Revenue Department to amend tax on foreign income remittance

[The Cyclist]

6 minutes ago, madone said:

 

 

 

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

 

😀😀😀

 

Yes, of course. There are various legal methods of reducing and minimizing  your personal tax liability.

 

Hoping, praying and clutching straws are not listed in those legal methethods.

[madone]

1 minute ago, The Cyclist said:

 

😀😀😀

 

Yes, of course. There are various legal methods of reducing and minimizing  your personal tax liability.

 

Hoping, praying and clutching straws are not listed in those legal methethods.

 

Waiting until the law is clear is not clutching at straws. I have neither paid nor declared anything this year because there simply wasn't enough information to justify it. 

Now that seems to have been the prudent course, though, as I said, show me the published policy. 

[potless]

1 hour ago, samtam said:

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.

 

I see that there are a few different views about what the TRD intentions are. The above quote says "for example". My (hopeful) take on this is that it would be an ongoing thing. Thus money earned in subsequent years would be subject to the same criteria. EG money earned in 2028 would be tax free if remitted in the same year or 2029. Fingers crossed.

[potless]

2 hours ago, GammaGlobulin said:

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

The end of the world will happen by 2030.

If the world is going to end in 2030, he might as well buy a new car cos he cant take his money with him.

[The Cyclist]

5 minutes ago, madone said:

 

Waiting until the law is clear is not clutching at straws. I have neither paid nor declared anything this year because there simply wasn't enough information to justify it. 

Now that seems to have been the prudent course, though, as I said, show me the published policy. 

 

I'm out. The thread is about the article

 

Not what has been repeated ad nauseam across various other threads.

[madone]

1 minute ago, The Cyclist said:

 

I'm out. The thread is about the article

 

Not what has been repeated ad nauseam across various other threads.

and heres me thinking you brought it up.

buh byeee

[Presnock]

1 hour 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.

 

1 hour 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.

Correct, I do believe this is for ALL Thai tax residents, whether they be Thai or what ever.  But I also fail to understand why the Revenue Department doesn't put out an announcement to all the news media so that hopefully the full story will known though recognize that they seldom put out the whole story anyway.

[GammaGlobulin]

42 minutes ago, potless said:

If the world is going to end in 2030, he might as well buy a new car cos he cant take his money with him.

 

To clarify, I am not saying that the "world" will end, per se.

I AM saying that the "world as we now know it" will end by 2030, plus or minus one year.

And so, he may need his cash a lot more, very soon, than a new car now.

 

 

[samtam]

30 minutes ago, Presnock said:

 

Correct, I do believe this is for ALL Thai tax residents, whether they be Thai or what ever.  But I also fail to understand why the Revenue Department doesn't put out an announcement to all the news media so that hopefully the full story will known though recognize that they seldom put out the whole story anyway.

 

There's saying for this. Wait, it's on the tip of my tongue....

This is Thailand.

 

Unfortunately this (typically) poorly researched article will result in thousands upon thousands of speculative theories, (and yes, I know I'm part of it). After 21 months of similar speculation after Por 161 & 162, here we are again. I will (try and) wait until the end of this year before participating any further. The previous 21 months of nonsense was exhausting.

[StandardIssue]

4 hours 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

 

Oh man, the hits just keep on coming. What a circus! Don't do anything until they come knocking the door down. LOL!

[Sheryl]

It does not mean that all remittances must be declared on a tax return. Neither under current rules nor the proposed change.

 

There is no section on tax forms for declaring remittances as such. One simply declares all assessable income  on the line for income. Some remittances are assessable, some are not. 

 

What would change under the proposed new regulation would be the tax assessibility of some types of remitted incomes.

 

Non-assessable income does not get declared on tax returns, period. 

 

 

[GeorgeCross]

old scheme: remit funds 1st Jan

 

new scheme: remit funds 31st Dec

 

😂

[Presnock]

1 hour ago, samtam said:

 

There's saying for this. Wait, it's on the tip of my tongue....

This is Thailand.

 

Unfortunately this (typically) poorly researched article will result in thousands upon thousands of speculative theories, (and yes, I know I'm part of it). After 21 months of similar speculation after Por 161 & 162, here we are again. I will (try and) wait until the end of this year before participating any further. The previous 21 months of nonsense was exhausting.

amen to that!

[NoDisplayName]

4 hours 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. 

 

At stated in the article:

 

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.

 

 

[NoDisplayName]

2 hours ago, samtam said:

..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):

 

 

Assume you filed online close to the end of the reporting period.  TRD was busy with millions of late filers.  Filing in person, staff should have requested all the necessaries when submitting.

 

If you declared interest income and requested a refund, then you need to provide the bank withholding statement.

 

Use this TRD site to upload your documents.  You should get approval within a few days, and a letter in a couple weeks you take to Krung Thai to cash.

https://efiling.rd.go.th/rd-efiling-web/authen/MTA2

 

[samtam]

14 minutes ago, NoDisplayName said:

 

Assume you filed online close to the end of the reporting period.  TRD was busy with millions of late filers.  Filing in person, staff should have requested all the necessaries when submitting.

 

If you declared interest income and requested a refund, then you need to provide the bank withholding statement.

 

Use this TRD site to upload your documents.  You should get approval within a few days, and a letter in a couple weeks you take to Krung Thai to cash.

https://efiling.rd.go.th/rd-efiling-web/authen/MTA2

 

 

Yes, they asked for the WHT bank cert today via SMS, plus passport and phone number, which I will upload later. Submitted all of that for my partner's filing more than 2 weeks ago through the e-filing, and accepted, but pending. A large backlog, as you say. I imagine they may have underestimated their personnel requirements after Por 161 & 162. My e-filing on 31 March was acknowledged the same day, but today is the first response, so about 90 days. 

[NoDisplayName]

Do I have this right?

For Thailand tax residents:

 

Old rule:  Foreign income (not exempt by DTA) earned in prior years is not assessable.  Foreign income (not exempt by DTA) remitted in same year is assessable.

 

New rule:  Foreign income (not exempt by DTA) earned prior to 2024 is not assessable.  Foreign income (not exempt by DTA) earned after 2023 remitted in any year is assessable.

 

Proposed rule:  Foreign income (not exempt by DTA) earned prior to 2024 remains not assessable.  Foreign income (not exempt by DTA) earned after 2024 remitted in the same or following year is not assessable.  Foreign income (not exempt by DTA) earned after 2024 remitted in subsequent years is assessable.

 

 

Why the change?

End of 2025 tax season, probably a significant drop in collections.

[Guderian]

It seems to be an interesting about-face by the TRD.

 

The article says:

 

"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."

 

(Later on, the article does state that the change applies to all tax residents, not just Thais.) 

 

That implies to me (due to the 'for example') that this change doesn't only apply to 2025 income remitted into Thailand in 2025 or 2026, but will also apply to 2026 income remitted in 2026/2027, 2027 income remitted in 2027/2028, and so on. If so, then great news.
 

However, someone already suggested that it is in fact a one-off only applying to 2025 income, as global taxation based on FATCA/CRS will soon be introduced (dream on, I hope). The article was presumably written by a journo, not a tax specialist, so we probably shouldn't read too much into its exact wording. A press release from the TRD clarifying matters would be welcome. 
 

[NoDisplayName]

5 minutes ago, samtam said:

 

Yes, they asked for the WHT bank cert today via SMS, plus passport and phone number, which I will upload later. Submitted all of that for my partner's filing more than 2 weeks ago through the e-filing, and accepted, but pending. A large backlog, as you say. I imagine they may have underestimated their personnel requirements after Por 161 & 162. My e-filing on 31 March was acknowledged the same day, but today is the first response, so about 90 days. 

 

Nothing to worry about.

 

Your return was flagged by the automated system for manual intervention.

 

I had similar with my return.  Needed to provide bank letter, dividend receipts, marriage certificate (filed joint return).

[CallumWK]

1 hour ago, Guderian said:

The article says:

 

"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."

 

 

That is the most unlogical explanation to me.

Why would income become assessable if it is remitted after a few years.

[samtam]

[tomkenet]

2 hours ago, CallumWK said:

 

 

2 hours ago, CallumWK said:

 

 

That is the most unlogical explanation to me.

Why would income become assessable if it is remitted after a few years.

They want the money to arrive to Thailand asap 😃

 

Another reason might be that they can claim there is taxation on foreign income, thought with some limitations.

[anrcaccount]

16 minutes ago, samtam said:

 

Typical weasel words from this 'agency' - trying to create doubt that these changes may not apply to expats. Thai taxation does not discriminate on nationality between citizens and foreigners, in case you were in any doubt. 

 

Didn't see the same doubt, when the TRD foreign income remittance year internal directive POR's were issued back in 2023.

 

This agency and others, jumped on them to create themselves a predatory business opportunity, which looks like will soon, (IMO gladly), be ending. 

 

 

[ukrules]

9 hours ago, FlorC said:

Again , where is the logic ?

Remember where you are, there is no logic

[ukrules]

7 hours ago, The Cyclist said:

Until the proposed draft legislation is passed and published.

Which may never happen, lets remember - this comes from the same department which was talking about taxing everyones global income regardless of remittance or not.

 

It's like some kind of random word machine, maybe they changed the mouth that's speaking over at the Revenue Department - but it's all horse<deleted> no matter what they say.

[Yumthai]

9 minutes ago, ukrules said:

It's like some kind of random word machine, maybe they changed the mouth that's speaking over at the Revenue Department - but it's all horse<deleted> no matter what they say.

No matter what they say, what matters is what they do. And in term of tax enforcement there is nothing.