Looks like they're still trying to figure-out foreigner taxation https://www.bangkokpost.com/business/general/2818689/navigating-new-foreign-income-rules Sounds like all the people who said they know... still don't know, the same as the rest of us.

What are the implications of the new foreign income tax rules in Thailand for expats?

Thailand taxation foreigner taxation expat taxes foreign income rules Thai revenue department tax treaty income tax brackets American expats Thailand living conditions

Jun 27, 2024

6 months ago

Terary **********

ORIGINAL POSTER

Looks like they're still trying to figure-out foreigner taxation

[members only]

Sounds like all the people who said they know... still don't know, the same as the rest of us.

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TLDR : Answer Summary

The discussion revolves around the complexities and potential implications of Thailand's new foreign income taxation rules. Commenters express concerns about the challenges of implementation, particularly for Americans who might face higher tax rates compared to the US. The tax system's inefficiency and its effect on the flow of money into Thailand are highlighted, suggesting it may discourage foreign investment and residency. There's a consensus that the Thai tax department will need significant resources to manage the influx of foreign income declarations.

Bob ********

As Stated elsewhere, the Thai Tax department is going to have to man up extensively to check all the people that are about to come into the system, it will take years to catch up. They will be concentrating on the big players who until now have kept their profits offshore for 12 months, then bringing them in tax free. The farangs living here are small fry in the scheme of things, and they are already getting VAT every time you spend a Baht. It will probably arrive as a deduction from bank accounts where no tax file number is provided.

6 months ago

Don **********

I've been here six months and I don't see why anyone would want to live here.

6 months ago

Han ********

Reading through it, this is *completely* impossible for them to implement effectively. (So many countries, so many tax systems, figuring out how much tax was already paid abroad by each individual, etc. etc.) Furthermore, even if they are somehow successful then this will cause people (Thais and foreigners alike) to bring as little money into Thailand as possible. The revenue peeps will be scratching their heads and wondering if this is actually what they want? Less money into Thailand? Really? Don't you guys want more money into Thailand, not less?

6 months ago

Terary **********

ORIGINAL POSTER

@Han *******

They don't need to get all the countries... Just the top five, Australia, UK, Korea, US, etc.. There is no value in chasing around $1 but there is a value in chasing around $100. And yes, life is unfair.

6 months ago

Michael *******

we should not underestimate the Thai RD, they have extensive systems smart people and access to all bank data. All we know for sure is that a tax resident (180 Days) is required to submit a tax return from Jan 2025, for the current tax year - of course, as with any country the requirement can be ignored, but it never goes away and back taxes, penalties and unraveling the mess can be painful - especially if you have already paid tax at home and there is a DTA. There will likely be a number of outcomes, some will leave , some will ignore and hope for the best and the rest will comply best they can, I have completed a return for last two years to claim back tax deducted at source on bank interest, and found tax dept staff extremely helpful, hopefully that will continue as tax compliance measures are stepped up.

6 months ago

Darren *******

@Han *******

why would people bring less money into Thailand exactly?

6 months ago

Han ********

@Darren ******

- Because according to the article, income is taxed only if you bring it in. If you buy that boat or plane or real estate investment abroad then the money never hits the Thai tax system. It discourages investing in Thailand.

6 months ago

Darren *******

@Han *******

foreign income has always only been taxed in Thailand if you bring it in from overseas. That rule is in effect today. The proposed change is to tax Thai tax residents on their worldwide income irrespective of whether they bring it into Thailand or not.

6 months ago

Han ********

@Darren ******

- That's what i thought too, but this article says otherwise. That's what I'm responding to. While also knowing full well that it'll change 10 times before being shelved. ;)

6 months ago

Reply to

Han ********

William *******

Looks like many Americans will be paying more taxes according to this article.

For example qualified dividends and long term capital gains are taxed at most 23% and the income tax brackets are considerably lower in the US then in Thailand. Married filing jointly with standard deductions one is not in the 35% bracket until earnings are about USD $460,000 in the USA. The Thai 35% bracket begins at about USD $130,000. The taxable difference is about $ 330,000 USD at 35% if Thailand has a tax treaty with the country of earned income such as the USA. Those earning smaller sums of income in the USA would pay proportionally more.

Thailand needs the tax to finance its budget and demographics show a decline in income earning Thai due to falling birth rates. Thailand is the Japan of South East Asia.

6 months ago

Edward *********

@William ******

If most of your income is from investments that's true, but if the majority is from Social Security or a government pension, the DTA excludes those from being taxed by Thailand, and considering that you get a credit for the total US taxes paid, many people would wind up not owing any Thai taxes.

6 months ago

Terary **********

ORIGINAL POSTER

I have wonder about 'resident' in this article it just say "living in Thailand 179 days" but I have to wonder if there isn't more to it than that.

This could mean we'll have to "adopt" a couple of kids to lessen the tax burden. I am happy to redirect government money to the needy.

6 months ago

Reply to

Terary **********

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Do expats in Thailand have to file a tax return after 180 days of residence?

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