How to file taxes in Thailand after staying over 180 days, and who monitors your stay?

@Kool ******

that's not true. A tax resident is a tax resident. Doesn't matter where they're from

@Kool ******

It is aimed mainly at very wealthy Thai citizens not paying Thai taxes on earnings in foreign countries and less on Thai labor overseas. Most Thai workers in foreign countries earn relatively small sums of income. The tax code is not going to be rewritten in its entirety. As I understand the wording of two or possibly three paragraphs will be changed. Many Thais from wealthy and upper middle classes are concerned and not only those married to foreigners. Yes time will tell but remember TIT coined by Bernard Trink.

@William ******

it was all simply one loophole that was closed. Before January 1st of 2024 if you kept the wages you earned out of the country for more than one year those moneys could be sent, or brought into Thailand tax free. That loophole closed. Now it doesn't matter when money was earned, or how long it was kept out of the country, Thailand wants to make sure the taxes are paid on it, either in the country you worked in, or in Thailand. Everything else speculated on is all based on this loophole closure, and there are some pretty wild speculations...lolol

I understand. Many are concerned regarding investment income. Not day jobs. Municipal bond income is tax free in the USA. Not in Thailand. So taxes will be paid on it in Thailand. Up to 35%. The tax treaty agreements do not eliminate the paying of taxes.

@Colin ******

yes. But then they would need to search for a tax number and if you filed a return....this would cause an incredible delay in individual processing times. Not really feasible at the airport.

@Tony ********

The bank transfers the money to the revenue department under your name and using your passport number. Well... at least that's what my bank told me.

@Stephan **********

yes that's true but my point is this doesn't necessarily mean it's scrutinized by someone sitting at the desk at the revenue department. My friend who runs the IT department for a big European Bank told me that there is such a vast volume of information that goes to the revenue department which just sits on a computer somewhere. To have the manpower to individually scrutinize all of these transactions is something else.

@Tony ********

Yep... that's all correct. And for the same reasons there won't happen too much to the normal pensioners. I don't know why there is suddenly such a panic, seems that some have to hide a fortune somewhere...? And never forget where we are here and how it normally works with rules and laws...😁

@Stephan **********

I can't remember the exact source but I saw an explicit statement which came from the revenue office quoted in the Pattaya Post I think saying that foreign pensions will not be subject to tax.

@Tony ********

Yeah... I also saw something like that somewhere. Also there are double taxation agreements with many countries. But on the other hand... when you see the tax rates it might be even better/cheaper for some to get taxed here. We have to wait and see what really will happen... I guess not too much for the "normal" people. Anyhow... some are panicking like crazy already... whyever... 🤔🙄

@Dirk *************

no issue for the single sexpats, they can scurry off to Philippines or Cambodia, for families different story especially if kids involved.

@Michael ******

well, we know what happened to the announced tax for tourists which was scrapped after major opposition. And aside from the announcement of one government official who talked about taxing global income a few months ago it has been suspiciously quiet. The only thing that we know now is that 2023 income - not savings - will be taxable. Beyond this point it is all speculation and as it is always the way in Thailand things can change from one moment to another. And I doubt that Thailand is willing to kill its tax base. I understand your concern, though but I would not panic.

@Dirk *************

My understanding is that the 'new' tax regime for foreigners is effective from 1 Jan 2024.. with the first tax returns becoming due in 2025 in respect of income received during 2024.. I'm talking about retirees here who dont have any earned income.. ie. they don't work and their income is related solely to pension payments.. if you are an expat who is working in Thailand then of course you will already be part of the Thai tax system.. and therefore you may already be filing tax returns.

@Ally ***********

My understanding is that earnings on business entities,equities,dividends,interest etc.,brought into Thailand will be subject to taxation. Is that not the main reason for the change in the tax code ? To tax revenues earned overseas and brought into the Kingdom.

@William ******

The real aim is to tax income being earned by residents of Thailand that has hitherto escaped any form of taxation.. in other words 'catch' people who have (up until now) been able to dodge paying any tax.. because they weren't deemed tax resident in either their home country or in Thailand.. i don't think the intention was to punish retirees who are living here on a retirement visa or perhaps a married visa.. but those people who reside here but work for an overseas company.. they could have significant earnings that aren't being taxed by anyone.. unfortunately the draft legislation was written such that any deposits to a foreigner's Thai bank account from overseas would be considered a form of income assessable for tax.. which does not recognise that these deposits may not come from income at all.. but from savings or investments held offshore.. and which represent a transfer of capital not income.. overlaying this concept is the right to claim exemption from tax in Thailand if there is a double taxation agreement with your home country.. if it can be shown that the income you received has already been taxed (or is deemed to have been taxed) at source.. then it will not be taxed again in Thailand.. and most western countries (such as the Uk, US, etc) have DTA's in place which govern this very situation.. so that should be someone's starting point to see how the new tax regime might affect them.. when all is said and done i don't think they want to drive foreigners out of Thailand.. which would be counter productive for the economy.. or to harm those citizens who are married to foreigners.. and reliant upon this income to support their family and often their extended family.. but they were somewhat naive in forming this new tax code.. the fact they have not published the final 'act' suggests it is already under review.. as does the delay in releasing the full scope of its application.. so I'm expecting some major modifications to ease the burden on none working 'tax residents'.. which will hopefully take foreigner retirees living here on more modest pensions out of the net.. it would also be unreasonable to proceed with the proposals (even as currently tabled) without giving us foreigners full disclosure of the implications.. meaning a clear understanding to enable people to make financial decisions in good time.. so imo we should see the introduction of it postponed by at least 12-months.. you surely cannot be taxed on 2024 'income' when they have failed to clarify exactly how this will operate.. and given you the opportunity to amend the way you manage your finances to minimise the effect of the proposed taxation.. so I'm betting it will be 2025 income assessed in 2026 and that it will be less onerous than it looks now.. fingers crossed huh!

@Ally ***********

I agree with most everything you say. We do know that Thailand’s highest tax bracket of 35% equates to approximately USD 120,000. The USA has a DTA in effect. One concern some have is as follows.Earnings of several hundred thousand USD of qualified dividends is taxed in the USA at a maximum 23.8% (with the effective rate less then 20%). In contrast ,Thailand taxation is 35% maximum with the effective rate only minimally lower. With DTA in effect the foreign or Thai citizen is credited with what is paid in the country where the income is earned (USA in this example) and is responsible for the difference. This is not going to effect most foreign retirees as you mentioned but I believe some

(whether they are married to a Thai or not) will find themselves with a Thai tax bill at year end.

@William ******

Concur with what you say here.. but that income would only be taxed in Thailand if it is brought into the country.. if it remains offshore then it will escape assessment.. perhaps the solution for such individuals is to move that income onto an offshore based pre-funded Visa or MasterCard.. and then spend that money directly from the card.. or simply use a credit card and pay it off each month from the offshore account.. ways and means 😉

@Jim *****

he probably would not have to anyway as his total earnings are likely to be under the threshold. Anything taxed in UK and taxed in Thailand, Thailand have to refund the tax paid un UK. It's not worth the effort trying to work it all out for ordinary retirees.

@Nick ***********

Thailand doesn't refund tax paid in uk, you get a credit against Thai tax

@John *********

exactly how do people dream these things up