Thailand DTV visa and taxation/ tax residency

[nitehawk]

I am a Canadian citizen living in Dubai. I have zero ties to Canada and don’t ever plan on going back their either. I also have a dubai company. I want to leave dubai and go live in Thailand per the DTV visa. But I am concerned about taxation.

I am aware of Thai tax laws that any income remitted into Thailand is taxable, this isn’t a big deal to me. As per Thai laws I understand that my foreign income not remittee into Thailand is not taxable.

I can only imagine that if I am living in Thailand 365 days a year that I would be deemed a tax resident of Thailand but given Thai laws I should only be taxed on money I bring into the country and not on my foreign income. Is this correct?

Question is: can I maintain my Dubai company and bank accounts in the UAE while not even living there?

I need to know this because this is where my money will be stored and earned in my Dubai company. And I don’t have any plans on returning to Dubai either.

 

[theblast3r]

I am a Canadian citizen living in Dubai. I have zero ties to Canada and don’t ever plan on going back their either. I also have a dubai company. I want to leave dubai and go live in Thailand per the DTV visa. But I am concerned about taxation.

I am aware of Thai tax laws that any income remitted into Thailand is taxable, this isn’t a big deal to me. As per Thai laws I understand that my foreign income not remittee into Thailand is not taxable.

I can only imagine that if I am living in Thailand 365 days a year that I would be deemed a tax resident of Thailand but given Thai laws I should only be taxed on money I bring into the country and not on my foreign income. Is this correct?

Question is: can I maintain my Dubai company and bank accounts in the UAE while not even living there?

I need to know this because this is where my money will be stored and earned in my Dubai company. And I don’t have any plans on returning to Dubai either.

https://www.bangkokpost.com/business/general/2860812/law-to-tax-income-from-overseas-in-the-works
Things can change quickly here...

 

[Marzio]

If you want to leave Dubai why are you keeping a UAE company?

Close the company, form a US LLC with a US bank account and move tax residency to Panama or Malaysia or Philippines while living 180 days in Thailand.

 

[nitehawk]

Well only keeping it open because of the bank accounts are there for personal and business. I prefer not usa because already have an llc there but for my Dubai company maybe I should move it somewhere where Corp tax is 0. I think it’s changed to 9% this year in UAE which isn’t too bad. Are there any better solutions than usa LLC?

Either way I plan to stay in Thailand 365 days per year so long as they don’t start taxing worldwide income. If they start taxing worldwide income I would have to spend half my time in UAE I guess.

 

[DCble]

https://www.bangkokpost.com/business/general/2860812/law-to-tax-income-from-overseas-in-the-works
Things can change quickly here...

That requires a law change, so highly unlikely to come in for Jan 25, but it's possible next year. Would be silly but Thailand does want to milk foreign people

Well only keeping it open because of the bank accounts are there for personal and business. I prefer not usa because already have an llc there but for my Dubai company maybe I should move it somewhere where Corp tax is 0. I think it’s changed to 9% this year in UAE which isn’t too bad. Are there any better solutions than usa LLC?

Either way I plan to stay in Thailand 365 days per year so long as they don’t start taxing worldwide income. If they start taxing worldwide income I would have to spend half my time in UAE I guess.

What about hong kong and getting an exemption for corp tax?

The USA LLC never made sense for me with the withholding tax as not American and all the extra stuff getting involved with the USA can bring

 

[nitehawk]

What about hong kong and getting an exemption for corp tax?

This sounds interesting. Is this a simple process with stable banking?

 

[Marzio]

Are there any better solutions than usa LLC?

Perceived prestige, tax exemption if no US presence, zero accounting requirements, cheap management, easy reporting and the option to walk into a branch and open a bank account are all advantages that you will not find anywhere else.

Sure there are other jurisdictions but none come with a complete package as US LLC.

Lets take Honk Kong for example, having foreing income exempt is not automatic and you will be subject to audits.

 

[JackAlabama]

That requires a law change, so highly unlikely to come in for Jan 25, but it's possible next year. Would be silly but Thailand does want to milk foreign people

the rich thais would be way more affected than a random foreigner who can simply go elsewhere (no family ties nor heritage). So its unlikely anytime soon.

 

[DCble]

the rich thais would be way more affected than a random foreigner who can simply go elsewhere (no family ties nor heritage). So its unlikely anytime soon.

The rich thais I know already have their money set up in abroad companies and bring it back in using loans. But yeah it's unlikely soon

This sounds interesting. Is this a simple process with stable banking?

Simple to open up, biz bank account is near impossible so people use payment providers

 

[HeinzKetchup69]

So, what are the current Tax implication of living in Thailand under the DTV or LTR visa?
Considering these visas are for freelancers that work for foreign companies... Does Thailand expect these people to pay income tax in Thailand?

 

[unth72]

If you spend more than 179 days in Thailand including arrival and departure days then you're a tax resident - 179 days or less then you're not.

 

[0ecomoff]

I'm in the same position (UAE company, living here) right now, looking for a different living experience for now. Was thinking about Thailand too, but the half year stay limit is so unappealing. There are even tourist visas for 6 months available for some, why even use the DTV then? One solution would be country hopping between Thailand, Vietnam, Malaysia, Bali...

 

[0ecomoff]

Any update on this matter? I would wonder how they would even enforce (if not straight to jail) the taxation of foreign income like trading with e.g. banks in Switzerland? They wouldn't see anything.

 

[pomo]

As it stands, if you become tax resident (180+ days) you are technically liable for tax on remitted income (with an exception if it was earned before 2024).

The proposal to tax worldwide income has not passed, so should be safe for 2025 at least.

Don't think they have any capabilities or interest to go after anyone right now but things may change. And as other countries, they have a right to back tax you for previous years should something come to light. So it's possible (but unlikely) that someone taps you on the shoulder one day asking why you didn't file any taxes.

In terms of them seeing anything, they are part of CRS so if you give a thai address to the foreign bank they would get some data. Give them your UAE address to avoid that.

 

[JackAlabama]

just fyi there have been articles circulating the discourse shifting more to increase VAT to 15% up from 7%.
A much better proposition which would be costly too, but at least its non invasive and passive and much easier to do then go over all DTAs and what not resistance from the former targeted groups.

 

[unth72]

The ability to see what you earned overseas via CRS provides little advantage when they only tax remitted amounts which they could always access if they wanted to via local Thai banks.

It would only really come into play if they introduce a worldwide earnings taxation.

 

[0ecomoff]

It would only really come into play if they introduce a worldwide earnings taxation.

The proposal to tax worldwide income has not passed, so should be safe for 2025 at least.

So basically, if you don't plan to open up a local bank account (for what purpose would you need one, really?) and get your income from outside the country, managed by outside banks, you shouldn't run into any issues with taxation on worldwide income, right? I know this is not a legal advice forum but just to measure the common narrative right now. Because it looks really attractive to live there for longer, but doesn't make sense to me to pay capital gains taxes on my trades which are done in another country while holding UAE residency (no taxes on capital gains).

 

[pomo]

So basically, if you don't plan to open up a local bank account (for what purpose would you need one, really?) and get your income from outside the country, managed by outside banks, you shouldn't run into any issues with taxation on worldwide income, right? I know this is not a legal advice forum but just to measure the common narrative right now. Because it looks really attractive to live there for longer, but doesn't make sense to me to pay capital gains taxes on my trades which are done in another country while holding UAE residency (no taxes on capital gains).

you may still want to have a local bank to pay rent, electricity, day to day purchases etc but it's possible to survive with cash still. A lot of places are moving to cashless though.

You could remit a small amount to cover some living costs and file taxes on it if needed. it will be about 10% on $40k per year.