Source Of Funds- Checked For Income Tax?

[DavidBrown]

Hello! I want to buy a condo and have money in an offshore account ready to bring in. My understanding is that Thai income tax is only paid by people working for a company outside the country if the money enters Thailand within the year. This seems a very strange rule to me which Im sure can complicate things a lot- I actually got a Thai tax advisor (an expensive one) to confirm this because I didnt believe it. So the question is- if I bring the money which I have earnt in the last year into Thailand to buy a condo, is it possible that I could end up forced to pay income tax? Or is this one of those Thai rules which will never be enforced? Thanks everyone- I appreciate the help.

[hhgz]

"So the question is- if I bring the money which I have earnt in the last year into Thailand to buy a condo, is it possible that I could end up forced to pay income tax?"

Did your tax advisor confirm the rule? If so, ask for your money back. Incoming funds to purchase a condo are not subject to Thai income tax.

[DavidBrown]

Thanks for the reply, hhgz!

Ive read a few times that I dont pay income tax unless I bring the money into the country within the year, and a tax advisor confirmed this. So my concern is that if I buy a condo with money I bring into the country Im probably supposed to pay because I earnt some of that money less than a year ago. So what Im wondering is, is this rule enforced somehow or is it one of those rules which no one worries about?

[InterestedObserver]

If you are a resident of Thailand for more than 180 days in a tax year, assessable personal income that is both earned and remitted to Thailand in the same tax year is subject to Personal Income Tax.

[Prajak]

Treaties first, than national law. If your "home" country has a tax treaty with Thailand than your income is taxable in a country according to the treaty. In the standard tax treaties you see that government pensions are taxable in the "paying" country and private/company pensions in the country where you live, in this case more than 180 days per year. So check the tax treaty first. If there is no, well, than check the Thai laws. And may be you have to wait a year. A year ? What is "a year" in this case ? Does it mean "earned in this calendar-year, taxable in this calendar- year" or is "a year" 12 months ?

[DavidBrown]

Thanks guys. The thing Im concerned about is- do the authorities ever check? Is this a real law with real potential consequences or is it a law which simply isnt enforced? If someone has brought money into the country they can probably give an accurate answer to this- did anyone ask what the source of funds was? Did anyone have to prove where/when it was earnt? If not, then it's probably the case that it's not enforced and I dont have to wait. Thanks everyone.

[hhgz]

David,

I'm repeating myself because you are repeating the question. If you are bringing money into Thailand to buy a condo, you do not pay Thai income taxes on that money. End of story.

[InterestedObserver]

The OP is asking where it says that funds for property (condo) purchases are exempt from Thai Personal Income Tax, and if not exempt then is the tax ever collected.

[Prajak]

I have never heard of such a question by the tax authorities. Not in 8 years.