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original capital does not become new income when transfered to thailan

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Interesting article in the Pattaya Mail ' Planning foreign remittances to Thailand and avoiding double taxation '.

Quote from this article:

' Assume an investor originally purchased foreign shares for THB 5 million and later sold them for THB 7 million. The THB 7 million in sale proceeds should not automatically be treated as THB 7 million of taxable income.

The transaction must first be separated into THB 5 million of original investment capital and THB 2 million of realized gain. The original capital does not become new income simply because it is transferred back into Thailand '.

That you do not have to pay income tax again on the originally investment capital but only on the capital gain is I belive a question of common sense.

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  • The majority of foreigners have never been to a local tax office. Even many of those having a local TIN number have not declared taxes. There is still a lot of unclear information about all this. Only

  • scubascuba3
    scubascuba3

    Yes that's common sense, the 7m isn't income, it's capital, but does the thai tax office do common sense?

  • I've never been to the tax office and don't plan to in the near future. But if the tax office behaves like other government agencies, then you have to expect the worst.

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Yes that's common sense, the 7m isn't income, it's capital, but does the thai tax office do common sense?

For US nationals, that rule does NOT apply to withdrawals from IRA retirement accounts.

The full amount of such withdrawals if remitted is fully subject to Thai tax even if you can document a cost basis and profit.

27 minutes ago, scubascuba3 said:

Yes that's common sense, the 7m isn't income, it's capital, but does the thai tax office do common sense?

I know of one recent tax audit where the big boss didn't even know that US Social Security is not taxed. The American spent days trying to document what should already be known by the tax office.

What happens for you or me or someone else today, may not happen for anyone tomorrow -- or maybe for only one of us. Still TIT.

Edited by Ricohoc

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1 hour ago, scubascuba3 said:

Yes that's common sense, the 7m isn't income, it's capital, but does the thai tax office do common sense?

I've never been to the tax office and don't plan to in the near future. But if the tax office behaves like other government agencies, then you have to expect the worst.

1 hour ago, Jingthing said:

For US nationals, that rule does NOT apply to withdrawals from IRA retirement accounts.

The full amount of such withdrawals if remitted is fully subject to Thai tax even if you can document a cost basis and profit.

That's not what he asked, money from a retirement fund would be taxable

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32 minutes ago, Sato said:

I've never been to the tax office and don't plan to in the near future. But if the tax office behaves like other government agencies, then you have to expect the worst.

The majority of foreigners have never been to a local tax office. Even many of those having a local TIN number have not declared taxes. There is still a lot of unclear information about all this. Only the tax consultants always bring up these matters again for obvious reasons.

4 minutes ago, scubascuba3 said:

That's not what he asked, money from a retirement fund would be taxable

Perhaos but there has been at least one American on this forum who has argued that you can break down the cost basis and profits of unerlying holdings in US retirenent accounts to claim smaller tax events. Unfortunateky nope

Edited by Jingthing

2 minutes ago, scubascuba3 said:

That's not what he asked, money from a retirement fund would be taxable

Not a Roth IRA retirement account, or post-tax money deposited into a 401K in the US.

A Roth IRA is funded with post-tax funds, and both the deposits and the growth can be withdrawn tax-free after 5 years and after age 59 1/2. Annual deposits are limited

A 401K is typically funded with pre-tax funds (up to a limit), and both the deposits and growth are taxable when withdrawn. Some 401Ks also allow post-tax money to be deposited after you reach the limit, and the post-tax deposits are not taxable when withdrawn, but the growth is taxable.

2 hours ago, Sato said:

Interesting article in the Pattaya Mail ' Planning foreign remittances to Thailand and avoiding double taxation '.

He has written at least 3 or 4 articles on a similar vein in the last couple of weeks - one today on foreign property sales and inheritance remittances.

However he is also the guy who, when this whole thing kicked off, made some complete howlers, so I would check any of his statements very carefully - and I certainly wouldn't be looking to pay for his services coffee1

20 hours ago, Sato said:

but only on the capital gain is I belive a question of common sense.

I believe the criteria is taxation of Earned Income that would be associated with the capital gain.

Capital gains are already taxed in the US, and as such, taxing them would be double taxation.

23 hours ago, Sato said:

avoiding double taxation '.

The DTA agreement like from the US would address some of this if your country has an agreement with Thailand.

An account skilled in Thai Taxes could address all the specifics.

I would definitely keep great records showing the capital being transferred to or from Thailand, all tax returns in the foreign country and the investment paperwork.

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1 hour ago, J Branche said:

.....

I would definitely keep great records showing the capital being transferred to or from Thailand, all tax returns in the foreign country and the investment paperwork.

You're absolutely right, but that's precisely what makes Thai tax law a disaster and should deter everyone from sending large sums of money to Thailand, as they risk having to pay taxes on it or even being considered a tax evader. What proof could the Thai tax authorities possibly require that the money is NOT taxable in Thailand? For example, if someone wants to transfer $500,000 to buy a house, and the money comes from income earned over the last 20 years? Tax certificates and bank statements from the last 20 years? Signed by at least three bank directors and all officially translated into Thai? That opens the door to arbitrary decisions, and the investor/property buyer has absolutely no legal security.

Edited by Sato

Taxing capital or earnings often depends on whether u keep them apart or mixed in the same account before transferring the so called 'capital' part.

Yes it’s pro-rata so remit 1Million of that 7 million & 5/7ths is Capital, 2/7ths is Income/Gains.

On 8/25/2026 at 7:55 AM, scubascuba3 said:

Yes that's common sense, the 7m isn't income, it's capital, but does the thai tax office do common sense?

Does Thailand do common sense?

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1 hour ago, Tyke said:

Taxing capital or earnings often depends on whether u keep them apart or mixed in the same account before transferring the so called 'capital' part.

You can technically not separate. You have a Depot and you buy shares in the value of 400'000$. Then you sell them for 500'000$. You just able to specify into which account the sell will be done and cannot separate that the gain shall go into a separate account. So the original capital and the gain will be in one account.

The only managable way is to use FIFO or LIFO. There are no guidance from Revenue Departement so I would use FIFO. This is also what make most sence in my eyes.

2 hours ago, Sato said:

. . . What proof could the Thai tax authorities possibly require that the money is NOT taxable in Thailand? . . .

It's already happening for some who are filing and don't owe. I know of at least one instance where all of the documentation that would be acceptable in the US to show income and movement of money (statements from Social Security and the foreigner's private pension along with documented ATM withdrawals showing the machine locations) was not accepted by Thai tax authorities at one office. The big boss in the office was even unaware that Social Security from the US is NOT a taxable event.

Huge mess incoming.

6 hours ago, Ricohoc said:

The big boss in the office was even unaware that Social Security from the US is NOT a taxable event.

That is so clear just take them to court..........see who blinks first.......

5 hours ago, topt said:

That is so clear just take them to court..........see who blinks first.......

Unfortunately, the American being audited had to provide all of the DTA and treaty documents outlining all of it. This is much different than an audit in the US. Americans only have to provide documentation on THEIR tax documents, not the government's tax documents.

Eventually, the big boss accepted that Social Security is not taxed.

I was trying to confirm that Thai tax law allows for the consolidation of winning and loosing trades over a tax year.

This is something that I took for granted but it seems that this was premature.

I asked claude to search various kinds of sources and it always came back with the result that each trade is judged individually. As a result capital losses may not be offset against capital gains.

If someone has information to the contrary I'd be very happy to hear about it.

Another topic of concern and probably debate is the question if foreign earnings after 2023 and in a year in which the individual is a Thai tax resident are brought into Thailand in a later year in which the individual isn't a tax resident of Thailand.

If I remember correctly this was a workaround being floated by many in the more immediate aftermath of the tax regime change. From what I am reading lately, this seems to be seen differently now by some/most?

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"What happens for you or me or someone else today, may not happen for anyone tomorrow -- or maybe for only one of us. Still TIT."

Some years ago when I was working in Thailand . . .

 

An external accountant used by my employing school prepared tax returns for all of the foreign teachers, funded by the school.

 

The accountant came up with a B40,000 refund for me.

 

I subsequently got a letter from the tax office, sent to the school, asking that I go to a meeting.

 

At that meeting, I was given 2 documents.

 

One listed half a dozen or so additional documents that I would need to supply in order to advance my claim for a B40,000 refund. I recall that some of the items being requested were irrelevant, some I would need to get from my school and some I would need to get from my bank.

 

The other document was a waiver of my right to claim the B40,000 refund. I was told that if I signed, my tax return would be immediately finalized.

 

I signed the document.

 

TIT!

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2 hours ago, John Singer said:

I was trying to confirm that Thai tax law allows for the consolidation of winning and loosing trades over a tax year.

This is something that I took for granted but it seems that this was premature.

Nothing to consolidate.

Capital gains from sales of stock in Thailand are not taxable.

Capital gains from sales of foreign stock brought into Thailand is considered assessable income, but unfortunately offsetting gains with losses doesn't apply.

Need to keep good records and be able to specify ezzackly which stock sale proceeds are being transferred.

On 8/25/2026 at 1:11 PM, Sato said:

Interesting article in the Pattaya Mail ' Planning foreign remittances to Thailand and avoiding double taxation '.

Quote from this article:

' Assume an investor originally purchased foreign shares for THB 5 million and later sold them for THB 7 million. The THB 7 million in sale proceeds should not automatically be treated as THB 7 million of taxable income.

The transaction must first be separated into THB 5 million of original investment capital and THB 2 million of realized gain. The original capital does not become new income simply because it is transferred back into Thailand '.

That you do not have to pay income tax again on the originally investment capital but only on the capital gain is I belive a question of common sense.

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Doesn't seem to be any requirement to show where the original 5 million came from. Directly from salary into investments and held for xx years, or reinvested sales.

Which seems to imply that if you sell 7 million in your foreign account today, reinvest that 7 million in your foreign account tomorrow, then the cost basis is now 7 million when you sell it next month.

When you sell it later and transfer into Thailand, assessable income is the sales amount over 7 million, or?

16 minutes ago, NoDisplayName said:

Capital gains from sales of stock in Thailand are not taxable.

Capital gains from sales of stock listed directly on the Stock Exchange of Thailand (SET) are not taxable.

If you trade US/foreign stocks through any Thai-regulated broker that offers international trading (such as Dime, Webull Thailand,...), capital gains are exempt when you sell for USD/stock currency, but you are fully subject to Thai Personal Income Tax (up to 35%) the moment you convert those profits back into THB (transfer to THB wallet/linked Thai bank account triggers remittance event).

4 hours ago, John Singer said:

Another topic of concern and probably debate is the question if foreign earnings after 2023 and in a year in which the individual is a Thai tax resident are brought into Thailand in a later year in which the individual isn't a tax resident of Thailand.

If I remember correctly this was a workaround being floated by many in the more immediate aftermath of the tax regime change. From what I am reading lately, this seems to be seen differently now by some/most?

As long as you can show after FIFO that you still have funds remaining, an attorney informed me that your savings can be used for however many years after the end of 2023 -- partially or in full.

The consultation with the Thai tax attorney provided this example:

e.g. - If 500,000 baht were brought into Thailand in 2024, you could use an equal amount from savings from 2023 to completely offset any taxable event. Additionally, if you brought the same amount of 500,000 baht into Thailand in 2025, you could use a partial or complete amount from savings from 2023 to offset all or part of the taxable event. This can continue until you have exhausted FIFO.

In my case, I am only going to use savings from 2023 to offset 2024 completely to avoid the hassle of playing with FIFO numbers after that. My deductions and Social Security offset everything every year after that, and I bring in less and less every year.

On 8/26/2026 at 4:13 PM, Ricohoc said:

who are filing and don't owe

.....if you're stupid enough to do that, maybe you should take a hit.

52 minutes ago, JimGant said:

.....if you're stupid enough to do that, maybe you should take a hit.

I have many acquaintances who have opened that can of worms and done so without consulting with a Thai tax attorney; but there are more who never intend to file unless they owe -- or the law changes and requires everyone to file no matter what.

6 hours ago, Ricohoc said:

I have many acquaintances who have opened that can of worms and done so without consulting with a Thai tax attorney; but there are more who never intend to file unless they owe -- or the law changes and requires everyone to file no matter what.

... the tax law simply needs to be enforced; it doesn’t need to be changed. In most cases, the law is crystal clear about who is required to file a tax return ... just because the law hasn’t been actively enforced (till now) doesn’t mean you don’t have to follow it ...

i’m well aware that many see thai law differently, most in a way that conveniently justifies their own position ...

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