Thai Tax Laws for Expats: the Practical Implications versus the Realities

[JackGats]

I can't understand why people who are already taxed in their own country, ie who don't need Thailand as a tax residence, do not simply spend 6 months outside Thailand. What is so special about Thailand that they should feel a compulsion to stay here more than 6 months? I like the few months I spend in TH but six months and a half is my upper limit. What's wrong with Vietnamese or Cambodian food? What's wrong with Indonesian sex?

[MartinL]

10 hours ago, JackGats said:

I can't understand why people who are already taxed in their own country, ie who don't need Thailand as a tax residence, do not simply spend 6 months outside Thailand. What is so special about Thailand that they should feel a compulsion to stay here more than 6 months? I like the few months I spend in TH but six months and a half is my upper limit. What's wrong with Vietnamese or Cambodian food? What's wrong with Indonesian sex?

I agree that there's nothing special about Thailand except ....... Maybe because, for example, those who stay more than 6 months have wives and families in Thailand who don't want to spend long periods away from home just to save a few bob in tax. 

[recom273]

15 hours ago, happydays said:

There already exists a document called a Tax Clearance Certificate which foreigners who are liable for tax are required to submit at the airport when they leave Thailand. This provides evidence that there are no outstanding tax liabilities. Immigration could ask for this as an additional supporting document when applying for visa extensions. Not saying they will.

 

https://www.rd.go.th/english/23518.html

 

My local immigration asked for a tax receipt when renewing extensions to teachers, the first year of enforcement they asked, some schools are supposed to file your tax that they deduct but never produce a receipt or TIN, the school I worked at, you were supposed to file your own, but no one ever did - when applicants didn't have the receipts, it was a "mai bpen rai, next year na" - the following year, they had given up asking for them. The immigration department are just RTP, they have no interest in enforcing all laws, only ones that they can profit from - maybe we will see an increase in visa applicants using agents if it is enforced.

[KhunLA]

12 hours ago, advancebooking said:

we know a few highly paid thai people who pay little to no tax. 

We do ?  I don't, although surely many who make their income from the SET don't pay, as not required to.

[KhunLA]

42 minutes ago, MartinL said:

I agree that there's nothing special about Thailand except ....... Maybe because, for example, those who stay more than 6 months have wives and families in Thailand who don't want to spend long periods away from home just to save a few bob in tax. 

Add the cost of travel and spending time elsewhere, would surely be more than any tax one is trying to avoid.

 

For me, I'm quite happy right here and have no desire to leave TH.  No desire to see border countries, and definitely no desire to sit on a plane for 3-6-12-24 hours to go any further than next door.

 

I'd also have to leave my therapist (dog) behind, and no way could I cope with that.

[WorriedNoodle]

16 hours ago, Moonlover said:

Exactly what qualifies you to post this

No qualifications needed to post anything on this web site are there?

[recom273]

15 hours ago, turgid said:

I'll repeat what happened to me when i extended my annual visa in November. The officer reviewing my papers went through my bank statement and highlighted the balance and all incoming transactions.   Never really looked at anything other than the balance before. 

I have bank accounts the UK and  two investment accounts offshore in Europe  they've all asked for TINs in December as has Kbank in Thailand with a threat of being debanked if I dont comply.

All have given me an extension to get a TIN  but i doubt it is as open ended as the original poster suggests.  

 

 

And I have three accounts, one is an account that is used to keep 400K in for the purpose of visa. The money is never used for any other purpose, it just sits there.

 

I dont know what I will do in the future, it appears that Kasikorn are not interested in a TIN for the purpose of reporting to the TRD, but for overseas reporting. I get the impression when posters have returned the forms and informed the teller that they have no need for a TIN as their pension is taxed in their home country, they have been met with a smile and the paperwork accepted. Am I correct?

 

 

[Presnock]

On 1/22/2025 at 4:10 PM, SoCal1990 said:

There has been a lot of confusion and speculation regarding the recent changes to income tax laws and filing requirements in Thailand. However, in practice, the actual impact of these changes is likely to be much less burdensome than many expect. It’s possible that the authorities won’t begin actively enforcing tax laws on foreigners for at least a few years, and even then, it would likely be only if those foreigners are living in Thailand as full-time residents and fail to file tax returns altogether. For the first few years, it’s likely that nothing will happen, as the authorities will probably give it some time to see how well people are complying and whether or not they need to start enforcing any aspects of the tax laws or not on foreign residents who aren’t working.

 

The most likely scenario is this: if foreigners don’t get their tax filings in order after a few years, they may find themselves unable to renew their long-stay visas until they do. But even this is speculative. There’s no guarantee that the immigration and revenue departments will link their systems in such a way that one triggers the other.

 

While the immigration and revenue departments theoretically have access to each other’s systems, the idea that they will actively use this access to block visa renewals is still highly questionable.

 

As long as you file a tax return each year, you should be fine. By doing so, you demonstrate your intention to comply with the law, which is all they really expect. It’s doubtful they have the resources to start auditing individuals or scrutinizing bank accounts to track overseas transfers. File your return on time each year, and you’re unlikely to face any issues.

 

Even if someone were audited, it seems highly unlikely that the authorities would investigate overseas credit or debit card spending in Thailand, this is in regards to foreigners who aren’t transferring money into the country and are simply making digital payments for everything in Thailand. Those foreigners could refuse to hand over overseas banking documents, and there would be no way for the authorities to force them to do so. For local bank accounts, the Thai Revenue Department could request statements from the banks, but they have no access to overseas banking or credit card records.

 

Realistically, they’d likely never even bother trying to obtain overseas bank statements. So in my view, the whole debate about spending in Thailand using mainly an overseas debit card, and having to pay personal income tax on that money in Thailand is moot. Legally, yes, there are rules, but in practice, it’s straightforward: file a tax return, show that you’re playing by the rules, and you should be fine. If you’re bringing in a small or reasonable sum each year, you’re unlikely to raise any red flags regarding unpaid taxes, money laundering, or anything else. The government has limited resources and much bigger fish to fry when it comes to enforcement.

 

One crucial point that many seem to be overlooking is that for money to be taxable in Thailand, it must have been earned either in 2024 or sometime after that year. So, even if you transferred ฿10 million into Thailand in 2024, if you can provide an overseas bank statement from 2023 showing a balance of ฿10 million, that money wouldn’t technically be taxable anyway because it was part of your savings earned prior to 2024.

a lot of guessing throughout but TIT and, your guesses are as good as all the rest.  I do hope that for the majority of expats here, the govt realizes the value of long stay retirees and other foreigners.