Do foreigners need to pay tax in Thailand?

[JJ-Thailand]

 

Do foreigners need to pay tax in Thailand?
Read more in the only official document produced by Thai Revenue Department regarding the new tax definition regarding foreigners.
https://www.rd.go.th/fileadmin/user_upload/lorkhor/newspr/2024/FOREIGNERS_PAY_TAX2024.pdf

 

[Autocan]

Helpful, thanks. But I am curious. How does one determine the "earned from Jan. 1, 2024"? E.g., I sell shares in MFs, get a pension and SS benefits which accumulate in a US bank. Periodically, I transfer X amount from the US bank to Thailand via Wise. Exactly when was each dollar earned? I dunno.

[JJ-Thailand]

38 minutes ago, Autocan said:

How does one determine the "earned from Jan. 1, 2024"?

They mean that any assessable income earned from this date and sent over to Thailand should be declared in your Thai tax return.
Pension, dividends, capital gains, interest etc. You can claim tax credit if you have already paid tax at source, the double tax agreement between Thailand and your country will state which of the two countries has the right to tax each of your specific assessable income.

All tax agreements with Thailand can be downloaded here: https://www.rd.go.th/english/766.html

More, whatever was in your bank account on Dec. 31 2023 according to your bank statement can be sent over to Thailand anytime in the future without declaring it in your tax return. Make sure to save all proof in case they knock on your door in the future.

[Gaccha]

9 hours ago, JJ-Thailand said:

You can claim tax credit if you have already paid tax at source

 

What if the tax rate at source is 0%. Is that "tax paid" under Thai regulations? Or must there be some tax paid? If so, is 0.1% enough? 

[Sheryl]

10 hours ago, Autocan said:

Helpful, thanks. But I am curious. How does one determine the "earned from Jan. 1, 2024"? E.g., I sell shares in MFs, get a pension and SS benefits which accumulate in a US bank. Periodically, I transfer X amount from the US bank to Thailand via Wise. Exactly when was each dollar earned? I dunno.

US SS is not assessable in Thailand per the DTA. Neither are pensions linked to any type of government service, but private pensions are assessable.

 

You could reasonabltly deduct the amount of your SS (and govt pension if you have one) from whatevet you remit to come up the amount that is assessable. 

 

Going forward, you can have your SS directly deposited to Thai bank account. The credit advices for each transaction will show that it is SS. 

[JJ-Thailand]

44 minutes ago, Gaccha said:

 

What if the tax rate at source is 0%. Is that "tax paid" under Thai regulations? Or must there be some tax paid? If so, is 0.1% enough? 

A tax rate of 0% = No tax has been paid at source. It is not only about Thai regulations as double tax agreements override the local regulations, you'll have to read your county's tax agreement with Thailand. Download here: http://www.rd.go.th/english/766.html

[koolkarl]

Just wait for the next shoe to drop, implementation of the CRS agreements.  For many years in Canada, if you were a tax resident there, you

had to report your world income to Taxania's tax department whether it was brought into Canada or not.

[lamyai3]

Is this a new document published by the RD? Looks pretty scant on details. 

 

If 2024 remittances fall into the 0% band (<150000฿) is there a requirement to file?

 

And what is the penalty for filing late when things are made clearer? 

[JJ-Thailand]

1 hour ago, koolkarl said:

Just wait for the next shoe to drop, implementation of the CRS agreements.

It is already implemented in Thailand; they got it all working last year.

[Ralf001]

15 hours ago, JJ-Thailand said:

 

Do foreigners need to pay tax in Thailand?
Read more in the only official document produced by Thai Revenue Department regarding the new tax definition regarding foreigners.

 

They are new?

 

I thought they are old tax laws finally being implemented.

[Autocan]

To my mind safest is to sit on one's hands till the dust settles. I'll be happy to pay a few k b. in late penalty to wait to make sure that I understand all the regulations (as laid out in English) and file the right forms the right way. A bad filing (e.g., oversharing or undersharing) could ripple down the years.

 

Incidentally, a big clue it's all up in the air is that there are no little-people services like Thaivisa advertising as yet to do expat taxes. You can bet that once rules are clear, like they are now with Imm services, there will be tax-filing services cropping up like weed.

[LOG54]

15 hours ago, JJ-Thailand said:

They mean that any assessable income earned from this date and sent over to Thailand should be declared in your Thai tax return.
Pension, dividends, capital gains, interest etc. You can claim tax credit if you have already paid tax at source, the double tax agreement between Thailand and your country will state which of the two countries has the right to tax each of your specific assessable income.

All tax agreements with Thailand can be downloaded here: https://www.rd.go.th/english/766.html

More, whatever was in your bank account on Dec. 31 2023 according to your bank statement can be sent over to Thailand anytime in the future without declaring it in your tax return. Make sure to save all proof in case they knock on your door in the future.

No.. what appears on your account abroad before 1/1/2024 could be sent tax free during year 2024.. not later ..

[motdaeng]

8 minutes ago, LOG54 said:

No.. what appears on your account abroad before 1/1/2024 could be sent tax free during year 2024.. not later ..

 

any reliable source for your claim (not later) ... thanks 🙏 

[sungod]

Another thread where there are pages and pages of people knowing sweet FA.

[JJ-Thailand]

47 minutes ago, Autocan said:

I'll be happy to pay a few k b. in late penalty to wait to make sure that I understand all the regulations (as laid out in English) and file the right forms the right way.

Just make sure to save all statements, transactions and other documentation. However, I would be surprised if there will be any penalties for foreigners this tax year as the authorities have not yet updated the tax return guides and forms. They have also failed to educate the personnel at the local revenue offices. It is still a mess.

[JJ-Thailand]

33 minutes ago, LOG54 said:

No.. what appears on your account abroad before 1/1/2024 could be sent tax free during year 2024.. not later ..

I understand it as any tax year in the future. Case 1 according to the official document by Thai revenue department.

[dlclark97]

1 hour ago, Autocan said:

To my mind safest is to sit on one's hands till the dust settles. I'll be happy to pay a few k b. in late penalty to wait to make sure that I understand all the regulations (as laid out in English) and file the right forms the right way. A bad filing (e.g., oversharing or undersharing) could ripple down the years.

 

Incidentally, a big clue it's all up in the air is that there are no little-people services like Thaivisa advertising as yet to do expat taxes. You can bet that once rules are clear, like they are now with Imm services, there will be tax-filing services cropping up like weed.

There are many financial organizations well prepared to prepare and file your Thai expat income taxes.  In case you missed it (almost impossible) the process of filing and paying Thai income tax has been under development for very many months now.  Suggest a little time reading up on this could be well spent.  Many expats are already reporting their experiences with the TRD and companies processing their documents and filing them.

[OneManShow]

7 hours ago, Sheryl said:

Going forward, you can have your SS directly deposited to Thai bank account. The credit advices for each transaction will show that it is SS. 

This is what happened at local tax office yesterday.  
He asked me if I filed a tax return in the US ? I answered that I was not required to file a tax return and I showed him a copy of ITA.
Then I showed copies of SSA-1099, bank statement (transfers) and SSA benefit verification letter.

Then he asked me how much is my SS from  total transfers ? He only entered baht amount of my SSA-1099 in the form as 2024 income. He said the extra is from your savings account and is not an income from 2024. 
To make it short, he made some numbers in the form that ended to 0.00 tax. 
He said if I need to know about DTA I better contact section 4 of RD main office (no one had any information at that office).

"He told me that there is a box on the form that will become useful in case if immigration asks for." (I did not ask anything regarding immigration)🤔

[Sheryl]

8 minutes ago, OneManShow said:

This is what happened at local tax office yesterday.  
He asked me if I filed a tax return in the US ? I answered that I was not required to file a tax return and I showed him a copy of ITA.
Then I showed copies of SSA-1099, bank statement (transfers) and SSA benefit verification letter.

Then he asked me how much is my SS from  total transfers ? He only entered baht amount of my SSA-1099 in the form as 2024 income. He said the extra is from your savings account and is not an income from 2024. 
To make it short, he made some numbers in the form that ended to 0.00 tax. 
He said if I need to know about DTA I better contact section 4 of RD main office (no one had any information at that office).

"He told me that there is a box on the form that will become useful in case if immigration asks for." (I did not ask anything regarding immigration)🤔

What he did was not correct  as the SS income is completely non-assessable and shouod not have been entered as income. If that was all you remitted then no need to file, period.

 

Local RD offices are not familiar with DTAs.

 

 

[LOG54]

54 minutes ago, JJ-Thailand said:

I understand it as any tax year in the future. Case 1 according to the official document by Thai revenue department.

Then my mistake.. sorry.. this is what my Thai tax advisor said.. maybe I understood wrong what she said..

Of course the Thai official doc is right

My apologies

[Autocan]

43 minutes ago, dlclark97 said:

Many expats are already reporting their experiences with the TRD and companies processing their documents and filing them.

I've been following these and all I see is a lot of crossfire and different TRDs saying and doing things in ways that muddy the waters even further. I don't think anyone claims the expat taxing system in Thailand has been sorted out. I would wait.

[JJ-Thailand]

10 minutes ago, Autocan said:

I've been following these and all I see is a lot of crossfire and different TRDs saying and doing things in ways that muddy the waters even further. I don't think anyone claims the expat taxing system in Thailand has been sorted out. I would wait.

 

If I have a foreign assessable income sent over to Thailand that I have already paid tax for at source I would not worry not to file my tax return for this income as there is nowhere on the form to claim tax credit and the reason for this is that the revenue department has not yet updated the forms. The important part is that I have paid tax at source and would most likely not be fined. E.g. pensions and dividends.

 

However, if I have a foreign assessable income sent over to Thailand that I have not paid tax for I would file my tax return for this income as it does not require a tax credit claim and could be considered to be tax evasion which could result in penalties. Form PND90 has not yet been updated by the authorities to include foreign capital gains but in PND90, No. 7 Assessable Income Under Section 49 (8) any assessable income can be inserted, e.g. capital gains from sales of foreign stock. I would also make sure to use all available allowances and deductions in order to avoid or minimize any Thai tax.


 

[UKresonant]

4 hours ago, motdaeng said:

 

any reliable source for your claim (not later) ... thanks 🙏 

Thai Revenue memo POR 162 most likely.

[UKresonant]

6 hours ago, Ralf001 said:

 

They are new?

 

I thought they are old tax laws finally being implemented.

It was the interpretation of when income became savings that changed, no change to the actual Tax law. 

 

Previously you could accumulate your income in one year, and if remitted in the next tax (calendar) year, it was considered as remitting savings, therefore not assessable.

Simplicity for me as all remitted value would be savings, when remitted at least 1 year later, (all income taxed at source in the UK already).

 

Now just a paperwork hassle should I become tax, resident in Thailand.

 

So agree it is an old law (.same.as.when I.checked in 2018) but + POR161 amended by POR 162 (savings before 2024).

 

If Thailand goes Global tax that would likely become apprehensivly complex.  Not being all there as some.would.say, and still substantially attached.to the.UK.

[ujayujay]

7 hours ago, lamyai3 said:

Is this a new document published by the RD? Looks pretty scant on details. 

 

If 2024 remittances fall into the 0% band (<150000฿) is there a requirement to file?

 

And what is the penalty for filing late when things are made clearer? 

I heard the penalty for filing late will be 1.5% of the taxes owed. Unfortunately I can't find the link anymore, so no guarantees. 

[Etaoin Shrdlu]

15 minutes ago, ujayujay said:

I heard the penalty for filing late will be 1.5% of the taxes owed. Unfortunately I can't find the link anymore, so no guarantees. 

 

Here's a link to a reasonably credible source:  https://thailand.go.th/issue-focus-detail/007_057

[JJ-Thailand]

20 minutes ago, ujayujay said:

I heard the penalty for filing late will be 1.5% of the taxes owed. Unfortunately I can't find the link anymore, so no guarantees. 

It is No. 11 item 22. Add surcharge (if any) Enter the amount of surcharge (if any) of 1.5% per month (fraction of a month equals a month) of the total tax due.

 

This is for late filing only, there are other penalties as well.

[NoDisplayName]

5 hours ago, OneManShow said:

Then he asked me how much is my SS from  total transfers ? He only entered baht amount of my SSA-1099 in the form as 2024 income.

 

US social security is not taxable per DTA.

[lamyai3]

10 hours ago, JJ-Thailand said:

However, if I have a foreign assessable income sent over to Thailand that I have not paid tax for I would file my tax return for this income as it does not require a tax credit claim and could be considered to be tax evasion which could result in penalties. Form PND90 has not yet been updated by the authorities to include foreign capital gains but in PND90, No. 7 Assessable Income Under Section 49 (8) any assessable income can be inserted, e.g. capital gains from sales of foreign stock. I would also make sure to use all available allowances and deductions in order to avoid or minimize any Thai tax.

 

If this income falls within the 0% tax range is it necessary to file? 

[JJ-Thailand]

5 hours ago, lamyai3 said:

 

If this income falls within the 0% tax range is it necessary to file? 

As I understand it, to file or not to file has nothing to do with if you need to pay tax or not.

1. If you live in Thailand for 180 days or more in one calendar year AND your assessable income sent over to Thailand is above a certain level, you should file your tax return here.

2. If your assessable income sent over is less than 150,000 Baht after allowances and deductions, no tax to be paid.