Thailand 0% tax

[Mercury]

It is indeed for the extension.

Before applying for 1 year extension, you need⁠ first to get a 90-day non-immigrant O visa that you can get in any Thai⁤ embassy/consulate abroad. Financial requirements will vary according to each consulate (e.g.: "Applicant’s bank statement showing⁣ at least THB 400,000 or equivalent in other currencies for the past 2 months", "Applicant's⁢ recent bank statement during the past 6 months", ... ).

It is also possible︀ to convert your current visa or visa exemption into a non-immigrant O visa within Thailand.︁
Financial requirement (Bangkok Chaeng Wattana immigration office): need to show 400K THB in a Thai︂ bank account on the day you apply. You need at least 15 remaining days on︃ your visa or visa exempt stamp to apply.

 

[yngmind]

I'm afraid it doesn't work like that.︅ If you aren't a tax resident anywhere, you will be a tax resident of your︆ home country.

It will work if you are a citizen of Saint Kits or something︇ similar with 0 tax. I guess double citizenship also might work in that case. Your︈ home country passport + 0% tax passport.
That's interesting, I have found an interesting document -︋ https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2018/09/thailand-2018.pdf

Look:

"All income of companies registered under Thai law are subject to corporate income︌ tax. Companies
registered under foreign law and carrying on business in Thailand are taxed on︍ their net profits arising from
their business activities in Thailand.
"

I will hire a︎ Thai lawyer, I have no idea what they mean by carry on business in Thailand.️

Conducting business means to engage in any activity in pursuit of gain including activities carried‌ on by a person through officers, agents and employees as well as activities carried on‍ by a person on that person’s own behalf.

No CFC rules also don't mean that⁠ you won't be subject to a corporate tax. 😉

Haha, I've asked the chatgpt those questions,⁤ the answers are very accurate, it's hard to google it yourself, but the bot gave⁣ me a perfect reply

.

 

[itsmemario123]

Oh, yeah. I've read about the "perpetual traveller" thing, but nowadays⁣ is harder to apply. So I guess that is better to always be a tax⁢ resident somewhere.

 

[bnpsu]

From what I understand (not tax advice):︅ On a Thai elite visa, you don't have a work permit, so you are not︆ allowed to do any work. If you have a foreign company and your entire operation︇ is foreign, then you can bring the funds into the Kingdom tax free, the following︈ calendar year tax free.

If you sit there in thailand and work, it may be︉ taxible:
https://www.linkedin.com/pulse/broken-flag-theory-taxation-digital-nomads-thailand-dr-ulrich-eder/

 

[backpacker]

No, this is outright wrong ban-:; !
First of‍ all it depends on the law of your country of citizenship. Then, if there are⁠ no specific caveats in the tax laws of your country of citizenship, there is no⁤ need to be a tax resident of any country at all. Only conditon: Sever all⁣ ties your country of citizenship!
The above is valid for most countries on Planet Earth.⁢

 

[Wellington]

Never really looked into FACTA︄ (non-American) but by default does Thai banks report to FACTA for Non-US Citizens?

For a Brit this︊ includes not holding pounds.

 

[backpacker]

Every country‌ has different domestic laws how to determine if and when a non-resident citizen is tax‍ resident of the country of citizenship.
In Switzerland it is sufficient to be a member⁠ of the local Jodler club ->





The Swiss regulation is an extreme most people do⁤ not anticipate from an otherwise quite liberal country.
Quite similar in it's extreme to what⁣ you say about the UK.

To conclude: A perpetual traveller has to do his homework⁢ and must be vigilant. However, tax residency is easy to achieve in most countries (UAE,︀ Cyprus and Philippines come to mind) and I doubt one would want to live a︁ nomadic lifestyle until the end of his/her days.

 

[JackAlabama]

Well, being part of such a club is quite a strong tie indicating "center of︂ life interests". Afaik thats what they focus on.
On the other hand, you can bank︃ there as long as you like while not being tax resident.

 

[zzzzzz]

No.

1. Thailand reports to USA: details‍ about USA citizens that have accounts at FI in Thailand.
2. USA reports to Thailand:⁠ details about Thailand residents that have accounts at FI in USA.

This works if you don't use︂ any FI and have no legal income. The minute you step into a bank, they︃ will ask: where is your tax residency?

You: Nowhere.
Bank: Wrong answer.

 

[yngmind]

Yeah, I feel it works that way.⁠

The country where you're a resident won't report your bank accounts to another country.

But a foreign country where you aren't a resident, will report your banks to a country⁤ where you're a resident.

 

[zzzzzz]

I'm talking about FATCA and countries that have signed FATCA agreement.

CRS is a⁤ different beast and reports to every country where you have tax residence indicia. USA is⁣ not part of CRS.

 

[Wellington]

I pay swiss wealth tax lol in that respect

 

[backpacker]

Great. That means you are free to continue enjoying the local Jodler club 😉

 

[itsmemario123]

Oh, that's true. Thank you for the input. Worth to take into account.

 

[yngmind]

Hey guys.

I visited a law firm today here in Bangkok.

What they told me‌ are kind of the same things we have discussed already.

It works until it doesn’t.‍

They told me they couldn’t guarantee it would work in the future.

Legally you are⁠ liable for corp tax because of the PE, but in reality, no one care.

You can’t legally work on a Thai elite visa, and running your business from Thailand is⁤ also considered working in Thailand, but they don’t care that you run your business on⁣ a Thai Elite Visa.

It’s not legal or tax advice.
Please do your own research⁢ and consult with your lawyer, don't take tax advice from a random guy on the︀ forum.

 

[RealDude]

Did they also hint at what penalties to expect︁ should Thailand crack down?

 

[yngmind]

Haven't asked them, but I never heard that someone was caught using‍ that scheme.

 

[zzzzzz]

Put 10 lawyers in one room and each one will have it's‌ own opinion. What matters is the opinion of taxman, and until doing something on your‍ laptop in Thailand is not considered as work... everything is fine.

 

[RealDude]

Imprisonment
In Thailand, another common penalty for not sticking to tax laws is imprisonment. Even‌ a minor offense such as forgetting to deduct withholding tax on a single invoice can‍ result in one month of jail time.

https://thethaiger.com/finance/guid...mistakes-penalties-and-how-to-avoid-them/#two

 

[Wellington]

That's false, UK Citizens only pay tax on UK in-come when Non-Resident.

Meaning they could be‍ on a boat in the middle of the indian ocean making millions a year and⁠ they can't be taxed on it as they are not a tax resident anywhere and⁤ those funds are not generated in the UK.

To offset any risk then you'd have⁣ the funds in non Sterling, and non UK accounts.

This is why the yachting industry⁢ is full of Brits, the oil industry likewise.

Where the oil/gas industry is concerned all︀ these chaps go to Thailand and sit feet in sand drinking their mai tais tax︁ free (even when earning the income in the same year).