Thailand new change - world wide income at Thai tax levels to be taxed

[daniels27]

What is a day year?

You cannot do this for one year and then go‌ where you want? Why? Your EU country's problem?

Why not Paraguay? Check with @NewHorizonsParaguay he is a nice guy!

 

[JackieTsan]

Sorry I edited my original post⁠

Yes eu country problem. that’s why I need to act.
Thank you

 

[GuaraniGhost]

daniels27 said:
What is a day year?

You cannot do this for one year and then go where you want? Why? Your EU country's problem?

Why not Paraguay? Check with @NewHorizonsParaguay he is a nice guy!
Click to expand...

From what I read, Paraguay could be helpful to you (tax residency certificate). On the Py part, your foreign income is out of their scope.

The potential problem you could face is withholding taxes on your EU passive income (dividends) from the respective EU country, as Paraguay does not have an extensive DTT network (only Spain). If it is ETF, for example, some things can be done to prevent this.

 

[NewHorizon]

From what I read, Paraguay could⁠ be helpful to you (tax residency certificate). On the Py part, your foreign income is⁤ out of their scope.

The potential problem you could face is withholding taxes on your⁣ EU passive income (dividends) from the respective EU country, as Paraguay does not have an⁢ extensive DTT network (only Spain). If it is ETF, for example, some things can be︀ done to prevent this.

 

[JackieTsan]

Thank you! Apologies, I mean dividends from my company, not investments (and investments too). What⁢ is the problem there with this? I am not aware at all. Many thanks

 

[GuaraniGhost]

JackieTsan said:
Thank you! Apologies, I mean dividends from my company, not investments (and investments too). What is the problem there with this? I am not aware at all. Many thanks
Click to expand...

It depends on the country where the company is incorporated. Many have withholding taxes on dividends (reduced when there is a DTT). Some have different withholding tax rates when the recipient's country is considered tax-haven/noncooperative (e.g., Slovakia 35% - Paraguay is on the list of cooperative countries, tho).

 

[NewHorizon]

It depends on the country where the company is incorporated. Many⁠ have withholding taxes on dividends (reduced when there is a DTT). Some have different withholding⁤ tax rates when the recipient's country is considered tax-haven/noncooperative (e.g., Slovakia 35% - Paraguay is⁣ on the list of cooperative countries, tho).

 

[JackieTsan]

thank you! Where is this list? never happened to me.

 

[GuaraniGhost]

JackieTsan said:
thank you! Where is this list? never happened to me.
Click to expand...

I can send you the list for Slovakia, but the list varies by the countries. It depends on where your company is incorporated.
However, Paraguay signed this agreement (with some reservations), so it should whitelisted by most countries.
https://www.oecd.org/en/topics/sub-...administrative-assistance-in-tax-matters.html

 

[NewHorizon]

I can send you the list for Slovakia, but the list varies by the countries.‍ It depends on where your company is incorporated.
However, Paraguay signed this agreement (with some⁠ reservations), so it should whitelisted by most countries.
https://www.oecd.org/en/topics/sub-...administrative-assistance-in-tax-matters.html

 

[daniels27]

@JackieTsan you won't have this problem as you most likely incorporated in low-tax counties that don't⁠ charge withholding tax on dividends.

 

[JackieTsan]

Thank you! I can't understand what is this... 🙂

 

[daniels27]

He is taking about this one
https://taxsummaries.pwc.com/slovak-republic/corporate/withholding-taxes

 

[JackieTsan]

Thank you very‌ much @daniels27

 

[yomboloz]

Which part of the LTR⁢ tax free status do you think is not actually tax free? I am genuinely curious,︀ since I'm thinking of going for it soon?

 

[pomo]

Interesting, I never looked in to the fine print but the relevant decree says this:‌

So the tax free only applies to︀ income from previous tax year brought in to Thailand - this is the same that︁ everybody already had until 2024.
However if I interpret this correctly those under LTR will︂ continue to enjoy this privilege even with the recent changes?
Also, it doesn't cover the︃ potential scenario that global income is taxed and also not remitted.

 

[JackieTsan]

Happy new year @yomboloz
Yes,
*After a quick search: LTR is exempt⁠ from foreign sourced income if remitted the following tax year.

source: https://www.expattaxthailand.com/your-questions-answered/ and a⁤ few other QAs

I'd appreciate it if you can let us know what else you⁣ might find, as I've heared a few other rules but I can't find them.

Thank you!

 

[kingxx22]

https://www.nationthailand.com/news/policy/40045152

Seems like they have more pressure to attract walethy foreigners. Chinese budget tourists turn-out‌ lower than expected. Think I'm gonna get LTR end of year. Thai tax residence under‍ LTR rules and offshore entity to actively trade is a pretty good combination I think.⁠ Create some substance with director and that should be pretty solid. Also could totally see⁤ a future where even if they change to world-wide income taxation they could still leave⁣ LTR rules standing not to push out capital out of the country. Benefit of LTR⁢ is that it's a separate law and isn't overwritten by the general tax changes we︀ have seen now coming into effect.

 

[mmueller]

That website seems confusing, or it is just me. Since when does⁣ CRS report individual transactions?

Also with regards to the "LTR is exempt from foreign sourced⁢ income" yeah well so is ALL foreign income when earned the previous year and then︀ remitted, from my understanding. Up until last year when that rule was removed. So I︁ can't see why there would be a separate exemption carved out just for LTR visa︂ holders, this applied to everyone equally. And it is now gone. Since the rules of︃ SEO dictate that you must never publish dates when your content was written, its entirely︄ unclear if that website just hasn't updated to account for the new rules.

 

[pomo]

I posted a link to the Royal Decree "Governing Reduction of Tax Rates and︂ Exemption of Taxes" which spells out the special exemptions for the LTR visa in︃ Section 5. Straight from the source, no SEO blog fluff piece. As far as I︄ know the Revenue Department re-interpretation of the remittance rule does not override this exemption.