyup said:

He went to get a clearance certificate that could be presented to Immigration if that becomes a requirement.

 

  That's not required but apparently for sale at the low, low price of 5K THB.

[giddyup]

3 minutes ago, TheAppletons said:

 

  That's not required but apparently for sale at the low, low price of 5K THB.

Hence his negotiation from 11000 to 5000 baht.

[giddyup]

 Cancel.

 

[kiwikeith]

On 1/16/2025 at 12:11 AM, snoop1130 said:

Photo courtesy of Expatica

 

By Puntid Tantivangphaisal

 

A packed meeting of the Pattaya City Expat Club turned into a lively debate as members received crucial updates on Thailand’s controversial new tax policy regarding overseas income transfers.

 

Hosted by Thomas Carden, director of American International Tax Advisers, and tax attorney Patcha Inkudanonda, the session offered clarity, and raised fresh concerns, about the Thai Revenue Department’s evolving guidelines.

 

Patcha explained that not all expats are required to file Thai tax returns. Exemptions apply to those in Thailand for less than 180 days in 2024, individuals who haven’t transferred money from abroad, those who only moved income earned before December 31, 2023, and holders of the 10-year Long Term Residence (LTR) Visa. For others, the advice is clear: obtain a tax identification number and file a return by March 2025.

 

“All foreign income must be declared but this doesn’t always mean a tax liability.”

 

 

 

In a surprise revelation, it was disclosed that foreign credit card usage in Thailand, if converted to Thai baht, is now considered taxable income. Carden urged expats to carefully review double taxation treaties between Thailand and their home countries but noted these are not blanket exemptions.

 

“Each treaty has unique terms, referencing them in tax submissions could help as a caveat.”

 

Attendees raised questions about investment transfers, such as using overseas funds to buy a Thai condominium, but Carden admitted such matters remain unclear. He acknowledged the Revenue Department’s intent to widen the tax base, with small earners inadvertently caught in policies aimed at wealthy Thais, reported Pattaya Mail.

 

Concerns about enforcement were addressed, with Patcha citing international agreements like the Global Forum on Transparency, enabling Thai officials to request banking information globally. Both experts urged expats to retain detailed records of foreign transactions to avoid audits and potential penalties.

 

Source: The Thaiger

-- 2025-01-15

 

 

 

My Thai wife just bought a house with money transferred from sale of overseas property that was legally half hers, I have the tax papers saying it was exempt from capital gain because of how long we owned it.

I went with her to change the Chanut and put it in her name only, they demanded my passport and a copy of the marriage certificate in Thai and I had to sign some papers, I think this was to do with Tax and where she got the money but they would not say when asked.

Legally the money is free from tax as it is not earnings and the NZ govt has signed off on that, I wonder what may happen, NZ has a double tax agreement so should be ok, any comments welcome.

[couchpotato]

2 minutes ago, kiwikeith said:

My Thai wife just bought a house with money transferred from sale of overseas property that was legally half hers, I have the tax papers saying it was exempt from capital gain because of how long we owned it.

I went with her to change the Chanut and put it in her name only, they demanded my passport and a copy of the marriage certificate in Thai and I had to sign some papers, I think this was to do with Tax and where she got the money but they would not say when asked.

Legally the money is free from tax as it is not earnings and the NZ govt has signed off on that, I wonder what may happen, NZ has a double tax agreement so should be ok, any comments welcome.

You are very confused. The Land Office asked for your PP/details etc because she is married to a foreigner. The papers you signed say that the money for the purchase was hers alone, and you have no legal rights to the property. Nothing to do with taxes.

[Mutt Daeng]

3 minutes ago, couchpotato said:

You are very confused. The Land Office asked for your PP/details etc because she is married to a foreigner. The papers you signed say that the money for the purchase was hers alone, and you have no legal rights to the property. Nothing to do with taxes.

I agree. I had to do that about 15 years ago when our lass bought some land.

[JimGant]

1 hour ago, giddyup said:

he went to revenue office yesterday and even though he has not transferred any money from France in the last 12 months he was still charged 5000 baht.

Serves him right for going to TRD with no purpose.

[giddyup]

Just now, JimGant said:

Serves him right for going to TRD with no purpose.

Like a lot of falangs he believed he was doing the "right thing" and also covering his butt if Immigration asks for it when he next applies to renew his visa. Time will tell if he made the right move.

[JimGant]

1 hour ago, TheAppletons said:

Seriously, why else would someone with no local income and no remittances go to the TRD office?

French?

[NoDisplayName]

1 hour ago, giddyup said:

What I understand is that he had no need to transfer any money for the last calendar year, and he had no income from local earnings, so what were they trying to tax him on? And how was he able to negotiate the amount down from 11000 baht to 5000 baht?

 

No make sense.

 

No income, no remittance?

 

Why file tax return?

 

I'ma bet he didn't remit any funds other than the 65K monthly of taxable pension for his extension.

 

The reduction likely occurred when the tax staffer asked if he was over 65.

[NoDisplayName]

45 minutes ago, kiwikeith said:

My Thai wife just bought a house with money transferred from sale of overseas property that was legally half hers, I have the tax papers saying it was exempt from capital gain because of how long we owned it.

 

Not taxable in NZ.  Doesn't apply to Thailand unless in DTA.  Capital gains could be considered assessable, but only if you declared it on the tax return.

 

47 minutes ago, kiwikeith said:

I had to sign some papers, I think this was to do with Tax and where she got the money but they would not say when asked.

 

Nothing to do with taxation.  You're signing a paper stating that the money is hers, and you as a foreign person have no interest in the property.

[NoDisplayName]

On 3/21/2025 at 9:15 AM, roobaa01 said:

I was assed 0 tax payment but was asked to pay THB 5000 for the clearance certificate alike also 4 of my friends.

 

Are all of you using the same agent?

[giddyup]

7 minutes ago, NoDisplayName said:

 

No make sense.

 

No income, no remittance?

 

Why file tax return?

 

I'ma bet he didn't remit any funds other than the 65K monthly of taxable pension for his extension.

 

The reduction likely occurred when the tax staffer asked if he was over 65.

As I have explained already, he believed he needed to get some kind of tax clearance or certificate that could be shown to Immigration if asked. I believe the 5000 baht was for that certificate, as others posting here have already been charged.

[anrcaccount]

1 hour ago, giddyup said:

Hang on, I'll check if they have CCTV at the Revenue Office.

 

Have, but not wukking naaaaaaaaa

[giddyup]

3 minutes ago, NoDisplayName said:

 

Are all of you using the same agent?

Why would you need an agent to do a tax return?

[NoDisplayName]

5 minutes ago, giddyup said:

Why would you need an agent to do a tax return?

 

Not for the tax return, unless you were for some reason unable to file it yourself.

 

There is one infamous poster, not seen recently, who has been disseminating disinformation, claiming that immigration WILL require tax returns, and that tax clearance certificates WILL be needed.

 

Also claimed WILL be using an agent to file a return AND to obtain a tax clearance certificate.....which is not normally available.

 

As far as I am aware, YOU (and four others you claim YOU know of) are the only posters to have received a "TCC".

 

Would you mind posting a photo of your "tax clearance certificate," with personal info redacted of course?

[kiwikeith]

35 minutes ago, NoDisplayName said:

 

Not taxable in NZ.  Doesn't apply to Thailand unless in DTA.  Capital gains could be considered assessable, but only if you declared it on the tax return.

 

 

Nothing to do with taxation.  You're signing a paper stating that the money is hers, and you as a foreign person have no interest in the property.

thanks

[TheAppletons]

14 minutes ago, NoDisplayName said:

Would you mind posting a photo of your "tax clearance certificate," with personal info redacted of course?

 

 

[kiwikeith]

1 hour ago, couchpotato said:

You are very confused. The Land Office asked for your PP/details etc because she is married to a foreigner. The papers you signed say that the money for the purchase was hers alone, and you have no legal rights to the property. Nothing to do with taxes.

yes it was confusing as no one wanted to explain anything, wife was confused as well , thanks for clearing that up