For the DTV. What is the rate of income tax in thailand. I'm from Canada and it's approx 25%. Would I be paying dual taxes? Could someone with info that has been through this and can advise please messye me
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TLDR : Answer Summary
The income tax rate in Thailand varies from 5% to 35%, depending on income levels. For Canadian expats who reside in Thailand for more than 180 days in a tax year, they may become tax residents and be subject to Thai tax on income earned abroad. However, a double taxation agreement (DTA) between Canada and Thailand ensures that income is not taxed twice; instead, the tax paid in Canada can often be credited against Thai taxes due. It is advisable for expats to consult an accountant for specific advice and to understand their filing obligations in Thailand.
historically this is probably quite low, but for 1 of 3 reasons, ignorance of tax laws, only remitting non-assessable income or evaluation of risk of being audited. The change this year is on the non-assessable remittence, which has made some previously non assessable become assessable. This doesn't mean you will pay tax on it, but does mean you should do the return and use a DTA aggreement to negate the tax along with Thai tax allowances.
I don't know how Canadian tax works but I assume if you earn your money in Canada then you pay Canadian tax on it. Then if you are a Thai tax resident (180 days or more in a calendar year) and bring income into Thailand then that income is also assessable for Thai tax and you need to complete a Thai tax return. You get a pro rated credit against Thai tax on the tax you already paid in Canada on the income you bring in. So while you won't be taxed twice you will in effect end up paying the higher of Canadian or Thai tax on the income you bring into Thailand
John **********
Canada's basic income tax rate without Provincial income tax added
You could end up paying 5 or 10 % to Thailand depending on how much you earn with the DTA
So if you make less than$
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than more than likely you would be accessed an addt 10% payable to the greed of Thailand's govt making you pay their debt ( theyre desperate) and not offering you anything in return like medical or other items such as Canada gives
Stephan ***********
First of all... you become a tax resident in Thailand if you stay more than 180 days within a tax year (tax year = calendar year). But there is a double taxation agreement between Canada and Thailand since 1985. So... only one time tax. With 25% tax you might think about where you want to be taxed... it could be cheaper here. Best if you contact an accountant to clear the details.
thx. Running $30k CAD to 50k scenarios thru a Canadian income tax calculator, our rates are 11+% to 15+. $50k USD is 70kCAD works out to 18%, much higher than the o.p. and most retirees here I think. Our Canadian rates are higher than thai in all the above scenarios but saw in another thread only fed portion used??? If I strip out the part the fed forwards to the province, that reduces above rates by a third, on par or slightly less than thai rates.
sounds like you need to consult with a thai tax attorney if you want more accurate and detailed information. I was simply helping people understand how often their Thai tax liability will be higher than their Western liability creating a net liability to Thailand
so if you do the calculation on $50,000 of annual income the tax rate in the United States would be 12.5% in the tax rates in Thailand would be 16.5%. so you would owe 4% to the government of Thailand which is the net difference. Makes sense?
the top rate in Thailand is 35%, but the real problem for people is that the brackets are much lower so you'll have a higher percentage rate for a given amount of income. Look at the table demonstrated above and convert the Thai baht into US dollars and then look how quickly you get to a 20% tax rate
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Craig ********
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