Lawyer downplays expat visa awards versus personal taxation worries

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From Pattaya Mail

By Barry Kenyon

Thai international law attorney Victor Wong doubts that the major concern of either Thai immigration or the Thai Revenue Department is the plight of retiree expats on fixed incomes. He told Pattaya Mail that TRD was aware of billions of baht imported dubiously into Thailand via off-shore accounts, cryptocurrency transactions and untaxed income from overseas corporations. Both Thai citizens and foreign speculators were involved.

As regards Thai immigration authorities, their main concern is visa-related regulation and investigations into business fraud such as unauthorized working, use of nominees as shareholders and illegal short-term renting of condominium units. “In spite of rumors, I have seen no evidence of TRD seeking to identify expats through their visas except those who are accused of a criminal offence,” said Victor.

He said that TRD had introduced the policy (a reinterpretation and not a change in the law) that “assessable” overseas income was subject to taxation from January 2024, but there were many exceptions. Thus foreigners living in Thailand for less than 180 days in the calendar year are exempt, as are those who transferred less than 120,000 baht (around US$3,500) or those living on historical savings (money transferred on or before December 31 2023).

Double taxation treaties are also relevant according to Professor Suthasinee Piriyakijkomol, a tax auditor and associate judge of the Labor Court. “The agreements differ country by country, but my advice is to keep a detailed record of tax paid in the home country as this can be used, if need be, to offset any future TRD demands,” she said. She agreed that some agreements were more detailed than others on personal taxation. For example, the American treaty is more detailed on US pension or social security income, and where it should be paid, than the British one.

Victor said that one of the biggest loopholes in tax collection is cryptocurrency which can lead to investment fraud, mule accounts and money laundering. For example, traders change currency to stablecoins, then quickly transfer that to a digital asset exchange outside the country and finally change it to cash again. “The point here is that these crimes are rarely, if ever, connected to retirees living out their later lives here. But they consume a great deal of Revenue and police time.”

Continues at

https://www.pattayamail.com/business/thai-lawyer-downplays-expat-visa-awards-versus-personal-taxation-worries-495793