Hi, ChatGPT says that income from remote work from Thailand for foreign clients has to be fully taxed in Thailand (no matter if remitted or not). Is it true?
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TLDR : Answer Summary
The discussion revolves around whether income from remote work for foreign clients must be fully taxed in Thailand. It is clarified that Thailand does not tax worldwide income; taxation only applies to remitted income once a person becomes a Thai tax resident, which generally requires residing in Thailand for more than 180 days. The conversation emphasizes the importance of understanding Thai tax laws and the potential complexities arising from different visa types and DTA (Double Tax Agreement) statuses.
ChatGPT is your girlfriend name that cant be wrong?
Danny *******
I depends on like 5 things including what visa you are on , where the income is coming from etc . Generally to pay tax right now you need to be on a long term visa. Rather than police the tax, they are getting stricter on the actual visas first and pushing people out for reentry to solve this . Likely to change but no news on how right now
Christopher **********
Yes it correct if youre talking about your SALARY. It is thai sourced income because income is sourced where it generated from not where it is paid from (and this is a trivial concept in accounting) . You can ask any accountant or consult any global accountancy firm or their online info, eg pwc tax summaries, and also thai rev depts info and it all says this in black and white. Of course the amount you pay is net of what you pay elsewhere withstanding DTA agreements. And by the way... this applies whether youre a tax resident in thailand or not, ie from day 1 that you start working here. Heres some proof
Foreign source income is income like pension income from overseas, dividends from companies overseas, bond income from US bonds, rental income from properties overseas etc , because the income is generated by an asset overseas, not an source in thailand (eg you and your work performed)
The reality is 99% of 'digital nomads' including the ones in here just dont have a clue what theyre talking about.... so be careful and get professional advice if youre still unsure.
Pete *******
The DTV in many cases is stamped employment prohibited even when you apply as a workation, working remotely on a DTV you are NOT classed as working in Thailand for tax purposes therefore you are NOT earning a Thai income and will not be liable for tax provided the income remains overseas. Thailand only taxes foreign sourced income on remittance.
Christopher **********
The stamp only means you can't work for a Thai employer on the visa (obviously). Remote work is Thai sourced for the reasons I explained, and is shown by the proof i gave. Pay an accountant to check it and they will tell you the same (I already got three to double check the Thai position on this and they all said what I've told you). Foreign vs local sourced income isn't a country specific definition... it's a globalised concept.
the question is does Thailand tax worldwide income even if not remitted into Thailand. Here the answer is clearly no.
Christopher **********
No the question is whether remote work (ie salaried work) is taxable in Thailand and the answer is yes, regardless of remittance, from day 1 (and you net out DTA deductions).
From PWC (and literally any other accountant worth their salt, including the thai revenue department themselves):
"Thailand taxes its *residents and non-residents* on their assessable income derived from *employment or business carried on in Thailand*, *regardless of whether paid in or outside Thailand*. Residents who derive assessable income derived from outside Thailand would only be subject to tax if such income is earned in any tax year starting from 1 January 2024 onwards and is remitted to Thailand, wholly or partially, in the same or a later tax year."
you are not employed or carrying out business in Thailand on a DTV. To be classed as working and have your domestic income from day 1 be subject to tax you must hold a work permit. Your whole argument is nonsense. Only your assessable remittances may be taxed on a DTV.
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Pete *******
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Bobby *********
Chatgpt does not give perfect legal advice especially for international law. All Ai hallucinates as well
Source- work with ai daily.
Michael *******
share me your GPT conversation please :)
René *******
First ask ChatGPT, then ask any FB group, but never consider to ask a professional Thai lawyer skilled and studied in Thai law🤣👍🏼
chat gpt or Facebook is free. Professionals want at least 10k baht for a short conversation...
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Anonymous *************
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ScenicPer*********
People need to start doing their own research and stop relying completely on chat GPT. It is not 100% accurate. That's why you are here asking questions.
David ************
Ask silly questions get silly answers….
Dany ********
only money that you remit into thailand… but no one really cares
Rok ********
Thailand has remittance basis of taxation on foreign income. Not worldwide earned income. Additionally you need to spend in the country more than 180 days to become a resident for tax purposes when above starts applying.
Tim ******
Thailand doesn't tax on worldwide income. (Yet) Only remittance. If you don't bring it into Thailand, you don't pay tax.
2 simple options. If you go home a couple of times a year, you could carry money in with you. Or get an LTR Visa, which exempts you from paying tax on foreign income in Thailand.
I think for myself and live quite legally in Thailand and have done for many years without a Thai tax liability or a TIN requirement or a tax filing requirement.
Technically if you've had money arriving in your bank account since 2024, you need to file a tax return. If you are serious about doing things right, you should have a tax number.
Yep you are definitely breaking the law. So much for being a clean skin. 😆 "Declaration Requirements:Tax Residents: Must file a Personal Income Tax Return (PND 90 or PND 91) by March 31 of the following year for all taxable income, including:Thai-sourced income.Foreign-sourced income remitted to Thailand in the year it was earned."
let’s just take a quick look at those statements of yours.
1) 180 days = tax resident, yep if in a calendar year.
2) Tax residents must declare taxable income. False, only assessable income above minimum thresholds is declarable.
3) Foreign sourced income that is remitted in the same year that it was earned. False, foreign sourced income if earned in a year you were tax resident would still be taxable if remitted in future years.
4) Tax residents must file a personal income tax return. False. Tax residents who have a tax liability must file. No liability = no filing requirement.
Just copy and pasting without actually understanding the tax law isn’t doing you any favors. I will repeat you can live perfectly legally in Thailand without being required to get a TIN and without having to file a tax return. You obviously didn’t read the actual tax law I so helpfully referenced earlier.
"1. Tax Residency Status:You are considered a tax resident in Thailand if you stay in the country for 180 days or more in a calendar year.Tax Residents: Must declare all taxable income, including foreign-sourced income that is remitted to Thailand in the same year it is earned.". Whoops. Looks like you are breaking the law, hopefully authorities won't see this thread.
my question is how do they know in which year income is earned? Simply remit income that was earned in a previous year. Last week they were talking about no tax in year income earned or the following year when remitted.
if you are required to file a tax return then the legal onus is on you to self declare your remittances. The Revenue Department expect truthful returns. Make of that what you will.
I have my citizenship, I'm a tax resident of Thailand, I have an LLC in the usa
Jeremy ********
Anonymous participant the USA taxes will get especially on a 1099 form and no big tax write offs by being overseas
Good luck
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Jeremy ********
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Jose ***********************
Only if you become a Thai Tax payer (live in Thailand more than 180 days per fiscal period). Otherwise you do not need to fill tax reports in Thailand, only in the country where you are currently registered as fiscal payer
NEVER EVER trust the AI for serious and complicated legal or tax matters 😅🤷🏻
Believe me or not, here in Korea I know people that has been deported because they violated their visa rules by believing what ChatGPT told them about what they were allowed or not to do.
i was thinking of opening a new bank account here in the UK fof all my salary to be paid into.
I then move to Thailand and carry on working for 12 months.
But whilst in thailand, i only use my savings for paying rent, buying a scooter, trips around Thailand. But when i fly to Europe twice a years, i use my uk account.
So in this case, i don’t remit any earned income into Thailand?