Does the Thai Elite Visa provide tax residency in Thailand for Canadians after 180 days?

Mar 19, 2021
4 years ago
Alexander *****
ORIGINAL POSTER
Specifically for Canadians, does the Thai Elite Visa truly offer Thailand tax residency and will free me from Canadian taxes? After 180 days staying in TH? Are there any Canadians with an Elite Visa that can attest to this?

Would also love to chat with a a professional if any are around!
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TLDR : Answer Summary
The discussion revolves around the implications of the Thai Elite Visa for Canadian tax residency. It clarifies that no visa grants tax residency, and residency is determined by tax laws in Canada and Thailand. Participants debate the potential of obtaining a Thai Tax Identification Number (TIN) after 180 days in Thailand, but emphasize that a TIN alone does not constitute tax residency. Additionally, they note the importance of understanding tax treaties between Canada and Thailand, as well as the source of income when considering taxation rights.
Alexander *****
ORIGINAL POSTER
So here’s what I think makes sense, please rip this plan apart and find me any holes!

Thailand gives a TIN after 180 days in the country. You need to show passport with valid view, entry/exit stamps proving 180 days, and 6-month lease. It doesn’t matter which visa you’re on, as long as it’s legit.

I’ll be getting at 8-month ED visa, and at the 4 month mark (I’ll have been in Thailand for 2 months already), get my Thailand TIN number, thus making me an official Thai tax resident instead of a Canadian one.

Is this plan sound?
Darren *******
@Alexander ****
a TIN doesn't prove you're a tax resident in Thailand. I have a UTR in the UK but I'm not a tax resident in the UK.

Whilst the number of days in Thailand plays a part in helping to determine tax residency you will also need to take into account whatever the residency and tax rules are in Canada.
Alexander *****
ORIGINAL POSTER
@Darren ******
Canada and Thailand have a tax treaty, so if I’m a tax resident in the latter, I won’t be taxed in the former. So I’m good from the Canadian side; just need to figure out the Thailand side.
Darren *******
@Alexander ****
just to add on to my last message, most countries will have primary taxing rights to income earned in that country. The fact you don't live there won't change this. The purpose of the double tax treaty is to prevent the same income being taxed twice, it doesn't mean all of your income will be taxed in your country of tax residence.

For example, I live and work in Thailand. If I had any UK income, say rental income, then this will be taxed in the UK as it is UK sourced income. The fact I'm not living in the UK is irrelevant and the double tax treaty won't stop the UK government from taxing it, it will however stop the Thai government from taxing it.
Alexander *****
ORIGINAL POSTER
@Darren ******
yep, I get how sourced income works. I’ve consulted with a tax professional on the Canadian side and it’s sorted; I just need to figure out the logistics of obtaining a TIN in Thailand and if it can be done regardless of the type of visa. Sorry my replies weren’t detailed enough to get the full picture (ie: source of income) but thanks for the help regardless.
Darren *******
@Alexander ****
not necessarily, if it's Canadian source income then Canada may still have primary taxing rights which is why you'd need to check the tax position in Canada.
Bob **********
A thai elite visa is not a tax Haven
Greg *********
If you live and earn income outside Canada, you don't have to file with the CRA, period. (or at least I didn't for 25 years, then moved back and filed again with zero problem/questions about the 25 years not filing)
Greg *********
I understand, and I think you're wise doing so. I just wanted to share that, for what it's worth, I had a lengthy gap, then resumed paying tax in Canada like nothing ever happened. Even got a substantial refund the first year back. Cheers!
Alexander *****
ORIGINAL POSTER
@Gregory ********
damnit, you lived the dream!
Greg *********
@Alexander ****
No, not at all. I worked and paid taxes outside of Canada the whole time I was gone.
Alexander *****
ORIGINAL POSTER
@Gregory ********
Spoke with a tax attorney, and although you might've been doing this for 25 years, it doesn't mean that it's completely legit. I was strictly told that in order to not be a Canadian Tax Resident, I have to be an official tax resident elsewhere. I may just take your route anyway, but obviously I'd like to know the legitimate route.
Wayne ********
Thai Elite is really just another version of Retirement Visa but as and example i am Aussie if we dispose of all assets in australia meaning everything that has your name in it your then become a tax exile and as we live here in a TE or Retirement visa you are not allowed to work therefore earn money and therefore you dont pay tax obviously i have no idea if your country follows the stupid rules they impose on US citizens whereby doesn’t matter where you live you must pay US taxes what a fucked up system
Garrett ***********
Your tax obligations in Canadian are dependent on the laws in Canadia.
Garrett ***********
No visa offers "tax residency."
Alexander *****
ORIGINAL POSTER
@Garrett **********
this is where I’m at in the research process (from Nomad Capitalist). So just trying to see what’s up:

“For instance, the Thai Elite Visa will not automatically make Thailand your tax residence. You will still need to spend a minimum of 180 days in the country and apply for tax residence at the Ministry of Finance.

If you’re hoping to use the Thai Elite Visa as a part of your tax strategy, the best idea is to talk to someone who can help you understand how (if at all) you can use this program in your offshore strategy.”
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