Filing Tax Return Form for Foreign Income on Samui

[khunPer]

This might be important if you have foreign income and not yet filed your tax return for 2024.

I filed my tax return form today in paper at the Amphor's tax office in Nathon. No income tax to be paid; so, the kind cashier looked through the paperwork, typed a bit and out came my 0-baht tax receipt. "You need to file tax return again next year", she said with a smile.

Sure, I know, it's not my first time, even I'm staying here as retiree.

 

The reason I file on paper and not use online "E-filing" is that my transferred taxable income is over the limit, but I've already paid tax in my home country. Unfortunately you cannot use E-filing is you wish to claim already paid foreign tax deducted in your transferred foreign income – it might be a system or programming fault, or never the intention to include it.

 

I had a meeting – or rather two – with the director of Samui Revenue Office about foreigners and income tax, especially for those of us that have already paid income tax in our home countries. There has been several AN-threads about income tax with  statements both as "if you have already paid tax abroad, you don't need to file a tax return form", and that "I don't care and I'm not planning to file a tax return". However, the director said that all foreigners staying 180 days or more during a calendar year need to file for tax return, if the have any income from abroad, even if it has already been taxed. I cannot talk about other provinces and how they might do it with this new tax-thing, but this is the official status for Koh Samui or Surat Thani Province.

 

 

 

I noticed that someone staying in Roi Et, last year posted about an affidavit for extension of stay based on retirement, where you should declare you pension details, including bank account number. This made me think that if the Thai government is serious about foreigner's income tax-thing, it might be a future issue when applying for extension of stay. So, you better get it done, it might be easy to do.

 

Tax free allowances

 

If you are 65 years old and your annual taxable income is under or close to 500,000 baht per year – don't forget that savings from before 1 January 2024 still can be transferred free from tax – you don't need to pay tax; but you still need to file a tax return.
You have:

60,000 baht in personal deduction,

100,000 baht in expenses as 50% of income but no more than 100,000 baht,

190,000 baht deduction as being old, 65 years or more,

150,000 baht non taxed income, thereafter in steps beginning with 5%.

 

If you don't have a TIN (Tax Identification Number) – which is same number used in yellow house book and on pink ID-card – get one. You can get it on 2nd floor in the Customs House in Nathon, opposite the SeaTran-pier.

 

You can easily file your tax-report online with E-filing, link here to copy:

https://efiling.rd.go.th/rd-cms/tax

 

I use a browser with translation function, so I can translate the forms to English. However, if you need a text from a roll down menu, it is in Thai language. You can snap a screen shot of the roll down text and paste it in Google Translation in the Image-tab, and get a translation that way.

 

Income shall be filed in P.N.D. 90/91...

 

 

You can save (record) everything while filling in the forms and return later to continue. In the screen shot above I have a "1 Sketch".

 

 

There are different sections to file in, 40(1) is for salary and retirement pension, 40(2) is for other fees and freelance work, 40(3) for rental income, and 40(4) for foreign stock dividends...

 

 

 

When you file an income, you need to tick "Overseas Payer". To be able to do that, you have to enter 0 in "Withholding tax"...

 

 

So this is here we foreigners that have already paid income tax in our home country face an issue. We cannot claim tax deduction for that online. If you tape any other value than 0 in "Withholding tax", you cannot mark "Overseas payer", but are promted a Thai withholding taxpayer number.

 

 

If you are 65 years or older, you can click on "Income exemption rights" at the bottom, after you filed your income, and deduct extra 190,000 baht...

 

 

 

Furthermore in Part 3 you will have you personal deduction and other deduction, like spouse without own income, child deduction if you are married to the Thai mother, or eventual insurances...

 

 

 

Thereafter in Part 4 you will get your tax calculation...

 

 

If you end up with paying Thai income tax and have already paid tax in your home country – like me – you cannot use the online system to claim already withheld foreign tax refunded deducted from due Thai income tax of the same income. You will instead need to file a P.N.D.90 tax return form on paper, all in Thai language, and attach documentation for withheld tax. The latter shall be translated to Thai langue here on Samui, even that it's officially is said to be in English or Thai. If you cannot do that yourself and need to buy help from an auditor or tax-serve-agent, it might be worth just pay a smal amount of tax, if it is a few thousand baht, rather than paying for service and the troubles with documentation; it's however an individual choise.

 

You need to check if Thailand has a DTA (Double Taxation Agreement) with your home country and find the article, or articles, covering your foreign taxed income. It is said that all DTAs are slightly different, so there is no general rule, apart from you will not be double taxed, if there is a DTA, but you might have to pay the highest of the taxes.

Link to DTAs:

https://www.rd.go.th/english/766.html

 

If you are Danish, you can read more detailed about filing Thai tax return in Danish language here:

https://samesame-butdifferent.dk/doc/flytte-og-bo/PND90.php

 

 

[Samui Bodoh]

Hi KP et al

 

Long time, no yap! 

 

Yes, I stopped posting on the Forum a long while ago, and I doubt that I need to explain why. That said, I do pop in occasionally to the Samui sub-section for local info where I saw this thread.

 

KP; I know that you do your research, so perhaps you could answer a simple question or two from me; over the years I have developed a great loathing for dealing with official Thailand.

 

I understand that there is a tax on remittances from outside the country, and although I ain't fond of taxes, I can live with them if they ain't too unreasonable. I had enough money in-country that I did not need to remit anything for the tax year 2024 (and perhaps tax year 2025 as well; I am very frugal), so I chose to wait a year or two to see how this all plays out.

 

I also understand that the Tax Man generally does not give you a Tax Id Number (TIN) unless you actually are paying taxes, and that is okay with me. Finally, I understand that there are several deductions (age, marriage, etc.) one can make to bring assessable income down to zero, i.e. no taxes paid on remittance(s).

 

My questions are these;

• How much could an unmarried man, age 59 (and/or 60), with no work/income or investment in Thailand, remit into the country before it triggered a tax event? For example, if I transferred in 300,000 Baht to cover my costs for 2025, would that trigger a tax event and a need to file? Is there a number?
• In paying taxes on the remittance(s), do you need to file a full tax return (like in your own country) or only declare the remittance(s)?
• At any time, did you need to inform Thai Tax Authorities on your financial status in your home country?

And a bonus question, if you are feeling generous with your time. I have heard the rumours that Thailand will, in the future, require expats to declare their global income to Thai tax authorities. 

• Did this come up when you were in Nathon?
• Do you know anything (concrete!) about this?

It would be with great sadness, but should Thailand demand that we declare global income as expats, I'd likely move on, notwithstanding the double Taxation Treaties.

 

Many thanks in advance for your answers, and I will NOT hold you accountable for any comments. I will be seeking professional advice at some point, but I am a believer in being prepared before doing so.

 

Thanks and Cheers

SB

 

[churchill]

My account told me if you are not liable to pay tax you do not need to file a return . 

[churchill]

Same in uk - no need to file unless you are liable .

[redwood1]

8 minutes ago, churchill said:

My account told me if you are not liable to pay tax you do not need to file a return . 

 

Correct if you dont owe taxes there is no need to file.....But some posters here seem to see it as their God given duty to try and get others to file even if they owe nothing...

[Samui Bodoh]

19 minutes ago, churchill said:

My account told me if you are not liable to pay tax you do not need to file a return . 

Thanks Mr C, I have heard the same. And, I am not a Brit.

 

What I am trying to figure out is how much I can transfer here without causing a tax event (100,000Baht? 200,000Baht? 300,000Baht?).

 

And, if I do have to pay some tax, what level of information would I need to tell the Thai Tax Man. Quite honestly, I do not want to tell them anything about my financial situation outside of Thailand.

 

Cheerio

[churchill]

11 minutes ago, Samui Bodoh said:

Thanks Mr C, I have heard the same. And, I am not a Brit.

 

What I am trying to figure out is how much I can transfer here without causing a tax event (100,000Baht? 200,000Baht? 300,000Baht?).

 

And, if I do have to pay some tax, what level of information would I need to tell the Thai Tax Man. Quite honestly, I do not want to tell them anything about my financial situation outside of Thailand.

 

Cheerio

 

IMO until the situation is much clearer I would not worry about a few 100,000 baht - 

 

For instance , I was told , rental income from overseas is tax exempt .

 

If you clearly need to pay tax then file but if not wait for more clarity .

 

But up to you .

[khunPer]

4 hours ago, churchill said:

My account told me if you are not liable to pay tax you do not need to file a return . 

That is correct for Thais with income below the tax limit. But you are tax liable when being a tax resident alien with foreign transfers that are not savings from before 2024. According to the revenue department director on Samui, aliens shall file tax report, even when are below tax limit or has paid income tax abroad – presuming that the revenue department's director is more updated in alien's income tax than an accountant – if you live elsewhere in Thailand, I don't know what the local revenue director says...

 

 

 

It's not a big deal to get it sorted out and sleep well...

 

And by the way: Overseas rental income shall be filed in section 40(3). Can you imagine if strict Samui Immigration begins to ask for copy of tax-receipt when extending permission to stay for retirees and other non-O entries, just like you need to show salary and income tax documentation when extending stay based on a work permit...😟

 

[khunPer]

5 hours ago, Samui Bodoh said:

Hi KP et al

 

Long time, no yap! 

 

Yes, I stopped posting on the Forum a long while ago, and I doubt that I need to explain why. That said, I do pop in occasionally to the Samui sub-section for local info where I saw this thread.

 

KP; I know that you do your research, so perhaps you could answer a simple question or two from me; over the years I have developed a great loathing for dealing with official Thailand.

 

I understand that there is a tax on remittances from outside the country, and although I ain't fond of taxes, I can live with them if they ain't too unreasonable. I had enough money in-country that I did not need to remit anything for the tax year 2024 (and perhaps tax year 2025 as well; I am very frugal), so I chose to wait a year or two to see how this all plays out.

 

I also understand that the Tax Man generally does not give you a Tax Id Number (TIN) unless you actually are paying taxes, and that is okay with me. Finally, I understand that there are several deductions (age, marriage, etc.) one can make to bring assessable income down to zero, i.e. no taxes paid on remittance(s).

 

My questions are these;

• How much could an unmarried man, age 59 (and/or 60), with no work/income or investment in Thailand, remit into the country before it triggered a tax event? For example, if I transferred in 300,000 Baht to cover my costs for 2025, would that trigger a tax event and a need to file? Is there a number?
• In paying taxes on the remittance(s), do you need to file a full tax return (like in your own country) or only declare the remittance(s)?
• At any time, did you need to inform Thai Tax Authorities on your financial status in your home country?

And a bonus question, if you are feeling generous with your time. I have heard the rumours that Thailand will, in the future, require expats to declare their global income to Thai tax authorities. 

• Did this come up when you were in Nathon?
• Do you know anything (concrete!) about this?

It would be with great sadness, but should Thailand demand that we declare global income as expats, I'd likely move on, notwithstanding the double Taxation Treaties.

 

Many thanks in advance for your answers, and I will NOT hold you accountable for any comments. I will be seeking professional advice at some point, but I am a believer in being prepared before doing so.

 

Thanks and Cheers

SB

 

Thanks for your comment, you are welcome.

 

In reply to your question about 300,000 baht foreign income for a person younger than 65 years of age:

 

100,000 baht expenses deduction, calculated as 50% of 300,000 baht income, but not more than 100,000 baht.

60,000 baht personal deduction.

-----------

160,000 baht deductions in total

 

+300,000 baht income

–160,000 baht deductions

------------

=140,000 baht taxable income

–150,000 baht tax free bottom level (0% tax)

-------------

= No taxable income

 

 

In reply to: "In paying taxes on the remittance(s), do you need to file a full tax return (like in your own country) or only declare the remittance(s)?"

 

Yes, you need to file a tax return, according to Samui Revenue Department's director and the general information from Thailand's Revenue Department.

 

That is what I mention about in the opening post, it is fairly easy peasy with the online E-filling, if you don't need to pay Thai income tax and don't need deductible income tax from your home country.

 

 

In reply to: "At any time, did you need to inform Thai Tax Authorities on your financial status in your home country?"

 

If Thailand has a DTA (Double Taxation Agreement) with one's home country, the two states exchange tax information.

 

If you wish to deduct already paid income tax from your home country, you need to show proof. In my case I show my annual home country's tax calculations. I also got a general statement from my home country's revenue department, stating that I am fully taxable of retirement pensions to my home country.

 

If you are living from savings before 1st January 2024, you need to show proof of that. I haven't seen anything official about what "proof" is needed, but I would presume that a full tax-statement per 31st December 2023 including all savings – if one's home country revenue department registers them – would do. I've kept a statement of my savings per that border-date and shows what I transferred of my savings in 2024, as an attachement to my tax report in paper; the latter because I deduct already paid tax from home. In general, I would recommend to keep a statement and notes of, what is transferred of savings, in case some "taxman" at one point would be interested. At present, you don't need to file a tax return when living from savings.

 

However, my Danish home country is World-record holder for high and strict taxation, so for me, it is not at all unfriendly to keep tax-documentation in order...

 

And by the way: A few years ago the Thai "taxman" – in form of two friendly kind ladies – unannounced visited my Samui home. They wished to check if I paid due taxes in my home country. It was by agreement with my home country's revenue department, so they already had some tax information about me. Furthermore they had my Thai tax returns (luckily I had began to file such things). They were also checking all my known country fellowmen on Samui; they actually showed me a list with 20+ names. Danes in other parts on Thailand also mentioned about a visit from Thailand's "taxman". The kind tax-ladies said, that the were doing it by country , beginning with Danes and expats from Finland, as the tax exchange information was so easy to obtain...

 

 

In reply to: "... a bonus question, if you are feeling generous with your time. I have heard the rumours that Thailand will, in the future, require expats to declare their global income to Thai tax authorities."

 

This was a suggestion from (I think) a politician, hitting the news. So far, it's not in the present political agenda. However, a bit scary for those os us, legally having untaxed home country-income, when we resides abroad. Im my case capital gain, interest and certain feesare not taxed in my home country. So, as long as I keep the money outside Thailand, they are untaxed; and was even savings when they are earned before 2024.

 

The thing is – which makes the suggestion valid – that many countries tax all income, also foreign income, even it is not transferred to the tax residency country. My home country is one of those that does that.

 

For some, a change like that would make Thailand questionable as fully tax-resident destination. For some, the taxation change of what savings are, has already made Land-of-Smiles questionable.  It is of course very individual, what the effect will be – in case this scary suggestion becomes real... – but if you are in the high gain level, you might need to consider other solutions.

 

But "always look on the bright side of life": I need to make 5 million baht as income in a year to hit the highest income taxation level of 35% in Thailand – in my Danish home country the lowest income tax-rate is 38%...

 

Quote

Less than 150,000 THB: 0% 

150,000 – 300,000 THB: 5% 

300,000 – 500,000 THB: 10% 

500,000 – 750,000 THB: 15% 

750,000 – 1,000,000 THB: 20% 

1,000,000 – 2,000,000 THB: 25% 

2,000,000 – 5,000,000 THB: 30% 

Over 5,000,000 THB: 35%