Tax Audit, and Offshore Accounts

[al007]

I am looking for feed back and doing some tax planning to legally keep Tax at a minimum

 

First of all are any members aware of either expats or the wives being subjected to a tax audit in Thailand

 

There is a rule that says monies held overseas are not subject to tax here; subject to the income not  being remitted to Thailand in the year in which it is generated, this is very generous, and used by the super rich Thais to keep tax at a minimum, it is also available to everyone

 

Monies remitted from pension are also tax free

 

It follows on that after ones death, capital needs to be kept outside Thailand so the wife can continue to benefit, I already have accounts up and running in wife's name, over which I have irrevocable power of attorney, just in case

 

The jurisdiction needs to be chosen carefully, also with easy access for the wife and Singapore I believe a good choice, she could fly there and back in the day, they also have representatives in Bangkok, it has to be simple my wife is financially illiterate, and she will be the only one in control,with written guidelines, (DO NOT TRUST LOCAL ADVISERS)and for the negative wife hating brigade if she cashes it all out and spends it after I am gone that is ok !! not my problem

 

I am slightly concerned some of the monies held have gone through wife's Thai account, hence my question on audit

 

When in a previous life I always used to change companies, Vat registration and Bank accounts regularly, so if ever audited there was a limit as to how far back they could check, I never intentionally did anything wrong and this was just good insurance, and stopped the ability to go back for ever

 

Likewise it might be a good idea here to change bank accounts say every four years

 

Thailand has to be one of the tax friendliest countries to sensible sophisticated tax payers, or shall we say non tax payers

[lopburi3]

Thai law says income tax on worldwide earnings in my reading - but as you point out current policy has been that it is not charged if earnings are not remitted into Thailand in the year earned.  That could change and not sure it is still as clearly spelled out as policy as it once was.

 

Pensions are subject to the same tax as income unless subject to tax treaty limitations AFAIK.  For USA that exempts US Government paid pensions that are taxed at source.

 

Being married half of your monies belong to your wife so do not believe "some going through her accounts" would be an issue.

 

Do not believe she will have any issues and suspect she could have accounts in Thailand without issues if easier.  But admit have not checked carefully.