Thailand to where?
- Thread starter JackieTsan
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I think this is way earlier than DTV, and this one is tax free, DTV is not (over 180 days), unless there is something I don’t know
Hi. Your offshore︌ companies may be deemed to have Permanent Establishment / "carrying on business" in Thailand. Then︍ they become liable to submit reports and pay taxes in Thailand. I don't know details︎ of the rules (they are not obviously clear). Just a random article to show that️ the rules are in place indeed:
https://www.lorenz-partners.com/newsletter-no-70/
Also PWC:
https://taxsummaries.pwc.com/thailand/corporate/corporate-residence
I'm pretty sure that nobody cares and these rules are not enforced.
Cheers.
https://www.lorenz-partners.com/newsletter-no-70/
Also PWC:
https://taxsummaries.pwc.com/thailand/corporate/corporate-residence
I'm pretty sure that nobody cares and these rules are not enforced.
Cheers.
Thank you so much @Meta .
From which point you can say this? I studied all the links you provided, there are not any works done between any Thai company or Thai customers, or any work for Thailand, not any employees at all (or︀ signing any contract for the foreign company). No contracts even signed from any Thai tax︁ resident.
Where could be the issue that I can’t see? Just because Thai resident could︂ be the owner? Or what else?
Many thanks!
From which point you can say this? I studied all the links you provided, there are not any works done between any Thai company or Thai customers, or any work for Thailand, not any employees at all (or︀ signing any contract for the foreign company). No contracts even signed from any Thai tax︁ resident.
Where could be the issue that I can’t see? Just because Thai resident could︂ be the owner? Or what else?
Many thanks!
Are you managing the company from Thailand? Then this one from PWC: "A company incorporated abroad is subject︀ to CIT in Thailand if it is considered to be carrying on business in Thailand."︁ You would be the representative in this case.
Can you provide some sources/screenshots of conversation with the agent ?
Information in regards to visas and taxation is often quickly outdated .
There was a proposal by Nia Niscaya (Deputy for Strategic Policy at the Ministry of Tourism and Creative Economy) for a 4-5 year tax-free visa. However, this is just a proposal and he has not in the position to approve proposal .
If you stay in Indonesia for more than 183︀ days, you will be considered a tax resident.
Under Minister of Finance Regulation No. 18/PMK.03/2021,︁ new tax residents can claim an exemption on foreign-sourced income for up to 4 years.︂
However, this exemption only applies if the income is invested to Indonesia .
Information in regards to visas and taxation is often quickly outdated .
There was a proposal by Nia Niscaya (Deputy for Strategic Policy at the Ministry of Tourism and Creative Economy) for a 4-5 year tax-free visa. However, this is just a proposal and he has not in the position to approve proposal .
If you stay in Indonesia for more than 183︀ days, you will be considered a tax resident.
Under Minister of Finance Regulation No. 18/PMK.03/2021,︁ new tax residents can claim an exemption on foreign-sourced income for up to 4 years.︂
However, this exemption only applies if the income is invested to Indonesia .
“Carrying on business in Thailand” is when doing business in Thailand. But the company has not any business in Thailand. No customers, etc, no contracts signed in Thailand, no customers etc, no meetings, no business.
Am I correct?
Thank you @daniels27
Am I correct?
Thank you @daniels27
After a call with a guy that is offering those services, he told me that this is in the case too remit it. I am very confused too, so that needs some research. Please let me know if you find any information. I think it’s better to talk to experts, it seems that there are a few in Indonesia, rather than googling.
I thought that you are actively managing the companies / doing some work while having nominee directors. Maybe︀ I misunderstood...
1) If you are passive owner who just receives dividends once a year,︁ you are 100% fine.
2) If you are working "behind the scenes", such as negotiating︂ sales with customers and then letting nominee directors to sign the contract... Or doing regular︃ Zoom meetings with staff... Or having access to companies' bank accounts... Then in my opinion︄ you may be considered to be an employee/director (even though you don't have any formal︅ position) which entails questions of PE/carrying on business in Thailand. Once again, it is not︆ something that Thai tax authorities usually do.
1) If you are passive owner who just receives dividends once a year,︁ you are 100% fine.
2) If you are working "behind the scenes", such as negotiating︂ sales with customers and then letting nominee directors to sign the contract... Or doing regular︃ Zoom meetings with staff... Or having access to companies' bank accounts... Then in my opinion︄ you may be considered to be an employee/director (even though you don't have any formal︅ position) which entails questions of PE/carrying on business in Thailand. Once again, it is not︆ something that Thai tax authorities usually do.
Understood! It happens some times to take dividends often, when there are earnings. Never remitted︂ into Thailand. There are others that working in other country and the directors are active.︃
But the question here is 1) who can know what anyone is really doing, and︄ how? I mean if one owns a company with nominees etc and indeed managing from︅ any country who and how can know it - they should see the structure, and︆ 2) the most important (where I want to get to) : even if the structure︇ is proper, the directors are real (as they are), the works are happening from other︈ places, how one can be sure that any atuhority will not conclude anything they want︉ or think, creating PE issues finally? (happens often I assume).
Thank you @Meta
But the question here is 1) who can know what anyone is really doing, and︄ how? I mean if one owns a company with nominees etc and indeed managing from︅ any country who and how can know it - they should see the structure, and︆ 2) the most important (where I want to get to) : even if the structure︇ is proper, the directors are real (as they are), the works are happening from other︈ places, how one can be sure that any atuhority will not conclude anything they want︉ or think, creating PE issues finally? (happens often I assume).
Thank you @Meta
This I don't know. Maybe somebody would chime in. I believe your setup is very safe:
1) Thai tax authorities likely don't even know/interested about your existence, "under radar"
2) If they pay attention, they don't usually enforce this PE rules
3) If they start audit, you have this credible structures with directors and employees out of Thailand
I'm getting this LTR visa that provides you exemption from foreign-sourced income taxation. Maybe worth taking a look to future-proof your setup (in case they start to tax your worldwide income even if not remitted).
Cheers.
1) Thai tax authorities likely don't even know/interested about your existence, "under radar"
2) If they pay attention, they don't usually enforce this PE rules
3) If they start audit, you have this credible structures with directors and employees out of Thailand
I'm getting this LTR visa that provides you exemption from foreign-sourced income taxation. Maybe worth taking a look to future-proof your setup (in case they start to tax your worldwide income even if not remitted).
Cheers.
Technically, you are carrying business in a country if you manage a company from that country. The terminology is quite clear globally, also in Thailand. If you operate a US LLC from Hong Kong by being a resident and working from your bed, you need to register the company in Hong Kong and pay taxes there. I am taking︀ Hong Kong here, but of course this also applies to all European countries. Of course,︁ many people don't do it as governments normally are quite lenient if you are new︂ in the country and probably won't stay long. Same for Thailand.
https://www.thaiembassy.com/thailand/thailand-digital-nomad-visa-and-work-permit
Hence @Meta is right here:
https://www.thaiembassy.com/thailand/thailand-digital-nomad-visa-and-work-permit
Hence @Meta is right here:
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