Thailand Moves Closer to Wealth Tax with New Asset Tracking

[webfact]

File photo courtesy: Kasikorn Research

 

Thailand is on the brink of implementing a wealth tax, a move greatly facilitated by recent advancements in tracking high-net-worth individuals' assets, even those held overseas. This development was explained by Finance Permanent Secretary Lavaron Sangsnit, who shared insights during an address at the National Defence College.

 

Lavaron revealed that Thailand's new membership in the international tax information exchange network has been a game-changer.

 

By joining this global framework, the Thai Revenue Department now gains access to income data related to Thai citizens residing abroad and can receive information from foreign authorities about earnings generated overseas by Thais. This unprecedented transparency marks a significant stride towards rendering a wealth tax executable.

 

“In the past, implementing such a tax was challenging because the very wealthy could manage their assets globally. The wealthy can invest worldwide, and we have never been able to track their assets held abroad,” Lavaron noted.

 

Previously, taxation was predominantly confined to assets within Thailand's borders, which, though easier to regulate, posed limitations on encompassing global assets. Now, foreign-held assets are clearly on the radar, paving the way to potentially tax wealth that has evaded assessments thus far.

 

This shift comes at a time when international tax trends are veering towards minimising income taxes while emphasising consumption and wealth levies. Lavaron emphasised that mere hikes in VAT are insufficient for comprehensive tax reform. One pivotal goal of taxation, he argued, is to ameliorate income disparities between high and low earners.

A substantial, balanced reform of the tax system could even lead to lower income tax rates, a development that would ostensibly make Thailand an attractive destination for both investors and skilled professionals.

 

Additionally, Lavaron highlighted that many countries introduce mitigative strategies wherein increased taxes in one domain are counterbalanced by support for vulnerable groups, cushioning the blow of consumption tax rises.

 

Enhancing consumption and wealth taxes is expected to boost tax collection efficacy, according to Lavaron. He also urged that, given the dynamic shifts in global tax protocols, Thailand must adjust and adopt a balanced tax policy that aligns well with international norms.

 

Lastly, he mentioned that these deliberations align with a proposal from Thailand’s Fiscal Policy Office aimed at overhauling the tax system. This comprehensive reform intends to bolster revenue, fortify debt repayment capabilities, and harmonise with evolving economic structures and consumer patterns.

 

In conclusion, the prospect of a wealth tax in Thailand signals a pivotal change in the country’s fiscal strategy, marking a proactive step towards addressing economic disparities and meeting global taxation standards.

 

With international collaboration and comprehensive domestic tax reforms on the horizon, Thailand is positioning itself for a more equitable economic future, reported Malay Mail.

 

-- 2025-01-21

 

 

 

[ozz1]

I can't see this happening too many elites will block it somehow including politicians

[lapamita]

clever idea , but clever wealthy Thais ( or other nationals) , you  not able, if they held assets in offshore companys instead of individual holders.

even developed countrys are nearly not able to  find them, or they just simply change their " homeadress" to a tax free country like malaysis or dubai or many other couuntrys (overseas income tax free)

[watchcat]

3 hours ago, ozz1 said:

I can't see this happening too many elites will block it somehow including politicians

 

Probably not but if, then the Shinawatra family are in for a real shock.

[lordgrinz]

3 hours ago, ozz1 said:

I can't see this happening too many elites will block it somehow including politicians

 

....or just leave, and take their money with them.

[Dante99]

So they can get some income information.

 

So this can tell about some wealth but a lot of wealth does not produce income so it would not be flagged.

 

The terminology is getting the dialog confusing and misleading.

[Negita43]

1. How wealthy is wealthy??

2. Take from the rich give to the poor - I don't think so - just a sop to gain popular support

[redwood1]

15 minutes ago, Negita43 said:

1. How wealthy is wealthy??

2. Take from the rich give to the poor - I don't think so - just a sop to gain popular support

 

Yea......Take all those rich peoples money.....And give it all to retired expats who are living in Thailand on a fixed pension and are over the age of 60.

 

I just happen to meet all these requirements......So I think this is a great idea....

[lordgrinz]

1 minute ago, redwood1 said:

 

Yea......Take all those rich peoples money.....And give it all to retired expats who are living in Thailand on a fixed pension and are over the age of 60.

 

I just happen to meet all these requirements......So I think this is a great idea....

 

Retired Expats in Thailand are considered rich here in Thailand, so you may be <deleted> out of luck.

[Robin]

Rich Thais pay tax on their wealth?   Not going to happen.  How many even pay any income tax?

[ChaiyaTH]

AKA the new system where you own nothing but are happy with a Universal Basic Income that is minimal, and if you then work on top you get some more against lower tax rates.

 

In reality you lose on growth potential, power, privacy and more while the real elites will just stay exempted and remain in control of the big plays. The gates are slowly closing...

 

Guess in 5 years it is just normal to all be paying 15-20% minimum for those still here by then. I could see Cambodia getting more populair and not enforcing such things for years until their GDP is big enough.

[tai4de2]

6 hours ago, webfact said:

One pivotal goal of taxation, he argued, is to ameliorate income disparities between high and low earners.

 

This is a profound statement.

 

It confirms that wealth redistribution is now official government policy, and thus that Thailand is now on the globalist socialist path. Some will think this is a positive development, some will think it's a negative one. But it is significant regardless.

[1FinickyOne]

2 hours ago, lordgrinz said:

 

....or just leave, and take their money with them.

They would miss their noodle soup.

[mfd101]

One day it will all happen and Thailand will begin to look like a modern democracy.

 

But probably not in our lifetimes.

[Presnock]

55 minutes ago, tai4de2 said:

 

This is a profound statement.

 

It confirms that wealth redistribution is now official government policy, and thus that Thailand is now on the globalist socialist path. Some will think this is a positive development, some will think it's a negative one. But it is significant regardless.

Taksin has been proposing a negative tax system int Thailand in which those below a certain level will get extra money from the rich to compensate and make them more equal.

https://aseannow.com/topic/1336853-taksin-proposes-negative-income-tax-to-combat-poverty-in-thailand-short/

[Muhendis]

Posters are focussing on the financials of this thread.

Part of the headline is about Assets held in foreign countries.

How many Thais have houses in places like London and Dubai?

These are not so easy to hide or move around as cash.

 

[redwood1]

17 minutes ago, Muhendis said:

Posters are focussing on the financials of this thread.

Part of the headline is about Assets held in foreign countries.

How many Thais have houses in places like London and Dubai?

These are not so easy to hide or move around as cash.

 

 

Well Tony and his daughter and sister will be first on the wealth confiscation list...With their houses and Dubai and London...

 

But then again a very strong possibility....They will conveniently overlooked........Like with Tonys stock sale non-tax......

[hotchilli]

7 hours ago, webfact said:

“In the past, implementing such a tax was challenging because the very wealthy could manage their assets globally. The wealthy can invest worldwide, and we have never been able to track their assets held abroad,” Lavaron noted.

And never will... the elites will make sure of that.

[khunjeff]

3 hours ago, Dante99 said:

So they can get some income information.

 

So this can tell about some wealth but a lot of wealth does not produce income so it would not be flagged.

 

The terminology is getting the dialog confusing and misleading.

 

Agree - the story starts out talking about getting data on "income" and "earnings", and then says that will lead to a tax on "wealth". I don't know whether the speaker wasn't clear in his presentation, or the reporter didn't explain it clearly, but I'm not following this at all.

[koolkarl]

Such wishful comments by dreamers.  This wealth tax is again linked to the CRS.  For example if you had a bank account in NZ

and did stock trading thru it and had term deposits, first off this NZ bank will insist on your Thai tax number, no number, they

will make you close this account.  If you do provide a TIN since they know you reside in Thailand, they will automatically report to

the Thai gov your total assets in NZ and exactly how much you earn there,  every single year.  And Thailand has active CRS agreements

in place with all countries that matter, even China and Russia !

[oldcpu]

9 minutes ago, koolkarl said:

Such wishful comments by dreamers.  This wealth tax is again linked to the CRS.  

 

As long as one is legally managing one's tax exposure,  why would one care?

[watchcat]

5 hours ago, lordgrinz said:

 

....or just leave, and take their money with them.

 

I like the idea.

[koolkarl]

2 hours ago, oldcpu said:

 

As long as one is legally managing one's tax exposure,  why would one care?

Haha.  Well if you like giving your money to the Thai government and get absolutely nothing back except more polluted air, be  my guest. If you gave the same money to me, at least I would be your friend.

[J Branche]

4 hours ago, ChaiyaTH said:

AKA the new system where you own nothing but are happy with a Universal Basic Income that is minimal, and if you then work on top you get some more against lower tax rates.

 

In reality you lose on growth potential, power, privacy and more while the real elites will just stay exempted and remain in control of the big plays. The gates are slowly closing...

 

Guess in 5 years it is just normal to all be paying 15-20% minimum for those still here by then. I could see Cambodia getting more populair and not enforcing such things for years until their GDP is big enough.

I had to read it again.

 

The Article says Thai Citizen,  many are residents of Thailand.

A citizen has permanent status in Thailand.

 

I understand that Thailand does need this.  

There are so many things Thailand needs to invest in.

1. Education system

2. Contribution to children's school so it's more affordable or parents can have money to spend on basic necessities.

3. Healthcare

4. Aid, loans, education to farmers so the Pollution will go down.

5. High-speed Rail

 

I agree that there many business structures were a member has Unrealized income.

There would probably be push back as a business in another country can earn 2x or 3x the same business in Thailand.  The tax percentage table is adjusted in the other country to reflect this.  Thailand would need to address a different tax table and percentage for Foreign Income.

 

[oldcpu]

11 minutes ago, koolkarl said:

Haha.  Well if you like giving your money to the Thai government and get absolutely nothing back except more polluted air, be  my guest. If you gave the same money to me, at least I would be your friend.

 

You are allowed to stay in Thailand.   THAT is what you get in return. 

 

There is more than just 'immigration' aspects to stay in ANY country in this world, and that includes Thailand.

 

One needs to follow the local tax laws.  Including tax laws.

 

Try staying in any G7 country as a non-citizen , who is a tax resident to those countries.  Thailand is no different there  - except Thailand does not (yet) tax global income if not remitted to Thailand.

 

If the polluted air bothers you (and it would bother me, which is why I live in the south of Thailand) then you should move.

[Celsius]

need to file a tax return, yes or no answer only.

[Negita43]

Just a thought - are governments becoming too powerful?

[oldcpu]

3 minutes ago, Celsius said:

need to file a tax return, yes or no answer only.

 

To Germany? No. German government sent me a letter (despite my having German + Europe pension income) and advised me I did not have to file a German tax return since I was a Thai tax resident. 

 

To Canada? Yes. Canada taxes ALL Canadian sourced income for both residents & non-residents.  None of the Canadian DTAs (to best of my knowledge) avoid that Canadian policy.

 

To Thailand? No. Phuket RD was quite clear some months back, that given I was remitting no money to Thailand in the 2024 calendar year and since I had no Thai income, that I did NOT qualify for a Thai TIN ,and that I should NOT file a Thai tax return.

[oldcpu]

8 minutes ago, Negita43 said:

Just a thought - are governments becoming too powerful?

 

I think every one has been asking that question for the past 3,000 ? years.

[Celsius]

16 minutes ago, oldcpu said:

To Thailand? No. Phuket RD was quite clear some months back, that given I was remitting no money to Thailand in the 2024 calendar year and since I had no Thai income, that I did NOT qualify for a Thai TIN ,and that I should NOT file a Thai tax return.

 

Thanks. I do Canadian non resident tax return every year. Remitting.... using a credit card?