Interesting clarification about working remotely in Thailand

[andrew28fl]

I came across the video below. The video specifically discusses the Thailand LTR visa, which many might not be specifically interested in or qualify for. But if you forward to around minute 7.30 and wait for the 2nd question, "What taxes would Stan pay?", the govt official clarifies that there won't be any taxes, since the income is considered foreign sourced, even when Stan and his family lives in Thailand.

 

[troubled soul]

Thanks for the sharing ...
Yes It is known fact that taxable income is (* Only if the income is remitted to Thailand in the same year when it is earned.)
The real problem is running single person USA LLC (as example) from Thailand....as you created PE in Thailand , USA LLC become tax resident in Thailand....
You are retiree and only live on Pension, dividend or interest , Yes It is tax free ....
Same as UAE.....but real problem is running any online business from both country ? How to run USA LLC tax free from these country ?

 

[Jbb1]

Thanks for the sharing ...
Yes It is known fact that taxable income is (* Only if the income is remitted to Thailand in the same year when it is earned.)
The real problem is running single person USA LLC (as example) from Thailand....as you created PE in Thailand , USA LLC become tax resident in Thailand....
You are retiree and only live on Pension, dividend or interest , Yes It is tax free ....
Same as UAE.....but real problem is running any online business from both country ? How to run USA LLC tax free from these country ?

Are you sure about the PE?

If that's the case a nominee director might solve this.

 

[thomasparra]

Thanks for the sharing ...
Yes It is known fact that taxable income is (* Only if the income is remitted to Thailand in the same year when it is earned.)
The real problem is running single person USA LLC (as example) from Thailand....as you created PE in Thailand , USA LLC become tax resident in Thailand....
You are retiree and only live on Pension, dividend or interest , Yes It is tax free ....
Same as UAE.....but real problem is running any online business from both country ? How to run USA LLC tax free from these country ?

What about running HK company from Thailand?

 

[Jbb1]

What about running HK company from Thailand?

If the company is considered Thai because of PE it doesn't matter the jurisdiction of the company. It will be applied to all jurisdictions.

 

[andrew28fl]

If the company is considered Thai because of PE it doesn't matter the jurisdiction of the company. It will be applied to all jurisdictions.

I spent some time in Thailand, and there are a lot of nomads/entrepreneurs who run their offshore companies, including US LLC from Thailand and don't pay any taxes. This is the ground reality, confirmed by many. Of course, evaluate your own risk tolerance and options.

 

[jatrex]

I spent some time in Thailand, and there are a lot of nomads/entrepreneurs who run their offshore companies, including US LLC from Thailand and don't pay any taxes. This is the ground reality, confirmed by many. Of course, evaluate your own risk tolerance and options.

That is very interesting. I'm also considering USA LLC + Thai residence. I got a feeling that if enough people do it the Thai government can't really slam down on it without facing some kind of backlash after decades of kinda tolerating that foreigners live there and don't pay tax.

 

[MagicMatt]

Apparently this tax loophole is to be closed JAN 1, 2024.