Revenue Department to amend tax on foreign income remittance

[Zaphod Priest]

Apparently, according to the Bangkok Post, there's a change coming.  The article's a bit unclear, but I think it means that all overseas income transferred to Thailand must be declared in one's tax return.  However, if it's transferred in the same year it's obtained or the following year, it will not be taxed.

The article repeatedly refers to "Thais", but it almost certainly includes all tax residents.

 

https://www.bangkokpost.com/business/general/3028760/department-to-amend-tax-on-foreign-income-remittance

[BritManToo]

Flip-flop ............. as expected.

Was going to buy a new car, but didn't just in case, when/if they change the law back, I will.

Waiting ...... waiting ......

[anrcaccount]

9 minutes ago, Zaphod Priest said:

Apparently, according to the Bangkok Post, there's a change coming.  The article's a bit unclear, but I think it means that all overseas income transferred to Thailand must be declared in one's tax return.  However, if it's transferred in the same year it's obtained or the following year, it will not be taxed.

The article repeatedly refers to "Thais", but it almost certainly includes all tax residents.

 

https://www.bangkokpost.com/business/general/3028760/department-to-amend-tax-on-foreign-income-remittance

 

Thanks for sharing.

 

Not only is this the flip flop many expected, it actually looks like it goes further and specifically exempts foreign income earned from being taxed - not only in the year earned but also the one following.

 

And of course, if all income is exempt, there's no need for a tax return to be filed at all. 

 

Good riddance to the predatory tax firms who had sprung up. They got one year of business out of of the hysteria! 

 

For any of those worried foreigners who had been hand wringing about tax or leaving the country for 180 days to avoid it, time to relax and stop worrying! 

 

 

[BritManToo]

12 minutes ago, anrcaccount said:

Good riddance to the predatory tax firms who had sprung up. They got one year of business out of of the hysteria! 

For any of those worried foreigners who had been hand wringing about tax or leaving the country for 180 days to avoid it, time to relax and stop worrying! 

The only people that worried were the foolish and the obsessive.

Clearly trying to tax foreign remittance would never work, as people would just stop remitting (like I did), or only live here under 6 months of the year.

 

Suddenly nobody with foreign money was buying condos or cars.

Then after a year they noticed condos and car sales well down ......and changed their minds.

[motdaeng]

17 minutes ago, BritManToo said:

The only people that worried were the foolish and the obsessive.

Clearly trying to tax foreign remittance would never work, as people would just stop remitting (like I did), or only live here under 6 months of the year.

 

why did you stop remitting money ...

it seems to my you belong to the only people that worried were the foolish and the obsessive (your own words) ... 

[motdaeng]

20 minutes ago, anrcaccount said:

For any of those worried foreigners who had been hand wringing about tax or leaving the country for 180 days to avoid it, time to relax and stop worrying! 

 

it is not a "done deal" yet ... 

[BritManToo]

7 minutes ago, motdaeng said:

why did you stop remitting money ...

it seems to my you belong to the only people that worried were the foolish and the obsessive (your onw words) ... 

Where did I claim not to be foolish and/or obsessive?

[Yumthai]

1 minute ago, motdaeng said:

it is not a "done deal" yet ... 

Sounds like disappointment, unsurprisingly.

[JB300]

36 minutes ago, Zaphod Priest said:

The article repeatedly refers to "Thais", but it almost certainly includes all tax residents.

I read that article as solely being about Thais that earn income abroad will be encouraged to remit it this year or next year.

 

No mention of foreigners or reverting the previous changes to remitted income. 
 

Sincerely hope you’re right & I’m wrong as I have a lot of money (PCLS - Pension Commencement Lump Sum) that I want to bring in next year so am currently planning to be out of the country for 6 months. 

[FlorC]

 From the article :

 

For foreign income earned before Jan 1, 2024 and remitted to Thailand after that period, the previous rules still apply. That means if a Thai earned foreign income before 2024 and remitted it after the year the income was earned, the remittance is not subject to the tax.

Under the new guidelines, Thais with foreign income will not be taxed if they remit that income in the year it was earned or the following year. For example, if income is earned in 2025 and brought into Thailand in 2025 or 2026, it is not subject to tax.

 

Sorry but where is the logic in that ?

Income you saved in 2025 in your own country , but you remit that to Thailand in 2027 , gets taxed .

 

Again , where is the logic ?

 

[Yumthai]

3 minutes ago, FlorC said:

Sorry but where is the logic in that ?

Income you saved in 2025 in your own country , but you remit that to Thailand in 2027 , gets taxed .

 

Again , where is the logic ?

The logic is: Hurry to remit your money in Thailand because we cruelly need it.

[GammaGlobulin]

40 minutes ago, BritManToo said:

Flip-flop ............. as expected.

Was going to buy a new car, but didn't just in case, when/if they change the law back, I will.

Waiting ...... waiting ......

 

Please don't waste your money on a new car, in any event.

The end of the world will happen by 2030.

Or, if it does not, then this will mean that goods and services will have become dirt cheap.

Cars will be so easy to manufacture that the premium models will be given away to anyone showing minimal interest.

 

[TheAppletons]

19 minutes ago, JB300 said:

I read that article as solely being about Thais that earn income abroad will be encouraged to remit it this year or next year.

 

No mention of foreigners or reverting the previous changes to remitted income. 
 

Sincerely hope you’re right & I’m wrong as I have a lot of money (PCLS - Pension Commencement Lump Sum) that I want to bring in next year so am currently planning to be out of the country for 6 months. 

 

  The Thai tax code applies to all tax residents equally.  There is no differentiation between Thais and non-Thais (DTAs notwithstanding.)

[Presnock]

47 minutes ago, anrcaccount said:

 

Thanks for sharing.

 

Not only is this the flip flop many expected, it actually looks like it goes further and specifically exempts foreign income earned from being taxed - not only in the year earned but also the one following.

 

And of course, if all income is exempt, there's no need for a tax return to be filed at all. 

 

Good riddance to the predatory tax firms who had sprung up. They got one year of business out of of the hysteria! 

 

For any of those worried foreigners who had been hand wringing about tax or leaving the country for 180 days to avoid it, time to relax and stop worrying! 

 

 

Hard to determine exact details.  But from what I read so IMHO, after 2026 all remittances will be taxed or worldwide income on Thai tax residents will be taxed.  Thus within the next several months we might see that bit on when the worldwide income might start so that it can be published well before that first year due.  Again, though, I am only guessing but the wording just seems strange.  

[proton]

1 hour ago, BritManToo said:

Flip-flop ............. as expected.

Was going to buy a new car, but didn't just in case, when/if they change the law back, I will.

Waiting ...... waiting ......

 

Transfer to wife as a gift, no tax

[motdaeng]

21 minutes ago, proton said:

Transfer to wife as a gift, no tax

 

you seem to be a real genius ... 

[samtam]

1 hour ago, FlorC said:

 From the article :

 

For foreign income earned before Jan 1, 2024 and remitted to Thailand after that period, the previous rules still apply. That means if a Thai earned foreign income before 2024 and remitted it after the year the income was earned, the remittance is not subject to the tax.

Under the new guidelines, Thais with foreign income will not be taxed if they remit that income in the year it was earned or the following year. For example, if income is earned in 2025 and brought into Thailand in 2025 or 2026, it is not subject to tax.

 

Sorry but where is the logic in that ?

Income you saved in 2025 in your own country , but you remit that to Thailand in 2027 , gets taxed .

 

Again , where is the logic ?

 

 

That's how I read it. It is a "pause", but the previous change in interpretation in Por 161 & Por 162 will now take effect in 2027:

 

Under the new guidelines, Thais with foreign income will not be taxed if they remit that income in the year it was earned or the following year. For example, if income is earned in 2025 and brought into Thailand in 2025 or 2026, it is not subject to tax.

 

However, if the income is remitted after that period, normal tax obligations apply.

Please credit and share this article with others using this link: https://www.bangkokpost.com/business/general/3028760/department-to-amend-tax-on-foreign-income-remittance. View our policies at http://goo.gl/9HgTd and http://goo.gl/ou6Ip. © Bangkok Post PCL. All rights reserved.

 

 

 

46 minutes ago, Presnock said:

Hard to determine exact details.  But from what I read so IMHO, after 2026 all remittances will be taxed or worldwide income on Thai tax residents will be taxed.  Thus within the next several months we might see that bit on when the worldwide income might start so that it can be published well before that first year due.  Again, though, I am only guessing but the wording just seems strange.  

 

Agree the wording seems strange, although taxation on worldwide income whether remitted on not, is not stated, but I appreciate you are making an assumption. If the RD intention is to get Thais (but actually all tax residents) to (inwardly) remit funds, this is yet another uncertainty in this mess that will have the opposite effect.

[JB300]

53 minutes ago, TheAppletons said:

 

  The Thai tax code applies to all tax residents equally.  There is no differentiation between Thais and non-Thais (DTAs notwithstanding.)

I agree with you but the article starts with “The Revenue Department is preparing to draft legislation to amend the collection of tax on foreign income remitted to Thailand” so it would be very easy for them to include a clause saying it only applies to Thais Nationals.

 

Again, hope others reading of the article is correct & the change does apply to all Tax Residents but I tend to plan for the worst (be non-Tax resident next year then go for LTR) & hope for the best. 

[bkk6060]

I would argue it was never meant for foreigners in the first place.  But,  people (mostly tax agents) jumped on the bandwagon and all of a sudden everyone was included.  

Yes, I agree I bet lots money has been kept away.  Stupid, as the economy will do better opening it up to no tax.

[Quentin Zen]

 

[mfd101]

I assume that, in any case, for most foreign residents in Thailand the relevant Double Tax Agreement applies so there's nothing to do or worry about.

[The Cyclist]

Quote

A source from the Finance Ministry who requested anonymity said the taxation of foreign income follows the residency-based principle, whereby Thailand taxes the income of individuals who reside in the country.

This rule applies to persons who stay in Thailand for 180 days or more and have foreign income.

The department has consistently applied this residency-based taxation principle, which aligns with OECD guidelines.

 

 

i would interpret that article to mean that there is now an 18 month window ( for mainly Rich Thais ) to get their money moved back to Thailand before world wide taxation kicks in in 2027.

 

Which the OECD are pushing for.

[samtam]

57 minutes ago, samtam said:

 

That's how I read it. It is a "pause", but the previous change in interpretation in Por 161 & Por 162 will now take effect in 2027:

 

Under the new guidelines, Thais with foreign income will not be taxed if they remit that income in the year it was earned or the following year. For example, if income is earned in 2025 and brought into Thailand in 2025 or 2026, it is not subject to tax.

 

However, if the income is remitted after that period, normal tax obligations apply.

Please credit and share this article with others using this link: https://www.bangkokpost.com/business/general/3028760/department-to-amend-tax-on-foreign-income-remittance. View our policies at http://goo.gl/9HgTd and http://goo.gl/ou6Ip. © Bangkok Post PCL. All rights reserved.

 

 

 

 

Agree the wording seems strange, although taxation on worldwide income whether remitted on not, is not stated, but I appreciate you are making an assumption. If the RD intention is to get Thais (but actually all tax residents) to (inwardly) remit funds, this is yet another uncertainty in this mess that will have the opposite effect.

 

I wonder how this change effects Por 161 & 162, which covered the year ending 2024. It's not that I had any tax due when I filed on 31 March, but I have only just now received the request for additional documents, (passport, tel no, WHT tax cert from Thai bank...plus request for irrelevant* WHT certs for dividends etc which I do not have):

*to my circumstances

 

Quote

Please submit the following documents:
  1. Withholding Tax Certificate Section 40(1) Salary, wages, pensions, etc.
  2. Withholding Tax Certificate Section 40(4)(a) Interest (bank deposits, bonds, etc.)
  3. Withholding Tax Certificate Section 40(4)(b) Dividends, profit sharing, etc.
  4. Passport / work permit
  5. Contact phone number

 

From a similar filing for my partner, (same circumstances), TRD said to ignore the request for the other documents, (1) & (3) as they were inapplicable.

[tomazbodner]

From that BKK Post article:

 

Mr Panuwat said "the current rules on taxing foreign income have discouraged Thais investing abroad from bringing their money back into the country."

No s**t, Sherlock, really?

[The Cyclist]

7 minutes ago, samtam said:

wonder how this change effects Por 161 & 162, which covered the year ending 2024.

 

It will have no effect 

 

Quote

The Revenue Department is preparing to draft legislation to amend the collection of tax on foreign income remitted to Thailand. 
 

 

Until the proposed draft legislation is passed and published.

[samtam]

2 minutes ago, tomazbodner said:

From that BKK Post article:

 

Mr Panuwat said "the current rules on taxing foreign income have discouraged Thais investing abroad from bringing their money back into the country."

No s**t, Sherlock, really?

 

And this new law, once, or if it gets passed, will have the same effect. There is a lot that can happen between now and the enactment of law, and the government is looking more wobbly than previously. Again, an uncertainty that will achieve the polar opposite of the intention. 

[madone]

2 hours ago, anrcaccount said:

Not only is this the flip flop many expected, it actually looks like it goes further and specifically exempts foreign income earned from being taxed - not only in the year earned but also the one following.

 

Jumping the gun a bit, aren't you? I have yet to see anything concrete publis.hed

[The Cyclist]

4 minutes ago, madone said:

 

Jumping the gun a bit, aren't you? I have yet to see anything concrete publis.hed

 

There are clearly some people who are praying / clutching at any straw, hoping that they can escape the tentacles of the tax man.

[madone]

 

Just now, The Cyclist said:

 

There are clearly some people who are praying / clutching at any straw, hoping that they can escape the tentacles of the tax man.

 

 

Escaping the taxman is something I have taken a sacred charge since I saw my first deduction.

[Jim Blue]

1 minute ago, The Cyclist said:

 

There are clearly some people who are praying / clutching at any straw, hoping that they can escape the tentacles of the tax man.

Sounds like something out of a Thai  thriller  ' How I  escaped from the Thai Tax man's tentacles .......