Thailand May Ease Overseas Income Tax Rules Amid Global Changes

[ryandb]

23 hours ago, IsaanT said:

 

The process is simple and works on the FIFO (First In, First Out) principle.

 

For example, if you had £20,000 in your savings account on 31 December 2023 and remitted £10,000 from it to Thailand in 2024, you would have £10,000 of your original 2023 funds left.  Even if you added £5,000 to your savings in 2024, e.g. pension, accrued interest, etc., giving you a year-end balance of £15,000 at 31 December 2024, you still only have £10,000 of your original non-assessable 2023 savings.

 

Thanks that makes sense

[ryandb]

Just now, hotandsticky said:

 

 

Do you understand the difference between savings and taxable income ?

I don't think you understand anything tbh, why would I need to make separate accounts for each year? 

[quake]

21 minutes ago, ryandb said:

what the hell are you going on about

Yeah that was a bit of a mistake by me.

Wrong end of the stick and all that. 

 

 

[hotandsticky]

1 minute ago, ryandb said:

I don't think you understand anything tbh, why would I need to make separate accounts for each year? 

 

I seem to know a lot more than you apparently.

 

You don't HAVE to have separate accounts - but anyone applying that discipline will have a much easier time convincing the Thai authorities what is taxable and what isn't.

[Ben Zioner]

36 minutes ago, anrcaccount said:

 

Do you seriously think that any individual has ever filed and paid Thai tax on foreign income remitted same year?

 

Dunno, I won't speculate on number, but those who haven't should be extremely cautious when dealing with TRD. They may owe some, possibly a lot of, money to TRD. 

[Gknrd]

Another stress free year in the LOS's.  One thing about it, it sure does not get boring.

[Nairbem]

On 2/15/2025 at 7:05 AM, Kerryd said:

I'm guessing a certain nation to the north doesn't want it's citizens to have to worry about paying taxes in Thailand while working on Chinese projects Thailand has contracted Chinese companies to do with money borrowed from Chinese "investment banks" who will own/operate/collect revenue from those projects for decades.

Guaranteed this sudden "re-evaluation" has absolutely nothing to do with a couple thousand white-hairs squeaking by on their meagre pensions being worried that their non-taxable pensions might be taxed because they have no clue about the tax treaties or the actual Thai tax scheme itself.

When "Big Red" whispers these days, Thailand is quick to jump. Hence the recent announcements about changes in condo ownership rules (in "certain designated areas only), changes in Visas, proposed casino legislation, submarine deals.

Many expats have the ludicrious notion that the Thai economy hinges on what they spend in the country every year.
A lot of them actuall think that a few thousand "Farangs" - most of them barely skimping by on their pensions as it is - has such a huge impact on the economy that Thailand makes all those changes with them in mind.

And not the 10s of millions of Chinese coming here every year. And the multi-billion dollar projects like the high speed troop transport - er, I mean "rail link" between China and Thailand. Or the condo projects. The weapons deals (i.e. submarines). The proposed "southern bridge" entirely meant to allow Chinese shipping to get to Europe without having to pass through the Straits of Malacca - which China has no influence or control over.

One just has to look at how Big Red has it's hooks deep into Myanmar, Laos and Cambodia to see that Thailand is a priority for them to gain control over.

China should be worried about what they wish for!

[ronnie50]

23 hours ago, Negita43 said:

I think that is more likely that it's up to you to prove that not the tax office

Fully agree. They (tax office) will just check that the forms are filled in correctly. The question is how do "I" prove the money is from savings slowly gathered over 20-30 years, or pension earnings from that tax year? Someone was using the term FIFO (first in and first out - regarding savings I guess), but again are the tax authorities in LOS going to be reviewing your foreign bank accounts? Like you say, highly doubtful. So how to prove.

[potless]

53 minutes ago, Ben Zioner said:

Dunno, I won't speculate on number, but those who haven't should be extremely cautious when dealing with TRD. They may owe some, possibly a lot of, money to TRD. 

I personally know a man who has been working here for around a decade. His income in Thailand, even taking into account his personal allowances, means he has to pay tax. However, he has also been receiving an income from overseas, all remitted in the same year as acquired, that has never been declared. He would be in a whole world of pain if audited, please God he wont. 

I know some posters will say that the likelihood of that happening is remote, but that is neither here nor there. I am just responding to your valid point however likely or unlikely he gets rumbled. 

[Ben Zioner]

8 minutes ago, potless said:

I personally know a man who has been working here for around a decade. His income in Thailand, even taking into account his personal allowances, means he has to pay tax. However, he has also been receiving an income from overseas, all remitted in the same year as acquired, that has never been declared. He would be in a whole world of pain if audited, please God he wont. 

I know some posters will say that the likelihood of that happening is remote, but that is neither here nor there. I am just responding to your valid point however likely or unlikely he gets rumbled. 

The thing is if that when caught, even a small amount of tax at 1.5% a month  plus fines can become 7 figures when applied to 10 past years.

 

I know of a lady with a successful on line business who got caught after many years, but they just charged and fined her for one year and got her into the system. So it is not always a total disaster, but it depends on who you are, who you deal with and who is representing you. Don't try to handle that without professional help.

[ryandb]

1 hour ago, hotandsticky said:

 

I seem to know a lot more than you apparently.

 

You don't HAVE to have separate accounts - but anyone applying that discipline will have a much easier time convincing the Thai authorities what is taxable and what isn't.

So, you proved my point and interjected with some nonsense point I never once stated.... clouds are white but yeah the grass is green kind of idiocy

[ryandb]

1 hour ago, quake said:

Yeah that was a bit of a mistake by me.

Wrong end of the stick and all that. 

 

 

 

TBF Nigel always gets the wrong end of the stick

[potless]

13 minutes ago, Ben Zioner said:

 So it is not always a total disaster, but it depends on who you are, who you deal with and who is representing you. Don't try to handle that without professional help.

Agree. 

[EVENKEEL]

Is anyone here actually contemplating handing over 1099r's to Trd? Trying to make a paper trail to Thai authorities is absurd. 

[quake]

31 minutes ago, ryandb said:

 

TBF Nigel always gets the wrong end of the stick

 

Nah.

His about the only one that care about the uk.

Only sad tory and loony lefty types say stuff like that.

Have a look in the mirror. 

 

 

 

[IsaanT]

1 hour ago, ronnie50 said:

The question is how do "I" prove the money is from savings slowly gathered over 20-30 years, or pension earnings from that tax year? Someone was using the term FIFO (first in and first out - regarding savings I guess), but again are the tax authorities in LOS going to be reviewing your foreign bank accounts?

 

I was describing the FIFO principle.

The answer to your question - how to prove the origin of savings - is to print a bank statement showing the balance of your savings as at 31st December 2023.  Any savings up to this point are not assessable for tax purposes.  Savings beyond this point, i.e. January 2024 onwards, are.

The FIFO principle is then applied to the amount as at 31st December 2023.

In case others may have missed it, here is a simple worked example of FIFO in action:

Balance as at 31st December 2023 - $20,000

Remittances to Thailand in 2024      - $10,000
Additions to savings in 2024            - $15,000
Closing balance as at 31/12/2024    - $25,000

Using FIFO, $20,000 - $10,000 = $10,000, so the remaining non-assessable savings are $10,000.  The additional $15,000 added to the account in 2024 is after the 2023 deadline so would be assessable for tax purposes if remitted to Thailand (the Thai tax is based on the principle of remittance-based taxation, i.e. you may pay tax if you bring the money in to Thailand.  Obviously, if it's left in your home country savings account, it is unaffected.).

Assuming that 2025 is a repeat of 2024 and a further $10,000 is remitted to Thailand and a further $15,000 is added (e.g. pension): the remaining $10,000 non-assessable funds would have been used up so the account would have no further non-assessable funds.  The $30,000 balance at the end of the year would be assessable in subsequent tax years if remitted to Thailand.

I hope this helps.
 

[samtam]

2 hours ago, Gknrd said:

Another stress free year in the LOS's.  One thing about it, it sure does not get boring.

 

"....one thing about it, it sure does not get boring less irritating."

[NoDisplayName]

4 hours ago, Ben Zioner said:

That's misleading.

 

Pre-2024 income  has always been taxable if remitted during the year of earning.

 

Not really misleading.  TRD actually ruled on pre-2024 income, remitted in 2024 and beyond.

 

I'm shirley it could be possible to come up with some circumstance where this was not the case, such as a tax-resident in 2017 remitting 2017 income in 2017, but of course the comment and this thread are not concerned with that.

 

It's all about the change to prior year income now being assessable. We're speaking specifically about the time after the change, that being after 01 Jan 2024.

[hotandsticky]

2 hours ago, ryandb said:

So, you proved my point and interjected with some nonsense point I never once stated.... clouds are white but yeah the grass is green kind of idiocy

 

 

You are just a waffler........................and probably won't be around too long this time.

[quake]

56 minutes ago, hotandsticky said:

 

 

You are just a waffler........................and probably won't be around too long this time.

 

Was waffler, a typo. 

[ronnie50]

3 hours ago, IsaanT said:

I hope this helps.
 

Thanks, yes helpful explaining the FIFO principle. So if this turns out to be what the TRD agree with going forward, and 'if' I had $100,000 in a foreign account as of 31 Dec 2023, then conceivably I could bring in 10 or 20,000 each tax year for the next 10 or 5 years and it would be non-assessible, is that right (or until the 100k saved prior to 31/12/2023 is depelted in the foreign account)?

[Presnock]

On 2/15/2025 at 3:39 AM, NoDisplayName said:

 

Hub of specific details not provided.

 

 

 

But he also said "He said he is reviewing this law to encourage more Thais to repatriate their earnings."

 

Did someone realize that if the loophole to bring funds into Thailand the year after earning simply shut the pipeline of remitted funds?  And now all the free cash that could be flowing into the Thai economy will be sloshing around other countries earning more than 0.5% interest?

 

What are the odds this latest change in interpretation will be re-interpreted?

 

well, if the foreign banks are signers of  the OECD, CRS or FATCA then I guess they would be reporting to the Thai rd about Thai persons in that country that have bank accounts and even with minimum amounts, would mean the Thais could tax them.  I of course have no idea about them in reality.  Just so we aren't impacted too harshly.

[sungod]

On 2/15/2025 at 8:13 AM, Drumbuie said:

I consulted a Thai accountant about my income this week. I brought over THB1.1 million into Thailand last year. By the time he'd removed the non-assessable income and deducted all the allowances, I'm due to pay just over 20k tax - in three installments from April.

That is less than a third of what would have been due on the same income back home.

Stop moaning about the tax, guys. Pay up and enjoy actually having the moral right to moan about the infrastructure. 

Assuming you have been here a while, and this is not a new regulation, how much have you paid in previous years?

[Presnock]

On 2/15/2025 at 10:49 AM, IsaanT said:

Why would you intentionally wish to flout the rules in your host country?

 

they go to check to see if they have to pay tax and although the RD ignores their DTA, they still end up paying but because they feel that "it wasn't that much" so they paid it even though they didn't really owe  it!  That is what I feel is not really smart but their money, not mine!

[Presnock]

On 2/15/2025 at 11:08 AM, Negita43 said:

I think that is more likely that it's up to you to prove that not the tax office

How about they require you to provide proof that the savings only prior to 1 January 2024 were remitted during the year?

[Presnock]

On 2/15/2025 at 11:59 AM, Ben Zioner said:

Isn't that all nicely covered with the LTR visa?

 

I know the other Ben [Hart] would say LTR is BE (Bovine Excrement).

obviously that person doesn't have an LTR or was turned down by the BOI.  For me and some others at least, the LTR is by far the best visa for me.  My pension can't be taxed by the Thais so that was not the issue, the issue was a tad cheaper in the long  run with no 90-day reports, in and out of the coutry unlimited and free, yearly reports can also be fewer as out of country and return starts the 1-year wait for next BOI /immigration visit plus whizz through the airport upon return.

[NoDisplayName]

7 minutes ago, Presnock said:

well, if the foreign banks are signers of  the OECD, CRS or FATCA then I guess they would be reporting to the Thai rd about Thai persons in that country that have bank accounts and even with minimum amounts, would mean the Thais could tax them.  I of course have no idea about them in reality.  Just so we aren't impacted too harshly.

 

Under the old rules, wealthy Thais could invest offshore, make $Millions in capital gains in the US and repatriate the earnings tax free the following year.  Capital gains for non-resident foreigners are NOT taxed in the US, only interest and dividends!  They had their cake, and then they ate it.

 

Now they'll have to use gifting rule, and worry their soon-to-be ex-wives don't run off with the cash, or pay lawyers/accountants to set up family trusts and front companies to get their cash in tax-free.

 

This, I believe, is why the rule interpretation is being reconsidered.

[Presnock]

19 hours ago, Ben Zioner said:

You are dreaming. Any change will have to wait until next year to take effect and will be measures relieve the tax burden of those who want to reinvest in Thailand significant wealth from overseas. 

 

RD 743 and some of the DTAs already protect foreigners.

one thing, Taksin & co. is the one talking about changing the tax situation here by doing the negative income tax scheme - where they collect from the rich and even out the income of the poorest.  If that is  HIS  goal then think it might come to pass but I sure am not any financial wizard nor even close to being one.

[Presnock]

On 2/15/2025 at 2:07 PM, quake said:

 

Ok .

Sorry for asking questions.  

 

 

This is after all, just an OPINION forum!  some people though seemed to be search challenged and need links as they just can't accept OPINIONS that differ from their own.

[Presnock]

18 minutes ago, Presnock said:

How about they require you to provide proof that the savings only prior to 1 January 2024 were remitted during the year?

I do believe that originally they mentioned having documentation from one's foreign bank account including the total amount in a SAVINGS acct on 31 December 2023.  Sorry I remeber reading that on this forum but sure am not going to search for you.