New worldwide income tax proposed for residents in Thailand

[Pantherz]

https://www.bangkokpost.com/business/general/2805305/new-overseas-income-rules-proposed
 

If this policy is implemented, living in Thailand could become very unattractive for expats. They are now considering taxing not only income brought into Thailand from abroad but also income earned abroad that is not brought into Thailand. 

In practical terms, this may be difficult to enforce. However, it is not a positive development, in my opinion.

[bkkmfj2648]

Dear Pantherz,

I totally agree with your assessment.

I also found this recent iteration of the proposed tax revenue collection ideas as absurd.

Back in 2020 and 2021, when I was studying where do I want to retire in 2022, the positive tax climate that Thailand had was a BIG reason as to why I chose Thailand.

Now with these new tax proposals - Thailand is becoming less appealing - as being a USA citizen, we already suffer from Citizen Based Taxation - which is already global. So to add Thailand to this list would just be too excessive in my opinion.

So, I have started to research possible ideas on how to mitigate this - by finding ways to not be a tax resident in Thailand by dividing my residence between:

• 4 months in Thailand,
• 4 months in Da Nang, Vietnam,
• 4 months in either Penang, Malaysia or in The Philippines - I have not yet been to either so I will work towards exploring these 2 areas before the 2025 tax year.

Any other ideas to consider?

[Pantherz]

3 minutes ago, bkkmfj2648 said:

• 4 months in Thailand,
• 4 months in Da Nang, Vietnam,
• 4 months in either Penang, Malaysia or in The Philippines - I have not yet been to either so I will work towards exploring these 2 areas before the 2025 tax year.

All good options. In most cases, as long as you stay in the country for less than 180 or 183 days per year, you avoid being classified as a tax resident. You could also consider some time in Bali and Taipei?

[bkkmfj2648]

Published today in the Bangkok Post. Not much new details posted, but perhaps some tax clarifications.

https://www.bangkokpost.com/business/general/2818689/navigating-new-foreign-income-rules

 

[vinapu]

On 6/6/2024 at 10:12 AM, bkkmfj2648 said:

- as being a USA citizen, we already suffer from Citizen Based Taxation - which is already global.

Fair . Being citizen and thus subject of protection by most powerful nation on Earth  should have it's price

[Keithambrose]

As I mentioned earlier, I have a friend in Bangkok, who was a tax lawyer in NY. He says that the double taxation treaties should kick in. He personally has  a 'wealthy foreigner ' visa, which means he is not subject to these proposals. He says it's much cheaper than the elite visa.

[bkkmfj2648]

Hi Keith.

For us not as wealthy as your NY friend we will need to look into other alternatives.

The strategy discussed in the below video probably will become the most popular tax minimalization strategy for us expat tax residents in Thailand.

 

 

[PeterRS]

I have heard this morning from a long-time friend presently staying in Tokyo but who has been spending 2/3rds of his years recently at his condo in Thailand that the government has done a U-turn on taxing funds remitted in to Thailand. According to his source, the government will not now consider taxing foreign income in 2005 and 2026. Apparently a decision was made a couple of weeks ago.

I am reluctant to post on the basis of one source, but if true it will clearly be of benefit to many. Has any other member heard this news?

[TMax]

I did read something about it in the Bangkok post and The Nation a short while back but it did state for Thai Nationals so I guess we will have to wait and see what comes out officially with regards to expats.

The Nation on tax break

[MaxBKK]

Tax residents  - 180 days or greater per calander year. Citizenship not relevant. I wouldn't be surprised to see further changes on tax rules & regulations. 

[PeterRS]

The comment I made above from my friend presently in Tokyo coes from a German site Der Farang dated 24 May. I'm sorry i do not have it to hand.

[MaxBKK]

It's definitely confusing because while the Revene Department has now recreated a way to remit income from abroad tax free for 25 & 26, ongoing discussions continue regarding a shift to taxation of worldwide income. 

Probably a lot of Internal polical struggle over this issue....