Will my foreign income be taxed in Thailand if I have a DTV Visa and stay over 180 days?

Thailand Tax Regulations DTV Visa Foreign Income Tax Double Taxation Agreement Tax Residency Common Reporting Standard Expat Taxation Issues

Sep 6, 2024

3 months ago

Anonymous *************

ORIGINAL POSTER

Hello,

I am going on DTV Visa and will stay over 180 days

New 2024 law says foreign incomes are now under tax in Thailand.

I'm from France, as my income is from there and already taxed, can it still be taxed in Thailand?

Apparently it's the income brought into Thailand that's taxed, and then ATM withdrawals and card payments from foreign cards are taxed also from what I read. What could I do? Need help please!

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TLDR : Answer Summary

The query revolves around the implications of the new 2024 tax laws in Thailand regarding foreign income for expats, specifically for an individual on a DTV visa planning to stay over 180 days. The user seeks clarity on whether their income, already taxed in France, can also be taxed in Thailand, particularly with new legislation stating all foreign income could be taxable. Commenters provided insights, noting that Thailand adheres to Double Taxation Agreements (DTA), which should exempt individuals from paying taxes on income sourced from their home country if taxes are already paid there. They also mentioned that only remittances brought into Thailand may currently be subject to taxation and discussed potential moves to establish tax residency in countries with more favorable tax laws.

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Michael ********

Fyi,

The (DTA) between France and Thailand was established December 1974.

2 months ago

Markus ********

@Michael *******

Yes, however, the question is how this regulation between the countries will affect taxation in concrete terms. The French employer probably does not have to pay taxes to Thailand. But what about the tax liability in Thailand?

Is it sufficient for the employee to declare to the Thai government that the employer has already deducted the income tax? So that at most the difference to the Thai income tax has to be paid in Thailand?

24 days ago

Ric ******

@Markus *******

I would say it depends on the terms in the DTA.

In the case of Germany, if the center of vital interests is still in Germany, the tax stays in Germany and this change in Thailand means nothing.

It used to be favorable to have a tax residency in Thailand, with the current remmitance-only taxing it's so-so. If they follow through with their plan of taxing people on all their worldwide income. Many folks won't spend as much time in Thailand any more...

24 days ago

Markus ********

@Ric *****

I probably can't keep my registration address in Germany, as I would have my centre of life in Thailand. In this respect, it would not be legally permitted to have a registration address in Germany if it is not the centre of my life.

However, I would have no problem paying taxes in Thailand, but it is a completely open question as to what would change for my employer in Germany in terms of payroll accounting. He is worried about formalities and expense. Is he even allowed to deduct income tax as before if Thailand has the right of taxation? What about social security contributions?

24 days ago

Reply to

Markus ********

Michael ********

Thailand adheres to the Double Taxation Agreement (DTA).

This means if you are already paying taxes in another country, Thailand will not impose additional taxes on you.

As of January 2024, Thailand has fully joined the Common Reporting Standard (CRS) International Tax Agreement. This requires all financial activities conducted in Thailand, such as operating bank accounts or financial trading accounts, to be reported to the account holder's home country.

Although Thailand intends to tax individuals who spend more than 180 days a year in the country, they currently lack the mechanisms in place to fully enforce this. At present, taxation is limited to remittances , any funds transferred or deposited into Thailand.

To legally avoid paying taxes in both your home country and Thailand, it is recommended to establish tax residency in a country with more favourable tax conditions.

Here are three popular options:

1.) Georgia: Requires 180 days to establish tax residency, with a 1% tax on foreign-sourced income.

2.) Dubai: Requires 30 days to establish residency, with 0% tax on foreign-sourced income.

3.) Paraguay: Takes 2-3 months to establish residency (previously could be expedited in under a week through an agent), 0% tax on foreign-sourced income.

2 months ago

Ric ******

@Michael *******

What is the advantage of establishing a tax residency in Paraguay? If you stay >183 days in Thailand and Paraguay does not have a DTA with Thailand, I see no use in that.

24 days ago

Reply to

Ric ******

Tom *********

Yes, all foreign income can potentially be taxed in the kingdom as if 2024

3 months ago

Tim ********

Check to see if France has a reciprocal tax agreement with Thailand.

3 months ago

Reply to

Tim ********

What are the tax implications for foreigners staying in Thailand over 180 days?