Taxfree gift to spouse

[Lamphen]

According to the tax legislation, one can apparently gift up to THB 20 million without having to pay taxes.

Does anyone know how to technically do this?

[jojothai]

Yes,

this has been reported in topics before but some things are not yet clear, and whether a gift has to be declared in your tax return. The gift must be for use by the wife and not for your benefit.
You can obviously directly transfer money here to the wife's account. If you have the money in your bank account.
From the posts I have read and legal advice sites, then I believe a gift is tax exempt. But I am not sure if you have to declare it on your tax return as tax exempt. I would be grateful for anybody else to clarify this.

Most of the discussion i have seen concerns gifting money to the wife when you have funds from overseas.
If you transmit the money into your account here, it will be considered taxable irrelevant if you then gift it.
What has been stated is that if you gift it directly from overseas to your wife's account as a gift, then it should not be taxable. I have seen posts that contradict this but most seem to indicate it is correct.
I stand to be corrected if somebody has researched this and can confirm whether it is not taxable or clarify why it is still taxable, even though it is a gift.

[topt]

22 hours ago, Lamphen said:

Does anyone know how to technically do this?

@sometimewoodworker posted in one/several of the threads about this after getting "advice" from what I recall is a major Bangkok law firm. 

Either do a search in the tax threads or perhaps pm him?

Expattax may have something in their FAQs or in one of their videos - been so many sorry I cannot remember.

[sometimewoodworker]

21 hours ago, jojothai said:

I stand to be corrected if somebody has researched this and can confirm whether it is not taxable or clarify why it is still taxable, even though it is a gift.

A correctly documented gift, under the limits, is I untaxable and undeclarable by the recipient.

the rules are well documented on the TRD website so there is little point in repeating them.

 

There are opinions, that are not supported by professional advice (or that the poster refuses or declines to independently substantiate), that the giver has a tax liability even though the gift is not remitted to them originally or through their Thai account.

 

The uses that the recipient makes of the gift has limitations that can be established by referring to a professional adviser, as I did. The advice was from one of the director of one of the big 4 accountancy firms.

 

TIT YMMV

 

[newbee2022]

23 hours ago, Lamphen said:

According to the tax legislation, one can apparently gift up to THB 20 million without having to pay taxes.

Does anyone know how to technically do this?

If you buy earrings or necklaces it's ok. Because normally you would not wear it, would you? So you're not benefitting.

In case you give her money you could benefit. So it's not acknowledged as a gift.

[Dirk Z]

A senior executive from Mazars held a talk and in the Q&A it was explained that if you transfer money from abroad directly to your (Thai) wife's account it is not taxable up to 20M baht per year. Even my wife doesn't spend that. What happens if the wife then buys you are car or a beer is unclear so far. And also not very easy to quantify.

[Etaoin Shrdlu]

I think there are two tax issues here.

 

One is gift taxes. There is an exemption for the recipient spouse of up to 20 million baht. No tax payable by the recipient if under this amount.

 

The other one is income tax.  This one will likely involve the issue as to whether the giver remitted the funds before the gift was completed or whether the recipient remitted the gift after it was completed abroad. 

 

I think the income tax is the tricky one and I would advise getting written professional advice specific to your particular situation on both issues.

 

 

[newbee2022]

6 hours ago, Dirk Z said:

A senior executive from Mazars held a talk and in the Q&A it was explained that if you transfer money from abroad directly to your (Thai) wife's account it is not taxable up to 20M baht per year. Even my wife doesn't spend that. What happens if the wife then buys you are car or a beer is unclear so far. And also not very easy to quantify.

Carl Turner said on a webinar what I posted above.

If you buy earrings or necklaces it's ok. Because normally you would not wear it, would you? So you're not benefitting.

In case you give her money you could benefit. So it's not acknowledged as a gift.

It was confirmed by an officer in the Revenue Department.

[newbee2022]

6 hours ago, Dirk Z said:

A senior executive from Mazars held a talk and in the Q&A it was explained that if you transfer money from abroad directly to your (Thai) wife's account it is not taxable up to 20M baht per year. Even my wife doesn't spend that. What happens if the wife then buys you are car or a beer is unclear so far. And also not very easy to quantify.

That's wrong

[Liverpool Lou]

On 2/7/2025 at 2:50 PM, jojothai said:

But I am not sure if you have to declare it on your tax return as tax exempt. I would be grateful for anybody else to clarify this.

As would the recipient.

[newbee2022]

On 2/7/2025 at 2:50 PM, jojothai said:

Yes,

this has been reported in topics before but some things are not yet clear, and whether a gift has to be declared in your tax return. The gift must be for use by the wife and not for your benefit.
You can obviously directly transfer money here to the wife's account. If you have the money in your bank account.
From the posts I have read and legal advice sites, then I believe a gift is tax exempt. But I am not sure if you have to declare it on your tax return as tax exempt. I would be grateful for anybody else to clarify this.

Most of the discussion i have seen concerns gifting money to the wife when you have funds from overseas.
If you transmit the money into your account here, it will be considered taxable irrelevant if you then gift it.
What has been stated is that if you gift it directly from overseas to your wife's account as a gift, then it should not be taxable. I have seen posts that contradict this but most seem to indicate it is correct.
I stand to be corrected if somebody has researched this and can confirm whether it is not taxable or clarify why it is still taxable, even though it is a gift.

The officer in the Revenue department clarified it for me: if I as a giver could benefit from the gift in any way then it's not a gift.

If I buy earrings = gift

If I buy a car = no gift

[Liverpool Lou]

6 hours ago, newbee2022 said:

In case you give her money you could benefit. So it's not acknowledged as a gift.

Nonsense.  Cash gifts qualify.

[newbee2022]

1 hour ago, Liverpool Lou said:

Nonsense.  Cash gifts qualify.

You don't know anything🤗

[jojothai]

2 hours ago, newbee2022 said:

The officer in the Revenue department clarified it for me: if I as a giver could benefit from the gift in any way then it's not a gift.

If I buy earrings = gift

If I buy a car = no gift

She can sell valuable  ear rings for cash. Especially if they are worth a lot if you really want to give a credible gift.

Otherwise, why buy earrings?

My wife would tell me where to go if i said i will gift her ear rings unless they were gold  at least a few baht.

Then if the ear rings can be sold is it not also tax evasion?

The case stated does not IMHO have any different grounds than a car, because i have my own car and the other car is therefore additional for her.

Just like immigration and visas, it will all be down to what the attending officer thinks, or needs to  make a decision

[jerrymahoney]

On 2/7/2025 at 12:48 PM, Lamphen said:

According to the tax legislation, one can apparently gift up to THB 20 million without having to pay taxes.

Does anyone know how to technically do this?

I will not answer the query as posed -- just to note when the 20 million baht figure was put in the 2016 Gift Tax regs, to the Thai citizen persons it was intended were saying :

 

WOW Oh no! We can now ON LY declare no more than 20 million baht per year as a tax free gift? -- as gifts at the time were seen in the 2016 regs as a means to avoid inheritance taxes.

 

Now for the expat crowd it has morphed to:

 

WOW You mean we can give up to 20 million baht per year as a tax free gift?
 

[newbee2022]

8 hours ago, jojothai said:

She can sell valuable  ear rings for cash. Especially if they are worth a lot if you really want to give a credible gift.

Otherwise, why buy earrings?

My wife would tell me where to go if i said i will gift her ear rings unless they were gold  at least a few baht.

Then if the ear rings can be sold is it not also tax evasion?

The case stated does not IMHO have any different grounds than a car, because i have my own car and the other car is therefore additional for her.

Just like immigration and visas, it will all be down to what the attending officer thinks, or needs to  make a decision

I guess in the case with the car you both can use it? 

But if you read my post carefully

"The officer in the Revenue department,"".

 

[ChaiyaTH]

20 hours ago, sometimewoodworker said:

A correctly documented gift, under the limits, is I untaxable and undeclarable by the recipient.

the rules are well documented on the TRD website so there is little point in repeating them.

 

Ehh why not just close the website in the process? Any information can be found on the Internet. What a stupid comment.

[ChaiyaTH]

1. Gifts to Ascendants, Descendants, or Spouses:

• Exemption Limit: Gifts to direct family members—such as parents, children, or spouses—are exempt from personal income tax up to 20 million Thai Baht (THB) per tax year.

• Tax Rate Beyond Exemption: If the total value of gifts to these individuals exceeds 20 million THB within a tax year, the excess amount is subject to a 5% personal income tax.

 

2. Gifts to Individuals Who Are Not Ascendants, Descendants, or Spouses (e.g., Girlfriends, Friends):

• Exemption Limit: Gifts to individuals outside the immediate family are exempt from personal income tax up to 10 million THB per tax year.

• Tax Rate Beyond Exemption: If the total value of gifts to these individuals exceeds 10 million THB within a tax year, the excess amount is subject to a 5% personal income tax.

 

Key Considerations:

• Definition of Relationships: Ascendants and descendants refer to direct family lines, such as parents and children. Spouses are legally married partners. Girlfriends or boyfriends are not recognized under these categories and are treated as non-relatives for tax purposes.

• Documentation: Maintain clear records of all gifts, including dates, amounts, and the nature of the relationship, to ensure compliance and for potential audits.

 

Practical Steps:

1. Assess Gift Value: Before making a gift, determine the total value to understand potential tax implications.

2. Plan Accordingly: If you plan to gift amounts exceeding the exemption limits, consider spreading the gifts over multiple years or consulting with a tax professional to explore tax-efficient strategies.

3. File Necessary Tax Returns: If the value of the gifts exceeds the exemption limits, ensure that the appropriate personal income tax returns are filed, and taxes are paid on the excess amounts.

[ChaiyaTH]

So basically if you would have a girlfriend/wife or thai child here you could just gift all education and children costs tax free, all her support money tax free, a good part or all of the housing they need tax free, to then yourself just earn like 40-50K baht on paper and effectively only pay like 2000 baht per month taxes on 100-150K baht.

What is the entire issue with these new tax rules then? Unless you would be single this solves everything already? Insane that it is even existing, 10-20M a year lol. This is not even applying all other deductions or ways to also reduce it by for example also having a business that could pay rent for it's office in the same house you live or all other things in the classic text books.

 

Then last but not least you could still pay yourself from a foreign company for tons of things like booking flights and hotels on the business, withdraw some cash for lunch costs and more. As well as keeping profits overseas in companies / assets.

[jerrymahoney]

The Thai Gift Tax was passed in 2016 and went into effect 2017 and -- at least based on my reading these pages and accountant/tax lawyer websites -- there is not documented one specific test case of a non-Thai tax resident remitting a foreign-sourced large transfer (up to 20 million baht) to a Thai spouse declared as a gift with no tax request from the Thai Revenue Department.

[ChaiyaTH]

2 minutes ago, jerrymahoney said:

The Thai Gift Tax was passed in 2016 and went into effect 2017 and -- at least based on my reading these pages and accountant/tax lawyer websites -- there is not documented one specific test case of a non-Thai tax resident remitting a large transfer (up to 20 million baht) to a Thai spouse declared as a gift with no tax request from the Thai Revenue Department.

As far I know it happens all the time since decades and there never been questions about it. I know in my own network alone a few guys who have bought houses or condo's worth 5-20M baht for their wifes and in their wife name, none are retired too. Land of the red tape.

 

With these figures compared to traditional taxes back home, it is actually cheaper to pay a wife a monthly allowance lol.

[jerrymahoney]

I will just say again that there is no reference that I have seen of a tax free foreign remittance by a bona fide Thai tax resident as a gift on one of the major websites -- and if it has been done for decades why are the tax advisors still only offering opinions not saying that they have clients who do so regularly

[Dirk Z]

On 2/8/2025 at 6:54 PM, newbee2022 said:

That's wrong

Just saying what he said. If anyone has the real answer... please!

[Enzian]

So what if my son in the US decides to gift my TGF--in appreciation of her kindness to his aged father, not as payment for services rendered--an amount roughly equal to the monthly allowance I normally would give her? Is she liable for taxes on that gain? How could I be liable for taxation? I didn't do it; it was his money. And they can't tax him; he doesn't live here. Am I getting somewhere?

[newbee2022]

10 hours ago, Dirk Z said:

Just saying what he said. If anyone has the real answer... please!

Read my thread #tax files.

It's all there

[jojothai]

On 2/9/2025 at 6:51 AM, newbee2022 said:

I guess in the case with the car you both can use it? 

But if you read my post carefully

"The officer in the Revenue department,"".

 

What i said isn't guesswork. If you have a car and a car is purchased for her. Its hers to do as she pleases.
The earrings can be used by both, or even sold, so where is the logic .

The argument made by the officer is an erroneous opinion IMHO that may have no basis for comparison. 
So as I said before, its down to  the officer attending and what they need to make a decision.

I have been to different immigration offices (justified by my situation) a number of times in the past two weeks checking what to do when a work permit expires and been told three different opinions. 

Its up to you if you believe what you are told by an officer.
The rules only state the gift limits ,etc and clarification is not for your own benefit. From what I read on some posts it is not required to be declared on a tax return if it is exempt.
With respect, did you ask if it needs to be declared on your tax return even if it is exempt? What did the officer say?

[PomPolo]

This is by far one of the most interesting topics I have read regarding the current taxation discussions.
I have a question for someone probably who is more knowledgeable than me on this subject.

If I transferred money from the UK to my Thai Bank account (then immediately to my wife's account) or directly to my wife's bank account would any of that be taxable we are talking well under 20M baht.
Also would you need to be married to give it as a tax free gift or would long term partner also be applicable?

[newbee2022]

20 minutes ago, jojothai said:

What i said isn't guesswork. If you have a car and a car is purchased for her. Its hers to do as she pleases.
The earrings can be used by both, or even sold, so where is the logic .

The argument made by the officer is an erroneous opinion IMHO that may have no basis for comparison. 
So as I said before, its down to  the officer attending and what they need to make a decision.

I have been to different immigration offices (justified by my situation) a number of times in the past two weeks checking what to do when a work permit expires and been told three different opinions. 

Its up to you if you believe what you are told by an officer.
The rules only state the gift limits ,etc and clarification is not for your own benefit. From what I read on some posts it is not required to be declared on a tax return if it is exempt.
With respect, did you ask if it needs to be declared on your tax return even if it is exempt? What did the officer say?

You're wrong in many ways. So it's best you'd make your own experience.

Walk in to a revenue office and ask for yourself only.😳

[jojothai]

26 minutes ago, newbee2022 said:

You're wrong in many ways. So it's best you'd make your own experience.

Walk in to a revenue office and ask for yourself only.😳

Its wrong to use the word wrong, when it may not be correct.
Hearsay or opinions is not fact.
Can you refer to the legal facts and not opinion?
Why would i waste time going into an RD office to get opinion.

[newbee2022]

42 minutes ago, jojothai said:

Its wrong to use the word wrong, when it may not be correct.
Hearsay or opinions is not fact.
Can you refer to the legal facts and not opinion?
Why would i waste time going into an RD office to get opinion.

I went to the TD office and got legal, precise advice.

But you're free to do what you want. Not my business 🤣