Taxation question capital gains and education visa

[Naam]

Paz, it's just how the law states it, so you have no ties to your country. If there was a room for you, it's similar to having a house or a flat - you could come back at any time, so the German law states that you are taxable.

I don't think anybody will check if there is a room at your parents house But there are always envious people who might give the revenue service a hint. I'll rent a storage box for some of my stuff, so I play it safe in that matter^^

That's reassuring. When you will show me where your country law says you should have a room I'll be amused (with the help of a translator).

The part about envious people tells me that even if you havent lived the Stasi period that mentality hasn't left your land. Sadly.

no need for Stasi! in the Greatest Nation on Earth™ an envious whistleblower is rewarded by the IRS with 10% of the recovered tax amount. but that's nothing special because envious neighbours exist in all countries.

many rainy seasons ago i had to pay 4½ years back taxes (a small fortune) because our house in Germany was not rented out and was

available to me and my wife at any time and unrestricted for living purposes

although we were living in Saudi Arabia and spent only a couple of weeks (Christmas and New Year holidays) every year in Germany. the ruling was based on this precedence case:

an 82 year old lady, living in Cape Town, South Africa who had not spend a single day in Germany during the last 8 years of her life died. she owned a small studio apartment in Germany. her heirs got not a single penny because her portfolio and the proceeds of the auctioned apartment did not cover her back taxes.

[Naam]

blackcab

A problem has been people, having a registered residence offshore, but actually living/staying more than 180 days in their original home country; they are taxable in their home country, and if the tax department finds out, they are (very) bad off. Difficult within Schengen with no border controls, both for tax department and for the individual to prove;

not that difficult to prove because the taxman has easy access to water, gas and electricity consumption as well as to phone bills. the French taxman uses this leverage in another way to catch French nationals who claim to live in Monaco but can't show enough "uitility consumption" to back up that claim.

[Naam]

Naam has confirmed my research and what has been posted here as well.

German citizens are not taxable in Germany provided they do not have a residence in Germany, income in Germany (e.g. rental income, stocks) etc. One more important thing Naam added is that it's imperative not to have any kind of room, that you could use to live in when you come back. So having a room with private stuff at your parents house, makes you taxable in Germany.

The German bank account can be used for transferring money, since we are not taxable in Germany.

Glad you got a definitive answer Naam knows his shit, so it seems you have declare non residence in Germany with "no ties" similar to a lot of other places

i do know my shit indeed! extrapolate 332,500 Deutsch Marks invested at a measly 5% (i am making much more) for 26 years with compound interest.

result: DM 1,180,483.- = €UR 603,572.- = USD 670,785.- as of today

[Soutpeel]

And the last bit to add to this good post, if you do work here before you do start work here get your contract written in such a way that the company your working for carries your PIT locally

That's completely naive advice.

A company decides it will pay an employee X. The employee can tell the company whatever they want and pretend they don't pay the tax on their (X minus income tax) salary, but either way income tax will be withheld because its the law.

In fact, I dare say that leaving your personal income tax obligations up to your employer will virtually guarantee that you miss out on a tax return from the many allowances and deductions and credits a typical employee could claim if they file correctly.

Well i must be naive then as thats the exact deal i have and i get a little bit of paper from the Thai tax every year stating my tax obligations for that specific year have been met

so i dont care what the company does as long as i get my bit of paper from the Tax man, i am in the clear

But then again i never had a company telling me how much they would pay me, i told them what i wanted net, yes there was a little negotation, but i got what i wanted and after 14 years never had any issues with the tax man so dont be so quick to gurantee anything

In other words, the company deducts your income tax and pays it to the Revenue Dept. as they are required to for every single employee just like every other company does in this country. Your "agreement" does not exempt you from any law.

But let me ask you, how do you know they are claiming all of the tax returns that you are entitled to? It sounds like, they file your income tax on your behalf based on you salary alone?

What are you going on about " exempt from any law" never said or inferred any " exemption"

i stated i get my " letter " from the tax man every year stating my tax obligation has been met, i dont owe them and they dont me same as everyone else

The company dont deduct anything from me, they take my net salary work out what would be owed in tax and they pay the tax man

As regards deductables in Thailand what you can claim isnt that much anyway, the sum total of what you claim maybe a big deal to someone on 50k/m but not such a biggie on higher amounts as it doesnt reduce your gross thay much anyway and besides when i negotiated my deal do you think i didnt look at the Thai tax tables ? or am i being naive again ?

Suffice to say its worked for 14 years with no issues/ problems from myself/company or taxman

[crs]

In simplistic terms if you are retired and not earning money in Thailand the likelihood is you will pay no taxes here, with the exception of tax deducted at source on interest paid on cash deposit accounts, and this can also be reclaimed

My understanding is pension income brought into thailand is not taxable here

Money brought in from savings is not taxable

If one has investment income outside thailand so long as it is not brought in , in the same year as earnt it also is not taxable

If you come from england and are non resident, you only pay tax on income generated in England, and if like me your pension is under the personal allowance you pay no tax

My QROPS pension suffers tax at 5% only in Gibraltar

Thailand is a very low tax place to live for expats, although USA citizens are still liable to USA tax on their world income, unless they revoke their US citizenship

This is what I've heard for years but does anyone have an official link for this?

Can't spot it here: http://www.rd.go.th/publish/37748.0.html

Cheers.

[ubonjoe]

I am closing this topic. Any further discussion of taxes can be done in the Jobs, economy, banking, business, investments forum by starting a new topic.