Thailand 0% tax

[Mercury]

It seems apparently that some categories of LTR Visa are entitled to an income tax‌ exemption on foreign-sourced income (meaning 100% passive income from abroad) regardless of the year it‍ is remitted in Thailand.
To be confirmed with BOI/Revenue Department.

https://www.belaws.com/thailand/ltr-visa-tax-benefits/
Income Tax Exemption

Wealthy Global Citizens, Wealthy Pensioners, and Work-from-Thailand Professionals eligible for the LTR Visa are entitled to⁠ an income tax exemption for income derived from a post or business conducted abroad or⁤ arising from assets located abroad that has been brought into Thailand.

It’s important to note⁣ that the tax concessions provided by the LTR Visa program are subject to rules and⁢ conditions prescribed by the Revenue Department.

Please note that this exemption does not apply to︀ Highly Skilled Professional LTR holders.

https://sherrings.com/long-term-resident-visa-tax-concessions-thailand.html
For Wealthy Citizen, Retired and Work-from-Thailand foreigners who come︁ and reside in Thailand under an LTR Visa:

A right to exemption from tax on︂ income that's derived from a post or an office outside Thailand or business outside Thailand︃ or property outside Thailand and brought into Thailand (i.e. an exemption from the Foreign Source︄ Income Law)

 

[Berti]

I think there is something wrong with this article. Foreign sourced︌ income is never taxed in Thailand when it is brought to Thailand after 1 year.︍ Even when you are tax resident in Thailand.
See point 2.9:
https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2023/01/TIES-Thailand.pdf

 

[Mercury]

Read carefully.⁠

If by Foreign-sourced income you mean "Salaries receive from employment exercises outside of Thailand" it's indeed not taxed when remitted in Thailand after 1 year as KPMG mentions, because⁤ work is not physically performed in Thailand.

However, any income derived from "work" performed while⁣ being physically in Thailand is taxable because it will be treated as Thai-sourced income even⁢ if paid abroad and not remitted in TH.

All is about the exact Thai definition︀ of Foreign-sourced income.

 

[Wellington]

If you‍ are audited...

I had a discussion with a OTC desk which︃ is part of a larger localised exchange.

Even stablecoins are acceptable, as the wallet(s) track︄ the transactions, thus as its USD equivalent (or CHF, EUR, GBP etc) then its easier︅ to show it has sat there for a year, and the profit is non-existent as︆ they usually do it 10 basis points below real-live rates at the time.

 

[Berti]

Of course

 

[Mercury]

Money don't⁠ have to stay outside of Thailand for 1 year.
To the extreme, foreign-sourced income can⁤ be made and paid on your foreign account on December 31st, then be transferred the⁣ next day on January 1st. It will be tax free.

Crypto regulation is still blur in TH, hence︃ I will not dare transferring crypto to cash out in Thailand as everything is forever︄ in the blockchain and can be easily tracked back.
To each their own.

But still,︅ no enforcement as for now.

 

[jafo]

Tracked back to what? An address?

Who is to say that we are the owner of‍ that crypto address?

Who is to say that the person owning that crypto in e.g.⁠ Monaco is not lending it out to us or just paying something for us?

I've had things paid for friends & family members from the wallets of people I deal⁤ with. Meaning, the wallet is NOT even mine. I don't even know if the wallet⁣ belongs to the person I asked....just like when my cousin asked for a refurbished iPhone...I⁢ didn't ship it, I didn't buy it and I didn't pay for it... I have︀ NO idea if my supplier in Shenzhen paid for it or his supplier or who︁ shipped it.... and I don't care.

I have so many questions and none of them︂ can be answered ...

 

[Radko]

So according to you, after December 31st, basically at the start of the new year⁢ whatever money you made the previous year can be transferred to TH and you'll be︀ doing things according to the law, so no taxes whatsoever... NICE if it's like that,︁ even easier, although keeping your money out the country for 1 year is not that︂ big of a deal unless you make very little money and you need it right︃ away to survive in TH.
No wonder so many people go to live to Thailand,︄ but I'm sure all those digital nomads living in TH are not waiting at all︅ to spend the money they make working online from some coffee shop in Chiang Mai.︆

Isn't it wonderful that we have tax heaven countries to choose from so we can︇ all enjoy all the money that we make and not have some useless government stealing︈ our money in exchange for nothing, maybe a ridiculous pension...

 

[Mercury]

Yes, Thai tax year is the calendar year.
Again, if you stick to the law︅ it's not "whatever money you made the previous year(s)" abroad, it's true passive income (dividend,︆ interest, capital gain, pension, ...) or income for work you have done being physically outside︇ of Thailand.

I will not‍ trust local KYCed exchanges to keep your data safe from the Revenue Department if they⁠ require it.

If Thailand is really willing to enforce tax law and granted you are⁤ TH tax resident, they will see you have received and sold crypto whatever where it⁣ came from, and not declared it.
Then, RD will ask you to justify this money⁢ with all the associated paperwork. If it's convincing enough you could be fine, else will︀ have to pay tax accordingly with penalties.

The issue with crypto is all the information︁ is accessible within a mouseclick at anytime hence temptingly easy to enforce any related tax︂ law. And this not only relevant to Thailand.

 

[Marketint]

https://twitter.com/x/status/1703588575026254246
0 tax is over now

 

[backpacker]

This will be quite‌ expensive for many, considering the high tax rates in Thailand.

 

[Wellington]

Rules/Law changed on a whim over the weekend, time to leave...

https://aseannow.com/topic/1306896-...-from-abroad-for-tax-residents-starting-2024/

 

[Sols]

A change like that usually has a grace period of at least one year so‌ people have a chance to get their affairs in order. Some will stay, though I'm‍ sure most will leave.

 

[Wellington]

Comes into force in 2024.

Based on this, awaiting Elite to get back to me, i will have to leave 35%⁠ tax basically makes the boredom of the Caymans feel pleasurable.

 

[Sols]

If I understand correctly, that‌ means income 2023 is not affected, but income from 2024 (reportable in 2025) has worldwide‍ taxation applied.

So the time to act is now but you may be fine if⁠ you leave later but still manage to qualify as tax non-resident in 2024. IIRC, Thailand⁤ has a pretty simple 180-day rule and usually no other checks.

 

[Clank]

Bad news…

 

[Radko]

Wow, this is going‌ to change things.

I wouldn't stay in Thailand, much less pay for one of those‍ new and super expensive Elite Visas, what a shame!

This will help a lot of⁠ people....

 

[Mercury]

Bad news indeed, however:

Firstly, the English translation‌ of the document indicates that changes are related to income tax under section 41, paragraph‍ 2 of the Revenue Code, referring to assessable income due to "work duties or⁠ business conducted abroad or because of assets located abroad according to Section 41, paragraph 2⁤ ...".

Section 41 refers to "A taxpayer who in the previous tax year derived⁣ assessable income under Section 40 from an employment, or from business carried on in Thailand,⁢ or from business of an employer residing in Thailand, or from a property situated in︀ Thailand shall pay tax in accordance with the provisions of this Part, whether such income︁ is paid within or outside Thailand."

So, to my understanding, capital gains (other than property)︂ and investment income (dividend, interest) from source situated outside of Thailand and not remitted the︃ year it has been received will not be affected, hence still not taxable.

https://www.rd.go.th/english/37749.html#section40

Secondly, by 2024 anything can and will change 10 times.
Freaking out is a bit early.︄ This is Thailand.

 

[AtMo]

I think just staying in Thailand for less than 180 days per year would be‌ fine.
Stay the rest of the time in other SEA countries.

 

[Radko]

Anyone knows if it's possible to live in Thailand and never bring any money, just‌ paying everything with a foreign debit or credit card?

What happens if you withdraw money‍ from an ATM, with your foreign debit or credit card?