Thai government to tax all income from abroad for tax residents starting 2024

[blastah]

"Senior officials at Thailand's Ministry of Finance confirms to Thai Enquirer that starting next year....all money brought into Thailand from abroad regardless of when the money was earned or if it was savings MUST BE taxed as part of personal income tax for year brought in."

https://www.thaienquirer.com/50744/...-from-abroad-for-tax-residents-starting-2024/

 

[MagicMatt]

Well Thailand just lost its digital nomad attraction. Even savings to be taxed as income‌ tax. Wow, the economic self-harm will be amazing.

 

[churumbelo]

I am even reading that it would be not only the money remitted into Thailand,‌ but the worldwide income. Still not clear and different information from different sources.

I was‍ just reading this.

https://www.bangkokpost.com/busines...n-tax-rules-on-overseas-income-to-aid-economy

 

[Marzio]

That's correct. Thailand it's not a‍ territorial taxation country, it follows residence based taxation.

They had this "if you remit⁠ income from abroad after 1 years it's tax free" loophole but if now they⁤ removed the loophole it's residence based taxation for all, thanks to CRS.

 

[blastah]

Maybe there's a way to take advantage of the double taxation treaties?. Additionally, Thailand is‌ in the process of adopting a centralized digital currency so..

 

[Berti]

So overnight they decided to have no territorial tax system anymore.

And people here say‌ you can’t trust UAE monarchy, until they saw Thai democracy.

 

[MagicMatt]

This is all going to backfire on the Thai government. The result will be less‌ investment into the country, and an exodus of wealthy expats.

 

[Berti]

For sure.
My feeling is, the Thai PM being a porperty tycoon has some problems⁠ with rich foreigners, mainly Chinese, who interfere with his business here.

 

[churumbelo]

I don't know if the rich Thais (including politicians, police, army) will allow it. The‌ "loophole" was there for them.

 

[TheCryptoAnt]

I'll take 'things that wont happen because this is exactly what keeps the status quo‌ in TH' for $5, Alex

 

[manukahoney]

They used to not tax on income remitted after 1 year and don't bother at‌ all about the global income.
So will they now tax on remittance only or on‍ global income?

 

[Clank]

They will tax you on all your global⁠ income.

 

[zzzzzz]

Thai budget deficit + CRS & FATCA = worldwide taxation.
They want more money.⁠

 

[Wellington]

Global Income remitted...

 

[blastah]

Full tweet reads:⁠ ‘New interpretation under the New Order:
According to the New Order, if Thai tax resident⁤ individuals derive offshore-sourced income and bring offshore-sourced income into #Thailand, they will have to pay⁣ Thai personal income tax, regardless of whether such income is brought into Thailand in the⁢ calendar year of receipt or in subsequent calendar years.
The New Order will apply to︀ any taxable income that is brought into Thailand from 1 January 2024 onward. Any regulation,︁ instruction, revenue ruling or practice which is contrary to or inconsistent with this New Order︂ shall be repealed.
It is noteworthy that if the offshore-sourced income is not a taxable︃ income (e.g., proceeds from the sale of offshore securities or assets with no gain) or︄ income that is exempted from Thai personal income tax under the Revenue Code, such as︅ income from insurance, Thai tax residents will not have to pay Thai personal income tax︆ when they bring that income into Thailand.’

 

[manukahoney]

Then it shouldn't be a major problem.‌ Have your assets and income generated offshore and either bring some minimal income to be‍ taxed (after DTT) or just take a loan/remit as much as you can in 2023⁠ and live tax-free after. It's basically a non-dome regime without any limitation. Don't have enough?⁤ Lose the tax residency in Thai (<180 days), then remit as much as you want⁣ as non-resident, then become a tax resident again.

 

[zzzzzz]

So we are back at remittance? No remittance, no tax?

 

[Marzio]

Thailand is a residence based taxation country so it follows that you should be taxed‍ on worldwide income regardless of remittance.

 

[churumbelo]

So what is it?

The Goverment needs to clarify this further⁠ because they are doing things the Thai way and nobody knows for sure.

 

[Marzio]

Nobody knows for sure BUT i‌ don't think it's a coincidence that if they implemented this change immediately after adopting CRS.‍ Now they will receive informations about all tax residents foreign bank accounts.