Post by chiangmai on Sept 18, 2023 17:28:18 GMT 7
Caveat - up front, I don't understand what all the answers are here so let's start the ball rolling and try to find those answer:
As you may have seen from the lengthy thread over at the other place, and from reading the papers, a new tax law takes effect 1 January 2024 whereby all income from overseas, by Thai tax residents, is taxable in Thailand. The big change here is the law no longer differentiates between savings and income, nor does it care about the year the money was earned, if it is imported funds, potentially they is taxable here.
The thread across the street is confusing, even though several people claim to have nailed the answer, I don't think they have. First of all, the easy part:
A tax resident of Thailand is anyone who lives here for more than 183 days per tax year, regardless of whether they have a Thai tax ID or not, regardless of whether they file a Thai tax return or not.
Also easy is the fact a Double Tax Agreement (DTA) exists between Thailand and the UK (for example). The purpose of the DTA is to ensure citizens of the UK are not tax taxed twice on the same income. But typically, money that has been taxed twice requires the tax payter to reclaim the tax, on their home tax return, it is not a case, I believe, of simply saying that the money has already been taxed so you can't touch it, it has to be paid and reclaimed. That said, the article says that imported funds are not taxable where there is a DTA in place and the money that is imported to Thailand has already been subject to tax in the home country. This raises lots of questions in my mind, including:
If I earn 5,000 Pounds in the UK and ship that money to Thailand, that money is not taxable in the UK because it is under the Personal Allowance (12,500). So when that money arrives in Thailand, is it taxable here since it hasn't been taxed in the UK?
If I transfer 5,000 Pounds of savings to Thailand, money that was earned years ago, ditto the above?
If I sell a UK property and remit the funds to Thailand, I filed capital gains but didn't have to pay anything, is that money taxable here because it hasn't been taxed in the UK?
If I remit my UK State Pension here every month, is that money taxable here? Some might say it has already been taxed in the UK but really it hasn't, only the contributions were taxed, years ago, not the actual payments.
www.bangkokpost.com/business/general/2649033/govt-to-tighten-tax-rules-on-overseas-income-to-aid-economy
FWIW I receive payments every month from the UK State Pension and from the US Social Security fund (the US equivalent). The latter is not allowed to be taxed here by treaty so it is treated as disregarded income. My UK State pension is however fair game so I file a UK tax and Thai tax return each year, fortunately, I can manage my cash flow such that I avoid having to pay Thai tax. But any other payments, such as savings transfers or money earned from rental income, is a different story.
Your turn.
As you may have seen from the lengthy thread over at the other place, and from reading the papers, a new tax law takes effect 1 January 2024 whereby all income from overseas, by Thai tax residents, is taxable in Thailand. The big change here is the law no longer differentiates between savings and income, nor does it care about the year the money was earned, if it is imported funds, potentially they is taxable here.
The thread across the street is confusing, even though several people claim to have nailed the answer, I don't think they have. First of all, the easy part:
A tax resident of Thailand is anyone who lives here for more than 183 days per tax year, regardless of whether they have a Thai tax ID or not, regardless of whether they file a Thai tax return or not.
Also easy is the fact a Double Tax Agreement (DTA) exists between Thailand and the UK (for example). The purpose of the DTA is to ensure citizens of the UK are not tax taxed twice on the same income. But typically, money that has been taxed twice requires the tax payter to reclaim the tax, on their home tax return, it is not a case, I believe, of simply saying that the money has already been taxed so you can't touch it, it has to be paid and reclaimed. That said, the article says that imported funds are not taxable where there is a DTA in place and the money that is imported to Thailand has already been subject to tax in the home country. This raises lots of questions in my mind, including:
If I earn 5,000 Pounds in the UK and ship that money to Thailand, that money is not taxable in the UK because it is under the Personal Allowance (12,500). So when that money arrives in Thailand, is it taxable here since it hasn't been taxed in the UK?
If I transfer 5,000 Pounds of savings to Thailand, money that was earned years ago, ditto the above?
If I sell a UK property and remit the funds to Thailand, I filed capital gains but didn't have to pay anything, is that money taxable here because it hasn't been taxed in the UK?
If I remit my UK State Pension here every month, is that money taxable here? Some might say it has already been taxed in the UK but really it hasn't, only the contributions were taxed, years ago, not the actual payments.
www.bangkokpost.com/business/general/2649033/govt-to-tighten-tax-rules-on-overseas-income-to-aid-economy
FWIW I receive payments every month from the UK State Pension and from the US Social Security fund (the US equivalent). The latter is not allowed to be taxed here by treaty so it is treated as disregarded income. My UK State pension is however fair game so I file a UK tax and Thai tax return each year, fortunately, I can manage my cash flow such that I avoid having to pay Thai tax. But any other payments, such as savings transfers or money earned from rental income, is a different story.
Your turn.
