Tax residency in Thailand and taxing overseas income

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StevePIraq
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Re: Tax residency in Thailand and taxing overseas income

Post by StevePIraq »

brianks wrote: Sat Dec 09, 2023 10:46 am HUH? What is the status of my retirement income as it has already been taxed in the U.S.?
It is clear in the revenue dept regulations, if covered in the relevant tax treaty it is not counted
Last edited by StevePIraq on Mon Dec 11, 2023 5:58 pm, edited 1 time in total.
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Re: Tax residency in Thailand and taxing overseas income

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lomuamart wrote: Sun Dec 10, 2023 8:04 pm Hold on.

If you're suggesting I'm scaremongering, you're wrong. I'd just like clarification of procedure. Hey, who wouldn't?

I used to answer pretty much all the visa stuff on here and always tried to be literal. But that has nothing to do with the point in question - unless maybe we don't get our extensions until the revenue give us clearance.

It would be nice to know where we stand. Yes, dual tax arrangements but how do we prove tax paid? Yup, your P45, BB but the one I've got is some 27 years old. Will they accept my other documents? Heaven knows.

Panic, scaremongering? No.

I'd just like to plan ahead if necessary. I don't think that's a big ask unless I'm dealing with local authorities who haven't got a clue or I listen to those who say what will be will be. Which it will be. I'd just like to know more detail right now.
It is very clear in the ruling, and the RD has said there will be no further clarifications as it is all clear in the new ruling.

It is based your own determination as it is self-declaration. However, there is also an RD ruling on Tax Avoidance with penalties.

I for one hope no one gets penalised, however I personally have brought enough funds in to last a few years and everything becomes abundantly clear.
Last edited by StevePIraq on Mon Dec 11, 2023 6:00 pm, edited 1 time in total.
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Re: Tax residency in Thailand and taxing overseas income

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An option I have discussed with my financial advisor is not bringing money into my bank account but transferring to my partners bank account. He thinks this could be a good idea as there is nothing in the new rulings about this.
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Re: Tax residency in Thailand and taxing overseas income

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StevePIraq wrote: Mon Dec 11, 2023 5:45 pm An option I have discussed with my financial advisor is not bringing money into my bank account but transferring to my partners bank account. He thinks this could be a good idea as there is nothing in the new rulings about this.
What new rulings?

And what about money laundering regs? Plenty of scams involving opening of false accounts by poor folk have been identified and are being investigated. Alarm bells will start ringing if an average account suddenly turns into a very rich account.
Last edited by caller on Mon Dec 11, 2023 6:28 pm, edited 2 times in total.
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Re: Tax residency in Thailand and taxing overseas income

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Yes and no I guess. 20 years I've been transferring to the wife's account as well. Only if it's over 20K USD do they want an explanation what it was for. New car, buying a house, hospital bills etc. Actually if I recall correctly she gave the explanations by phone. If that stays the same SOP we'll find out I guess. :cheers:
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Re: Tax residency in Thailand and taxing overseas income

Post by thecolonel »

Dannie Boy wrote:
buksida wrote: Mon Dec 11, 2023 11:00 am I know a few that are bringing more money over now before it kicks in in January and bank accounts/transactions get start getting scrutinized.
No harm in doing that!!
Only that the net loss of interest (at circa 5.5% UK versus 1% Thai) on UK savings might outweigh the potential tax liability

Could be better to leave it in the UK and let the interest pay the tax and have some left over??

What's the tax man going to want approx?



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Re: Tax residency in Thailand and taxing overseas income

Post by Hahuahin »

Free event in Hua Hin aims to shed light on the new tax rules for foreign income brought into Thailand
Following the recent changes in Thai tax regulations requiring tax residents to pay personal income tax on income brought into Thailand from overseas, the BCCT Pre-Connecting Western Seaboard (Hua Hin) Tax Briefing event aims to shed more light on the situation.

The event is free to attend and should not be missed by anyone who is potentially affected by the issue. The event takes place before the BCCT networking at Holiday Inn Vana Nava Hua Hin.

Scheduled for Friday, 2nd February 2024, from 5 to 6 pm at the Holiday Inn Vana Nava Hua Hin, this briefing will delve into the latest positions of the Thai Revenue Department, spotlighting potential technical issues.

Esteemed speakers Melea Cruz and Steve Wilson, with their extensive international tax experience, will provide invaluable insights into navigating these new guidelines, particularly the ‘remittance rule’ affecting foreign source income. This event, organized by BCCT’s Legal & Tax Working Group, is free of charge but requires advance booking due to limited seating.

Don’t miss this opportunity to gain a deeper understanding of these significant tax changes and how they might affect you. Secure your spot today by following the booking link below or emailing events@bccthai.com.

Remember, only 30 seats are available – act now to ensure your attendance at this crucial briefing.

https://www.huahintoday.com/hua-hin-new ... -thailand/
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Re: Tax residency in Thailand and taxing overseas income

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Hopefully one of the Forum members will get to attend and post an update about what was discussed?


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Re: Tax residency in Thailand and taxing overseas income

Post by caller »

Hmm, a 'must attend' event, but limited to 30 seats. Maybe they can sit 2 to a chair, or on the floor even?

Sadly, I already have a curry appointment.
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Re: Tax residency in Thailand and taxing overseas income

Post by Scout »

Any updates on this topic, maybe from someone who attended the event last Friday ?
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Re: Tax residency in Thailand and taxing overseas income

Post by FarangJon »

Expat Tax Twists in Thailand: Navigating the New Landscape in 2024

A significant overhaul of the Thai tax system, effective January 1st, 2024, has thrown a curveball at the expat community, raising concerns and prompting a scramble for solutions.

This article delves into the intricacies of this new tax tango, offering a roadmap for expats to navigate the complexities and unlock potential strategies to secure their financial future in the Land of Smiles.

Previously a haven for foreign income, Thailand’s tax code offered a sweet deal to expats:

Foreign earnings stashed abroad remained blissfully untaxed. However, the new year has ushered in a paradigm shift. Now, all foreign earned income brought into Thailand by tax residents, including expats, is subject to personal income tax. This marks a significant departure from the past, leaving many expats wondering how to navigate this uncharted territory.

Understanding the Old and the New:

To grasp the full impact of the changes, let’s rewind to the pre 2024 era. Expats enjoyed the freedom of keeping their foreign income untaxed as long as it remained outside Thailand. Income earned and brought into the country within the same year was subject to tax, but passive income like pensions and investments from abroad existed in a grey area, with no clear guidelines.

Fast forward to 2024, and the landscape has transformed. The new law dictates that all foreign earned income remitted to Thailand by tax residents is subject to personal income tax. The tax rates are progressive, ranging from a comforting 0% for income up to 150,000 baht to a hefty 35% for income exceeding 5 million baht.

Pensions, while taxed in Thailand, may find some relief through double taxation agreements with the home country.

Charting a Course Through the Tax Maze:

With jaws dropped and spreadsheets open, expats are now seeking solutions to minimize the impact of this new tax reality. Fortunately, there are potential pathways to navigate this maze and shield some of that hard earned income.

Gift of the Givers:

Thai tax law offers a generous exemption on gifts between spouses. Up to 20 million baht gifted in a single year escapes the taxman’s grasp. This opens a strategic avenue for couples to transfer income and potentially lower their overall tax burden. However, exceeding this threshold incurs a 5% flat tax, so careful planning is crucial.

https://www.huahintoday.com/local-news/ ... e-in-2024/
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Re: Tax residency in Thailand and taxing overseas income

Post by 404cameljockey »

Thanks, although the article concentrates on wealthy expats. I guess most of us still have to wait to see, when the law is applied and how we prove that we aren't taxable on our mixed income of say THB 150,000k or less annually from stuff like savings, pensions, gifted income and small investments, even with dual taxation agreement in place, if any.
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Re: Tax residency in Thailand and taxing overseas income

Post by caller »

In that report, they talk of the law already being enacted, which is my understanding, but I also read elsewhere, that nothing can happen until next year, when year one's tax will be due.
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Re: Tax residency in Thailand and taxing overseas income

Post by Dannie Boy »

I think it’s a case of the law becoming effective for 2024 but the first reporting cannot take place until Jan 2025.
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