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.