IT Consultant with Thailand Residence and offshore business

[mrthit]

Hello, I seek some advice to do this put in place the right setup, not necessarily trying to achieve 0% taxes but if it happens, it is better.
I read multiple threads but there are things unclear to me still.

I am Italian national but not living in Italy and I got tax residence in Thailand for some years.
End this year to quit my job to start a IT consultant with my customer in the UK.
For 2024 I am planning to more than 180 days in Thailand (hence having tax residence) and travel outside the country for some months.
Would an offshore company help on this? I would prefer not creating a Thai company if possible.
- Any recommendation on the location? Receiving money in euro would be better.
- Would be better Sole or LLC?
- Where the company would be resident? I guess if Sole it would be in Thailand as I would be Thai resident?
- To avoid complications with working laws (unsure I could manage an offshore company from Thailand?) would it be better invoicing only when I am out of Thailand?
- In case of a Sole Proprietorship, would be this tax exempted as taxes on foreign sourced income? Or they would be subjected to taxes in the country where I bill them?
- If tax exempted, could I bring them following year in Thailand tax free?

Thanks a lot for your help

 

[johnwickert]

As an Italian national with tax residence in Thailand, setting up an offshore company may be beneficial. Consider locations that allow receipt of Euro payments, and weigh the pros and cons of Sole Proprietorship vs LLC. The company may be considered a Thai resident if Sole Proprietorship, potentially leading to taxation on foreign sourced income. To avoid complications, invoicing only when outside of Thailand may be preferable. Bringing profits into Thailand may also have tax implications.

 

[mrthit]

Thanks @johnwickert !
I checking Cyprus ones.
How do you see an US LLC (I don't mind been paid in USD, I can use wise to convert) ?
It feels pretty quick and with low maintenance to setup.
I am trying to get a meeting next week with a thai tax lawyer to understand how Thailand would see this setup (thai resident or not) , but keen to get some opinions

Thanks!

 

[johnwickert]

mrthit said:
Thanks @johnwickert !
I checking Cyprus ones.
How do you see an US LLC (I don't mind been paid in USD, I can use wise to convert) ?
It feels pretty quick and with low maintenance to setup.
I am trying to get a meeting next week with a thai tax lawyer to understand how Thailand would see this setup (thai resident or not) , but keen to get some opinions

Thanks!
Click to expand...

An US LLC can be a viable option for receiving payments in USD, but it's important to consider the tax implications in Thailand. Depending on the specific circumstances, the LLC may be considered a Thai resident, potentially leading to taxation on foreign sourced income.

Cyprus can also be a good option to consider, but it's important to carefully analyze the tax implications and other factors before proceeding.

 

[karishi]

mrthit said:
Thanks @johnwickert !
I checking Cyprus ones.
How do you see an US LLC (I don't mind been paid in USD, I can use wise to convert) ?
It feels pretty quick and with low maintenance to setup.
I am trying to get a meeting next week with a thai tax lawyer to understand how Thailand would see this setup (thai resident or not) , but keen to get some opinions

Thanks!
Click to expand...

A friend of mine has a similar setup. HE was paying taxes only on money he brought into thailand. AFAIK Thailand as no law on controlled foreign companies.

 

[wellington]

Territorial Tax Country, so as long as its a overseas company its outside of their tax jurisdiction.

 

[thedark]

wellington said:
Territorial Tax Country, so as long as its a overseas company its outside of their tax jurisdiction.
Click to expand...

But the source of income is in thailand, if you perform the work inside of thailand. So you would be taxable with the income. Right?

- If tax exempted, could I bring them following year in Thailand tax free?
This law was recently changed and now you have to tax whenever you bring it into Thailand.

 

[bnpsu]

Thoughts on this?

https://www.linkedin.com/pulse/broken-flag-theory-taxation-digital-nomads-thailand-dr-ulrich-eder/

 

[bnpsu]

karishi said:
A friend of mine has a similar setup. HE was paying taxes only on money he brought into thailand. AFAIK Thailand as no law on controlled foreign companies.
Click to expand...

I think the main issue here to look out for is mind and management (which Thailand has no rules against).