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Answered2 years ago

Will my German company have to pay taxes in Thailand if I hold a DTV visa and work remotely?

Anonymous *************
asked Nov 5, 2024
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If got DTV Visa and go to Thailand to do a remote work there. My company in Germany have to pay TAX in Thailand during 5 ys or not?

I am Just worry abt TAX
Answer summary
The user is concerned about tax obligations when working remotely in Thailand on a DTV Visa while being employed by a German company. Multiple commenters clarify that if they stay in Thailand for more than 180 days, they may be considered a tax resident and have to file taxes in Thailand; however, due to the Germany-Thailand Double Tax Agreement, they would not face double taxation if taxes have already been paid in Germany. It is strongly recommended to consult a tax advisor for personalized guidance.
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Ryan *******
Ryan *******
With a tax treaty, you're definitely okay, but I struggle to see how the Thai authorities can levy any taxes on income foreigners receive in their home country, provided you honor the 180-day rule. It's not doable, so even without the treaty I'd think you are okay. This visa is not issued to create double-taxation issues. Mind you, though, they say "can be liable" (Thai embassy in Norway), so best to cover your bases if you come from a country with no tax treaty with Thailand.
Sefton ********
Sefton ********
Consult a professional, some of the comments here are just incorrect and guesswork.

Its far too complex to simply answer yes no based on the information given.
Dom ********
Dom ********
You’re ok as there is a Germany - Thailand double tax agreement which prevents you from paying double tax. You can continue to pay tax regularly in Germany 👍
John **********
John **********
OK you need to ensure that you don't create any relationships between the German company and a Thai company but as your on a DTV that should not be possible anyway. For you personally if you are Thai tax resident and bring income into Thailand during a tax year you will have to file a Thai tax return. You may or may not have to pay tax
Mateusz *******
Mateusz *******
If you spend more then 180 days in the country, you can become tax resident in Thailand and pay taxes here. How it looks like in your country depends on the country and your specific situation. Talk with tax advisor in your country and later in Thailand
Mike **********
Mike **********
You're responsible for the tax, not the company. Tax treaty typically means you owe here if over 180d but home country would reduce the amount you owe by the taxes you paid. You're best off consulting an average accountant
Kevin ********
Kevin ********
Pay tax where you earn which is Germany. I guess you could opt for the second option but it would just mean more paperwork anyway.
Rene ********
Rene ********
Germany and thailand have tax treaty. If paid tax in germany you dont need to pay in Thailand
Sefton ********
Sefton ********
@Rene *******
not fully correct
Rene ********
Rene ********
@Sefton *******
yes it is. There is no way that you will get double taxed with already taxed money from GERMANY
Sefton ********
Sefton ********
You said it was impossible.. I said it is not impossible and gave you an exact scenario where Thai tax is higher than german tax, one entirely possible for overseas nomad freelancers who may not be big earners and simply supplmenting travel income. This is without even digging into personal allowances which increase the bias.

And the DTV is availabe to people with 500k saved, nothing to do with earned in the last 6 months. Mixing up visa qualifications with tax obligations is just grasping at straws.

Simply put you are wrong and have been shown to be. Tthe lower earners will owe a highe rate in Thailand than they do in Germany.
Rene ********
Rene ********
@Sefton *******
do you even make sense to yourself? Less than 10,000 EUro in Germany in a year? Dude our government pays homeless people more than tat per year! You dont have to work for even get this kind of money...

1. IF YOU MAKE ONLY 10k EUR A YEAR you arent even allowed for the DTV visa since you have to show your income of 500,000 Baht within the past 6 months. If you show them a company with 10,000 Euro profit per year they will laugh and you and simply decline you

Come with realistic and valid points or just stop arguing
Sefton ********
Sefton ********
@Rene *******
So if you sell 599 eur crypto, it's not taxable in Germany and is taxable in Thailand. So you would have a Thai tax liability.

Germany may have higher final tax rates but Thailands higher bands start very low.. Less than 10k EUR is 0% in Germany where in Thailand taxation starts at 150k. and its 20% at only 750k.. Theres plenty of income points where the german rate appears lower than the Thai rate and could create a liability to top up to the Thai rate. Earning 10,500 EUR in Germany appears 0 income tax liability but Thailand would have 5% on 150k -300k and 10% 300k - 380 (+- depending on Fx rates).

You don't get to use another country's allowances under the DTA you pay the highest rate from either system often with the lower portion to one and the higher to another.

As to what happened in the past, this is the first year since the rule changes starting jan 1 2024, so what happened up to now is largely irrelevant.

My predication is still that it will be too hard to implement and will be largely ignored but the claim that 'if you pay in germany you cannot have a Thai liability' is not correct.
Rene ********
Rene ********
@Sefton *******
crypto is in germany income tax so also 42 percent. Everything below 600 EUR is tax free.

You dont make much sense at all. No single german citizen will be EVER double taxes in Thailand. I live here 7 years. Seems like you just like to have the last word while having 0 knowledge
Sefton ********
Sefton ********
@Rene *******
What's Germany's crypto tax ?

Thailand has both a transaction and call gains first in first out. Making it very punitive.
Rene ********
Rene ********
@Sefton *******
see you dont know what you talking about. There is NO case where you would pay less tax in germany than in thailand.

No german tax resident ever paid taxes in thailand, bc our taxes are ALREADY so much higher. And the double tax treaty is exactly protecting us from this…

Stop discussing where is no need for it
Jim ********
Jim ********
@Urs *******
Not correct. Retaining Tax Residency in your home country means you do not pay any tax in Thailand provided your "permanent home" is in your home country. Tax credits only work when you have sole Thai residence but earn money in another country. The DTA provides a tie-break formula which decides residency
Sefton ********
Sefton ********
@Rene *******
that wasnt the claim.. The claim was if you paid tax in germany you wont pay ANY in Thailand.

Where the rate is lower in Germany you certainly CAN pay taxes here as well !!
Urs ********
Urs ********
@Jim *******
Except the tax rate is lower than in Thailand, In this case you pay the difference in Thailand.
Jim ********
Jim ********
@Rene *******
Correct. If the OP retains German Tax Residency, tax is only payable in Germany.
Urs ********
Urs ********
@Rene *******
If you stay in Thailand for more than 180 days in a calendar year, you must file a tax return. If the tax rate in Germany is lower than in Thailand, you must pay the difference in Thailand.
Jim ********
Jim ********
@Urs *******
Not correct. If the OP retains German Tax Residency and meets the criteria in the DTA, there is no requirement to file a tax return. At the very most a tax residency certificate from Germany will suffice
Urs ********
Urs ********
@Jim *******
That's why I gave him the advice to get information from the relevant tax authorities.
Jim ********
Jim ********
@Urs *******
The information being spouted on Facebook is from the so-called "tax experts" who are touting for business. Information from the tax department is contained within the tax code and the relevant DTA
Urs ********
Urs ********
@Jim *******
You may be right, but I got information that anyone staying in Thailand for more than 180 days is required to file a tax return, even if their income is already taxed in their home country and are therefore tax exempt in Thailand.

Information we get from the Thai authorities are sometime confusing and not up to date.
Rene ********
Rene ********
@Urs *******
trust me, tax in germany is WAAAY higher.

And yes thats correct. Im german myself
Urs ********
Urs ********
@Rene *******
The question now is what exactly you have to submit to the Thai tax authorities if you stay longer than 180 days a year. According to my information, you have to fill in a tax return anyway even if you are not liable to pay tax. But maybe there are different rules now and a tax statement from Germany is sufficient. It would be a good idea to ask the relevant authorities for advice, especially before you extend your 180 days at the immigration office.
Urs ********
Urs ********
@Rene *******
Wow! That's a lot. So your income is not taxable in Thailand.
Rene ********
Rene ********
@Urs *******
income is taxed 42 Percent for single taxpayers. We have one of the highest tax in the world atm
Urs ********
Urs ********
@Rene *******
Is it really true that taxes in Germany are much higher than in Thailand?

An average German salary is taxed at 30% in Thailand.
Urs ********
Urs ********
@Rene *******
Okay, if the tax rate in Germany is higher, your income is not taxable in Thailand.
Ju ****
Ju ****
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