Thai Doctor Saves Foreign Tourist After Cardiac Arrest on Pattaya Street

[Felt 35]

What documents is needed to register oneself to pay personal Thai Tax.

Thanks!

[PattayaParent]

Don't the accounts / admin staff in your company know?

[Felt 35]

Don't the accounts / admin staff in your company know?

Sorry, I should have wrote, register oneself to pay personal tax on pension income from abroad

[Felt 35]

Nobody know the documents needed to register for getting a Tax ID with the purpose of paying tax on income from abroad?

[PattayaParent]

I don't think anyone has actually voluntarilty wanted to pay income tax when it was possible not to.

[Felt 35]

I don't think anyone has actually voluntarilty wanted to pay income tax when it was possible not to.

I agree in that reasoning but the “voluntary” is now more than ever on somewhat slippery ground and there are probably only a question about time before Foreign countries with a tax treaty with Thailand start to exchange detailed information about who of their citizens which have emigrated to Thailand and when that happen the rule is simple and says 180 days in one year and we are seen as resident for tax purposes in Thailand and the different Visa statuses don’t count at all.

[fletchsmile]

I don't think anyone has actually voluntarilty wanted to pay income tax when it was possible not to.

I agree in that reasoning but the “voluntary” is now more than ever on somewhat slippery ground and there are probably only a question about time before Foreign countries with a tax treaty with Thailand start to exchange detailed information about who of their citizens which have emigrated to Thailand and when that happen the rule is simple and says 180 days in one year and we are seen as resident for tax purposes in Thailand and the different Visa statuses don’t count at all.

There's a whole host of relevant legislation around this area. One of the general principles is that if you don't bring it into Thailand in the tax year the income arises then it wouldn't be taxable. So most people either:

1) Ignore the idea of paying tax and just don't register - rightly or wrongly with the view that at in this point in time that foreign income brought into Thailand for individuals is not really on the Thai revenue radar, and it's not necessarily easy for them to check, whether it is actually income, capital or a loan for example

2) Wait until 1 Jan of the following year - so not taxable - so why would you need/ bother to register

Not sure why you are going out of your way to voluntarily try and pay tax. Set up a separate bank account. Pay your pension income into it during the year, and transfer it 1 Jan onwards in the following year - that gives you a clear trail if ever (unlikely) questioned to substantiate your sources.

Edited March 19, 2012 by fletchsmile

[Time Traveller]

Under dual tax treaties the tax is meant to be payable to the country in which you are a tax resident. However, if the source income country deducts tax, then you can use these foreign tax credits to offset any tax obligation in the country where you are tax resident. Most cases any tax obligation is very minimal under dual tax treaties.

To obtain a Tax ID number just go down to your local tax office an apply for one.

Edited March 19, 2012 by Time Traveller

[Time Traveller]

I don't think anyone has actually voluntarilty wanted to pay income tax when it was possible not to.

If he is a Thai tax resident, (in Thailand for more than 180 days per year) and has an income from abroad, then he is required to submit this in his yearly tax return. It's not a matter of "possible not to", but more a case of illegal if it he doesn't. Of course if the abroad income does not come into the country then there is no obligation.

[fletchsmile]

Under dual tax treaties the tax is meant to be payable to the country in which you are a tax resident. However, if the source income country deducts tax, then you can use these foreign tax credits to offset any tax obligation in the country where you are tax resident. Most cases any tax obligation is very minimal under dual tax treaties.

To obtain a Tax ID number just go down to your local tax office an apply for one.

Most UK pensions, including the state pension are not entitled to tax relief under Thailand's DTA, the exception mainly being government pensions to former government employees

http://www.hmrc.gov....es/dtdigest.pdf

The following link from the Thai Revenue department answers most of OPs questions, tho' I'd again say OP should reconsider how he does things, and wait til following year when bringing income in...

http://www.rd.go.th/...sh/21987.0.html

Edited March 19, 2012 by fletchsmile

[PattayaParent]

I don't think anyone has actually voluntarilty wanted to pay income tax when it was possible not to.

If he is a Thai tax resident, (in Thailand for more than 180 days per year) and has an income from abroad, then he is required to submit this in his yearly tax return. It's not a matter of "possible not to", but more a case of illegal if it he doesn't. Of course if the abroad income does not come into the country then there is no obligation.

Then I guess my wife should have been submitting tax returns for the time she's been here for her share of the incoming money transfers into our joint account (but not money earned in the same tax year so not liable for tax)?

[Felt 35]

I don't think anyone has actually voluntarilty wanted to pay income tax when it was possible not to.

I agree in that reasoning but the “voluntary” is now more than ever on somewhat slippery ground and there are probably only a question about time before Foreign countries with a tax treaty with Thailand start to exchange detailed information about who of their citizens which have emigrated to Thailand and when that happen the rule is simple and says 180 days in one year and we are seen as resident for tax purposes in Thailand and the different Visa statuses don’t count at all.

There's a whole host of relevant legislation around this area. One of the general principles is that if you don't bring it into Thailand in the tax year the income arises then it wouldn't be taxable. So most people either:

1) Ignore the idea of paying tax and just don't register - rightly or wrongly with the view that at in this point in time that foreign income brought into Thailand for individuals is not really on the Thai revenue radar, and it's not necessarily easy for them to check, whether it is actually income, capital or a loan for example

2) Wait until 1 Jan of the following year - so not taxable - so why would you need/ bother to register

Not sure why you are going out of your way to voluntarily try and pay tax. Set up a separate bank account. Pay your pension income into it during the year, and transfer it 1 Jan onwards in the following year - that gives you a clear trail if ever (unlikely) questioned to substantiate your sources.

I don’t understand what you mean. Any amount transferred to Thailand this year is taxable next year and so on. The tax year in Thailand follow the calendar. The only loophole is that “only what is transferred to Thailand is Taxable income”

So it’s always possible to transfer a low amount and use the ATM or bring in cash for the rest.

[fletchsmile]

I don't think anyone has actually voluntarilty wanted to pay income tax when it was possible not to.

I agree in that reasoning but the “voluntary” is now more than ever on somewhat slippery ground and there are probably only a question about time before Foreign countries with a tax treaty with Thailand start to exchange detailed information about who of their citizens which have emigrated to Thailand and when that happen the rule is simple and says 180 days in one year and we are seen as resident for tax purposes in Thailand and the different Visa statuses don’t count at all.

There's a whole host of relevant legislation around this area. One of the general principles is that if you don't bring it into Thailand in the tax year the income arises then it wouldn't be taxable. So most people either:

1) Ignore the idea of paying tax and just don't register - rightly or wrongly with the view that at in this point in time that foreign income brought into Thailand for individuals is not really on the Thai revenue radar, and it's not necessarily easy for them to check, whether it is actually income, capital or a loan for example

2) Wait until 1 Jan of the following year - so not taxable - so why would you need/ bother to register

Not sure why you are going out of your way to voluntarily try and pay tax. Set up a separate bank account. Pay your pension income into it during the year, and transfer it 1 Jan onwards in the following year - that gives you a clear trail if ever (unlikely) questioned to substantiate your sources.

I don’t understand what you mean. Any amount transferred to Thailand this year is taxable next year and so on. The tax year in Thailand follow the calendar. The only loophole is that “only what is transferred to Thailand is Taxable income”

So it’s always possible to transfer a low amount and use the ATM or bring in cash for the rest.

Source: Tilleke & Gibbins doc from 2007

"7. Territorial Rules

Under the Revenue Code, an individual, Thai or foreign, who derives assessable

income from sources in Thailand is liable to pay personal income tax whether or not

such income is paid within or outside Thailand.

A person (Thai or foreign) who resides in Thailand at one or more times for an

aggregate period of 180 days or more in any tax (calendar) year will be regarded as a

resident of Thailand for tax purposes. A resident of Thailand is liable for personal

income tax on income from sources inside Thailand and on assessable income derived

from sources outside Thailand. However, the imposition of tax on income derived

outside Thailand will apply only to income derived and brought into Thailand in the

same year in which such income is earned."

[Felt 35]

“However, the imposition of tax on income derived

outside Thailand will apply only to income derived and brought into Thailand in the

same year in which such income is earned."

Where in the revenue code is the chapter or paragraph the law firm refers to here?

[fletchsmile]

“However, the imposition of tax on income derived

outside Thailand will apply only to income derived and brought into Thailand in the

same year in which such income is earned."

Where in the revenue code is the chapter or paragraph the law firm refers to here?

Suggest you go to the Thai language version around Sections 40 41 onwards for the original Thai text as the English translation is not so good, + the related Ministerial Regulations (MR) which are issued in addition as the Revenue Code like many other Thai regulations doesn't work too well as a stand alone doc and frequently refers to other legislation pronouncements or docs.

Alternatively use Google and enter key words for any key accountancy tax firm such as KPMG, Grant Thornton, BDO or some of the Thai law firms such as Tilleke & Gibbins + "foreign source income" + "Thai personal income tax" and do your own research.

I'll leave you to it, as at this stage you either believe what you're being told or you don't....

Edited March 20, 2012 by fletchsmile