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Answered2 years ago

How do taxes work for US citizens on a DTV visa in Thailand?

Randy *******
asked Dec 13, 2024
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If you get a DTV visa, how do taxes end up working between the US and Thailand? Do you get to deduct your Thai taxes from the US? Or your US taxes from your Thai taxes? I am trying to compare this scenario with the idea of working under iglo and paying them 30% but it including the thai taxes.
Answer summary
When holding a DTV visa in Thailand, US citizens need to navigate complex tax situations. Generally, US citizens can exclude up to $120,000 of foreign earned income from US taxation. However, if the source of income is US-based, the IRS taxes it first, and a tax credit can be claimed in Thailand via a Double Taxation Agreement (DTA). Conversely, if the income is earned in Thailand, Thai taxes apply first, with potential credits against US taxes. Professional advice is recommended for individual circumstances.
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Us *****
Us *****
Don't do anything yet. Stick with the Americans. The Thas don't know what they are doing yet.
Phil ******
Phil ******
@Randy ******
get some professional advice
Randy *******
Randy *******
OP
@Phil *****
i tried and they referred me to iglo
Phil ******
Phil ******
@Randy ******
who are they? Go talk to Ben
@Integrity ******
group for more information.
Bobby *******
Bobby *******
Don’t pay anyone 30%
Marty *********
Marty *********
US citizens also get a $120,000 foreign earned income tax exclusion with the IRS.
Randy *******
Randy *******
OP
@Marty ********
would I need to be on an LTR visa to get the foreign earned income credit? Like if I was on the DTV visa and working remotely I assume that would not qualify. Right?
Marty *********
Marty *********
@Randy ******
Sorry, to get a DTV you have to be earning income outside Thailand. The foreign earned income exclusion only applies to money made outside the US.

The LTR has nothing to do with this.
Randy *******
Randy *******
OP
@Marty ********
well, except in the case of a LTR, I would be working for a thai company in thailand doing contract work for a foreign company remotely. Whereas with the DTV I would be working for the American company directly doing remote work.
Marty *********
Marty *********
@Bob *********
OK yes. I have an LTR. If he qualifies for an LTR then we can discuss that.
Bob **********
Bob **********
@Marty ********
Tax exempt on an LTR
Wayne ********
Wayne ********
@Randy ******
correct you can’t be working for US company and get the foreign tax credit just because you’re living  and working remote in a foreign country of your choice.
Joseph *******
Joseph *******
@Wayne *******
The main purpose of the tax exclusion used to be to offset foreign living expenses, if I remember correctly. It’s been 20 years since I researched this, so perhaps things have changed. Otherwise, the exclusion should apply across the board.
Bob **********
Bob **********
No one has payed anything yet wait and see if it ever happens
Paul ***********
Paul ***********
Depends on the source of income if US based income.. IRS gets first bite and you claim a tax credit in Thailand via a DTA

If income is Thailand.. Thai tax man gets first bite and you claim credit on US tax via DTA
Tony **********
Tony **********
@Paul **********
not true. First bite comes from country of tax residency regardless of source of income. For a USA citizen who is in Thailand for 180+ in a calendar year, Thai tax comes first and becomes a USA tax credit.
Paul ***********
Paul ***********
@Tony *********
nope not true, as you can be tax resident in multiple jurisdictions at the same time, therefore the test under who gets first bite is the source of income.. Been there got the t-shirt 👍
Paul ***********
Paul ***********
@Tony *********
yes I know... And DTAs don't do that... all DTA does is prevent double taxation on the same money.. Hence my previous comment you can be tax resident in multiple jurisdictions at the same time

A DTA doesn't determine what is or isn't asseable income

And as I have said the 180 rule isnt worldwide in every country. As a rule to tax residency
Tony **********
Tony **********
@Paul **********
dta's are treaties. You are a tax resident if the country you reside in for more than 180 days DTA's govern what is taxable income and any tax statements between 2 countries. USA taxes works wise income of its citizens, do the DTA with Thailand governs what each country can tax of the others citizens. Let's just age to disagree. That's how it's worked in each country I've been an expat in.
Paul ***********
Paul ***********
@Tony *********
nope. As I said you can be tax resident in multiple jurisdictions...and that's the purpose of DTAs if you can only be tax resident under one jurisdiction as you infer there is no need for any DTAs is there ❓👍

Now if your income wasn't taxed at source, and you are under two jurisdictions then yes the second one could take the full wack

The concept is called taxed at source.

I have been under 3 tax jurisdictions at one point and the source of the income gets first bite and the tax credits against other two jurisdictions

BTW and not every country in the world uses 180 days as a tax residency rule either
Tony **********
Tony **********
@Paul **********
funny, been there too. Only one tax residency and that's resident country for over 180.
Tony ********
Tony ********
@Paul **********
although the 2nd option isn't allowed under the DTV, as they can't do any business in Thailand.
Paul ***********
Paul ***********
@Tony *******
well I that case it's tax at source first and then credit on Thai tax

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