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Answered2 years ago

Do I have to pay tax on the 800,000 baht transferred for my Thai O visa?

Joe *******
asked May 29, 2024
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Hello,

I am going to get an O visa and was wondering if I would have to pay tax on the 800,000 baht that i would need to transfer to a Thai bank account?

Dose anyone know the answer?

Thanks
Answer summary
The consensus among community members is that you generally do not pay taxes on the 800,000 baht needed for the Thai O visa, as this amount is considered a transfer of savings rather than income. However, tax obligations can vary based on individual circumstances, including your residency status and the source of the funds. If you bring this amount into Thailand as a tax resident, it could potentially be subject to tax if it is seen as income. It is advised to consult a tax professional for personalized guidance.
57 repliesnewest first
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Neil ********
Neil ********
It’s not income it’s a transfer of savings which the government requires to prove you can afford to live. Why would you pay tax again ?
Rok ********
Rok ********
There is a need to start discussing taxation if you intend to or will become a tax resident in this fiscal year (183 days of more physically present in Thailand 1st Jan - 31st Dec 2024). If not by default or plan to manage not to there is no need to worry about tax. Next step is how black and white the new changes are … or just grey.
Steve **********
Steve **********
1st you said' couldn't be furthur from true '

Then you say' your statement is correct '

You're responding to the same statement !
Tony ********
Tony ********
@Steve *********
re read them Steve, '2 different statement replies.your first statement was something like 'no, you only pay tax on money earnt in Thailand' that as a global statement is incorrect. The other reply was about you not having to pay tax on your military and social services pension, which is correct ss you are an American.
Steve **********
Steve **********
@Tony *******
I stand corrected.
Alfred ***********
Alfred ***********
@Steve *********
I'm sorry I don't know to whom you are replying or to what you are referring too
Steve **********
Steve **********
@Alfred **********
at's ok. they do !
Nick ************
Nick ************
What about bringing in money from tax free interest in the UK?
Alfred ***********
Alfred ***********
I think we're confusing apples with oranges here. First the 800k will earn interest in a savings deposit and be liable for WHT in thailand. That's is a percentage of the interest not the entire interest - no where near it. So the 800k will attract interest minus WHT which will still leave a positive Interest amount on your 800k which will accrue over time. So you 800k will never go down or be depleted by tax. Income tax is something completely different. If you pay income tax on your earnings abroad or pensions abroad you will not be subject to thai income taxes in thailand. In fact as foreign taxes are generally a larger portion percentage wise than of the thai tax rate you are safe from thai taxes. The whole reason thailand wants to introduce taxes on foreigners (but mostly directed at thais with offshore earnings) Is that thailand wants to be part of the OECD. Countries of the OECD don't want their citizens having a free ride on taxes everywhere. Someone somewhere is going to tax you.
John ********
John ********
@Alfred **********
I posted on this issue yesterday regarding if you are a pensioner in the UK and pay some tax, then you won't pay any tax in Thailand. So I commented, so if your in receipt of only a UK state pension that isn't taxed in the UK, surely you wouldn't be liable to pay any tax on it in Thailand. The lady said that even if your not liable for tax in the UK because your income is below the UK threshold, you'd still be liable for tax on anything over 150k baht.?
Alfred ***********
Alfred ***********
@John *******
I hope thats 150k thb a year not per month lol 😆
John ********
John ********
Unfortunately I'm now a UK state pensioner getting for one year what I used to get for one month
John ********
John ********
@Alfred **********
Crikey when I was working I was making between 380k & 450k baht a month.
John ********
John ********
Tony ********
Tony ********
@Alfred **********
sorry, most of what you say is correct, however ing Thailand has always used a remitence based tax system, that relies on anyone who has assessable income over 120k baht and tax resident to file a tax return declaring any income in the previous year including taxed/untaxed income from abroad. Under your countries DTA you can reduce the Thai tax bill down to zero hopefully with your Thai allowances, deductions and proof of tax paid and any DTA excluded items. If you (big if) file the return and have calculated you owe tax, you cut a cheque to them for it. They dont force you to file or write and ask, and dont check. But just because you dont pay doesnt mean you dont owe, and they have always had the right to check back over the last 10 years of your finances if conductan audit. But yes generally we shouldnt owe any taxes as rates are usually higher abroad. But taxed income remitted from abroad can be subject to tax.
Alfred ***********
Alfred ***********
@Tony *******
yes but the remittance based tax system is just like PAYG in the UK, Ireland most of Europe in fact. If you have and you should have signed what is called a CRS FACTA form in say the UK. Then you have allowed your bank to exchange information with a thai bank. That information however, is just a stepping stone in the exchange of information. As for income forgetting the 800k for now. 1 if you declare you're income and taxes paid in a foreign country to the revenue service in thailand its a no brainer. My tax rate is well over 56% in the UK so far and above the proposed 17% tax in thailand. So I will not be liable for thai taxes whether earned remitted or whatever in any given year. It's all about the OECD. Like America they'll tax you on all income no matter where you reside in the world. As I said only two things certain in life "death and taxes" - although paying income tax on your earnings throughout your life to pay into a pension fund that is then taxable I propose is preposterous.
Alfred ***********
Alfred ***********
@Tony *******
oh and can I also add if like me at the tender age of 56 but having lived here on a non o visa since the day I turned 51, I don't have a pension yet, I live off my savings. So this is not earned income in any sense. Great talking to you. You seem to have your head screwed on more than most I'd just like to point out
Alfred ***********
Alfred ***********
@Tony *******
totally agree our pattaya friends living in a 7k a month condo with a state pension probably don't have to worry. Although where they got the 800k in the first place is a mystery. I think as most lawyers agree - although it's very early days it's too early to assume anything; the thai govt just wants to increase its tax base. I don't think going after ferrangs unless they are millionaires living it up with a beach house in phuket is really what's going on. 🤔
Tony ********
Tony ********
@Alfred **********
totally agree, but some people read or hear statements that say words to the effect 'no you dont pay tax' and take it at face value. Eg Persons at the low end scraping by on around £12k will have paid no uk tax so officially could owe tax, but thats the same situation its been for years and luckily the authorities don't spend time looking into that, and arent about to start is my guess.
Steve **********
Steve **********
NO !....only on income generated in Thailand.

I think the law needs rewording, as many think

pensions etc. will be taxed.
Tony ********
Tony ********
@Steve *********
sorry that couldnt be further from the truth unless you are on an ltr visa where their is no tax for pensioners. Some pension types can be excluded depending on your countries DTA, but lots of DTA's don't cover all types. Thailand doesn't tax directly, it is remitence based and upto you to declare and reduce the liability to zero by proving tax paid elsewhere exceeds tax owed in Thailand officially.You should really read the RD document in this chat and your countries DTA.
Steve **********
Steve **********
@Tony *******
US , social security direct deposited as FTT is not. and will not be taxed.
Steve **********
Steve **********
@Tony *******
Don't know, can only speak for US pensions and SS benefits.

I do know some of the comments are causing fear with ' speculated' interpretation.

Can email the affected Agency for fact, rather than the guy on a barstool.
Tony ********
Tony ********
@Steve *********
your last statement is correct as far as i remember, because the US DTA stipulates it and takes presedence. Australia i believe is the same. However lots of other countries eg UK don't have the same agreement, goverment service pensions arent taxable, but state 'social service' and private pensions have to rely on the standard tax credit method within the dta. But there is no uk tax on state pension usually (below alloance), so no credit available.
Aurelian ****************
Aurelian ****************
If the 800,000thb was never taxed in any country (income - not old already taxed savings) and you stay >180 days in Thailand the year you brought it in Thailand, yes you will have to pay thai tax on it.

"Taxpayers are classified into “resident” and “non-resident”. “Resident” means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. A resident of Thailand is liable to pay tax on income from sources in Thailand as well as on the portion of income from foreign sources that is brought into Thailand. A non-resident is, however, subject to tax only on income from sources in Thailand."

**************************************
Terary **********
Terary **********
@Aurelian ***************
That was last updated 2020.
Aurelian ****************
Aurelian ****************
@Terary *********
good point! do you know where is the latest version?
Tony ********
Tony ********
If the 800k is brought into country in the tax year before you become tax resident, (first year june onward), it would be totally tax free, as first tax return is not due for upto 18 months). If it is brought in the same year as becoming tax resident, then it is subject to tax. But depending on dta with your country, and when the money was initially earnt, it can usually be credited out or exempt (pre
*****
/23) and no or little tax owed once other allowances are considered. But you only pay tax after filing a return. Paying tax and owing tax are two different things.
Chris *********
Chris *********
Didn't we just do this?
Pete *******
Pete *******
The correct answer is it depends on your personal situation. What the funds are for is irrelevant. It is the source of the funds that is important as is your domicile. These effect how the Revenue Dept view the remittance in terms of whether they deem it as assessable income or not.
Gary **********
Gary **********
No is the answer ...any interest from bank amount is deducted at source
Phil ******
Phil ******
@Gary *********
what interest 🤣😂🤣😂
Tony ********
Tony ********
@Gary *********
that depends on dta and whether the 800k came from savings.
John *********
John *********
No you don't.
Tony ********
Tony ********
@John ********
not when its remitted, but has to be assessed for liabilty if you are a tax resident when its remitted.
John *********
John *********
@Tony *******
Assessed for liability doesn't mean you pay tax on it which is the question.
Tony ********
Tony ********
@John ********
the question was ambigious, and lots factors to consider,(see a later answer i gave), but your answer of 'No you don't' would lead people to believe there is always no tax liabilty. Your correct if you meant no withholding tax on the transaction, or you dont declare it (if its in the relevant tax year) and your supposed to. For the latter you could owe tax, just not payed it.
James ********
James ********
@John ********
I am not sure that is the correct answer …. If joe is going to stay for more than 180 days then that money will be accounted for in his tax return and be assessed for tax .
Neil ********
Neil ********
@James *******
Callander year
Lien ******
Lien ******
@James *******
180 days consecutively or 180 days in one calendar/fiscal year?
Phil ******
Phil ******
@Joe ******
"Do Retirees Pay Taxes in Thailand?

Not everyone who wants to retire in Thailand is required to pay taxes; only retirees who have income profits inside of Thailand are required to pay taxes. Applicants, who have an income from overseas profits will not be required to pay any taxes in Thailand."

I always say to seek professional advice from a tax accountant as your individual circumstances may be different.
Tony ********
Tony ********
@Phil *****
this depends on your countries dta, or if your on ltr visa. Otherwise depends on other factors.
Phil ******
Phil ******
@Tony *******
thats why I said the final paragraph. I ave had 2 opinions from tax professionals.
Sue **********
Sue **********
@Phil *****
Where did you get this information? I got a completely different answer. Of course retirees who stay here for over 180 days and have income from overseas like pensions, they haven‘t payed tax yet on them and tranfering to Thailand have to pay tax.
Lee ***********
Lee ***********
@Sue *********
I pay tax on my pensions in the UK, depends on income like everywhere else.

Interest earned in Thailand would be taxable same as elsewhere
John ********
John ********
@Sue *********
Here's one for you. You say retirees who stay in Thailand over 180 days have income from overseas, like pensions they haven't paid tax on have to pay tax in Thailand. So what if you only receive a state pension (UK), that is below the tax threshold in the UK, therefore not taxable, in this scenario what would be any taxation in Thailand?
John ********
John ********
@Sue *********
I stayed in Thailand from 1998 to 2009, periodically without having to show any money in my Thai account, or 800k, but then I wasn't staying there as a tourist who wasn't savvy about how to stay long term. Those were the good old days.
John ********
John ********
John ********
John ********
@Sue *********
I stayed in Thailand for eleven years previously without applying for non immigrant visas or extensions. Those were the good old days.
Sue **********
Sue **********
@John *******
first: I don‘t know how much a state pension in UK is in sum. As you live more than 180 days in Thailand you wouldn‘t be taxed in UK anyway no matter how much your pension is. Your pension might be below threshold in UK but if you transfer it to Thailand its probably high enough (above 150‘000 thb) to be taxed.

You can‘t stay here in Thailand anyway if you haven‘t either 800‘000 deposit or a monthly income (pension) of 65‘000 thb.
Todd *********
Todd *********
@Sue *********
Phil clearly has no idea what he is talking about
Phil ******
Phil ******
Phil ******
Phil ******
@Sue *********
from 2 specialists.....one here and one in Australia.

I'm sorry your accountant/s gave you a different answer to your question.
Phil ******
Phil ******
@Sue *********
not at all. I have already paid tax on invome derived from Thailand and i feel comfitable that i won't pay tax in Thailand. I really suggest Sue you get professional advice on your tax liability.
Phil ******
Phil ******
@Steve ******
thanks Steve. There is a really clear answer and I paid 2 tax professionals. I am not liable to pay tax in Thailand. Suggest you get a professional to confirm your tax liability.
Steve *******
Steve *******
@Phil *****
there is no clear answer right now. I’d work on the assumption that the 800k is probably safe from tax (as taxing it would cause it to drop below the mandatory amount) and that all income transferred into the current account is likely to be taxed.
Sue **********
Sue **********
well then all those official experts at the revenue department are wrong?

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