If I stay in Thailand for more than 180 days do I need to pay Thailand taxes ?

[RichardThailand]

I read the following on another forum post:

Notice this rule in Thailand

"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 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."

So if I come to Thailand, get a retirement visa and earn money from outside do I need to pay tax on income from foreign sources ?

[PoorSucker]

Yes, you can go to the revenue department and ask for a tax number.

Never heard anyone doing it though.

[RichardThailand]

Yes, you can go to the revenue department and ask for a tax number.

Never heard anyone doing it though.

So what if when it comes to renewal of a retirement visa someone asks where does your money come from ?

[PoorSucker]

Yes, you can go to the revenue department and ask for a tax number.

Never heard anyone doing it though.

So what if when it comes to renewal of a retirement visa someone asks where does your money come from ?

No questions asked.

[Ricardo]

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

But only if the remittance arose in the CURRENT year.

If you earned or received it LAST year, and bring it in THIS year, then that income is NOT taxable in Thailand.

[DogNo1]

Well, if you have a considerable amount in savings, you could ALWAYS bring in money from the preceding year, right?

[khrab]

My money is always old money.

[Naam]

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

But only if the remittance arose in the CURRENT year.

If you earned or received it LAST year, and bring it in THIS year, then that income is NOT taxable in Thailand.

this "option" has disappeared from the official government publication but "learned" tax solicitors insist that the procedure has not changed.

[bitcoinman]

Pay taxes , pay TAKSIN....!

Edited August 18, 2014 by bitcoinman

[SantiSuk]

No - being resident here over 180 days is not a sufficient requirement for you to need to register and you are unlikely to need to do so unless you have significant Thai earnings or rely on bringing in current year earnings from abroad and volunteer that fact.

My first visit to my amphur tax office last week (having resided here over 180 days for each of the last 5 years) is germane OP. I base my opening statement entirely on that visit so it is capable of being disproved by others with different stories or authoritative knowledge.

I went because I thought that my interest income from Thai bank deposits was getting to the level where maybe it was becoming taxable. Otherwise my pension and dividend income is all (so far) generated and taxed in the UK. My Thai interest income is non-trivial, but I found that there would be no need to pay more tax than the 15% already deducted by Krungsri Bank - I wouldn't be paying tax until I get into the ฿500k ish annual gross income level* (personal allowances are not available for interest income, but there is a reasonably hefty - comparative to many countries nil or low (10%) tax rate band). They did ask me where the money generating the income had come from and, having heard from me that none of my money coming here is out of current year foreign earnings and that I do not work in Thailand, those oral representations were taken at face value and I was shooed out - no hint that they wanted to even register me. Indeed the whole attitude from the off was - "you are a retired foreigner here; why the h'll do you think you need to pay tax, don't waste our time"?

Yes - I know others in similar situations might want to register and claim a tax refund. Perhaps Thai Revenue were more concerned that I was going to take money away from them! I would not benefit from a refund as, for the moment, I am still UK-resident for UK tax purposes and thereby taxed on worldwide income; another good reason to hurry up with that claim to the UK tax authorities that I was 'a leaver' several years ago]

*The 10% income tax bracket ran up ฿500k in 2012 per the PwC tax booklet I have - have not researched more recent rates yet]

[SantiSuk]

Pay taxes , pay TAKSIN....!

Been in a cave for 2 months?

[DiDiChok]

Have a look at this web site: http://www.thailaws.com/index.htm

Then on the left hand side of the page, click on 'Double Taxation', select your country and read the law in full!

[Naam]

Have a look at this web site: http://www.thailaws.com/index.htm

Then on the left hand side of the page, click on 'Double Taxation', select your country and read the law in full!

this discussion is not about double taxation but "simple" taxation concerning the transfer of untaxed income to Thailand.

until approximately 1½ years ago the Thai official government publications contained the passus "taxable if brought into Thailand the same year the income was earned."

the above-mentioned part has been removed!

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

http://www.rd.go.th/publish/6045.0.html

a dozen non-governmental websites still claim

A resident will be taxable on income from sources in Thailand on a cash basis regardless of where the money is paid, and on the portion of income that is brought into Thailand in the same year that it is earned.

http://www.mazars.co.th/Home/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax-in-Thailand

Under section 41 of the Revenue Code an individual Thai citizen or foreigner who lives in Thailand for one or more periods totalling at least 180 days in any tax (calendar) year is, for tax purposes, deemed a resident of Thailand and subject to tax on all assessable income derived from sources within the country, whether paid within or outside Thailand, and on assessable income derived from foreign sources to the extent that it is brought into Thailand in a year in which income is received.

http://www.thailandlawonline.com/revenue-code/income-tax-law-in-the-revenue-code

Individuals residing for 180 days or more in Thailand during 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 of their being resident in Thailand, even though they may be aliens and are not staying in Thailand under an Immigrant Visa.

http://www.sukhothaiinterlaw.com/tax5.htm

[Ricardo]

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

But only if the remittance arose in the CURRENT year.

If you earned or received it LAST year, and bring it in THIS year, then that income is NOT taxable in Thailand.

this "option" has disappeared from the official government publication but "learned" tax solicitors insist that the procedure has not changed.

We received the same advice three years ago, when considering winding-up an offshore-trust in Jersey, but continuing to keep the capital outside Thailand & the UK.

[samran]

Have a look at this web site: http://www.thailaws.com/index.htm

Then on the left hand side of the page, click on 'Double Taxation', select your country and read the law in full!

this discussion is not about double taxation but "simple" taxation concerning the transfer of untaxed income to Thailand.

until approximately 1½ years ago the Thai official government publications contained the passus "taxable if brought into Thailand the same year the income was earned."

the above-mentioned part has been removed!

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

http://www.rd.go.th/publish/6045.0.html

a dozen non-governmental websites still claim

A resident will be taxable on income from sources in Thailand on a cash basis regardless of where the money is paid, and on the portion of income that is brought into Thailand in the same year that it is earned.

http://www.mazars.co.th/Home/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax-in-Thailand

Under section 41 of the Revenue Code an individual Thai citizen or foreigner who lives in Thailand for one or more periods totalling at least 180 days in any tax (calendar) year is, for tax purposes, deemed a resident of Thailand and subject to tax on all assessable income derived from sources within the country, whether paid within or outside Thailand, and on assessable income derived from foreign sources to the extent that it is brought into Thailand in a year in which income is received.

http://www.thailandlawonline.com/revenue-code/income-tax-law-in-the-revenue-code

Individuals residing for 180 days or more in Thailand during 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 of their being resident in Thailand, even though they may be aliens and are not staying in Thailand under an Immigrant Visa.

http://www.sukhothaiinterlaw.com/tax5.htm

Do you still remember the link I provided you all those years ago in Thai? I'm trying to find it again, but if you have luck, let me know.

[samran]

Have a look at this web site: http://www.thailaws.com/index.htm

Then on the left hand side of the page, click on 'Double Taxation', select your country and read the law in full!

this discussion is not about double taxation but "simple" taxation concerning the transfer of untaxed income to Thailand.

until approximately 1½ years ago the Thai official government publications contained the passus "taxable if brought into Thailand the same year the income was earned."

the above-mentioned part has been removed!

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

http://www.rd.go.th/publish/6045.0.html

a dozen non-governmental websites still claim

A resident will be taxable on income from sources in Thailand on a cash basis regardless of where the money is paid, and on the portion of income that is brought into Thailand in the same year that it is earned.

http://www.mazars.co.th/Home/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax-in-Thailand

Under section 41 of the Revenue Code an individual Thai citizen or foreigner who lives in Thailand for one or more periods totalling at least 180 days in any tax (calendar) year is, for tax purposes, deemed a resident of Thailand and subject to tax on all assessable income derived from sources within the country, whether paid within or outside Thailand, and on assessable income derived from foreign sources to the extent that it is brought into Thailand in a year in which income is received.

http://www.thailandlawonline.com/revenue-code/income-tax-law-in-the-revenue-code

Individuals residing for 180 days or more in Thailand during 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 of their being resident in Thailand, even though they may be aliens and are not staying in Thailand under an Immigrant Visa.

http://www.sukhothaiinterlaw.com/tax5.htm

The exemption is still there on the Thai langage portion of the RD website

http://www.rd.go.th/publish/552.0.html

[bitcoinman]

Don't worry about tax on your pension, when USA will raid your ssn, you will be left with nothing on the streets but your under wear.

Thailand will send you back on the next American airline plane with a "go home" stamp in your passport.

Welcome home and God bless America!

Edited August 18, 2014 by bitcoinman

[wordchild]

The exemption on income brought into country the year after it was earned is used extensively by Thais. A Thai stockbroker told me once that the 1st and 2nd of Jan are always the busiest days of the year for their forex dept, as all their Thai clients remit their overseas dividends and earned interest back into Thailand on those dates. It is not just a farang benefit. I think it would be huge news if it was (or had been) withdrawn. Like Naam I have had advice on this from a local accountancy firm and they were clear that nothing had changed. I think its a case of "lost in translation" somewhere along the line. However, given the need for govt revenue and all the talk of new taxes (property and inheritance) who knows how long the exemption will remain.

Edited August 18, 2014 by wordchild

[Naam]

this discussion is not about double taxation but "simple" taxation concerning the transfer of untaxed income to Thailand.

until approximately 1½ years ago the Thai official government publications contained the passus "taxable if brought into Thailand the same year the income was earned."

the above-mentioned part has been removed!

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

http://www.rd.go.th/publish/6045.0.html

a dozen non-governmental websites still claim

A resident will be taxable on income from sources in Thailand on a cash basis regardless of where the money is paid, and on the portion of income that is brought into Thailand in the same year that it is earned.

http://www.mazars.co.th/Home/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax-in-Thailand

Under section 41 of the Revenue Code an individual Thai citizen or foreigner who lives in Thailand for one or more periods totalling at least 180 days in any tax (calendar) year is, for tax purposes, deemed a resident of Thailand and subject to tax on all assessable income derived from sources within the country, whether paid within or outside Thailand, and on assessable income derived from foreign sources to the extent that it is brought into Thailand in a year in which income is received.

http://www.thailandlawonline.com/revenue-code/income-tax-law-in-the-revenue-code

Individuals residing for 180 days or more in Thailand during 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 of their being resident in Thailand, even though they may be aliens and are not staying in Thailand under an Immigrant Visa.

http://www.sukhothaiinterlaw.com/tax5.htm

The exemption is still there on the Thai langage portion of the RD website

http://www.rd.go.th/publish/552.0.html

Last update : Sunday, May 6, 2012

[Naam]

As a result, the money must be included in the taxes come from what source? Listen to News

Sources of Income They are divided as income from sources within and outside the country. Income from various sources This must be included in the personal income tax or not, consider the following.

1. has come from local sources means income arising. Or as a result of

1.1 Previous work done in Thailand.

1.2 acquisitions made ​​in Thailand.

1.3 Operation of employers in Thailand.

1.4 Property in Thailand (interest, dividends, rents, etc..

* Conditions caused by the taxpayer in this country have to pay income tax on the processing Klang arm. Defined unless an exception under the law, whether in taxable income for the tax year preceding it. Be paid on or outside And whether the money will be available in Canada or not).

2 Income from sources outside the United States means income arising out of or as a result of there.

2.1 Previous work done in foreign countries.

2.2 or entity made ​​abroad.

2.3 The property in a foreign country.

* The term of the money was from foreign sources in the preceding tax year, and must pay income tax. When one element in the following two respects.

(1) the money is. This is in In that tax year for a period or periods of time. Of up to 180 days

(2) the taxpayer bringing money into the UK in the tax year as well.

Income tax in some cases. If it involves a person of a certain country. * Tax Treaties or agreements to prevent double taxation on the UK need to consider. Agreement or convention on the avoidance of double taxation between the two countries have an agreement with.

http://www.rd.go.th/publish/552.0.html

google translate is your friend!

it is now clearly established that any money brought into UK or made available in Canada is a processing Klang arm

[samran]

Last update : Sunday, May 6, 2012

If the law hasn't changed, why the need for an update?

[wordchild]

There is an interesting opinion piece in todays BP (cant link) on the subject of the proposed inheritance tax. It is written by someone from PWC his central argument is that there is no point in launching such a tax unless it has been fully thought through in particular the unintended consequences of wealthy Thais shifting large chunks of assets offshore. Cant really disagree with that; in any event his conclusion (that is relevant to this thread) is that a much better way to tax the wealthy (and reduce the income gap) would be to end the concession (zero taxation) on the delayed remittance of income earned overseas into Thailand. He suggests that this is used extensively by wealthy Thais to avoid tax. Maybe the days of this very useful concession are nearing an end.

Edited September 2, 2014 by wordchild

[fletchsmile]

"Posted 2014-08-17 19:18:39 "as well as on the portion of income from foreign sources that is brought into Thailand" But only if the remittance arose in the CURRENT year. If you earned or received it LAST year, and bring it in THIS year, then that income is NOT taxable in Thailand."

Posted 2014-08-18 00:55:32 Well, if you have a considerable amount in savings, you could ALWAYS bring in money from the preceding year, right?

Both of these are broadly right.

What you also need to be careful of is mixing or tainting your assets. By that I mean putting two assets or more into the same pool. eg if you received income last year into a bank account and received income this year in the same bank account, and then make a transfer into Thailand from that bank account (where you mixed the income sources across years), you can run into problems proving that the income you transferred is from a particular year. A common way round is to use different accounts for different tax years.

To be honest I haven't come across many individuals where the Thai revenue has pulled them up and bothered with which year the income is brought in. It tends to be more on the company/ corporate side if it happens

Cheers

Fletch

Edited September 2, 2014 by fletchsmile