Thailand Tax: Best structure to protect against Overseas Income Tax while residing in Thailand

[AFIB8]

Hello. I am a digital marketer living in Thailand. I am paid affiliate commission to my overseas bank and brokerage accounts and am looking to protect against the forthcoming overseas income tax which I understand is due to take effect Jan 2024. I have set roots in Thailand with schools, car, property etc and moving is currently not an option.

Can anyone please recommend the best structure to avoid or minimize tax liability on overseas income while living in Thailand under these new rules? I understand the tax will likely apply to remitted funds only, but would also like to protect against global taxation in case they decide to go that route.

I’m considering registering an offshore company in low / no tax jurisdiction such as Cyprus, Hong Kong, Seychelles or Belize, using dividend payments to reinvest offshore while remitting only minimal funds to my Thai bank to cover living expenses.

Does this structure offer sufficient protection from any worldwide taxation Thailand may impose? Are there other structures or jurisdictions worth considering?

Thanks in advance for any thoughts or suggestions.

 

[wellington]

There isn't one.

Due to CRS + Corporate requirements to avoid domestic taxation against the overseas corporate vehicle (substance).

Feel free to read Thailand 0% tax

 

[AFIB8]

Thanks Wellington. Hopefully they will go no further than remittance, otherwise I will need to relocate.

 

[wellington]

Check out Labuan + Malaysia (Co in Labuan 3%) and residence visa in Thailand (free) - should be tax free for offshore funds.

Is Labuan tech (web-3 infrastructure friendly?) (ai friendly?)

Sophia: Yes.

Does being a non-resident director bring up any issues?

Sophia: No. Labuan allows 100% foreign ownership.


Is there any perks by being a director of a Labuan company (i.e ability to easily reside in Malaysia?)

Sophia: Yes, Director can apply for Labuan 2 years Expatriate Visa and reside in Malaysia.


Can Labuan be established as as subsidiary to a BVI or similar?

Sophia: Yes. It can also be vice versa.


Is Banking access easily achievable for operational costs? (EUR)(HKD)

Sophia: Yes, most banks offer these major foreign currencies.

Costs in establishing & ongoing?

Sophia: min. USD10,000 depending on your level of engagement from us. It would be great for us to get on a call to understand your requirements prior to providing you a realistic quote.

 

[ecool]

Check out Labuan + Malaysia (Co in Labuan 3%) and residence visa in Thailand (free) - should be tax free for offshore funds.

Is Labuan tech (web-3 infrastructure friendly?) (ai friendly?)

Sophia: Yes.

Does being a non-resident director bring up any issues?

Sophia: No. Labuan allows 100% foreign ownership.


Is there any perks by being a director of a Labuan company (i.e ability to easily reside in Malaysia?)

Sophia: Yes, Director can apply for Labuan 2 years Expatriate Visa and reside in Malaysia.


Can Labuan be established as as subsidiary to a BVI or similar?

Sophia: Yes. It can also be vice versa.


Is Banking access easily achievable for operational costs? (EUR)(HKD)

Sophia: Yes, most banks offer these major foreign currencies.

Costs in establishing & ongoing?

Sophia: min. USD10,000 depending on your level of engagement from us. It would be great for us to get on a call to understand your requirements prior to providing you a realistic quote.

Can you share this website or contact?

 

[wellington]

10K+ [email protected]

Can you share this website or contact?

 

[JackieTsan]

Hello. I am a digital marketer living in Thailand. I am paid affiliate commission to my overseas bank and brokerage accounts and am looking to protect against the forthcoming overseas income tax which I understand is due to take effect Jan 2024. I have set roots in Thailand with schools, car, property etc and moving is currently not an option.

Can anyone please recommend the best structure to avoid or minimize tax liability on overseas income while living in Thailand under these new rules? I understand the tax will likely apply to remitted funds only, but would also like to protect against global taxation in case they decide to go that route.

I’m considering registering an offshore company in low / no tax jurisdiction such as Cyprus, Hong Kong, Seychelles or Belize, using dividend payments to reinvest offshore while remitting only minimal funds to my Thai bank to cover living expenses.

Does this structure offer sufficient protection from any worldwide taxation Thailand may impose? Are there other structures or jurisdictions worth considering?

Thanks in advance for any thoughts or suggestions.

For the moment you have to pay tax ONLY in any income you bring inside Thailand. So, your structure or any structure will work as long as you don't bring the income inside Thailand.

Unfortunatelly, if they will change the law, the only option is to move out. And yes will be very very hard to be legal if you'd like to stay in Thailand and remit money inside (or if they proceed with worldwide income even if not remitted, you will have to declare everything).

For me was the same, I sat down think very clear and I am now packing. No other options if you want to be legal (and for my principles is 1000% legal always -> no headaches, respect where you stay) - and at least we have many options... Realize it and prepare if it doesn't work to you.

Check out Labuan + Malaysia (Co in Labuan 3%) and residence visa in Thailand (free) - should be tax free for offshore funds.

Is Labuan tech (web-3 infrastructure friendly?) (ai friendly?)

Sophia: Yes.

Does being a non-resident director bring up any issues?

Sophia: No. Labuan allows 100% foreign ownership.


Is there any perks by being a director of a Labuan company (i.e ability to easily reside in Malaysia?)

Sophia: Yes, Director can apply for Labuan 2 years Expatriate Visa and reside in Malaysia.


Can Labuan be established as as subsidiary to a BVI or similar?

Sophia: Yes. It can also be vice versa.


Is Banking access easily achievable for operational costs? (EUR)(HKD)

Sophia: Yes, most banks offer these major foreign currencies.

Costs in establishing & ongoing?

Sophia: min. USD10,000 depending on your level of engagement from us. It would be great for us to get on a call to understand your requirements prior to providing you a realistic quote.

How this can work ? If you're in Thailand, if they change the law soon (worlwide income tax) you have to pay tax, as tax resident in Th.

Also, as you're a great expert @wellington why all are creating subsidiaries, why cant you be 100% shareholder and have another director in the company and that's it? Is there around some info? I'd extremely appreciate it.
I mean so far if one stays in any Territorial tax country, and has a company in Seychelees where he is 100% shareholder and 0% director, what is the problem getting dividends per each payment (NOT inside the Territorial taxed country, just take the dividends offshore) ? No need to declare etc, where is the issue to need subsidiaries and all those schemes? thanks!

 

[JackAlabama]

For the moment you have to pay tax ONLY in any income you bring inside Thailand. So, your structure or any structure will work as long as you don't bring the income inside Thailand.

Unfortunatelly, if they will change the law, the only option is to move out. And yes will be very very hard to be legal if you'd like to stay in Thailand and remit money inside (or if they proceed with worldwide income even if not remitted, you will have to declare everything).

For me was the same, I sat down think very clear and I am now packing. No other options if you want to be legal (and for my principles is 1000% legal always -> no headaches, respect where you stay) - and at least we have many options... Realize it and prepare if it doesn't work to you.


How this can work ? If you're in Thailand, if they change the law soon (worlwide income tax) you have to pay tax, as tax resident in Th.

Also, as you're a great expert @wellington why all are creating subsidiaries, why cant you be 100% shareholder and have another director in the company and that's it? Is there around some info? I'd extremely appreciate it.
I mean so far if one stays in any Territorial tax country, and has a company in Seychelees where he is 100% shareholder and 0% director, what is the problem getting dividends per each payment (NOT inside the Territorial taxed country, just take the dividends offshore) ? No need to declare etc, where is the issue to need subsidiaries and all those schemes? thanks!

soon isnt found often on Thai soil.