Q&A Thailand Personal Income Tax on Foreign Sourced Income
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- čas přidán 15. 05. 2024
- In this video, Expat Tax Thailand helps answer some of the common questions regarding Thai personal income tax rules and how they impact expats living in Thailand.
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00:00 Intro
01:07 Disclaimer
01:34 Basic tax filing rules, tax calendar & assessable income
03:15 Taxability of Overseas Pensions
04:35 Double Tax Agreement Webinars
05:19 Personal Deduction
05:50 Medical Insurance Deductions
07:59 Double Tax Agreement Downloads
07:51 Tax Residency
09:03 How Tax Residency is Calculated
09:35 Taxation on Overseas Dividends
10:04 Tax on Unremitted Investment Income
11:03 Investments Income from Previous Years
13:02 LTR Long-Term Residency Visa
13:29 Taxation on Pensions
14:56 Taxation on Overseas Property Sales
15:26 Tax on Capital Gains
17:17 Example Capital Gains Calculation
18:04 Tax Brackets and Tax Calculation Example
18:05 Free Tax Calculation Service
19:31 Pension Income & Step-by-Step Filing Example
22:42 Widowers Pension
23:53 Taxation on Crypto Gains
24:52 Taxation on Remitted Overseas Savings
26:21 Allowance for Children and International School Fees
27:10 Taxability of Funds Sent to Private Companies
27:47 How Do the Revenue Department Know Your Residency Status
28:49 Taxation on Overseas Savings
29:51 Navigating Different Countries' Tax Years
30:45 Outro
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Disclaimer: The information in this video is for informational purposes only and is not intended as professional tax advice. It provides general guidance on tax matters and should not be the sole basis for making personal tax decisions. Tax situations vary greatly and tax laws may change. We strongly advise consulting with a qualified tax advisor for advice specific to your situation.
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Thailand is digging it's own grave
No it's not.
i.e. Until now it was really easy to be non-resident in most countries, live in Thailand (if over 50, or married to a Thai at least), and only be liable to tax if you took it into the country in the same year that you earned it.
So if you transferred in the money that you needed to live on in Thailand for the whole year on the 1st January each year, you could essentially not pay tax anywhere.
Thai's with offshore income were using that trick as well. It's not just foreigners living in Thailand. (And this is where the Thai government will make most of the money, from the Thais themselves - because that will be money that often wasn't taxed already, so will only have Thai taxes applied.)
By getting rid of the requirement that it's only money transferred in during the year in which it's earned, that's no longer an option.
People who are living on pensions, especially from countries in the west if the money was already taxed - are not going to be massively affected, other than the requirement to file - because a lot of the time, as the money was already taxed abroad, there will be very little or no tax due on it in Thailand..
The people who will really be affected are people where the money they were transferring into Thailand was not already taxed. Think money from ISAs or pension tax free lump sums in the UK, or Roth IRAs in the US, - or the sale of your home in the UK (if it was your primary residence) - I'm sure there's similar tax exempt money that might be transferred in from most other countries. The option there is to make sure that money is transferred in on a year where they don't spend 180 days in Thailand. i.e. If you're selling your home and moving to Thailand, move to Thailand after July 5th (or take a holiday abroad to offset the number of days earlier than that), and you don't have to worry about the tax status of any money you take in that same year.
I honestly expect this to be a necessary precursor to having a proper digital nomad visa - because of the aforementioned 1st January rule before this year, it would be far too easy for people to not have paid tax anywhere if working remotely from Thailand under the old rules.
When did Thailand change the tax laws?
I think there might be a problem with the calculation you use at 17:58. Assuming remittence of the full $310,000, the gain is only 29.03% (90/310=.2903) of the total remitted but you calculate that 41% of the amount remitted will be tax assessable income. This seems to lead to a tax on gains and part of the original capital. Is this correct? The question is not capital gain % which is 40.91%. The question is what % of remitted amount should be considered assessable income and subject to taxation. Under your method , assuming a 100% gain then entire amount remitted (original capital + gain) would be subject to tax which doesn't seem proper. It effectively doubles the capital gain tax rate. And under your methodology, consider the subject to taxation amount assuming a greater than 100% capital gain. It apparently leads to a problematic result.
Hi thanks ....the "private school deductions" appear to have a maximum deduction of 100k THB, is there anyway or anyone to clarify this?
Child deduction appears to be 30k per child, also unsure if this number is correct!
My sons schooling is 300k ish per annum hence the question as a large amount to remit and subsequently pay tax on!
Thailand solved their currency crisis ingeniously in 1998. This just undid 25 years of ingenuity. Bizarre.
TL;DR: Way too complicated. Good luck, Thailand!
Excellent explanations! Thank you sir.
On the Singapore capital gains case [15.35], as he lives full time in SG, when he sold the assets, it does mean that any remittance to TH of these gains in any year or even after he returned to TH is not taxable, right?
This only muddies the water. What I am hearing is that my IRA in the US which pays me a disbursement into my bank each month after they deduct Federal and State tax is going to be subject to Thai tax if I transfer some to my Thai bank account?
You need to study the Double Tax Agreement (DTA) between USA and Thailand. Most likely the taxes you paid in USA will exceed Thai tax burden and therefore will be no Thai tax liability but you must read DTA.
I haven't a notion of filing a tax return in Thailand
If I paid 27.5% capital gains tax and I want to spend over 6 months in Thailand do I have to pay even more taxes just to bring that money in and spend it there?
I have sent an email to your Q&A. I hope you will reply as promised. Thank you.
I tried to get a TIN recently and was told to come back at the end of the year with a bank statement..
I sold my home in Australia in 2023 and the funds went into the bank in 2023. If I stay in Thailand my 180 days will be up in about July. Towards the end of 2023 and during the past couple of months of 2024 I have transferred some of the funds to purchase land and then intended to bring in further funds in 2024 to build a home. Will those funds I bought in during 2023 and so far in 2024 be taxed once I become a tax resident of Thailand. In Australia being that the house was my principle place of residence there is no capital gains. I know in Thailand there is capital gains on the sale of a property. Please help
A Thai Tax expert said that retirees from 65 can deduct another 30‘000 baht.
Quck question... is the 180 day qualification calculated as a consecutive or cumulative total within the 12 month period. For example, if a person left Thailand for a period of time prior to accumulating 180 days would that exempt them from tax for that year or is the rule simply a total of more than 180 within the calendar year?
calculated on cumulative total within the calendar year
Apparently if you have a "gap year" from Thai residency, you apparently only have to pay taxes from outside Thailand if you have no other tax residency in that year.
Can you tell me if I come to live in Thailand in 2026 and I remit money in 2025? Will this money be taxable?
I think there might be a problem with the calculation you use at 17:58. Assuming remittence of the full $310,000, the gain is only 29.03% (90/310=.2903) of the total remitted but you calculate that 41% of the amount remitted will be tax assessable income. This seems to lead to a tax on gains and part of the original capital. Is this correct?
Thank you for your feedback, calculating capital gains can be complicated and we are here to help. Your calculation formula is not correct, it should be divided by the initial value not the current value. To help explain this, the formula is below. Feel free to send across your actual situation and I am more than happy to show you the calculation and formula for your own capital gains.
Capital Gains Percentage= (Current Value−Initial Value)/Initial Value x 100%
Initial Value (Invested Amount): $220,000
Current Value: $310,000
The capital gains percentage is calculated as:
Capital Gains Percentage
=((310,000 − 220,000)/220,000)*100 = 40.91%
Therefore, the capital gains percentage in our example is approximately 41%.
@@ExpatTaxThailand The question is not capital gain % which is 40.91%. The question is what % of remitted amount should be considered assessable income and subject to taxation. Under your method , assuming a 100% gain then entire amount remitted (original capital + gain) would be subject to tax which doesn't seem proper. It effectively doubles the capital gain tax rate. And under your methodology, consider the subject to taxation amount assuming a greater than 100% capital gain. It apparently leads to a problematic result.
Inheritance from parents is taxable in Thailand?
No inheritance tax on the estate of a spouse/partner in Thailand and no inheritance tax for anyone in Thailand unless the estate exceeds 100,000,000 baht.
No