Incoming funds defined as income and taxes

[MadMuhummad]

Fairly straightforward question. I have funds invested in my home country of Australia. This gives me a regular income of 140000฿ per month.

 

I have a family trust structure in Aus from which all profits are placed and from which I draw a salary as a beneficiary. For those in the know this is extremely tax beneficial.

 

My question is, on transferring this monthly income to my thai bank account, legally am I responsible for notifying any official department for taxation purposes or would the bank flag it as an income as such and go ahead and tax that amount automatically.

 

Any rock solid information rather than anecdotal evidence would be highly appreciated.

 

Thanks for your time.

 

[lopburi3]

If you are transferring current income it is subject to local tax unless exempted by tax treaty with your home country.

 

Income earned in a previous year (now savings) would not be subject to tax under current policy however.

[reenatinnakor]

I've been transferring over 120k thb or more every month for over 8 years... And for major purchases like cars and property, transfer a lot more. You don't have to declare it and no they don't take any tax out when it arrives, just the transfer fee is taken out.

You don't need to worry about it. You say no anecdotal evidence, but it's up to you if you want to unnecessarily give money away when you don't need to. 

Sent from my LG-H990 using Thailand Forum - Thaivisa mobile app
 

Edited April 12, 2017 by reenatinnakor

[Lovethailandelite]

Reports over the last couple of days of another little Gem surfacing for UK citizens living abroad coming out and hidden in the 2107 Budget. All pension payments sent directly out of the UK to any country not in the EU will be taxed directly at source later this year at 25% on the WHOLE amount. They just don't know what to do next. You can bet your life 100% they will now integrate with the Thai Tax system to make sure everybody here is liable for Thai taxes under the 180 day rule.  

[MadMuhummad]

52 minutes ago, reenatinnakor said:

I've been transferring over 120k thb or more every month for over 8 years... And for major purchases like cars and property, transfer a lot more. You don't have to declare it and no they don't take any tax out when it arrives, just the transfer fee is taken out.

You don't need to worry about it. You say no anecdotal evidence, but it's up to you if you want to unnecessarily give money away when you don't need to. 

Sent from my LG-H990 using Thailand Forum - Thaivisa mobile app
 

I most certainly won't want to be handing over money for reason! As most of us agree I sure.

 

8 years is a fairly broad data collection so I tend to take what you say on board.

 

athabks for your input.

[MadMuhummad]

43 minutes ago, Lovethailandelite said:

Reports over the last couple of days of another little Gem surfacing for UK citizens living abroad coming out and hidden in the 2107 Budget. All pension payments sent directly out of the UK to any country not in the EU will be taxed directly at source later this year at 25% on the WHOLE amount. They just don't know what to do next. You can bet your life 100% they will now integrate with the Thai Tax system to make sure everybody here is liable for Thai taxes under the 180 day rule.  

25%, ouch! That's gonna knock some people about...

[MadMuhummad]

1 hour ago, lopburi3 said:

If you are transferring current income it is subject to local tax unless exempted by tax treaty with your home country.

 

Income earned in a previous year (now savings) would not be subject to tax under current policy however.

Going by previous post it doesn't look to be overly enforced 

[lopburi3]

True - but it could be at any time and you specifically asked not to supply anecdotal evidence.  The safe policy is to bring in savings if not exempt by treaty.

[MadMuhummad]

When you say savings, better large sums irregularly rather than monthly round amounts?

[lopburi3]

It can be regular small amounts as you draw down to live.  Nobody is checking at this time and as long as not a direct company payment/pension would be very hard to say not savings.  As long as source is another bank account should not be an issue on how often or how much.

[MadMuhummad]

Right, gotcha. 

 

The tryst structure I have will draw down into a savings account that I have at a seperate entity so by what you're saying I should have no issues with the transfer.

 

eaccyly the information I was after and I thank you for your help.

[topt]

7 hours ago, Lovethailandelite said:

Reports over the last couple of days of another little Gem surfacing for UK citizens living abroad coming out and hidden in the 2107 Budget. All pension payments sent directly out of the UK to any country not in the EU will be taxed directly at source later this year at 25% on the WHOLE amount. They just don't know what to do next. You can bet your life 100% they will now integrate with the Thai Tax system to make sure everybody here is liable for Thai taxes under the 180 day rule.  

Do you have a link to this or are you referring to the proposal which has been talked about for a month on taxing "pension transfers"? If the latter then slightly misleading as it does not refer to regular pension payments.

 

IMHO HMRC could not care less if the Thai revenue taxes us as long as they get what they believe is correct so I do not see any integration any time soon - and if so it would be within CRS so still would not necessarily mean the Thai system could determine what is paid in year earned etc.

[simoh1490]

44 minutes ago, topt said:

Do you have a link to this or are you referring to the proposal which has been talked about for a month on taxing "pension transfers"? If the latter then slightly misleading as it does not refer to regular pension payments.

 

IMHO HMRC could not care less if the Thai revenue taxes us as long as they get what they believe is correct so I do not see any integration any time soon - and if so it would be within CRS so still would not necessarily mean the Thai system could determine what is paid in year earned etc.

Indeed the poster is referring to QROPS and not to frequent pension payment deposits from any source.