Retaining uk job in thailand

[chrispatten]

I am a UK resident and I plan to marry a Thai woman soon and move to Thailand.

My job is of a nature that provided I have internet access I can really perform it anywhere.  If I am able to retain my UK job, but actually perform the work in Thailand, then would a work permit be required.  Also, if my income is paid (after UK tax) into my UK bank account, would there be any Thai tax liability for me when money is transferred to a Thai bank account?

Thank you.

[singa-traz]

Yes, I think a work permit would be theorically required.

Yes, you should pay Tax on the portion of your income that you transfer in Thailand.

Have a look here : http://www.thaivisa.com/397.0.html

... having said that ...

If your job/business only deal with people in UK, and does not involved interaction in Thailand (Conducting Business In Thailand) ...

You could get a Non-Immigrant visa (O), and work peacefully in Thailand for the rest of your life ...  

[cbatson]

I have been working that way for U.S. companies for over two years.  According to what I've read about Thai laws, one should have a work permit.  However, I called the work permit office to inquire and they didn't even know how to begin to deal with my situation, so they said forget it.  I believe primarily because there's no "establishment" existing in Thailand that I work for -- I'm just here by myself and work at home.  If you're actually able to get a work permit for your situation, I'd love to hear about it.

Furthermore, according to the tax treaty bewteen Thailand and the U.S. (yes, I have actually read the whole thing), in theory one who is physically present in Thailand for more than 180 days out of a year should have to pay income tax to the Thai government as well as the U.S. government.  I consulted an attorney about this issue, whereupon he laughed at me and basically said, if no one comes asking for money, why do you want to pay it?  (Thai lawyers... an interesting bunch in their own right.)  And as far as Thailand knows, I am simply independently wealthy, retired, and occasionally transfer my personal funds (upon which tax has already been duly paid) into the country.  Having said that, I will comment on the following statement:

Yes, you should pay Tax on the portion of your income that you transfer in Thailand.

I absolutely disagree with this.  Tax in Thailand (as is the case with the U.S. and U.K.) is an income tax.  There is no tax for transferring money.  You pay tax when the income is earned.  There are two basic choices when you earn income from a foreign (outside of Thailand) source which is deposited in your foreign bank account:

1. Pay tax on your income only to your home government.  Don't tell Thailand you're working.  Pretend you're independently wealthy and retired should anyone ask.

2. Pay tax on your income to both Thailand and your home government.  In many cases (for sure the U.S. and probably the U.K. too), your home government's tax laws allow you to reduce your tax liability by the amount paid to the country in which you are living (up to a certain limit).  Meaning, you can avoid double-taxation.

The tax treaty between Thailand and the U.S. provides for information sharing between the respective tax collecting agencies of both countries.  I'm not sure how much, if any, information sharing actually occurs.  In theory, the Thai government could acquire the knowledge that one is earning money abroad, and then realize one hasn't been paying any tax to Thailand.  But this has yet to happen.

Chuck

[singa-traz]

From : http://www.thaivisa.com/397.0.html

1.  Taxable Person

    Taxpayers are classified into "resident" and "non-resident". "Resident" means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. A resident of Thailand is liable to pay tax on income from sources in Thailand on a cash basis, regardless where the money is paid, as well as on the portion of income from foreign sources that is brought into Thailand. A non-resident is, however, subject to tax only on income from sources in Thailand

... as well as on the portion of income from foreign sources that is brought into Thailand ...

I'm not a lawyer, but sounds like the UK income that is transfered to Thailand would be considered as "From foreign sources".

From: http://www.thailand.com/exports....n.htm#3

Individuals residing for 180 days or more in Thailand for any calendar year are also subject to income tax on foreign sources if that income is brought into Thailand during the same taxable year that they are a resident.

And check the RD Department Web site: http://www.rd.go.th/publish/6000.0.html

...

Of course, I do agree that you have more chance to win the Lottery ... than getting caught if you don't pay tax on this foreign income that you bring in Thailand... but, according to the the Law, you should pay tax...

...

[dr_Pat_Pong]

Creativity is the key...bring money into Thailand via ATM from a foreign bank.........all comes in local virtually traceless cash

                                           

[oldracer]

Chris,  I've been in Thailland for 4+years.  I work for an American company paid in US $ to a US bank.  I don't pay taxes here and NO work permit is necessary for you do do the same.  You will have NO tax liability here as you don't work for a Thai company.  I checked this very thoroughly before  I set myself up here.  I am also married to a Thai woman and have a non-imigrant "O" visa.  You can get this after 1 year of marriage and it is much simpler than others will tell you.  You need the marriage documents, 300,000 baht in a thai bank and "Bingo" it is yours.  You can get it from Malaysia without even going there.  Take a vacation to Samui and visit the travel center next to Asia Travel in Nathon.  They will charge you 10,000 baht, take your passport and papers and return you the passport with an "O" visa in 7 days.  Enjoy your new life here and best of luck to you both!

[Rinrada]

If you are going to be out of the UK for a year or more you dont have to pay ANY UK income tax unless you work for a Government Org.(eg British Embassy etc.)

Get yourself an OFFSHORE A/C and Wizzo you are a REAL Expat...

[cbatson]

Just to confuse the issue even more...  =^)

From the "CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE KINGDOM OF THAILAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME" dated 26 November 1996:

ARTICLE 15

Independent Personal Services

1. Income derived by an individual who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State except in the following circumstances, when such income may also be taxed in the other Contracting State:

a) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State; or

if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 90 days in the fiscal year concerned; in that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State; or

c) if the remuneration for his activities in the other Contracting State is paid by a resident of that Contracting State or is borne by a permanent establishment or a fixed base situated in that Contracting State and exceeds in the fiscal year 10,000 United States dollars or its equivalent in Thai currency, not including expenses reimbursed to him or borne on his behalf.

2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.

According to paragraph 1(, the threshold for independent services is in fact 90 days, and "only so much of the income as is derived from his activities performed in that other State may be taxed in that other State."  In other words, one's income would be taxable in Thailand based on the amount of income earned while performing activities inside of Thailand, if one is inside Thailand for an aggregate period of 90 days or more.  Meaning that, for example, if you worked in Thailand for half the year and in the U.S. for half the year, and your income was evenly distributed throughout the year, then half of your income would be taxable in Thailand -- regardless of amounts transferred between or brought to and fro.

In any case, this only applies between Thailand and the U.S.  The U.K. will have a different agreement with Thailand.

None of this should be construed as financial, tax, legal, or any other form of advice.  Get a lawyer and decide for yourself.

Chuck