Tax residency in Thailand and taxing overseas income

[404cameljockey]

There are 2 references to Kasikorn in Hua Hin in the link I provided above - they are worth reading, and solve the passport verification problem.

Noted and thanks. So Kbank are ahead of the game (or really the other banks are just late).

Readers not fluent in Dutch don't panic, scroll down to Kbank's letter (I didn't find the other reference):

As part of our Tax Alert Service, we’re committed to keeping you informed of important developments. Today, we’ve received reports that Kasikorn Bank (KBank) has started issuing emails requesting compliance information. We expect other Thai banks to make similar requests in the coming months.
These requests include details related to the Common Reporting Standard (CRS), a global framework for sharing tax residency information and FATCA (for US citizens). This marks the first time many of us have seen CRS-specific information being requested in Thailand, so we want to ensure you’re fully informed.

What Does This Mean?
KBank is complying with global regulations under CRS and FATCA to ensure tax residency details are accurately reported:
• For Americans: FATCA requires banks to report account details to US tax authorities.
• For Non-Americans: CRS requires tax residency information to be shared with international tax authorities to prevent tax evasion.
Why Are They Being Sent Out?
In 2020, Thailand joined the CRS agreement, committing Thai banks to request tax residency information from their customers. This is standard procedure and not unique to you—KBank happens to be among the first to implement it.
Under CRS rules, banks must:
• Confirm the tax residency of all account holders.
• Identify connections to other countries for tax purposes.
• Share financial account details with local tax authorities, who may exchange the information internationally if needed.
This ensures overseas income and assets are declared in the relevant country. While this may feel new in Thailand, it’s already standard practice in many other countries. Note that switching banks won’t avoid this, as all Thai banks are required to comply with CRS regulations.
What Should You Do?
• Stay calm—there’s no rush.
o You have until 20th December 2024 to complete and email the forms.
o It’s usually easier to email them to the address provided by the bank, rather than visiting a branch.
• Wait for our guidance.
o We’ll provide step-by-step instructions and resources to simplify this process over the coming ..." (it ends there)

[PET]

I handed my FATCA duly completed with my UK HMRC UTR number to the Kasikorn main branch yesterday. I think they then sent onto the FATCACRS address mentioned in their covering email to me. So done !!

[caller]

I handed my FATCA duly completed with my UK HMRC UTR number to the Kasikorn main branch yesterday. I think they then sent onto the FATCACRS address mentioned in their covering email to me. So done !!

Did you get a receipt?

[malcolminthemiddle]

I see on the CRS form that it's asked whether I'm a resident for tax purposes in another country which I am - UK.

Are you sure?

In the UK, your tax residency status will depend on a statutory residence test.

You’ll usually be regarded as a UK resident if:

• You spend more than 183 days in the UK within a tax year
• Your only home was in the UK for 91 days or more, and you stayed in this home for more than 30 days
• You worked full time in the UK for any period of 365 days, and at least one day was in the tax year

Paying tax on UK income above allowances (for example rent + pension) does not automatically qualify you as being UK resident for tax purposes.

[lomuamart]

Yes, MITM, fair comments.

I should have said that my income from the UK is being taxed by that country but I am nevertheless regarded as non resident for tax purposes if I might like to take advantage of maybe ISAs or bonds in that country with any spare cash HMRC might leave me with. In other words, I believe, I can't.

[404cameljockey]

Yes, MITM, fair comments.

I should have said that my income from the UK is being taxed by that country but I am nevertheless regarded as non resident for tax purposes if I might like to take advantage of maybe ISAs or bonds in that country with any spare cash HMRC might leave me with. In other words, I believe, I can't.

I'd point out for any who don't know that there is a difference in the UK (probably elsewhere too) between between being 'non-resident' and 'non-domiciled' which have different income and taxation statuses. I've been non-resident for many years but think it's hard to shake off the status of being domiciled by HMRC, particularly when you still hold a UK passport. It is a minefield. Whether Thai tax people make any distinction I doubt unless it's possible to prove and utilize the distinction to your advantage, and it might even to prove to be a double-edged sword, depending on where your income is actually earned. I wouldn't expect a Thai tax expert to be able to advise you on this.

[404cameljockey]

I handed my FATCA duly completed with my UK HMRC UTR number to the Kasikorn main branch yesterday. I think they then sent onto the FATCACRS address mentioned in their covering email to me. So done !!

Did you get a receipt?

A good point. I always a prefer a paper trail for any important submitted documents, so email.

[londongeorge]

Could you please tell me if all UK people have a UK HMRC UTR number.I have gone through all my papers here and can find no reference to one.

[Dan86]

Could you please tell me if all UK people have a UK HMRC UTR number.I have gone through all my papers here and can find no reference to one.

I had to aquire one about 4 years ago whilst over here, it involved endless calls to HMRC before I managed to get esccalated to some higher up, I was eventually allocated one.

No idea if this automatic now though, I havent resided in the UK since 2007 so that maybe why I was not auto allocate one? I remember it all operating under NI number previously.

[Dan86]

In the general context of the Kbank email, I stumbled on this when it was mentioned in an Integrity Legal Youtube vid, it's an older article but appears to be regularly updated and contains some interesting speculation/"insider information". Obviously take with a large pinch of salt but interesting nonetheless.

https://nicholascreed.substack.com/p/th ... ndards-crs

Apparently this guy phoned Kbank after receiving the email and reported the conversation sth like the following:

Why did I get this email?
Kbank: Becuase of CRS

What happens if I don;t send you the forms?
Kbank: We can't pass them on to the revenue department.

Is there any penalty or implication if I do not do it, will you close my account?
Kbank: No, your account will not be closed, but we can't provide the information revenue is asking for.

[lomuamart]

I went through the process of getting a UTR earlier this year - or rather my tax advisor in the UK did for me.

I seem to remember reading that you get a UTR if you're doing self-assessment for tax. I think that if you're employed and paying tax by PAYE, you don't get a UTR, you use your NI number.

Someone please correct me if I'm wrong.

And, unfortunately, I'd second Dan86's comments about how difficult it was to get the UTR. I couldn't prove my identity through the Government website because my address didn't match their records - I eventually found they had one for me in HH from 26 years ago. This slowed down my tax advisor being formally recognised as working for me and that slowed down her getting the UTR.

It was finally sorted out but it took a couple of months and quite a few calls from me to the tax office from here.

Good luck!!

[Dan86]

Good point, my UK accountant was also involved, and it was to do with self assessment, not regular old PAYE

I went through the process of getting a UTR earlier this year - or rather my tax advisor in the UK did for me.

I seem to remember reading that you get a UTR if you're doing self-assessment for tax. I think that if you're employed and paying tax by PAYE, you don't get a UTR, you use your NI number.

Someone please correct me if I'm wrong.

And, unfortunately, I'd second Dan86's comments about how difficult it was to get the UTR. I couldn't prove my identity through the Government website because my address didn't match their records - I eventually found they had one for me in HH from 26 years ago. This slowed down my tax advisor being formally recognised as working for me and that slowed down her getting the UTR.

It was finally sorted out but it took a couple of months and quite a few calls from me to the tax office from here.

Good luck!!

[craighuahin]

Question about moving funds into Thailand. If I move funds into Thailand (eg super payout, savings etc) while I'm still tax resident in another country, will that avoid any tax assessments on those funds if, say, I move to Thailand permanently in 5 years time and become tax resident in Thailand?

[Spartan]

Craig, although full details of how the proposed tax changes will operate in Thailand are not yet fully known, based on my experience with worldwide tax systems elsewhere and information released to date the short answer is it will indeed avoid taxation in Thailand (on the basis it will be considered savings not assessable income). The key point being you have not spent 180 days or more in Thailand in the year that you earned the funds. Even assuming the proposed shift to a worldwide tax system does not eventuate you would still not be assessable under current tax legislation as you are not a tax resident in the year in which the funds were earned. Other BM's maybe able to confirm or correct my view.

[londongeorge]

I still haven't received an e-mail from K-Bank about paying tax. Has anyone who hasn't received notification gone to the bank and asked what the situation is. Or do you think it would be better to just wait and see what happens. I was going to go today but the banks are closed.