Thailand to amend tax on foreign income remittance

[toums]

Basically if you are getting money from somewhere even an ATM it's accountable. I can see if you have multiple bases or layering it's doable but not everyone can do this unfortunately.

Read again, please , and make sure to distinguish between remitted MONEY and remitted INCOME.

If you are a tax resident in Thailand but have an existing net worth (principal, savings, etc.) that was accumulated before becoming tax resident, then this money can be remitted into Thailand tax-free, as it is NOT considered foreign income.

If, on the other hand, you didn’t have significant net worth prior to moving to Thailand and you're now living off your current income, then yes , the situation becomes more complicated.

However, even in that case, you can still choose to stay in Thailand for fewer than 180 days in a calendar year. This way, you are not considered a tax resident for that year, and you can remit funds (even for one or two years or more) without triggering taxation.

We’ve discussed these topics many times with @wellington , please double-check using the search function.

In any case, if Thailand confirms this new rule , where remitted income earned during the current year or the following one is tax-exempt , it would likely resolve 99% of the situations faced by ‘normal’ farangs living here.

 

[Davis123]

Read again, please , and make sure to distinguish between remitted MONEY and remitted INCOME.

If you are a tax resident in Thailand but have an existing net worth (principal, savings, etc.) that was accumulated before becoming tax resident, then this money can be remitted into Thailand tax-free, as it is NOT considered foreign income.

If, on the other hand, you didn’t have significant net worth prior to moving to Thailand and you're now living off your current income, then yes , the situation becomes more complicated.

However, even in that case, you can still choose to stay in Thailand for fewer than 180 days in a calendar year. This way, you are not considered a tax resident for that year, and you can remit funds (even for one or two years or more) without triggering taxation.

We’ve discussed these topics many times with @wellington , please double-check using the search function.

In any case, if Thailand confirms this new rule , where remitted income earned during the current year or the following one is tax-exempt , it would likely resolve 99% of the situations faced by ‘normal’ farangs living here.

Most Farangs have considerable investment income coming in from outside Thailand so they would have to pay taxes. Therefore, many have left already or in process of moving. Remittance from savings before tax resident doesn't get included I know but passive income would be taxable.

 

[Dreamy]

Just found out Thailand stopped Carribean CBI country citizens an on arrival visa.

Oh, can you please send more info about that?

 

[toums]

Most Farangs have considerable investment income coming in from outside Thailand so they would have to pay taxes. Therefore, many have left already or in process of moving. Remittance from savings before tax resident doesn't get included I know but passive income would be taxable.

I'm sorry, but I'm done arguing with you. It's clear that you don't understand the basic distinctions between :

LOCAL INCOME / FOREIGN INCOME
REMITTED MONEY / REMITTED INCOME / OFFSHORE MONEY-INCOME NOT REMITTED

I believe I took the time to explain things clearly. Do your own research.

 

[Davis123]

I'm sorry, but I'm done arguing with you. It's clear that you don't understand the basic distinctions between :

LOCAL INCOME / FOREIGN INCOME
REMITTED MONEY / REMITTED INCOME / OFFSHORE MONEY-INCOME NOT REMITTED

I believe I took the time to explain things clearly. Do your own research.

I am just trying to gather information not arguing. Maybe the accountant in Thailand i had talked to was incorrect . You maybe correct as you might have better information.

 

[Mercury]

Maybe the accountant in Thailand i had talked to was incorrect

Thai accountants are far to be the most reliable source of information. Anyway, it ain't easy to keep the pace of constantly changing rules and laws.
Just keep in mind the most important: there is merely no tax enforcement in Thailand, and in any case always negotiable.

 

[Dreamy]

Thai accountants are far to be the most reliable source of information. Anyway, it ain't easy to keep the pace of constantly changing rules and laws.
Just keep in mind the most important: there is merely no tax enforcement in Thailand, and in any case always negotiable.

So, simple thing, if somebody getting income from rent of his apartment in other country, or working remotely for us company (getting payment on european bank) and so on and so on. And in Thailand he just withdrawal cash in ATM from his foreign card - he do not need to pay anything in Thai even if he is >180 days there (otherwise, if < 180, also)?

 

[whatspat]

So, simple thing, if somebody getting income from rent of his apartment in other country, or working remotely for us company (getting payment on european bank) and so on and so on. And in Thailand he just withdrawal cash in ATM from his foreign card - he do not need to pay anything in Thai even if he is >180 days there (otherwise, if < 180, also)?

Assuming you're talking about after this new rule is implemented (and if it's implemented as most recently described), then foreign rental income remitted to Thailand in the year it's earned or the following year would be exempt from income tax in Thailand. If it's never remitted at all, or remitted in a year when not tax resident in Thailand, it's also not taxable under current rules.

Personal income earned "working remotely" (i.e., earned while working in Thailand) remains taxable regardless of remittance status, because it's not foreign source income. The latter is also technically illegal (requires correct visa and work permit), however labor and tax law in such cases is rarely enforced.

 

[xhomer2020]

Personal income earned "working remotely" (i.e., earned while working in Thailand) remains taxable regardless of remittance status, because it's not foreign source income. The latter is also technically illegal (requires correct visa and work permit), however labor and tax law in such cases is rarely enforced.

DTV visa allows working remotely from thailand and leave the money outside in US bank. I dont think you have to pay taxes for this, only if you remit some part to thailand or you are being paid in a thai bank.

 

[whatspat]

DTV visa allows working remotely from thailand and leave the money outside in US bank. I dont think you have to pay taxes for this, only if you remit some part to thailand or you are being paid in a thai bank.

That’s a common misconception (although as stated, enforcement is lax). Working in Thailand as a foreigner almost always requires a work permit, and there were no changes to tax regulations coinciding with the DTV (unlike with LTR).

It’s not the first time the MFA has made misleading claims about entitlements associated with various visas; they are entirely separate to the revenue and labor departments, who rarely make changes to their applicable regulations. The MFA granting you entry on the basis of being a “digital nomad” has no impact on your right to work, nor on your tax status. My guess is that their statements about tax were based on the assumption the DTV holder would stay for less than 180 days in the year, making them non resident for taxation purposes, and they didn’t clarify this would no longer be true if one extended their stay beyond that period within the year.

Where you receive income is not a factor in determining income tax liability for active income, DTV or not. Receiving money into an account outside a country does not make it foreign source income.

 

[alley]

Just dont do it to this Ploy girl you met in Pattaya, go find yourself a nice northern girl

in Thailand ?

 

[TheCryptoAnt]

in Thailand ?

No, in New Delhi. Its a new law.

 

[Mercury]

My guess is that their statements about tax were based on the assumption the DTV holder would stay for less than 180 days in the year, making them non resident for taxation purposes, and they didn’t clarify this would no longer be true if one extended their stay beyond that period within the year.

Non-residents for tax purpose still have to declare and pay tax on income derived from local work.
Theoretically, working from your laptop while in Thailand could be considered as local work. No worries, this is not enforced.

 

[xhomer2020]

That’s a common misconception (although as stated, enforcement is lax). Working in Thailand as a foreigner almost always requires a work permit, and there were no changes to tax regulations coinciding with the DTV (unlike with LTR).

It’s not the first time the MFA has made misleading claims about entitlements associated with various visas; they are entirely separate to the revenue and labor departments, who rarely make changes to their applicable regulations. The MFA granting you entry on the basis of being a “digital nomad” has no impact on your right to work, nor on your tax status. My guess is that their statements about tax were based on the assumption the DTV holder would stay for less than 180 days in the year, making them non resident for taxation purposes, and they didn’t clarify this would no longer be true if one extended their stay beyond that period within the year.

Where you receive income is not a factor in determining income tax liability for active income, DTV or not. Receiving money into an account outside a country does not make it foreign source income.

this is not true, and is FUD, i know many people with LLC in thailand and DTV working from here and living full year in thailand just doing 1 border run a year for the 180 days and they just pay almost nothing here just few hundred dollars for remitted money, while keeping the rest of their money and investment outside. I know some people who applied for DTV workcation showing their LLC papers and huge income that they dont tax here. Before DTV there were in same way many foraigners working remote here, the only thing thailand care about is if you work and get a job in thailand that other thai person could be doing, if you work remote for your own company or remote company they dont care about. the visa has nothing do with the non-resident taxation if you spend +180 in thailand with DTV or LTR or doing visa runs you have to pay taxes only for the money remitted and bring into thailand.

 

[jeffbean]

There’s massive confusion about foreign income being taxed in Thailand.

The Royal decree and the official Thai tax website still says if income earned abroad is not remitted to Thailand it is NOT taxed.

 

[whatspat]

this is not true, and is FUD, i know many people …

You’re wrong, and confusing enforcement with the law. There are no exemptions from income tax associated with the DTV.

Active income earned while in Thailand is not foreign source income, no matter how or where it’s received, and remittance doesn’t matter (remittance rules only apply to foreign source income).

 

[whatspat]

The Royal decree and the official Thai tax website still says if income earned abroad is not remitted to Thailand it is NOT taxed.

Read it again very carefully and you’ll discover it applies to foreign source income, which is a very well defined term in tax law. Active income (which includes accruing income by exerting personal effort) is not foreign source income with respect to the territory in which it is performed.

 

[xhomer2020]

Read it again very carefully and you’ll discover it applies to foreign source income, which is a very well defined term in tax law. Active income (which includes accruing income by exerting personal effort) is not foreign source income with respect to the territory in which it is performed.

maybe your interpretation of the law is different to the thousends of digital nomads and entrepreneur working from their condo in thailand and not paying any tax in thailand. there are people saying the same from every territorial country like paraguay that if you work there is not considered foreign source in the practice is not applied like that.

Thailand TRD knows almost all farangs on DTV are working in thailand online and is not letting open them banks accounts or get TaxIds so they have 0 interest in them paying any tax in thailand of they active earned money while working in thailand.

 

[Davis123]

maybe your interpretation of the law is different to the thousends of digital nomads and entrepreneur working from their condo in thailand and not paying any tax in thailand. there are people saying the same from every territorial country like paraguay that if you work there is not considered foreign source in the practice is not applied like that.

Thailand TRD knows almost all farangs on DTV are working in thailand online and is not letting open them banks accounts or get TaxIds so they have 0 interest in them paying any tax in thailand of they active earned money while working in thailand.

Keep on living on ATM machines. Enjoy your life.

 

[aniglo22]

maybe your interpretation of the law is different to the thousends of digital nomads and entrepreneur working from their condo in thailand and not paying any tax in thailand. there are people saying the same from every territorial country like paraguay that if you work there is not considered foreign source in the practice is not applied like that.

Thailand TRD knows almost all farangs on DTV are working in thailand online and is not letting open them banks accounts or get TaxIds so they have 0 interest in them paying any tax in thailand of they active earned money while working in thailand.

Try it in Mauritius .