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

[Jingthing]

1 hour ago, topt said:

This was discussed (argued.......555) at length in one or more of the original tax threads.

From memory the supposed conclusion was that whichever method you decided on was acceptable as you would have to present it to the RD if it was ever queried.

I seem to remember @JimGant being heavily involved in the discussion. Apologies if I have that wrong.

Well perhaps.

I certainly recall a number of discussions about first in / first out accounting because I was involved in them. I think it was generally agreed that first in / first out was quite a standard accounting method and that there was a good chance that TR would go along with it if you had good records and you applied it consistently.

HOWEVER, I really don't recall any discussion about what interests me now if the change happens. Last in / First out. Very different and from what I can tell so far really something used in INVENTORY accounting, when I am talking about accounting for income.

[JimGant]

8 hours ago, Jingthing said:

So the ultimate question is if applied consistently would Thai Revenue accept LAST IN, FIRST OUT as a legitimate accounting method in such cases? Or not?

According to an article in the Bangkok Post, yes. In your situation, a fungible pot of money equates to scriptless securities. Once you pick LIFO, you're supposed to consistently stick with that accounting method. Sounds like no problem in your situation, since FIFO wouldn't make any sense, since all the earlier money is SS, where timing makes no difference as to its taxability.

 

Quote

For scripless securities, the taxpayer is allowed to use any acceptable accounting method such as FIFO, LIFO or weighted average method in calculating cost of securities.

- Once any of the accounting methods is used for calculation of cost basis, such method has to be used consistently.

https://www.bangkokpost.com/business/general/299691/when-the-revenue-department-changes-its-mind-the-taxpayer-gets-the-headache