Thailand Capital Gains Tax on "Foreign Sourced Gains"

[Radko]

It's 2.65% up to a maximum of 4,770€ per year, so if you make⁤ a lot on dividends you'll never pay more than that (that's equivalent to 180K on⁣ dividends per year, anything above that you don't pay anything extra).

And nothing else.... As⁢ long as you stay there for 60 days per year as a non-dom.

 

[JackieTsan]

@Radko thank you very much. You’re talking about dividends from offshore, correct? What about PE‌ of the offhsore companies managed from Cyprus? Can this make the offshore taxable in Cyprus?‍ And what about dividends and bonus you take from a Cyprus company while been tax⁠ resident of Cyprus?
Are you aware?
Many thanks

 

[Radko]

Let's see,⁤ if you're a tax resident in Cyprus and you manage a Cyprus company, the maximum⁣ you'll ever pay on dividends is 4,770€ (2.65% on up to 180K euros)
Cyprus Corporate⁢ tax is 12.5%, so what you do, and what everyone is doing, you pay yourself︀ a very low salary, less than 19,500€ per year, so you are under the threshold,︁ so no taxes on that... and everything else you pay yourself dividends, again 2.65%, maximum︂ 4,770€

0% on worldwide dividend income.
0% Capital gains tax.

It's probably the best Non-dom︃ program in the world at the moment.

 

[JackieTsan]

I have a structure where I’m only employee there (with a very low salary) established 10⁢ years ago and I keep it active.
Not sure if after 10 years I can︀ keep the non-dom and all the benefits. Everything is still active. Can I? And if︁ yes how I can get dividends or manage the company if I’m appearing as just︂ an employee?
Many thanks for your time @Radko

 

[Radko]

Non-dom program is good for 17 years.

It's better that you contact a tax advisor in⁣ Cyprus to go over your situation and find a way to get paid the dividends.⁢
The worst that can happen is that you'll have to change the setup of your︀ company, remove yourself as an employee and become the owner of the company, it's easy.︁

You will also need to check if you've lost your non-dom status, if you have︂ you'll need to reset that, which is very easy.

 

[JackieTsan]

How can I reset that? I’m afraid that the last years I own the company︀ it’s counting (so I’ve lost all these years), but never been there for the last︁ 10 years despite I’m still employee. Can it be counting?? How I can know? My︂ accountant doesn’t say anything… thank you !!

 

[Radko]

If you haven't⁤ been there 60 days per year, you have lost your Non-dom status.

 

[JackieTsan]

Thank you! Unless (spoken with another accountant in CY) that‍ my accountant is still declaring me every year on the tax declarations as TAX RESIDENT⁠ of Cyprus. I try to find him to ask him what he is doing all⁤ these years.

And If he hasn't what do you mean I've lost it? I can't⁣ get it if I start living there 60 days per year from 2025?

Hundreds of⁢ thanks for your time and help @Radko

 

[10101]

Thailand: Don't report anything and if any authorities approach you, bribe them. Those who lived‌ a few years there will understand.

 

[Radko]

Sure, you can get it back.
You just need to show that you haven't⁠ been there 60 days per year, and that you want to restart your Non-dom status⁤ once again.

Immigration will be able to tell you how many years you have left,⁣ hopefully you still have a few years out of the 17 years.

Best of luck⁢

 

[JackieTsan]

Thank you very much Radko, I think I have to visit locally and see what‌ is happening.. Because my accountant never responde.. thank you!

 

[jafo]

Typical! This is so normal with‌ so many of these types of "service providers". You can't rely on these TOXIC people!‍

 

[kingxx22]

What if I was tax‍ resident in 2021 and then somewhere else and would move back to Thailand in 2026?⁠ All savings until 2025 also tax exempt?

 

[toums]

Option 1 (for Thai tax residents):
All money accumulated up to 31/12/2013 is tax-free if‌ remitted to Thailand as a Thai tax resident.
Your principle can also be brought into‍ Thailand at any time, tax-free.
However, any income earned from 01/01/2024 onward that you remit⁠ to Thailand is taxable.
(That said, Thai authorities may introduce a grace period for⁤ foreign income earned and remitted in TH in year N and N+1 , stay tuned.)⁣

Option 2 (for non-residents in 2025):
Simply remit any money (savings or income) to Thailand⁢ before 31/12/2025, while you are not a Thai tax resident.
It will be︀ tax-free.
Then, when you move back and become a resident again in 2026, you can︁ enjoy the funds already in Thailand , no tax, no stress.
Keep it simple.

 

[JackAlabama]

not 2021 normally, but thats exempt in a one time thing.

 

[belarus]

can you help a little more please to clarify what you say ?

 

[Mimimel]

Hi, when you have updated your account with thailand,︅ did they offer you a region change or are you still on IBKR IE?

 

[toums]

In my‍ case, when I try to log in, I'm automatically redirected to https://www.interactivebrokers.com.au/

 

[Mimimel]

You have to check a report or a statment to‍ know your exact entity, it is not about the website.