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Answered2 years ago

What are the implications of the proposed tax amendments for DTV holders in Thailand?

Erik *******
asked Sep 7, 2024
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For all new DTV holders who submitted their tax returns to get their visa:
Answer summary
Recent discussions among expats highlight proposed amendments to Thailand's tax law affecting new DTV visa holders. These amendments could require individuals who stay longer than 180 days to submit tax returns. However, many commenters express skepticism about the feasibility and implementation of these proposals, questioning the administrative capabilities of the Revenue Department and voicing concerns over the retroactive application of taxes. Some note that existing double tax treaties could mitigate fears of excessive taxation for residents.
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Jan ***********
Jan ***********
Quite low taxable income to pay high 30 or 35% tax. Most westerners will pay 35%
Reidar **********
Reidar **********
Two issues, does the new draft include retroactive income ..? And many countries do not tax overseas pensioners (Canada is NR5) that live permanently outside their countries and have no tangible "attachments" in their home countries. Too many articles on this subject to be viewed as mere musings. Thaksin daughter is now the PM and his main interests are focusing on additional revenue for the rural population. Come November/December, this will be clear as mud.
Tore *********
Tore *********
I dont get the bizarre illogical fear of taxes. Most western countries have double tax treaties with Thailand anyway. Only difference is your supposed to submit tax returns if you spend more than 6 months. But you are not in danger of paying double tax on income or capital gains. Just on long term savings
THAI ******************************
THAI ******************************
@Tore ********
Many expats are either exempt from paying taxes in their home country or benefit from certain tax exemptions.

For instance, Americans living full-time in Thailand can qualify for a foreign earned income exclusion of up to $126,000 against federal taxes. The significant shift now is that Thailand may start taxing that income directly, which could amount to a substantial figure, especially for those working remotely—sometimes exceeding 1 million THB annually.

Additionally, expats from countries that waive all tax obligations if they live abroad for a certain period may face even steeper costs, potentially amounting to several million THB per year.

Many have chosen Thailand as their home specificly because of the lack of taxation on worldwide income.

However, for expats from countries without such exemptions, the impact of Thailand’s tax policies might be minimal.
Ryan ******
Ryan ******
Only applicable to funds repatriated into thailand (transfered into a thai bank)
Sue **********
Sue **********
@Ryan *****
no they want a new tax law, thats the proposal
Erik *******
Erik *******
OP
@Ryan *****
No. The purpose of this new proposed law is to tax worldwide incomes. Regardless if the funds are remitted (repatriated) into Thailand or not. It’s a new development.
Von ******
Von ******
Here we go again!!! Read the article, it is still PROPOSED! Not implemented and NOT likely given that Shinawatra can’t even form a government! So how and who is going to administer and collect said taxes???

The Revenue department will need to obtain information from the Immigration department to ascertain WHO is a person meeting the 180 days criteria, let alone the shenanigans of loopholes that currently exist.

FACT, these proposed AMENDMENTS are just that, proposed and until they have been ratified and published in the Royal Gazette, they are just words filling the air from the mouth of a Politician who is seeking some political clout and their name in the Media.
Michael *******
Michael *******
Thailand has deployed CRS which is common reporting standards so full visibility of all financial transactions - what they do with it is another matter, taxing remittances will be easy, but many will ignore until it’s linked to resident visa - worldwide income whole new ball game which is why it’s only “proposed” I guess - tax evasion gets harder as more countries fall in line…..which is the whole idea
Von ******
Von ******
@Michael ******
hey mate, spoke here with my Bank Manager face to face today and asked him about this situation and his answer was that they have no knowledge of it and do not participate in any such scheme; which is what I thought and said to you.

So for ME at least, I am not on the radar.
Von ******
Von ******
@Michael ******
yes it is.

************************************************
Michael *******
Michael *******
@Von *****
ignorance is bliss
Erik *******
Erik *******
OP
@Von *****
Mate , when you will stay more than 180 days per year in Thailand you will become one automatically.
Von ******
Von ******
@Erik ******
fair enough, but I am YET to be classified as a Foreign Tax Resident, was the Commonwealth Bank for reference. 🤐
Erik *******
Erik *******
OP
@Von *****
Hey mate you definitely need to change bank. Either they lying to you or they have no idea about regulations in place …

****************************************************************************************************************************************
Von ******
Von ******
@Michael ******
agreed, but still relies on the citizens country sharing information for the purposes of taxation in a foreign country for that country’s benefit, I can’t see it being a slam dunk.

Wait, watch and observe, not going to affect me as I will be in receipt of a pension in my native country and is not subject to taxation by reciprocal law agreement in the new amendment proposal…

As I said earlier Shiawatra can’t form a government at present, by the time and IF she can, another political party will challenge and we could be back to Junta rule by then. 🤦🏽‍♂️🤷🏽
Michael *******
Michael *******
@Von *****
this is not being driven by Thai government it’s OECD and the yanks that are trying to close bolt holes for tax evasion and unless Thailand decides to go rogue (which is of course possible) then it’s going to happen as thailand seeks to become part of the global financial community (and grow up)
Von ******
Von ******
Looks like the Thai Government would NEED the help of the governments from a lot of other countries that already have their hands full trying to govern and collect taxes in their own domains without assisting a foreign country a few hundred thousand of their citizens live in.

Wait, watch and observe!!!

Things move slowly in the corridors of Thai Government!
Erik *******
Erik *******
OP
@Von *****
No need. It’s all automatic : since this year Thailand adheres to the worldwide Automatic Exchange of Information protocol (Google it, it’s interesting …):
Erik *******
Erik *******
OP
@Von *****
Depends which country is your home country . Some countries are not part of the AEOI scheme. Like North Korea for example. But if your home country adheres to this international protocol , your financial data are exchanged and transmitted automatically by your financial institution (bank , brokers etc …) . By law. Just Google it or better: just ask your financial institution directly.
Von ******
Von ******
@Erik ******
I guarantee THEY do not have access to my Banking information in my home country.
Lucky ******
Lucky ******
That should kill Thai tourism
Paul ********
Paul ********
@Lucky *****
DTV has nothing to do with tourism
Tore *********
Tore *********
@Paul *******
and yet its classified as a tourist visa….

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