If I obtain a DTV and do a border run after staying 180 days. Do I then have to start paying income tax to Thailand?
I work online and my clients are Europeans.
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TLDR : Answer Summary
Staying in Thailand for 180 days makes you a tax resident, which means you may be liable for income tax on any funds brought into the country. However, if you're a resident of a country with a double tax treaty (such as Norway), it may affect your tax obligations. Consulting a Thai accountant is recommended for personalized advice.
I am a Norwegian resident, and there is double tax treaty, so I can pay tax to Thailand for the money spent here, if that is the case. If I stay outside Norway for more than 180 days in a 12 month periode, I can also move tax residency for all my income elsewhere.
if you pay tax in Norway on the income you bring into Thailand you can claim a pro rata tax credit against Thai tax. It also works the other way round. If I'm not mistaken to lose tax residence in Norway your move must be permanent but you can't move permanently on a DTV, it's just a tourist visa, but I know little about Norwegian tax.
if he's been in Norway for more than 10 years then he can't break tax residency until the 4th year outside of Norway is my understanding of it. He should also consult a Norwegian tax advisor and not just a Thai one if his plan is to establish Thai tax residency only. That being said, if his income is generated out of Norway still then high chance they will have primary taxing rights regardless of tax residency.
180 days residing inside the Kingdom in a calendar year automatically makes you a Thai tax resident and subject to Thai tax law. Any funds brought into Thailand (cash, debit cards, ATM withdrawals, apps etc) will be subject to assessment for tax depending on the source of those funds. DTA agreements may make some remitted funds exempt from Thai tax.
savings are not subject to tax. In that scenario the person would be a Thai tax resident and have no need to obtain a TIN nor file a Thai tax return. Perfectly legal position to be in.
your point is false. A Thai tax resident generating foreign sourced income pays no Thai tax until it is remitted into Thailand. If left abroad there is no Thai tax liability. Thailand does not tax worldwide income, it is a remittance based system.
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