How Thailand’s Tax Changes Could Affect You

[@johnblack621]

Thank you for your clear briefing. There seems to have been a lot of fear mongering over this issue. As a retired Australian currently in Thailand, I receive payments from my Australian super fund which I then transfer to my Thai bank account each month. Tax on super funds in Australia is mostly paid as the money is put into the fund over an individual’s working life. When the money is withdrawn in retirement, there is usually no tax (it has been paid over those preceding years). So in Australia, I pay no tax. Further, the Double Taxation Agreement (DTA) between Australia and Thailand states “…pensions and annuities paid to a resident of one of the Contracting States shall be taxable only in that State”. The question then becomes what is the definition of “resident”. Here the Thai authorities have arbitrarily adopted a six month stay in Thailand as meaning you are a “resident for tax purposes”. This totally disregards the definition in the DTA. The latter considers a range of factors. For example, it can come down to the location of a person’s “personal and economic relations”, including citizenship. The authorities may have no intention of pursuing pension and annuity payments. (I note you seem to exclude these as taxable in your commentary). If pensions are excluded then we need not bother with definitions of “residence” for these recipients. I have seen no clear discussions on these issues. Instead, I have seen some unprofessional fear mongering by consultants looking for work. (No offence, your commentary is the most level headed I have heard). Thank you again.

[@richardhaughton4303]

Clear and precise, thank you so much 😊

[@NomadCapitalistRD]

You’re welcome 😊

[@me-qg2mt]

I've watched several videos by by Thai tax experts over the past week. Not one of them have said anything about taxation on social security from the US. All of my retirement income that I bring into Thailand is from my U.S. Social Security retirement account. I have read the comments from several non tax experts saying that it is exempt. I would like to hear from a Thai tax expert if in fact it is exempt.

[@davidlinscheid2618]

THAILAND-U.S.A. DOUBLE TAXATION AGREEMENT ARTICLE 20 Pensions and Social Security Payments 1. Subject to the provisions of paragraph 2 of Article 21 (Government Service), pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State. 2. Notwithstanding the provisions of paragraph 1, social security benefits and other similar public pensions paid by a Contracting State to a resident of the other Contracting State or a citizen of the United States shall be taxable only in the first-mentioned State. ARTICLE 21 Government Service 2. Any pension paid from the funds of a Contracting State or political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority, shall be taxable only in that State.

[@joec3390]

Thank you for this video. The thing I'm trying to understand about this new law is whether it is a taxation on ALL worldwide income, regardless of whether it goes into Thailand OR if it's ONLY income brought into Thailand. Like if you have a company and/or other investments outside of Thailand (and the money is NOT brought into Thailand), will that be taxable as a personal tax resident in Thailand?

[@LuiSeD86]

No. Only remitted money will be taxed, that's one of the few things that are 100% confirmed.

[@joem0088]

There is NO NEW LAW. What changes is the interpretation and implementation of existing law. Until they send you tax forms in the mail, they are not collecting. Relax.

[@louloufarangset]

start 1/01/2024 ..only use ATM for withdrawal and prepare to check out 100 pour cent ...very bored from the land of smile

[@bigradwolf5001]

@@louloufarangsetWhat's maximum amount for ATM withdrawal in a day?

[@JPs-q1o]

It's another member of Andrew's ugly smart harem 😂 😂 😂

[@davidwalden2887]

I live in Thailand mostly I'm Australian. I earn about Aus $4000 P/M or Bht95000 P/M but I keep all my pension money in Australia and access my funds by ATM in Thailand as I require them, none of this money is taxable in Australia, none., I get the lot I'm a single mature Australian man. How can Thailand tax me?. It seems it would be very difficult, I expect if it is so I will spend less than 180 days in Thailand perhaps 3/4 months in the Philippines and maybe 3 months in Malaysia and now and again back to Australia. Perhaps Thailand will be shooting themselves in the foot.

[@johnblack621]

David, I am in the same boat. You might want to read my comment of today (22/2/24). I think we are ok but I don’t feel like risking a big tax bill so am already looking at my travelling options. In my limited experience, so much depends on which officer you happen to get on the day (when it comes to dealing with Thai bureaucracy). John

[@osons3698]

Watch for the new information sharing with your home country. I know people that spent more than 179 days in another country. Due to information sharing, they were forced to sell all there assests in the home country. Whether they actually paid taxes in the other country, they were considered tax residents.

[@m.s.7711]

As they have started to ask for tax id # (even from your home country) when opening bank accounts, i assume, if money is remitted into Thailand, they just will deduct the taxes. It is then on you to claim it back if you are not affected, e. g. as you are less than 180 days in TH. We just have to wait for 2-3 years how all will be applied.

[@bigradwolf5001]

No, self reported, not to be deducted/withheld by Thai bank account upon remittance. Nothing to claim, only to pay.

[@woodyexplorer]

I believe they are talking about the overseas income that incurs by Thai money that goes out to earn overseas income.

[@Aidan_Au]

Thanks Jovana and the team. Thailand is popular. Andrew likes Malaysia too

[@thesheperd7567]

Transfer pension into my account, wife's account and daughters account. Remain under the 150,000 baht free threshold. I'm also from a double treaty country but the usual confusion applies. Finally I'm under my countries tax threshold so don't pay tax at all. I certainly won't pay tax to a foreign country where I am a tourist, a guest with no government services, healthcare or political rights. It's cheaper and easier, hassle free to move next door and visit Thailand under the 180 days rule. How can a Thai audit multiple languages?

[@DerrickWe]

The issue is if they want to go after foreigners as they are doing with the TM30 and directly targeting them. The whole remittance thing is the issue even if you are remitting savings, what is the definition of savings, the one-year rule is gone so any money coming into the country at any age that was once income is taxable from how I am reading it.

[@carlobaldassarre76]

pay the tax or leave ..

[@bigradwolf5001]

Correct. Except those brought in today or prior to year-end. When I saw Jan 1, 2024, I started moving my funds in to Thailand then bought my condo. Now I'm set.

[@jamalgreen3056]

I found this out weeks ago Thailand will be increasing there taxes up to almost 40% by next year in 2024

[@benguenther1162]

Would Canadian incomes from pensions & annuities be taxed when residing in Thailand on a Long Term Resident(LTR) visa, with the full intentions of paying taxes in Canada on those same incomes? Thank you for your kind help.

[@bigradwolf5001]

It does not look at visa but on 180 days at least of total stay in Thailand in tax year. So if you have LTR visa but stayed only 2 months, you are exempted from the rule. So it's really the 180 days stay that is key regardless of visa type.

[@Mark-yo5ue]

LTR visa holders are 100% tax exempt by royal decree. Not sure whether you need to file a tax return in Thailand. I have an LTR and not at all concerned about taxes in Thailand.

[@Mark-yo5ue]

@@bigradwolf5001this is not correct. LTR bias holders are tax exempt in Thailand (for income earned abroad).

[@joachimguth6226]

The thing is that savings result usually from income. So if I saved my income 3 years ago, how will it be treated?

[@bigradwolf5001]

Savings brought in for the tax year regardless when earned less tax credit = taxable liability as per Thai rule. So as an example, $20K brought in in 2024 in Thailand from savings (not from pension), would be deemed taxable "income" by Thailand new rule. The tax credit there as a Head of Household (since I am one) based from current US tax bracket will be: 10% of the first $15K or $1.5K, and 12% of the remaining $5K or $600 for a total of $2.1K tax credits. When I file in Thai, the $20K is taxed 5% on first $4K or $200, 10% on the next $11K or $1.1K, and 15% on the last $5K or $750 for a total of $2.05K. It would look like this: Thai tax on $20K = $2050 Less US tax credit = $2100 ========================== Tax Liability = ($50) or Zero tax liability I'm not an expert but this is how I understood it. I also simplified the calculation for illustration purposes only and converted the baht on current rate which would change of course on date of filing. Tax brackets also change over time as well as civil status which also affects the tax rates (e.g. singe to married means lower tax rates per "income" bracket). Now what about the intent of the rule? They said it was to tax rich Thais who have opened bank accounts outside like in HK or Singapore and put there salary there to age 1 year and bring it back to their Thai account for no tax. Well now, when they bring those savings / "income" back, they will be taxed full as these Thais are neither citizens of HK nor Singapore to have a "tax credit" basis for.

[@joachimguth6226]

@@bigradwolf5001 thank you for your effort to explain with an example

[@albertinsinger7443]

Thai tax rates are not competitive. 10% for Andorra in Europe, 15% in Hungry. Luxembourg and Malta very low rates too. And you are living in Europe not smog filled Chiang Mai.

[@videohooligan]

Does this mean if your country has a double tax treaty with Thailand your remittances into Thailand will not be taxed?

[@parttimeinvestor]

As I understand it. If you pay taxes in a country with a tax treaty with Thailand your remittances are not taxed. Also if you live of a pension from a country with treaty as well

[@abruzzotours7658]

thank you :)@@parttimeinvestor

[@darwinjina]

Thailand has a 'double tax treaty' with several popular western countries so I would expect that she start off with this first if that was the case.

[@doyoueatrocks]

Okay, here is he plan, #1 Fly into Thailand on a tourist visa send a million dollars and buy a condo, then fly out. Do this 3 or 4 times and fly out, Stay out of Thailand for 1 calendar year and then get residency and move into Thailand letting your foreign money stay foreign. #2 a little dodgy, register a Singapore company send money there and spend on your Singapore company bank card that may or may not be in your name as Singapore companies can have nominees and I’m sure someone hat ‘works’ for the company can have an authorized card still under the directors control, someone that will never go into Thailand themselves 😂😂😂😂. I cannot guarantee that these are legal or undetectable… in fact they are probably not

[@doyoueatrocks]

Number 3. On a tourist visa open a bank account and leave and remit your billion dollars and get residency the next year and live off that money for the rest of your life untaxed.

[@ChristianRauber]

Any idea how TH will get infos on your Income worldwide? Most Thais won't find your country of origin on a Globus.....

[@louloufarangset]

dreamer ...as per now the exchange of full bank informations are displayed worlwide ..my country know about my thai bank account and now even the exact amout of balance . all the infos are shared between the 2 countries ..only one option ...TO GO BACK HOME ...100 pour cent ...

[@ChristianRauber]

@louloufarangset I have no idea about your citizenship. Concerning me if I move abroad I only have to tell the authorities where I am going to if I still want to vote....

[@Nautilus1972]

They already tax those of us working here as residents. So give us residential status then! Crypto can help here. You don’t have to store or move money in banks. Crypto solves everyone’s problems. Be your own bank.

[@Karg537]

Careful with crypto. Tax evasion and worse still get charged under money laundering, the punishments will be no joke.

[@brucetillerson3329]

Its still on money remitted to Thailand only so should not be that difficult to manage. But good to know about the change

[@AusValue]

not true. tax on worldwide income

[@brentonlett3417]

@@AusValue She says remitted into Thailand. I would say if you have savings you can prove from years before 2024 you can bring those in untaxed as she says. Who's to say an expats earnings from rent and interest ect is part of any savings you bring over? For arguments sake you set up a bank account in your home country where your rental income goes into and you leave it there. To live in Thailand you transfer over savings to live on. You can prove this by bank statements. Of course this isn't going to work if you rely on rental income to live in Thailand. Another thought I had was what if I was was to pay my landlord here their rent, as I rent in Thailand, straight from my overseas bank directly into theirs, thus not going through my Thai bank account, how would the Thai tax dept know I did this? What about if I use my foreign credit card to live on transferring funds to it directly from my overseas bank account? Credit card is funds credited and not owed so how can thai tax dept track that with the transaction taking place in an overseas account to an overseas credit card when cards monthly payments are made? Also there is 0 tax to be paid in Thailand on income under 150,000 baht a year. You could bring 150,000 baht over to live on, pay rent direct from overseas account and use credit card for other transactions. I don't know what the implications would be for doing this its only my thoughts.

[@magicfire1]

@@AusValue Not true.

[@magicfire1]

@@EastAsianExpatRentals Tax on all your worldwide income remitted in Thailand.

[@AusValue]

@@magicfire1 they have recently changed this, lots of expats are talking about it and saying they will leave Thailand now

[@louloufarangset]

in any case i will move on .goodbye THAILAND ..

[@jeanschaeffer4225]

WHAT A VOICE,,, BYE

[@georgequek7996]

Thailand must stop dual citizen or dual passport in the Kingdom.🫂🤔

[@georgequek7996]

@@polupopus5836 good for unwanted single blondie woman in europe or usa man🎅

[@emptyemptiness8372]

Why? You want to deny my children the right that others have?

[@darwinjina]

@@polupopus5836 I'm guessing that it may affect taxes? I know from my coworkers from India, that India really makes it hard if you want to have dual lifes.

[@robertgroves391]

Why???

[@georgequek7996]

@@robertgroves391 Disease-X guys!!!