Now China wants its tax share for overseas income

From Pattaya Mail

By Barry Kenyon

Thailand is far from unique in chasing up taxes on financial resources held overseas. The Straits Times reports a Chinese crackdown on overseas investments such as cryptocurrency, offshore banking and stakes in Hong Kong and US international companies. Peter Li, from the Zhong Lum Law Firm, commented that Chinese tax authorities are now targeting income received from outside China as tax revenue has fallen by 2.6 percent and land sales are plummeting by 25 percent.

Unlike Thailand, China does not distinguish between assessable and non-assessable overseas income but does honor its double taxation treaties with over 100 countries. Moreover, China is interested principally in the ultra-rich, targeting high-worth individuals with at least US$10 million in assets abroad. The net also – theoretically – covers foreigners resident in Thailand for over 183 days in a year, but the government has so far asked only Chinese citizens to self-assess their tax obligations. In some cases, they have been summoned for meetings with the tax authority.

Whilst the Chinese initiative is certainly different from the Thai Revenue Department (TRD) policy, it does illustrate the common trend to boost revenue across the Asian continent. Meanwhile, Thailand’s foreign retirees – living mostly on already-taxed pensions – say they are confused by the inactivity or lack of awareness in many provincial tax offices. Several European expats on the ASEAN NOW forum state that they have been told by TRD officers that they don’t need a tax identification number if living on foreign pension income. No worries.

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