Which SEA countries allows tax free remote work/freelance/foreign company management for long-term tourists/guests?
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- Thread starter troubled soul
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No. What you post is a broad generalization which is outright wrong. Please stop these "loose cannon" replies!
Regarding Thailand and to properly reply to the question of @RealDude , first read -> Tax implications of remote working in Thailand - The Australian-Thai Chamber of Commerce (AustCham)
If you go by the book it will be very hard to find such a country in Southeast Asia. Reason: PE rules will kick in at some point in time. So, if you manage the company yourself from such a foreign country it will be almost impossible to go untaxed if you stay for an extended period of time, even on a tourist visa.
Minimum would be to have management outsourced and you not interfering in daily business decisions. However, if the company is majority owned by you, this circumstance will require an in-depth analysis of the local tax legislation before taking any relocation decisions. There are plenty of pitfalls.
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Like all of them, they are turbo mismanaged and nobody is really checking.
Just dont draw attention to yourself an dont mess w drugs there
No. What you post is a broad generalization which is outright wrong. Please stop these "loose cannon" replies!
Regarding Thailand and to properly reply to the question of @RealDude , first read -> Tax implications of remote working in Thailand - The Australian-Thai Chamber of Commerce (AustCham)
Quote from your own link: "If you are a tax resident of Thailand, foreign-sourced income, which includes business income from employment, rental income, interest, dividends, royalties, capital gains, etc., that is paid, brought in, or remitted into Thailand within the same calendar year would be subjected to Thai income tax."
That confirms @azb1 statement. Any foreign-sourced income NOT remitted into Thailand the same calendar year it is earned would NOT be subjected to Thai income tax. Isn't it crystal clear?
That confirms only that 99% of the people does not understand the meaning of foreign sourced income.
It is. Unfortunately working from Thai for your offshore company is not foreign sourced income but local income.
No, it confirms nothing because it has nothing to do with the initial question.
Learn about terms like "Permanent Establishment" and "foreign-sourced income" before posting on this matter!
" ... which includes business income from employment ..."
Do you mean then that business income from employment is not taxed if and only if it's earned while being physically abroad? If so, can you provide a source where this condition is stated/written in Thai law or is it an interpretation?
In the same article you quoted earlier “
The general rule for the taxation of employment income under a DTA is that the income is taxable in the country where the employment is actually exercised i.e. where the employee is physically present when performing the activities for which the employment income is paid.
A general exception applies to this rule that covers all individuals rendering services in the course of employment. There are three conditions normally prescribed in a DTA that must be satisfied for the remuneration to qualify for the exemption. In general, the three conditions require
The general rule for the taxation of employment income under a DTA is that the income is taxable in the country where the employment is actually exercised i.e. where the employee is physically present when performing the activities for which the employment income is paid.
A general exception applies to this rule that covers all individuals rendering services in the course of employment. There are three conditions normally prescribed in a DTA that must be satisfied for the remuneration to qualify for the exemption. In general, the three conditions require
- The employee is present in Thailand for less than 183 days or similar in the relevant period
- The employer is not a tax resident of Thailand
- The remuneration is not borne by a permanent establishment of the employer in Thailand.
"If you are a tax resident of Thailand, foreign-sourced income, which includes business income from employment, rental income, interest, dividends, royalties, capital gains, etc., that is paid, brought in, or remitted into Thailand within the same calendar year would be subjected to Thai income tax."
Then I really don't get the point of such a vague statement.
Regarding foreign-sourced income, if other conditions, rules, DTA... should prior or along apply, it should be clearly stated somehow (they should explain precisely what it is considered as business income from employment) to avoid misleading people.
Then I really don't get the point of such a vague statement.
Regarding foreign-sourced income, if other conditions, rules, DTA... should prior or along apply, it should be clearly stated somehow (they should explain precisely what it is considered as business income from employment) to avoid misleading people.
If you want to avoid being mislead always refer to double tax treaties between countries.
Online articles often are a mix of propaganda and ignorance.
There is nothing vague here. As a matter of fact, the specific activity of a person can turn foreign-sourced income into local-sourced income.
This fact is not Thailand specific. It applies to almost all countries with territorial taxation.
In most cases only truly passive income like interest from a foreign bank account or dividends from a listed company which is not majority owned by you has a chance to be classified as foreign-sourced.
Some countries are a bit more generous and classify foreign capital gains as foreign-sourced income but that is already borderline and needs to be checked twice: A daytrader with significant turnover who permanently trades foreign shares on a foreign stock exchange while executing his trades with tax residency in a country that has territorial taxation cannot claim that his capital gains are foreign sourced. His capital gains turn automatically into local-sourced income due to the fact that he is a "professional" (PE) and his income is not "passive".
why people not keep it simple ant move to Caribbean or do residence in UAE?
0% tax ir 0% tax. I don't think its worth investing hundreds of thousands in some sort of asian countries like Indonesias , Thailand etc.
0% tax ir 0% tax. I don't think its worth investing hundreds of thousands in some sort of asian countries like Indonesias , Thailand etc.
yeah pretty much.
Dunno where you from but most of the world works like that outside of the western hemisphere
Thank you for your insights.
What about this setup in order to get a bulletproof 0% tax in the case of TH residence:
- Dubai Freezone company 100% owned by Thai resident.
- Thai resident flies to Dubai twice a year for a few days in order to maintain UAE residence.
- While in Dubai: all work or sales are performed and backed with matching dates invoices/receipts, corporate and personal UAE bank transactions. 0% tax in UAE applies.
- No job is performed while in Thailand.
- Money earned during these trips is brought the next year (or later) in a Thai bank account.
Would this setup guarantee that income is foreign-sourced and consequently not taxed in Thailand?
The first bullet point makes this already a no-go and will lead to tax consequences in Thailand:
If the company is majority owned by you this is not a bulletproof model. You will be liable to full taxation in Thailand.
Plus, as @marzio said, it lacks substance.
This is very thin ice, but since we talk about Thailand and not some 1st world aggessive tax country.
Reduce your stay in Thailand and dial up your stay in Dubai with own rented apt or hire someone and things look much better.
How come? From what I read here Broken Flag Theory - The Taxation of Digital Nomads in Thailand there is no CFC rules in Thailand.
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