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Answered2 years ago

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

Ashwin *******
asked Sep 25, 2024
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Hi I am an American, and was thinking of applying for the DTV. My intention is to live in Thailand long term (the full 5 years offered by the DTV) so I am also wondering about taxes. If I live more than 6 months in a place, I assume I am to pay taxes. And if this is not law in Thailand, it might be soon.

So I'd like to know what I can expect with in regards to taxes (tax rates) as a Freelancer with clients in the US. I will obviously have to file in the US as well. Wondering what the double taxation treaty between Thailand and USA is like. Where is it good to go for tax advice? Any general tips, resources, advice?
Answer summary
An American considering the DTV visa to live long-term in Thailand inquires about the tax implications of residing there for over 6 months, specifically as a freelancer with clients in the US. It is advised that living in Thailand for more than 180 days makes one a tax resident, subject to Thai taxes on income remitted to Thailand. The US foreign income exemption may apply, allowing the individual to file US taxes without paying due to credits from taxes paid in Thailand. Various tax professionals and resources are suggested for further clarification.
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Pond ************
Pond ************
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?
Faye ********
Faye ********
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.
Frances ********
Frances ********
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.
Steven *********
Steven *********
Interesting
John **********
John **********
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
Sean *************
Sean *************
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.
Jim **********
Jim **********
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.
Ashwin *******
Ashwin *******
OP
@Jim *********
Thanks a lot Jim! I will keep those issues in mind as I research further and speak with a professional.
Jim ******
Jim ******
************************
Thom **********
Thom **********
I am guessing that you pay the higher tax between your country and Thailand if your country has a double taxation treaty.
Kool *******
Kool *******
@Thom *********
Thailand has the best tax treaty with the US. There is no difference in the tax rates.
John **********
John **********
@Kool ******
that is untrue.
Thom **********
Thom **********
@Kool ******
wrong, my tax bracket is 25% in Thailand. I pay about 20% in the USA. I would have to pay an extra 5% to Thailand. This is with no deductions.
Thom **********
Thom **********
If you go by the tax tables, I pay 3% more in Thailand. 22% vs 25%.
Adrià ********
Adrià ********
@Kool ******
please, see the new tax policies started the 1st of January of 2024. It's not like that.
Kool *******
Kool *******
@Adrià *******
I am fully aware of what was changed January 1st of this year. Are you? All it was was the closing of a tax loophole that was being used.
Kool *******
Kool *******
This DTV visa only allows remote working, and as such they expect you to pay income tax in your home country regularly.
Erik *******
Erik *******
@Kool ******
Unfortunately no. For now if you stay more than 180 days in Thailand , you become Thai tax resident by law and you are subject to taxes on the money you transfer (remit) into Thailand . But it’s not finished: Thai revenue department is currently preparing a new tax law that will tax the worldwide incomes of all Thai tax residents . This law proposal is going to be presented at the Parliament soon…
Kool *******
Kool *******
@Erik ******
until it is published in the royal gazette what rumors you hear mean nothing. The tax laws have always been 180 days in Thailand making you liable for Thai income tax. That is nothing new.
Jo **********
Jo **********
@Frank *********
he is just correct
Frank **********
Frank **********
@Kool ******
I do, I am just saying it is a proposal. It may or may not become law but it will be presented to the legislature most likely.
Kool *******
Kool *******
@Frank *********
you don't seem to understand how the Thai government operates.
Frank **********
Frank **********
@Kool ******
you are sure a stubborn person 5555.
Kool *******
Kool *******
@Frank *********
believe what you want to believe. I spelled it out for you
Frank **********
Frank **********
@Kool ******
I realize it has to be published but it isn't a rumor, the proposal is real.
Kool *******
Kool *******
@Frank *********
like I said, until it is published in the Royal Gazette it is just a rumor, no matter who said it.
Frank **********
Frank **********
@Kool ******
Worldwide tax on income is not a rumor, it's a proposal by the Revenue Department.
Erik *******
Erik *******
@Kool ******
I wish and hope you are right …
Kool *******
Kool *******
@Erik ******
it doesn't matter who is saying anything to get their name out there, until it is published in the Royal Gazette it means nothing. If you follow the Thai government you'll see this happening all the time. High ranking people just saying things to get their name in print.
Erik *******
Erik *******
@Kool ******
Rumor ? The head of the Thai revenue department communicated on it . Not a random journalist …

What is brand new is the intention to tax global (worldwide) incomes , not only Thai incomes… Massive game changer
Ashwin *******
Ashwin *******
OP
@Kool ******
I see. Can someone confirm this? Could this change?
Adrià ********
Adrià ********
@Ashwin ******
It's not like Kool exposes. If you stay +180 days per year in Thailand you're considered tax resident and you have to pay taxes for the money you remit to Thailand.
Jo **********
Jo **********
@Adrià *******
NO not if that money is already taxed
John **********
John **********
Graham ******
Graham ******
@Adrià *******
Not true, you have to complete a tax return which does not necessarily mean you pay anything

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