Tax residency in Thailand and taxing overseas income

[buksida]

55% of Foreign Expats thought of moving out of Thailand in 2024. Majority will not file tax returns
A recent survey reveals that 55% of expats considered leaving Thailand in 2024 to avoid new tax liabilities. With Thailand’s new tax regime set for 2025, the majority indicate they may not file returns by the March 31 deadline, raising concerns for the government’s revenue targets.

A Thai Examiner survey of readers from among expats living in Thailand, in addition to those considering a move to Thailand, shows that a majority may not file tax returns as required by March 31, 2025. Furthermore, the poll revealed that 55% of respondents had considered travelling out of Thailand during 2024 to avoid a tax liability. The poll comes as the Thai government last week revealed that its tax collection target for 2024 had not been met. This shortfall was reportedly blamed on an exchange rate blip due to a strengthening baht.

The new tax reporting regime for expat foreigners comes into play on January 1st, 2025. Following key changes made by the Revenue Departments in September and November 2023, all foreign residents in Thailand for over 180 days must account for income remitted to the country in the course of 2024.

In brief, a tax return will be required from all foreigners resident for more than 180 days in the course of 2024 by March 31st, 2025.

Survey shows high awareness among expats of the 2025 tax law change, with possible global taxation a concern
Almost all, or 92%, of respondents were aware of the tax law changes coming into play next year. Notably, there is also legislation being proposed to introduce an even more demanding global taxation regime.

At length, this will eventually make foreign residents in Thailand liable to account for all income, both earned in Thailand and abroad. Presently, only income remitted into the kingdom is subject to review, and then in accordance with bilateral taxation treaties.

Undoubtedly, this change is not well received by expats living in Thailand. Indeed, a full 90% of respondents consider the new taxation regime as unfair, while only 10% accept the new dispensation as right and proper.

Of those who consider the changes unfair, 70.83% tagged “taxation without representation” as a key concern. In other words, foreign residents in Thailand are being taxed but have no political rights in the kingdom.

Indeed, following a new citizenship initiative during the week, both the Ministry of the Interior and the Prime Minister’s Office robustly dismissed any suggestion of easing the path to citizenship for foreigners in Thailand.

Expats voice concerns over lack of benefits from taxes, added costs and challenges of new tax reporting regime
After that, an even larger 91.67% claimed the new taxation offers no quid pro quo in return. In other words, expats are being invited to pay taxes but are receiving nothing new in return.

At the same time, 79.17% simply see the new tax reporting requirements, and perhaps tax to be paid, as an additional cost for living in Thailand.

Similarly, 83.13% of respondents decried the extra red tape involved, particularly as, at the end of the day, expat foreigners in Thailand are focused on keeping within the law.

However, those polled in the Thai Examiner survey suggested an unintended consequence.

A majority of expats had considered or taken steps this year not to be in Thailand for 180 days.

In short, anyone under the 180-day threshold is not liable to file an income tax report. Certainly, 55% of respondents said they were actively considering this option or had taken steps.

At the same time, a full 95% of respondents originated from a country that already has a bilateral tax treaty with Thailand.

However, only 64% of those polled said they had studied their country’s tax treaty and how it might impact them.

Full Story: https://www.thaiexaminer.com/thai-news- ... x-returns/

[PeteC]

In case anyone interested, below is a link to Thai Tax Form ภ.ง.ด. 91 for 2016, the latest version I could find. Without a doubt it will have to be amended before all this new filing is necessary by March 2025.

I could find no existing tax forms that would apply to most of us concerning the new expat rules.

https://www.rd.go.th/fileadmin/download ... 140360.pdf

[404cameljockey]

Clearly there will be a new form which will bear no resemblance.

[Big Boy]

I loved the question about supporting a political party.

[STEVE G]

^I think that's for a tax deductible financial donation to a political party.

[Big Boy]

Another bright spark telling us what to do, but no information about how to do it

All Thailand’s expatriates should register with TRD says tax expert
All foreigners clocking up 180 days residence here, or more, during the calendar year 2024 should obtain a tax identification number from the Thai Revenue Department. They should also fill in the requisite tax form and submit it in the first three months of 2025, according to Thomas Carden the Bangkok-based founder and director of American International Tax Advisors. He accepted that the majority of expats would need the help of a tax professional to complete the bureaucracy.

Mr Carden emphasized that only overseas income actually transmitted to Thailand was relevant. “Issues such as pre-taxed pensions, non-assessable income and double taxation treaties are all important,” but our advice is to register even if you don’t believe you have anything to pay,” he told 100-plus members of the Pattaya City Expat Club. “If you don’t register, then you risk audit at a later date, maybe years away, and have to prove your immunity. If you delay, the financial penalty screws can become tighter and tighter.”

He admitted that the TRD head office in Bangkok had failed to keep the provincial offices up to date. “That’s why expats turning up at local revenue offices have often been told to go away even if accompanied by their wife or a Thai speaker.” He added that there was bound to be initial administrative chaos, but the safest course of action was to register via a professional tax company. “Most pensioner expats living on savings and pensions will have nothing, or little, to pay and supporting bank or tax documentation is not required when submitting the form.”

https://www.pattayamail.com/latestnews/ ... ert-478899

[buksida]

He accepted that the majority of expats would need the help of a tax professional to complete the bureaucracy.

Lemme guess, there is a recommendation for such an agent in there somewhere. These guys will be raking it in as dealing with the Thai tax office is a bureaucratic quagmire that makes immigration look like Disneyworld.

[Pagey]

All foreigners clocking up 180 days residence here, or more, during the calendar year 2024 should obtain a tax identification number from the Thai Revenue Department.
https://www.pattayamail.com/latestnews/ ... ert-478899

Unless they have changed the rules recently, HH Revenue Office will only issue a TIN to foreigners who are working in Thailand.

[Dannie Boy]

I think it’s fair to say that unless someone in authority gets their act together PDQ, it’s going to be chaos in 2025 with no one knowing what to do, so at the moment, doing nothing seems the best option!!

[pharvey]

Hell, the "Tax Situation", being 'Legal', 'Lying', 'Non-compliant' or simply feeling personally abused is a force wherever you are I guess.

Whilst I worked overseas long term in several places, Thailand being one - I was never self employed, I had responsibilities for others (workwise) and believe me all had to be by the book (though I truly tried any source of relief). I worked for large companies where I couldn't ignore "Tax Regulations" and as such tended to get hammered by both the country I was based and my so-called "Home Country" - though I had a decent accountant who helped me with the latter! Not one of the "Overseas Countries" would ever have helped me (Health, Pension, Services) despite the tax I paid to their Governments and to some extent, why should they over their own citizens?

I certainly don't agree with the "Dual Pricing" there is in Thailand - though at least it's actually posted! BUT, if you are a "White Westerner", you will always be perceived as rich in any country with lower incomes and the rip off merchants will gather - it's a simple fact of life (and believe me I have seen it time and time again). VAT or it's equivalent on goods is the same for all (well, most) so has cock all to do with getting done over IMHO, though I truly understand and respect buksida's (and others) views on that score.

I guess if you are "Self-employed", a "Retiree", a "Well off Expat" or have family in Thailand, there must be ways around things, but surely it's got to be a pain in the arse at times with all the hoops you have to jump through?

At the end of the day guys - we're all screwed!! Happy Days

[Big Boy]

Lets put this into perspective (OK, nobody knows what this new tax thingy will bring). If I look back over the last 12 months............ I spent 3 hours at immigration (particularly long this year because I didn't check the paperwork provided by my bank properly) extending my visa.

Outside of that, I can't think of any particular hoops (maybe 4 x 10 minutes visiting Bluport if online reporting didn't work).

Yes, most of us here are getting on in years, and we enjoy a good moan, but I am sat here racking my brain, and I can't think of any real hurdles to retiring here providing you meet the criterion. If you don't, what are you doing here anyway? Yes, there's always the threat that something bad might happen via the government, but it doesn't. Hopefully somebody can remind me of a massive hoop that I am forgetting. So long as I keep my head down, it isn't as bad as some make out.

Yes, there are other wind ups, but everywhere has wind ups. Irritating, but we get over it. Even something like dual pricing, you have a choice - go there or avoid it. Its no big deal.

[Dannie Boy]

Yes I’m sure that people coming to the UK have far more hurdles to jump than we do. You can understand people not embracing change but if we’re honest, we’ve got away pretty lightly up till now!!

[lomuamart]

But this isn't about Imm matters - although there are some scary suppositions out there.

It's about tax. Where you should pay it and what you get in return and I don't see that I win either in the UK or here.

[pharvey]

Yes I’m sure that people coming to the UK have far more hurdles to jump than we do.

Unless illegal, then you're laughing - especially now!

You can understand people not embracing change.....

I'm a bit lost on that one....?

But this isn't about Imm matters - although there are some scary suppositions out there.

It's about tax. Where you should pay it and what you get in return and I don't see that I win either in the UK or here.

Yep, apologies lomumart and all - I went off topic a tad... Again.

[Dannie Boy]

[

You can understand people not embracing change.....

I'm a bit lost on that one....?

Again. [/quote]
Quite simple - up until now there’s been no need to register and report anything regarding tax!!


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