TAX on Income from Abroad

[sometimewoodworker]

I would guess that those of us who are living off pensions will not be bothered. I think they are after money laundering suspects and those companies who are evading their home country taxes.

It would be nice to believe that, and it would be nice if that is actually going to be the situation.

Regrettably the way the rules are written virtually everyone will be effected.

[glalt]

Of course, this is Thailand and one never knows what the government is going to do. I doubt they will shoot themselves in the foot by taxing pensions of potential retirees. A large portion of the government budget comes from the Value Added Tax. There is no avoiding paying that tax.

[wazza]

I wrote to the Australian Ambassador on 7/11/23 asking for clarification on the Thai Govt statement of Taxing Foreigners income for 2024 etc

I quoted the Tax Sharing Treaty with have in Thailand and has the Australian Government created a position statement on this. The ATO site has no position statement as yet , and my Australian Based Accountant hasnt / isnt aware of any statements that he can refer to.

BTW the consulate services , just refer you to an english speaking local lawyer / and Australian based accountant.

[tamada]

Since no country's consular services are qualified to offer tax advice, it behoves those transferring money into Thailand who are concerned with the Thai RD's changes and how they'll affect their future finances, to retain the services of a qualified international accountant in their homeland first.

[wazza]

@Tamada , my Australian accountant is 100% in the dark, and ATO hasnt published any updates etc.

All left in the dark....

[tamada]

@Tamada , my Australian accountant is 100% in the dark, and ATO hasnt published any updates etc.

All left in the dark....

Mine too (not Australia). If you and your accountant already know how the Thai-Australian dual-taxation agreement and how it affects you currently, then that's half the battle.

I wasn't criticizing but I am sure there's a lot of expats in Thailand thinking that dual taxation treaties will protect them but haven't made the effort to follow-up with an accountant as they think it's all "automatic".

This thread should be a good place to post any discoveries and revelations as the year progresses.

[wazza]

Agree.

my Oz accountant says the norm would be that you are required to pay the Thai Tax, then claim the credit back on your next Australian tax return..

[tamada]

That's logical so we share the hope that this is how it will actually pan out. The Thai RD has 12 months to get the online mechanisms in place to make this seamless. I did notice that there's a digital online tax filing form now whereas the only thing offered about 10 months ago by the head person at local Revenue Office was the hand-filled, Thai-only one that she insisted could only be completed at their office. Hoping that particular head of department has been promoted to an upper level of incompetence!

One other thing I have seen in other forum discussions is, depending on the tax regulations of one's home or main banking country, being able to chose where one pays tax based on the lowest threshold or liability, may not be an automatic or personal choice.

[sometimewoodworker]

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[deankham]

Slightly off topic question but does anyone know if all Thais are automatically issued a TIN (tax identification number) or if this is something that needs to be requested?

My wife just opened a bank account in UK and they have written asking for her to declare her tax residency outside of UK.

Technically she is not a tax resident anywhere but that does not seem to be an option so will declare it as thailand just to appease them.

We have no idea if she has a TIN and if she has where we would find this. The idea of contacting the tax office is not high on the things we want to bother with either.

Thanks for any pointers or suggestions.

[Stantheman]

Slightly off topic question but does anyone know if all Thais are automatically issued a TIN (tax identification number) or if this is something that needs to be requested?

My wife just opened a bank account in UK and they have written asking for her to declare her tax residency outside of UK.

Technically she is not a tax resident anywhere but that does not seem to be an option so will declare it as thailand just to appease them.

We have no idea if she has a TIN and if she has where we would find this. The idea of contacting the tax office is not high on the things we want to bother with either.

Thanks for any pointers or suggestions.

I asked the wife, while she doesn't file income tax anymore, since not working, originally she received the number from her work at the Udon Technical College.

[Bandung_Dero]

I've tried to read 6 pages of this, has the question been asked?
Who is going to collect this tax?
Certainly not the banks. Garnish 30% off every foreign transaction is ridiculous leaving the customer to reclaim it.
Will we go through the 3rd degree at our 2025 extension renewal. Whether it be 800k, 65k, 400k, marriage or what ever?

What's the phone number for Ms Dodgy Visa Udon?

[newtovillagelife]

I've tried to read 6 pages of this, has the question been asked?
Who is going to collect this tax?
Certainly not the banks. Garnish 30% off every foreign transaction is ridiculous leaving the customer to reclaim it.
Will we go through the 3rd degree at our 2025 extension renewal. Whether it be 800k, 65k, 400k, marriage or what ever?

What's the phone number for Ms Dodgy Visa Udon?

Banks already collect tax from our interest payments, very easy for them to withhold tax from foreign transactions....why is this such a stretch!!!! I think we are kidding ourselves, yes this wouldn't happen in our home countries, but don't underestimate Thailand.

[anefarious1]

It looks tax will be owed only if funds brought into the country were earned starting from Jan 1st of this year. If that's true, and one has significant savings sitting in their home country, one could simply claim the money was earned income prior to 2024. By that logic, only when one cumulatively brings in more than they have in their combined bank balance statements ending Dec 31, 2023 would such a strategy run dry. By contrast, folks without much savings won't have that option. Just speculating.

[sometimewoodworker]

Slightly off topic question but does anyone know if all Thais are automatically issued a TIN (tax identification number) or if this is something that needs to be requested?

My wife just opened a bank account in UK and they have written asking for her to declare her tax residency outside of UK.

Technically she is not a tax resident anywhere but that does not seem to be an option so will declare it as thailand just to appease them.

We have no idea if she has a TIN and if she has where we would find this. The idea of contacting the tax office is not high on the things we want to bother with either.

Thanks for any pointers or suggestions.

All Thais receive a TIN it’s their ID card number.
You say she’s not a tax resident anywhere, almost certainly incorrect, unless she doesn’t live in Thailand, she is almost certainly a Thai tax resident, though a large number of Thai tax residents pay no tax

If she doesn’t live in Thailand she is probably tax resident in the country she spends the most time in.

[deankham]

Thanks STWW. I'll use her thai ID number.

To answer your other comment we have lived in tax free country in the ME for past 14 years. So she does not pay tax anywhere.

[sometimewoodworker]

Thanks STWW. I'll use her thai ID number.

To answer your other comment we have lived in tax free country in the ME for past 14 years. So she does not pay tax anywhere.

That someone doesn’t pay tax, doesn’t affect the tax residency. I don’t know the meaning of the “ME” you speak of, but it is quite likely that your wife is tax resident of that country, it is also very likely that she is NOT tax resident in Thailand BUT for that information you will have to read and understand the Thai tax resident law.

Tax residency law is not simple and most countries have different rules.

[anefarious1]

Middle East

[Barney]

Seems clear for retirees in Thailand, noted below in bold font.
For those who are retired and work from a Thailand home and receive an overseas income, the net may be tightening.
Thailand most likely did not just make this decision without collaboration from other countries, double tax agreements are closely monitored these days.
I have a Thai tax ID number and closely watch any money transferred here. The Australian govt is always watching.
Catching money laundering or just transferring large amounts is high on the list. Also the control over our lives with the cashless society may prevent many transactions.

The Thai tax is only on the money earned and bought in the same year. So just transfer after the tax year.

Only income earned inside Thailand shall be subjected to tax during retirement. Therefore, you will not be obliged to pay any taxes for any income you have earned from overseas. Also, personal income taxes are not required for retirees in Thailand. Note that you can’t work in Thailand while on a retirement visa.

You would need to apply for a work permit. Once you stopped working you would have to leave Thailand and return with a 90-day OA visa and start the process again of extending the retirement visa for 1 year.

[rick]

Barney, the main issue with the 'new' tax law is that as of 2025 the previous years income if brought into Thailand WILL be taxable. Of course, no evidence that the Thai tax authorities have the capability to do that yet.