Thailand new change - world wide income at Thai tax levels to be taxed
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What would you do differently in Bangkok vs PP / Siem Reap?
Is this a generational thing I wonder? When I was in my 20s I would go to the nightlife multiple times a week and far later at the weekends but I'm in my 50's now and I︀ grew out of that a while back.
The only reason I moved to Asia was︁ to avoid paying any tax. I don't care for the culture, the people or anything︂ else. I live a 100% western lifestyle, nothing changed for me when making the move︃ which was a long time ago.
Is this a generational thing I wonder? When I was in my 20s I would go to the nightlife multiple times a week and far later at the weekends but I'm in my 50's now and I︀ grew out of that a while back.
The only reason I moved to Asia was︁ to avoid paying any tax. I don't care for the culture, the people or anything︂ else. I live a 100% western lifestyle, nothing changed for me when making the move︃ which was a long time ago.
There is still nothing to scare about taxes in Thailand, tax rules are not enforced. High corruption everywhere denies any efficient tax enforcement. And if it unlikely happens new tax loopholes will be created on the fly for the wealthies. Same applies all over Southeast Asia except Singapore.
Unlikely, same applies to Laos, with CRS it weakens their current system, with that in mind, it potentially risks their authoritarian grip.
Thai taxes are simple, you only pay tax on what you remit -i.e if you still have a consultancy in HK, and that pays funds to your account(s) offshore, you don't pay tax unless you import the funds, much like if you have a company overseas in products/services.
So then it comes︀ down to showing it was savings or principle pre-2024.
This year i filed, was with︁ Revenue Department going through -> there was a specific account that i didn't want to︂ expose my wealth/accounts (offshore) for security reasons (dangerous having Thai's being aware what wealth you︃ have - at immigration a friend was sitting there whilst they were passing around his︄ bank book saying 'rich man', 'rich man') etc.
So for that i declared remitted ROI︅ (where i could have showed it wasn't but ran the risk of my accounts (bulk)︆ being exposed), at first they said 226,000 THB in Taxes for that % from that︇ source, but after all the deductions roughly 150,000 THB.
A friend (neighbor) after all his︈ deductions 3.6k THB...
I.e unless you are earning & importing 3-10m+ THB annually you really︉ don't need to worry, because worst case if you can't argue prior savings or principle,︊ your taxes will be very low.... i.e insurance deductions, home maintenance/build deductions, donation deductions, education︋ (kids) deductions, etc.
So then it comes︀ down to showing it was savings or principle pre-2024.
This year i filed, was with︁ Revenue Department going through -> there was a specific account that i didn't want to︂ expose my wealth/accounts (offshore) for security reasons (dangerous having Thai's being aware what wealth you︃ have - at immigration a friend was sitting there whilst they were passing around his︄ bank book saying 'rich man', 'rich man') etc.
So for that i declared remitted ROI︅ (where i could have showed it wasn't but ran the risk of my accounts (bulk)︆ being exposed), at first they said 226,000 THB in Taxes for that % from that︇ source, but after all the deductions roughly 150,000 THB.
A friend (neighbor) after all his︈ deductions 3.6k THB...
I.e unless you are earning & importing 3-10m+ THB annually you really︉ don't need to worry, because worst case if you can't argue prior savings or principle,︊ your taxes will be very low.... i.e insurance deductions, home maintenance/build deductions, donation deductions, education︋ (kids) deductions, etc.
Something i've learned -> move funds in bulk to a︁ specific account for annual remittance.. as its quite common for people to end with a︂ bag over their head...
I disagree with this.
1) People not declaring taxes will be flagged and their accounts observed
2) Accounts with more than 300 transactions annually are flagged (all accounts aggregated) for AML investigations.
3) Tax evasion in Thailand for Thai's usually can be dealt with via a fine -> with a Foreigner it︀ becomes complicated, i.e you have visa(s) but you also need a exemption when leaving the︁ country to confirm your taxes are all in order.
1) People not declaring taxes will be flagged and their accounts observed
2) Accounts with more than 300 transactions annually are flagged (all accounts aggregated) for AML investigations.
3) Tax evasion in Thailand for Thai's usually can be dealt with via a fine -> with a Foreigner it︀ becomes complicated, i.e you have visa(s) but you also need a exemption when leaving the︁ country to confirm your taxes are all in order.
Depends on how much your lifestyle costs you.
You will be reducing your taxes, yes, but not wiping them out (in Thailand) unless its pre-2024 savings/principle.
Living in Laos/Cambodia is probably horrific compared to Thailand (I am unsure) but you can travel across Asia - i.e Month in Bali, Month in HK, Month in KL/Singapore, and︀ then 3.1 months somewhere else and 5.9 months in Thailand.
You will be reducing your taxes, yes, but not wiping them out (in Thailand) unless its pre-2024 savings/principle.
Living in Laos/Cambodia is probably horrific compared to Thailand (I am unsure) but you can travel across Asia - i.e Month in Bali, Month in HK, Month in KL/Singapore, and︀ then 3.1 months somewhere else and 5.9 months in Thailand.
Indeed.
But in reality nobody will knock at your door to audit you. Even less︉ if you are unknown from TRD.
And IF it happens it's always negotiable and will︊ be a one-time event as people will then flee or tax-free structure themselves accordingly.
How long do you think real-estate market can stand in Thailand if millions $ foreign remittances︋ have to be taxed because, let's be frank, all that money can't be structured properly︌ to be tax exempted or fit in a tax loophole?
But in reality nobody will knock at your door to audit you. Even less︉ if you are unknown from TRD.
And IF it happens it's always negotiable and will︊ be a one-time event as people will then flee or tax-free structure themselves accordingly.
How long do you think real-estate market can stand in Thailand if millions $ foreign remittances︋ have to be taxed because, let's be frank, all that money can't be structured properly︌ to be tax exempted or fit in a tax loophole?
You can't flee, you have to have a document stating you are clear of taxes, they flag you at immigration...
https://www.rd.go.th/english/23518.html
He is︃ liable to payment of tax or tax arrears before departing Thailand
He has duty to︄ file a tax return and pay tax on behalf of a company or juristic partnership︅ incorporated under foreign laws and has been carrying on business in Thailand
He has taxable︆ income, whether or not in Thailand, from being a public performer in Thailand.
The word︇ "public performer" means a drama, movie film, radio and television performer, singer, musician, professional sportsperson︈ or performer for any kind of entertainment.
In addition the Revenue Department issued the Notification of the︎ Director-General of the Revenue Department on 7 May 1991 stipulating that foreigners departing Thailand do️ not have to apply for a Tax Clearance Certificate except for the above three cases in 2.
4.1 P.3 Tax Clearance Certificate
issued to a foreigner who is temporarily departing Thailand. It is valid for a single leave and must be used within 15 days from the issuance date. If he does not depart Thailand within the specified period, the Tax Clearance Certificate becomes invalid unless it is renewed before the expiry date.
4.2 P.3.1 Tax Clearance Certificate
issued to a foreigner who enters and leaves︀ Thailand on a regular basis due to his business or profession. It is valid for︁ multiple leave within the period specified in the Tax Clearance Certificate but not exceeding 180︂ days from the issuance date. Renewal of Form P. 3.1 is not allowed.
Tax Clearance Certificate Form P. 3
Tax Clearance Certificate Form P. 3.1
https://www.rd.go.th/english/23518.html
1. What is a Tax Clearance Certificate?
Tax Clearance Certificate is a certificate issued by the Director-General of the Revenue Department or the Provincial Governor or the delegated authority to a foreigner who is departing Thailand to indicate that he has already paid taxes or that he has provided a guarantor or securities as guarantee for tax liabilities and tax payable.2. Who is required to acquire a Tax Clearance Certificate?
Section 4 quarter of the Revenue Code stipulates that a foreigner departing shall apply for a Tax Clearance︀ Certificate in the form prescribed by the Director-General within 15 days before leaving the country,︁ whether or not there is any tax payable. A foreigner departing Thailand is required to︂ file an application for Tax Clearance Certificate (Form P.1) and supporting documents if:He is︃ liable to payment of tax or tax arrears before departing Thailand
He has duty to︄ file a tax return and pay tax on behalf of a company or juristic partnership︅ incorporated under foreign laws and has been carrying on business in Thailand
He has taxable︆ income, whether or not in Thailand, from being a public performer in Thailand.
The word︇ "public performer" means a drama, movie film, radio and television performer, singer, musician, professional sportsperson︈ or performer for any kind of entertainment.
3. Who is not required to acquire a︉ Tax Clearance Certificate?
Section 4 quarter of the Revenue Code stipulates that a foreigner︊ transiting Thailand, or entering or residing in Thailand for a period or periods aggregating not︋ more than 90 days in a tax year without earning assessable income or a foreigner︌ as prescribed by the Director-General with the Ministers approval shall not be required to apply︍ for a Tax Clearance Certificate.In addition the Revenue Department issued the Notification of the︎ Director-General of the Revenue Department on 7 May 1991 stipulating that foreigners departing Thailand do️ not have to apply for a Tax Clearance Certificate except for the above three cases in 2.
4. Types of Tax Clearance Certificate
There are 2 types of Tax Clearance Certificate: P.3 and P. 3.14.1 P.3 Tax Clearance Certificate
issued to a foreigner who is temporarily departing Thailand. It is valid for a single leave and must be used within 15 days from the issuance date. If he does not depart Thailand within the specified period, the Tax Clearance Certificate becomes invalid unless it is renewed before the expiry date.
4.2 P.3.1 Tax Clearance Certificate
issued to a foreigner who enters and leaves︀ Thailand on a regular basis due to his business or profession. It is valid for︁ multiple leave within the period specified in the Tax Clearance Certificate but not exceeding 180︂ days from the issuance date. Renewal of Form P. 3.1 is not allowed.
5. How︃ to apply for a Tax Clearance Certificate
A foreigner required to have a Tax︄ Clearance Certificate shall file an application for Tax Clearance Certificate (Form P.1) along with the︅ following documents:Tax Clearance Certificate Form P. 3
- Passport
- Alien Certificate (if any)
- Residence Certificate︆ (if any)
- Work permit or an application thereof (if any)
- Tax Identification Card
- Letter of︇ guarantee (if having tax liabilities or payable) issued by:
Bank with guaranteed amount exceeding tax︈ liabilities or payable or 50000 Baht; or Person whose securities are greater than his tax︉ liabilities or payable and whose reputation is acceptable to the Director-General of the Revenue Department,︊ the provincial governor, the assignee or a government officer of level 6 or equivalent or︋ higher.
- Tax payment records for the past three years of the company or juristic partnership︌ which is represented by the applicant for a Tax Clearance Certificate including withholding tax receipts︍ or tax receipts
- Other evidence as required by the Director-General of the Revenue Department
Tax Clearance Certificate Form P. 3.1
- The above documents 1-7
- Evidence indicating the reasons for departing︎ Thailand on a regular basis in connection with the business or profession of the foreigner️
- Evidence indicating that his assets in Thailand are greater than his tax liabilities or tax payable A foreigner applying for a Tax Clearance Certificate is required to file an application to the following persons within 15 days before departing Thailand:
Director of the Area Revenue Office with jurisdiction over the area of residence of the foreigner if he is domiciled or has residence or place of management in Bangkok Provincial governor at the Area Revenue Office if he is domiciled or has residence or place of management in a province outside Bangkok The district chief designated by the provincial governor at the Area Revenue Office︀ if he is domiciled or has residence or place of management in a province outside︁ Bangkok
6. What to do for applicant with outstanding tax liabilities
If the︂ applicant for Tax Clearance Certificate makes no payment or has made a partial payment for︃ his tax liabilities or payable after the departure date, he is required to provide a︄ guarantor or guarantee to the Director-General of the Revenue Department or the provincial governor or︅ the delegated authority.7. Loss of Tax Clearance Certificate
If the Tax Clearance Certificate︆ is lost, the foreigner is required to contact the office where the application was filed︇ for a replacement. The new Tax Clearance Certificate only remains valid until the expiry date︈ of the former Tax Clearance Certificate.8. Presentation of Tax Clearance Certificate
A foreigner︉ departing Thailand is required to present the Tax Clearance Certificate to the Immigration Office on︊ the departure date.9. Penalty
A foreigner departing or attempting to depart Thailand without︋ a Tax Clearance Certificate shall pay a surcharge at the rate of 20% of the︌ tax amount. In addition he shall be subject to a fine not exceeding 1,000 Baht︍ or an imprisonment not more than 1 month, or both.10. For more information
If there is any question regarding the Tax Clearance Certificate, please contact any Area Revenue︎ Office with jurisdiction over the area of residence of the foreigner.
Thailand isn't going to be budged on the villa/condo market, because its already been built (creating GDP) - and is a annoyance as its pricing locals (natives out). - see statements for the past year by the Main Gov in Senate.
There's no need for a tax loophole/structuring, its simple, earn as much as you like overseas, just pay︀ tax on what you remit to spend.
There's no need for a tax loophole/structuring, its simple, earn as much as you like overseas, just pay︀ tax on what you remit to spend.
From my source in the Swiss embassy - it’s going to be tacked on to your visa process and also enforced for anyone flagging up in the country more than 180 days on disembarkation
For most people - I.e like my Neighbour the tax is like 100-300$ a year - not sure what the issue is, at worst case 4k - peanuts
Oh and for kids education - gifting to the wife from overseas or direct to school will be ignored - they said that specifically to me as my kids education will be upwards of 45k a year $ next year rising to 100,000$ a year in a few years.
Most of foreign tax residents (especially Russian, Chinese, Indian ...) will certainly not pay up to 35% tax on their big remittances if it can't be easily tax-exempted. They'll simply not declare it (what they actually do) or spend their money elsewhere.
Pure speculation at this point.
Pure speculation at this point.
Oh and for the arguments immigration will just let you walk through - remember this is the immigration that now stops you in departures after going through immigration as at that point you have no rights and are in no man’s land - arrests you and sends you to holding then court and then deportation centre just because you overstayed a few weeks - instead of︀ just fining and or blacklisting when you go through immigration
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