New thai tax laws 2024 on all incoming money to thailand.

[bear]

Feb 28, 2024 14:32:32 GMT 7 Denis-NFA said:

Feb 27, 2024 17:39:46 GMT 7 bear said:

It might become an ASEAN Tax grab Denis-NFA . There's a new member living in Indonesia asking about the same matter in another thread. Cheers 🐻

Yes, I saw that bear and yes, we are all going to have to be careful how we structure our finances.

The ASEAN countries know they are attractive to pensioners so its going to be interesting.

Is there any room left on Pitcairn Islands?

Not sure about Pitcairn Islands Denis-NFA, but I hear there's still plenty of room in Paraguay on the land gifted  by the government to create a socialist's dream of a New Australia. Descendants of original settlers are still there....... It's an option!! Cheers 🐻

[Banjo]

I remember when Thaksin Shinawatra tightened up the visa laws here, there was a huge expat outcry, a lot had been living here on monthly border runs... including me, and many threatened to flee the country.
I think most just cleaned up their act and got a proper visa (including me).
It will be the same if this tax ever comes about, if we have to pay it, most will pay it rather than give up their homes here.

No sign of my TIN in the post yet....

[nomadic]

If it comes to the worst it will be 100% cash once again. Once a year with enough to last me. Easy as really. Or maybe traveller's cheques. Remember them. By the way, my landlady is well off with a guest house and I doubt she pays one baht in tax. Maybe but my bet is none.

[Denis-NFA]

Centrelink via MyGov produces an annual statement of earnings which you would think would help in the double tax saga.

I haven't yet checked what Wise Services are saying on this but they will need to be 'on the ball' so to speak.

[Banjo]

www.siam-legal.com/thailand-law/thailand-new-tax-on-foreign-income-an-overview/#:~:text=Thai%20citizens%20and%20foreigners%20who%20are%20permanent%20residents,subject%20to%20a%2025%25%20tax%20rate.%20More%20items

Thailand’s New Tax on Foreign Income: An Overview

Section 41 of the Revenue Code

This provision requires an individual to pay income taxes to the Revenue Department of Thailand under the following conditions:

The individual is:
A Thai citizen.
A Thailand resident who filed taxes in the previous tax year.
Foreigners living in Thailand for one or more periods totaling at least 180 days in any tax calendar year.
Receives income within or outside Thailand through:
Employment (wage, salary, remuneration, etc.) under Section 40.
Business operations under Section 40.
Business operations of the employer under Section 40.
Passive income or property (interests, dividends, rental income, goodwill, etc.) under Section 41 paragraph 2.

Thai citizens and foreigners who are permanent residents are subject to pay income tax, should they earn their annual income, at the following rates:

0 to 150,000 THB is exempted from income tax.
150,001 to 300,000 THB is subject to a 5% tax rate.
300,001 to 500,000 THB is subject to a 10% tax rate.
500,001 to 750,000 THB is subject to a 15% tax rate.
750,001 to 1,000,000 THB is subject to a 20% tax rate.
1,000,001 to 2,000,000 THB is subject to a 25% tax rate.
2,000,001 to 5,000,000 THB is subject to a 30% tax rate.
5,000,001 THB or more is subject to a 35% tax rate.

Revenue Department Begins Taxing Foreign-Sourced Income

As of 1 January B.E. 2567 (2024), the Revenue Department has enforced its department instruction P. 161/2566 to tax any Thai citizen or a foreigner with Thai residency, who receives an income within Thailand. Sources of income earned outside of Thailand are excluded from taxation, however.

This instruction falls under Section 41 paragraph 2 of the Revenue Code regarding income assessment, which considers sources of incomes within Thailand and overseas into account for an income tax.

However, there is an exemption from being subject to income tax in Thailand by meeting one of the following conditions:

The individual must not reside in Thailand for 180 days or more in a particular tax calendar year.
Invest on a foreign investment fund or Depositary Receipt.
Does not bring an income from overseas into Thailand.

Case Examples

Case 1: An individual who resided in Thailand for 300 days, worked in Thailand and received a wage from an employer in the United Kingdom. Therefore, this Thailand resident is subject to pay income taxes as his residency period is more than 180 days by the virtue of Section 41 of the Revenue Code.

Case 2: An individual residing in Australia who worked for the employer from Thailand and received a salary from such an employer. For this case, this individual is subject to pay an income tax for Thailand, as this individual receives the income from the employer who operates a business in Thailand, as defined by Sections 40 and 41 of the Revenue Code.

Case 3: An individual was assigned to work for a Japanese company based in Thailand for 90 days and received a salary for 3 months from the parent company in Japan. As a result, this individual is not subject to pay income tax in Thailand, but is subject to pay the tax in Japan because Thailand and Japan have a double tax agreement.
Double Tax Agreement (DTA)

This agreement exempts any individual residing in Thailand and the country where Thailand has signed the agreement with from paying income taxes on both countries. To clarify, an individual can pay income taxes in the country where the individual is currently residing. The DTA has several purposes regarding income tax:

Prevent double taxation for reducing financial burdens among individuals.
Avoid conflicts on taxing rights ensuring income is taxed once or at a reduced rate.
Ensure fair treatment on taxation from discrimination.
Prevent tax evasion and fraud by sharing information with the contractual party.
Promote economic activity in stimulating cross-border transactions and investments between the treaty countries.

As of 9th October 2023, Thailand has signed the DTA with 61 countries. Nevertheless, the individual may be subject to double taxation in Thailand and the country where Thailand is not a contractual party to the DTA.
Armenia Australia Austria
Bahrain Bangladesh Belarus
Belgium Bulgaria Cambodia
Canada Chile China (People’s Republic)
Cyprus Czechia Denmark
Estonia Finland France
Germany Hong Kong Hungary
India Indonesia Ireland
Israel Italy Japan
Korea Kuwait Laos
Luxembourg Malaysia Mauritius
Nepal Netherlands New Zealand
Norway Oman Pakistan
Philippines Poland Romania
Russia Seychelles Singapore
Slovenia South Africa Spain
Sri Lanka Sweden Switzerland
Taiwan Tajikistan Turkey (Turkiye)
Ukraine United Arab Emirates United Kingdom
United States of America Uzbekistan Vietnam


Tax laws are often complex and subject to change, and it’s crucial to stay informed about these developments, especially when they can significantly impact your financial planning and obligations. Please consult with qualified tax professionals for personalized advice and to ensure compliance with the latest regulations. Remember, staying informed and seeking expert guidance are key steps in effectively managing your financial responsibilities, both domestically and abroad.

[bear]

Sources of income earned outside of Thailand are excluded from taxation, however.

Says it all really; irrespective of how many days you reside in Thailand, I would think. Cheers 🐻

[Denis-NFA]

5,000,001 THB or more is subject to a 35% tax rate.

It looks like you will have to pay 35% nomadic!

[nomadic]

Mar 2, 2024 13:44:07 GMT 7 Denis-NFA said:

5,000,001 THB or more is subject to a 35% tax rate.

It looks like you will have to pay 35% nomadic!

How do you figure that denis? 5 million? I wish. And didn't see anything about tax on pensions. If anyone can see differently please let me know and I will load up on tourist cash to bring back this time.

[bear]

Mar 4, 2024 16:40:32 GMT 7 nomadic said:

Mar 2, 2024 13:44:07 GMT 7 Denis-NFA said:

It looks like you will have to pay 35% nomadic !

How do you figure that denis? 5 million? I wish. And didn't see anything about tax on pensions. If anyone can see differently please let me know and I will load up on tourist cash to bring back this time.

Excerpt from Section 41 of the Revenue Code:- Sources of income earned outside of Thailand are excluded from taxation, however. 

Except for Case 2 in the explanation, "In Australia, earning from Thai company."🐻

I think Denis-NFA is 'taking the micky' nomadic , because you seem to have overlooked the post that spells it out. For further information see Banjo 's post ⬆️ 4 for full explanation!!  Cheers 🐻

[Denis-NFA]

Sorry nomadic... it certainly wasn't meant to be serious at all as 5,000,000 Baht would be about AUD$214 thousand.

My apologies.

[nomadic]

Mar 4, 2024 19:13:39 GMT 7 bear said:

Mar 4, 2024 16:40:32 GMT 7 nomadic said:

How do you figure that denis? 5 million? I wish. And didn't see anything about tax on pensions. If anyone can see differently please let me know and I will load up on tourist cash to bring back this time.

Excerpt from Section 41 of the Revenue Code:- Sources of income earned outside of Thailand are excluded from taxation, however. 

Except for Case 2 in the explanation, "In Australia, earning from Thai company."🐻

I think Denis-NFA is 'taking the micky' nomadic , because you seem to have overlooked the post that spells it out. For further information see Banjo 's post ⬆️ 4 for full explanation!!  Cheers 🐻

So bottom line is that no pensions will be taxed? And I just went to the bank to bring back $200K cash.

[Denis-NFA]

[bear]

Foreigners and their overseas income: what next?

Many non-working expats are currently concerned about having to deal with more Thai bureaucracies.
More than three months after “assessable” foreign income became taxable, many of Thailand’s expats are still swimming in a sea of uncertainty. Lots of advice online, but few definite answers.

Senior officers from the Revenue have said little of late, although there has been a half-promise to the Swiss ambassador in a televised interview to print the tax identification forms in English as well as in Thai.

There is a view amongst some Thai lawyers that we must wait until July for clarification on nitty-gritty issues such as double taxation treaties and the tax status of pensions. By that time, some expats will have passed 180 days of minimum residence necessary for tax liability in this category. However, other specialists argue that the Revenue needs not to clarify anything. After all, formal tax law did not change on January 1 2024. There was simply the closing of a tax loophole which had enabled Thais or foreigners to delay transferring income here until a subsequent year.

Will all foreigners who spend half a year or more in Thailand be required to register with the Revenue by obtaining a tin (tax identification number) and submitting the required forms? The submission deadline for the calendar year 2024 will be in the January-March quarter of 2025. Revenue spokespersons have hinted at the all-inclusive scenario, but there has not been a formal declaration. Could the tax offices cope with the rush?

There are some categories of foreign tax residents who will not be liable at all this year, for example those who do not transfer ANY foreign income to Thailand in 2024 as well as holders of the 10 year Longterm Residence Visa who are exempt from declaring any foreign income in any case. The fact that you may be required to submit forms does not mean that you are, in fact, liable to pay any Thai tax. But expats won’t welcome the envisaged bureaucracy and likely registration with two tax authorities: the home country and Thailand.

There is also ambiguity about the precise status double taxation treaties. A retiree, for example, might argue – and indeed prove – he or she has paid taxes on pensions in the home country. But the Revenue could argue that the retiree could use those payments as a tax credit in Thailand rather than conceding a total immunity. Everyone agrees that the revised rules about foreign income are designed to catch Thais (and foreigners) making profits from untaxed overseas businesses and foreign exchange and crypto currency trading. The problem, needless to say, could be small fish being caught in the net alongside big ones.

The optimistic view about the future is that tin registration will remain voluntary as, in fact, it always has been for Thai citizens. If you think you are liable for tax, then by all means register. If you try to cheat, the newish Common Reporting System – an automatic and international exchange of the financial information of individuals to combat tax evasion and ensure compliance – will expose your dealings. But if all expats living here for half a year or so are thrown into the same pit willy-nilly, then Thai authorities can expect non-working longstay expats to become an endangered species.

Imagine the note on official publicity for one year extensions or for Elite visas: “You are reminded that you are required to register with the Thai Revenue’s tax identification system if staying in Thailand more than 180 days in a calendar year.” Not exactly marketing.

www.pattayamail.com/latestnews/news/foreigners-and-their-overseas-income-what-next-457038

N.B. Given the source and the fact there's nothing new or definitive ....... Guess we just wait & see.  Cheers 🐻

[genx]

Ultimately, the attitude of pensioners in Thailand should be "do it, I'll leave if you do". The exodus will cause a policy reversal in a few months. No big deal.

[will]

Apr 4, 2024 19:38:41 GMT 7 genx said:

Ultimately, the attitude of pensioners in Thailand should be "do it, I'll leave if you do". The exodus will cause a policy reversal in a few months. No big deal.

I suggest you watch Integrity Legal channel on you tube to keep on top of this. It seems that this is going to effect very few retirees here, probably just the cashed up ones earning on investments and bringing it here and even then it sounds like self report. They banks don't want the extra work and they don't really have he infrastructure here and as Wise are based outside Thailand they want nothing to do with it nor can they be forced to, the tax won't be due until July next year. They won't tax our dsp.