Offshore Banking / Working In Thailand

[moo9]

Hi,

my scenario:

Could get a new job. About half of the salery is paid in Thailand (i must pay taxes in Thailand).

The other half is paid in a foreign currency outside of Thailand. I have to select an offshore account for it. The country this salary is coming from is not my home country.

The question to me is: Would that salary taxable? Where if?

Some colleagues tell that it is absolutely tax free. They have their offshore account with HSBC on Jersey, have an ATM card, credit card and can access their funds around the world.

Can anybody please help me? Thanks a lot in advance!

Moo9

[CWMcMurray]

That would depend on your nationality...

If you are American it would still be taxable, but for the first 85,000 in overseas income you can get exempted if the proper forms are filled out when you file your taxes.

If you are living here in Thailand, I believe you are required to pay taxes on all income brought into Thailand in the same calender year as it was made. (unless this has changed)

So if this is true, you can hold it in the bank until 1 Jan 2009, then I believe that it is tax free here as well. Then you just need to make that last until 31 Dec 2009, or keep it segregated from your savings and use money from your savings if needed until the following year.

Edited July 31, 2008 by CWMcMurray

[thaihome]

Note, income earned in Thailand does not have to paid in baht or even into a Thai bank account. My salary is paid into USD into a US bank. Thai income tax is deducted and paid to the Thai Revenue Dept each month (in baht). As an American, I do have declare it and file a return each year. With the amount of income and Thai tax I pay, I do not actually ever owe any US tax.

You can indeed avoid paying Thai income tax on income paid by an offshore company for work performed in Thailand. As you are actually working in Thailand this is not legal and you are avoiding Thai tax and your company is guilty of transfer pricing.

Though it is still very common for international companies to do this for their employees (as it saves them money as well), developing countries such as Thailand are not near as ignorant anymore and are actively going after companies doing this.

My company stopped paying an offshore portion a couple of years ago, after paying a very large fine when we got caught. Luckily, the Thai revenue dept agreed to not go after the individuals for back taxes as part of the deal.

TH

[Soutpeel]

Hi,

my scenario:

Could get a new job. About half of the salery is paid in Thailand (i must pay taxes in Thailand).

The other half is paid in a foreign currency outside of Thailand. I have to select an offshore account for it. The country this salary is coming from is not my home country.

The question to me is: Would that salary taxable? Where if?

Some colleagues tell that it is absolutely tax free. They have their offshore account with HSBC on Jersey, have an ATM card, credit card and can access their funds around the world.

Can anybody please help me? Thanks a lot in advance!

Moo9

Technically it should be taxable in Thailand, as you are working in Thailand, but in a lot of cases, with a lot of companies, expats working in Thailand are paid a "minumum" salary in Thailand they pay tax on and the rest is paid into an offshore account without tax taken off, Some companies pay this portion of the salary from their own offshore accounts, therefore the cash has never been paid out of Thailand, therefore no record of the transaction in country, and the expat concerned is on the books in Thailand at the minimum salary....Thai tax man is none the wiser....

Personally I wouldnt bother with any offshore accounts in IOM, Jersey or anywhere else in Europe, as you are treated like a criminal, certainly not HSBC, absolute crap bank and the customer service is dire.....switched my accounts from HSBC Jersey to Citibank Singapore (International Personal banking) a few years ago and couldnt be happier with the service from Citibank, and if you maintain the minimum balance...all your day to day banking costs are free....have an ATM card, Credit card etc etc...accessible anywhere in the world.

[dr_Pat_Pong]

Citibank Singapore is the go.

[PattayaParent]

That would depend on your nationality...

And where you use as your residential address.

If you are a EU Citizen and use an address in a EU county then watch out for the EUSD regulations regarding taxation.

Better use your Thai address for the bankng.

[moo9]

Thanks for all the hints, really very interesting and useful!

My residential address is in Thailand, not in EU.

As far the bank, some of you recommend Citibank SGP. Gonna check with them. Did you apply for an account at the Bangkok Office, or directly in Singapore?

Cheers

Moo9

[Soutpeel]

Thanks for all the hints, really very interesting and useful!

My residential address is in Thailand, not in EU.

As far the bank, some of you recommend Citibank SGP. Gonna check with them. Did you apply for an account at the Bangkok Office, or directly in Singapore?

Cheers

Moo9

Personally seeing as you are setting up an offshore account to give yourself "favourable" conditions regarding your tax in Thailand, do it directly with Citibank in Singapore, you dont want a "paper trail" in Thailand by dealing with Citibank in Thailand, you can do the application on-line and send the forms and certifed copy of your passport to Singapore. If you are a US citizen, believe there is another form you have to fill in regarding the US IRS as well....

Bear in mind this is not "Citibank Singapore" , this is Citibank international personal banking in Singapore, they are in the same building on Orchard Road, but are different "outfits"....