Thailand Capital Gains Tax on "Foreign Sourced Gains"

[Radko]

JackieTsan said:
Hi @Radko there is tax 2.89% for the health system, correct? That means that if you have dividends from abroad, you have to pay this tax (and nothing more). Using the 60 days non-dom. Please correct me if I am wrong.
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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]

JackieTsan said:
@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
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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 yourself 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%, maximum 4,770€

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

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

Last edited: Jul 26, 2024

 

[JackieTsan]

Radko said:
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 yourself 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%, maximum 4,770€

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

It's probably the best Non-dom program in the world at the moment.
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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 can keep the non-dom and all the benefits. Everything is still active. Can I? And if yes how I can get dividends or manage the company if I'm appearing as just an employee?
Many thanks for your time @Radko

 

[Radko]

JackieTsan said:
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 can keep the non-dom and all the benefits. Everything is still active. Can I? And if yes how I can get dividends or manage the company if I'm appearing as just an employee?
Many thanks for your time @Radko
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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 your 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 have you'll need to reset that, which is very easy.

 

[JackieTsan]

Radko said:
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 your 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 have you'll need to reset that, which is very easy.
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How can I reset that? I'm afraid that the last years I own the company it's counting (so I've lost all these years), but never been there for the last 10 years despite I'm still employee. Can it be counting?? How I can know? My accountant doesn't say anything”¦ thank you !!

 

[Radko]

JackieTsan said:
How can I reset that? I'm afraid that the last years I own the company it's counting (so I've lost all these years), but never been there for the last 10 years despite I'm still employee. Can it be counting?? How I can know? My accountant doesn't say anything”¦ thank you !!
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If you haven't been there 60 days per year, you have lost your Non-dom status.

 

[JackieTsan]

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

JackieTsan said:
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?
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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]

JackieTsan said:
my accountant never responde
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Typical! This is so normal with so many of these types of "service providers". You can't rely on these TOXIC people!