What Should an American Know About Taxes While Living in Thailand on a DTV Visa?

Why dont you create a company in the US and have your clients pay the company instead of you. If the company is the one generating income than you should not be liable for taxes here. Wouldnt that be the best solution?

If you're looking for answers, there's this popular Facebook group with 10,000+ members you might find helpful. It's run by

@Michael *********

, CPA who specializes in expat taxes. He does free live Q&A sessions where you can ask him directly about your situation. The group is called US Expat Tax Lounge™ with Mike Mertz, CPA.

That American lawyer on YouTube Integrity Legal just commented a few days ago that all this talk of taxes is all speculation. Yes, if you are in Thailand more than 180 days you are considered a tax resident. That is, and always has been the case. But for now, there is no published law about any foreigner paying taxes on their pensions or income brought into Thailand. He also advised to be wary of any online tax service providers. For now, there is absolutely nothing on the books about foreigners paying tax.

Interesting

You will pay taxes on your income in the US. In Thailand you pay tax on the income you remit to Thailand. Under the DTA between the two countries you can claim a credit in Thailand for tax already paid in the US on the income you bring into Thailand

US foreign income exemption will apply, so likely you’ll file US taxes but won’t pay.

Taxes in Thailand are not a lot. They use a sliding scale based on income.

First, if you spend more than 180d/6 months here you become a Thai tax resident and subject to Thai taxes. That much is certfain.

The issues re what the US/Thai tax treaty does to protect you, the amount of Thai tax you may become liable to, and the allowances (in the tax Treaty and the Thai Tax system) that you can claim to offset any liability, are all questions for a licensed professional. There are any number of accountancy and tax advisors advertising on here and in YouTube to let you contact them and chose which one you like.

The one thing I should add is that currently, the Thais base your taxable income from overseas as that amount you remit (transfer) into Thailand. There are discussions re amending this and start looking at factors like worldwide income not just remittences to Thailand, and also looking at use of foreign cards here to get cash from ATMs or simply paying for items with your foreign card. But all of that is simply discussion. For the time being, it is simply about remittences into Thailand.

I am guessing that you pay the higher tax between your country and Thailand if your country has a double taxation treaty.

This DTV visa only allows remote working, and as such they expect you to pay income tax in your home country regularly.