Thai Tax Liability For Long Stay

[Bill]

According to the Board of Investment of Thailand (http://www.boi.go.th/english/how/taxation.asp):

"Every person, resident or non-resident, who derives assessable income from employment or business in Thailand, or has assets located in Thailand, is subject to personal income tax, whether such income is paid in or outside of Thailand. Exemptions are granted to certain persons, including United Nations. officers, diplomats and certain visiting experts, under the terms of international and bilateral agreements."

So far so good, but reading further:

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

I'm planning on staying in Thailand for an extended period (1 yr+) on a non-immigrant O-visa (my wife is Thai), and am concerned about any Thai tax liability. Any income I generate will come from outside of Thailand -- but according to the above, I'm still supposed to pay taxes on it (if it's over 80,000 baht per year which it would most certainly be). I have not seen this subject discussed here (recently), and wondered how it affects others here?

On another note, I was thinking of opening a bank account with HSBC in Thailand and keeping funds there for daily living. The minimum opening balance is BHT 500 000, but it has the advantage (over strictly Thai-based banks) of allowing me to keep my money denominated in currencies other than the Baht. Given the relatively large fluctuations in the Baht over the past decade, I'd be more comfortable with the money denominated in a more stable currency. Has anyone else here done this and have anything good or bad to say about it?

Bill

[rishi]

I don't have much experience on those issues, but I'll kick in a few remarks anyway. 1) The 80,000 are outdated, nowadays it's the first 100,000 that are exempt from tax. 2) If you merely want to live here that 1y+ - i.e. not work, not apply for incountry extensions of your visa, and not considering to collect "points" for an eventual permanent residency application - then no need to worry about tax.

As long as you don't make your foreign income prone to investigation by means of some application, that requires investigation, official Thailand don't care where the money you bring into Thailand for mere living expenses comes from.

That's what I think.

[Bill]

I don't have much experience on those issues, but I'll kick in a few remarks anyway. 1) The 80,000 are outdated, nowadays it's the first 100,000 that are exempt from tax. 2) If you merely want to live here that 1y+ - i.e. not work, not apply for incountry extensions of your visa, and not considering to collect "points" for an eventual permanent residency application - then no need to worry about tax.

Hmm. I would not want to rule out the possibility of eventually applying for permanent residency. At least, if I could do so without paying a lot of money in Thai taxes. Perhaps this is an area I need to hire expert help for I imagine there are ways of structuring things that would minimize any tax liability.

Bill

[rishi]

As far as my experience with this board goes, you just hang around a few days. There are at least some experienced guys around who can/will provide expert help with respect to technical details fitting your situation, free of charge. I can merely contribute my general "impression" of the climate: If you consider permanent residency - make sure you pay as much tax as possible (within reasonable limits of course).