Popular Post reader Posted December 29, 2023 Popular Post Posted December 29, 2023 From Pattaya Mail By Barry Kenyon The tweak in the Thai Revenue rules, affecting both Thai and foreign tax residents, means that income derived from assessable foreign sources is to be taxable from new year’s day 2024. The exact impact and scope remain fog-bound, but it is no exaggeration to say that the move has put the cat firmly amongst the expat pigeons who spend six months or more in the kingdom in a calendar year. The fiscal move may indeed be aimed at wealthy Thais with offshore bank accounts or profits from overseas businesses, but the typical expat risks being trapped in the crossfire. The Thai tax authority is still mulling the detail. Officers know that whatever tax is due on cash transferred to Thailand during 2024 won’t appear on an individual’s tax return until 2025. So no hurry in their eyes. Most expats, of course, have barely heard of a Thai tin (tax identification number), let alone filled one in. And that’s part of the problem. Many older expats hate the idea of being ensnared in Thai financial bureaucracy and, potentially, needing to hire a tax lawyer. Or, of course, leave the country for pastures new. It may not come to that. For example, the Revenue has not issued a ruling on whether foreign income (such as pensions) are taxable under the enforcement decree. It may come down to the detail in double taxation agreements which Thailand has made with scores of countries. But they are all different in scope and most readers will require an expert to decipher the meaning of some of the clauses. Many Bangkok-based accountancy and legal firms are already anticipating a huge rise in the number of troubled clients. What is at stake, of course, is Thailand’s future as a retirement base. Over the years, Thailand has built up a reputation as a safe and attractive home for expats. Many have bought condominium units or set up a company to purchase a house. In future, there is no guarantee that foreigners sending money for these purposes won’t be taxed on the lump sum. If so, the prospects for the Thai property market might well take a downward swing without precedent. Whether the Thai government has thought out all the consequences of the Revenue decree seems unlikely. The Thai Board of Investment has suggested that the solution is for foreigners to apply for the 10 year golden visa, Long Term Residence, as this permits most overseas income to be brought into Thailand without any taxes together, as well as granting other financial and immigration perks. But the LTR isn’t available for retirees unless their annual income is at least US$80,000 a year or they are prepared to invest mega-cash in Thai banks or securities. There is no shield from the Revenue in Elite visas or one year extensions of stay based on retirement, marriage etc. Although no formal government statistics are issued, there are believed to be 400,000 to 500,000 longstay foreigners in Thailand who could be affected by the latest Revenue move. Some of these hold authorized work permits and already have a tax identification number for their local salary. Others are freelancers conducting online activities and earning from international clients. But most are older expats, retirees existing mainly or solely on pre-taxed pension and social security payments. The challenge for Thailand now is how to maintain competiveness in the global market. In the meantime, the internet is awash with wrong information such as a fabricated claim that retirees have to prove to immigration that their 800,000 cash lump sum has already been taxed in the home country or that all visa holders over 50 must have a tax identification number when renewing their annual permit. Optimistic bloggers say that the whole Revenue business is a chimera and that nothing will happen in practice, whilst pessimists predict that any foreign cash will have 35 percent automatically deducted on arrival. None of that is true, but continued silence about the government’s intentions can only boost falsehoods, innuendos and gossip. That’s no way to run a taxation system or to market a country to the outside world. TMax, tm_nyc, Phoenixblue and 4 others 3 4 Quote
reader Posted December 31, 2023 Author Posted December 31, 2023 Comforting words from about foreigners and Thai income tax From Pattaya Mail By Barry Kenyon A new YouTube video posted by accomplished speaker Hailey Hicks, director of HH Premium Visa Consulting and based at San Diego State University in California, has offered to Thailand’s worried expats almost 100 percent reassurance that they need not sweat. She also actively markets the Thailand Elite visa, whilst pointing out that this gives no special protection on the income tax front. Under the heading “5 Myths about Tax in Thailand”, she soothingly promises that the January 1 starting point won’t apply to most expat tax residents, namely those living in Thailand for at least six months a year. They won’t be taxed on money sent from one personal account abroad to one in Thailand as, we are told, that is simply moving money between accounts and is not “assessable” income. Thus they won’t be taxed on cash sent to purchase Thai property. Nor will overseas pre-taxed pensions be taxed in Thailand, possibly because of double taxation treaties (which are very briefly mentioned). The video argues that the new regulations are designed to catch rich Thais and a handful of foreigners who have been exploiting tax loopholes in the past. But is the soothing message actually true? We all hope so. But it has to be conceded that there is no verifiable documentation provided, simply a screenshot of the bald Thai Revenue announcement last September. And that won’t get you very far. Significantly, Thailand Privilege (which owns Elite) stated in November 2023, via advisors Hawryluk Legal, that “currently there is no distinction between earnings and savings for tax purposes,” which suggests a very different interpretation from that in the San Diego video is possible. Perhaps Hailey knows something the rest of us don’t. But it may be wiser to wait and see. Quote
Marc in Calif Posted January 1 Posted January 1 On 12/31/2023 at 5:39 AM, reader said: Comforting words from about foreigners and Thai income tax From Pattaya Mail By Barry Kenyon A new YouTube video posted by accomplished speaker Hailey Hicks, director of HH Premium Visa Consulting and based at San Diego State University in California... Hailey Hicks is definitely not based at San Diego State University in California. She's been a full-time resident in Chiang Mai for many years. She worked at SDSU for 11 months in 2015-2016 while she was finishing her four-year degree there. If she claimed to the Pattaya Mail reporter that she still has a SDSU "base," then she was simply hyping her credentials like other hucksters do. tm_nyc and vinapu 2 Quote