Thailand’s Big Tax Changes for 2024
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- เผยแพร่เมื่อ 11 พ.ค. 2024
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Is Thailand losing its tax-friendliness? Join Andrew as he breaks down the recent changes in Thailand's tax code and what they mean for expats and foreigners.
While some may be concerned that Thailand is no longer a tax-friendly destination, Andrew explains that the situation is more nuanced than it appears.
00:00 Start
1:04 Historical Tax System in Thailand
2:11 Changes in Thailand's Tax Code
5:27 Will It Apply To You?
8:39 Implications for Different Scenarios
13:00 Alternatives in the Region
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Why would anyone live in Thailand and submit to double taxation like this? They're ending Thailand as a destination for retirees and digital nomads. I'll go where I'm treated best.
What's your take on Greece?
All other countries will eventually apply this tax system. It's just a matter of time, don't dream you can escape it. Bye 👋, good riddance
No, it does not apply to pension income you declare on your home country's return. Thailand also has a non-double tax agreement with the US. There are not many well paid jobs in Thailand, most foreigners who work teach English.
@cy6412. Bye Bye, I love Thailand. The US Thailand Tax treaty is still Valid and describes what you should declare as your tax (state) country. It describes what is protected from being double taxed in Thailand. If you are taxed most of us would fall in the lowest tax bracket 5%. You can leverage foreign currency against the Baht and get 3% more value, invest in a 3 month CD at 5.5% that's 1.375% return + 3%= 4.375% leveraging currency that is only .635% tax. The total cost of living for a year say 500,000 baht, if that goes up 5% where are you going to move that yearly living expenses are less and you have a similar lifestyle and quality of life.
They arent double taxing. If you are not a tax resident you wont be taxed at all. Whats changing is the abolishment of the year exemption for remittance
I live in Thailand and my only source of income is the old age pension which is not taxed in my home country. As it stands now I will have to pay taxes on anything I bring into Thailand. If this doesn’t change I am out of here. This will also hurt expats who are married to a Thai with maybe children and don’t have the option I do. This is a crazy move on the Thai government and will destroy the expat community, the real estate market and many Thais families who are dependent on an expats money.
Is home country house cheaper though?
Go to the Philippines Mate no worrys, they do not tax you there at all, and there is no problem to stay for 3 years at the time before you need to take a visa run,. And Because if you do not pay tax on your pension in your home country, since they now have got the link and can see if you pay tax as your not doing they will tax you in Thailand my friend. And you will get more to spend in the Philippines on your pension as well pesos is more than Bath Mate, l know l lived in Thailand for years then l got smart and moved to the Philippines
I do t think they tax you on retirement income ? Only from a job or a business?
That's the point. Their inflation is persistently high, which makes sense given that 13% of their economy is tourism (USD etc coming into their country). Reduce that inbound cash flow, slowly deflate the economy.
so you you to parasite from a poor country Thailand?
The more I stay in Thailand the more I understand they have no idea about economy. They think extracting every penny out of someone is good business. Instead of understanding that money spent in the country is the real value, and making people feel welcome should be the focus.
This. Dubai gets it.
@@profitabundance70707But 100F gets Dubai. And they also tax big there as imputed in the prices of condos. You may say Dubai not just double-tax but quintuple-tax!
Absolutely. This is a common mentality within the populace, not just government. It is a laziness and entitlement stemming from pride. Just look at the taxi mafia in tourist areas. When you point this out they get mad. It is another reason why I don't like living there. Too much immorality.
They can't even wire up telephone poles correctly, you think they know how to govern a country?
@@dealerslicenseops The new luxury areas don't have poles. Underground.
When a government decides it can access your hard earned money and you have to account to it because you stayed beyond X days, send a message and leave.
Isn't that a description of every government?
@@chillinchum When more and more govts become more and more desperate it means that the bleep is closer and closer to hit the fan.
@@chillinchum nope, they don't do that in Thailand, Russia, UAE, Indonesia, etc.
Bank runs happen when people even think their money might get billed
Well done, if anybody wasn't already confused, they will be after watching you. You are all over the place. Try thinking about what you need to say, slow down and say it clearly.
Yes. THOROUGHLY confusing. 😂
i agree with you. inormation was there but seemed could have been said in a less rambling manner without all the repitition.
my head exploded at the 7 minute mark
Thailand is famous for its flip-flop politics. They regularly announce changes, new laws and regulations. After receiving feedback from the public, they have then often either amended these changes and usually watered them down or even abolished them. I also assume that this change in the system is aimed at the wealthy Thai citizens rather than the foreign residents. There are quite a number of Thai HNI and I am sure they have benefited from these favourable tax laws in the past. These are the people with power, and I would not be surprised if they are not already "lobbying" to cancel these plans for the future.
In addition, Thailand's progressive tax system is not as bad as in other countries. The 35% tax rate only applies to the amount ABOVE 5,000,000 Thai Baht (around 141,000 USD). The actual tax burden on 5,000,000 Thai Baht is around 25%, as each individual income bracket up to 5,000,000 baht is considered individually rather than the total amount.
But for now, let's just wait and see...
So if you have 3 income streams they are all taxed separately? If so, that isn't bad at all.
@@Dodger1999 Because the announced change has nothing to do with the nationality. It applies to all tax residents. It has to do with how they interpret their own tax law. And I'm pretty sure that there are many wealthy Thais that have been benefiting from the current interpretation. So it's not that locals would not want the foreigners to be taxed, but they might not want to lose that loophole for themselves.
@@Dodger1999 Considering that only 6% of Thais pay tax and the middle class isn't growing but stagnant, your comment couldn't be more off base.
Haha looks like you're talking about Vietnam where I live 😅
What about Thai people working overseas would they have to pay tax on their income ?
We were hoping to retire to Thailand but this definitely changes things for us. We have little income except some interest on savings and a small pension, so we live off our capital. That capital is savings from income that was already taxed when we earned it. But if we are now being taxed on our capital again once we spend it in Thailand, that means we'll be taxed twice on that money. Plus to get the visa, we each need to transfer 800,000 baht and leave it in an account untouched. That amount sent to Thailand for the visa requirement would presumably be taxed as well! For those of us who aren't big earners, this seems a disaster!
Making it a better idea to live there part-time.
dont worry, it aint going to happen. they will kill the Real Estate and Rentals business overnight.
you can't be double taxed, the US has a tax treaty with Thailand to prevent that. So long as you pay your taxes in the US, you're good to go.
@@user-ic2ii2tr1k Thats not how a double taxation agreement works. The taxation paid in the country of origin is offset against the taxation due locally. So if Thai (local) tax owed is $1100 and in the US (origin) you had already paid $500...then you still have to pay $600 in Thailand too. It doesn't exempt you from Thai taxes altogether.
@@DebyColes Yes, but I was going on the assumption that you don't have an actual job in Thailand or earn any income in Thailand. Which will be the case for @DebyColes and most people wanting to retire in Thailand (or stay on a retirement visa).
Major amounts of money will not be remitted to the country anymore. Loads of sectors will feel this tremendously. From top to bottom.
The big problem is whether you're going to have to get a tax ID and file a tax form each years. And if immigration will demand to see it before issuing you an extension. That would complicate life a lot.
Don't worry. NOTHING WILL CHANGE.
well Thai government system not high tech as you expect as IRS
@joem0088 but when the government desperately need money to fill their coffin, It may be quicker more than you think and recent year (they proof it in covid crisis. ) the situation seem to be right that due previous government burn a lot of budget and make a bit of public debt and current government need lot of money to fund money throwing project.
@@p_1945 "Coffin" ? Really. HNW foreigners on rertirement visas are very mobile. When try to tax them they can and will spend less than 180 days here. So what do you collect ? The less days in TH, the less they spend in TH too.
Why don't they just put the visa extension prices up rather than changing the new tax law? It would be far simplier and cheaper for the Thai Government to collect.
Interesting information, I live in Thailand, so thanks for clearing that up a little bit . However one thing to remember about this country is just because they talk about it that doesn’t necessarily mean it’s a done deal as we have many retired ex-pats here, so we are all curious what the final decision will be when it comes to pensions and Social Security for us Americans!
That's a detail only a farang would know 555
They have already published the new rules in the Gazette, so it's official
Aren't pensions and SS taxed ? Thailand has a tax agreement
@@scottfree993they probably couldn't police that ever! But where is your millions of dollars? And how are you spending $100,000 a year? On what?
Are they going to tax SS pensions
I will raise your voice to the Thai government. Thank you for bring up this issue.
From the U.S. and was considering retiring in Thailand. I understand income like social security would not be taxed under the dual treaty. It seems transferring money from the U.S. and credit card use would be taxed. That’s insane and a deal killer.
Remember what he said? The tax brackets in thailand are much lower than. That means you are in a higher tax bracket in Thailand. If you spend all your retirement saving in tahiland, you will be taxed at a higher rate ( adding both back home plus thailand) than you are now. If I understand the implications, if you are rich, then it is not that bad. Keep most of your income off shore. If you plan to spend the rest of your life retired in thailand with a modest income, maybe wait to see what happens before making any plans.
@@user-fr3hy9uh6y "If you are rich" or has $1M savings, sadly, is only 10% of US. The other 90% is going to get hurt.
@paulwagner9788 if the credit card is from a foreign bank and you use it in thailand, you are transferring money. Could you hide it?
Bigger problem in the long-term visa requirements. Keeping money in a bank means that the money came from somewhere. If you live in an apartment and they ask where the money for rent came from, what do you say if you are on a retirement visa?
I expect the source of your income will become a common question when you renew your long-term visa
He first stated that savings will be taxed as income, what I think I heard is money's brought into the country other than social security will be taxed that is if you stay longer than 190 days 🤔
@@captpain1 180 days, that might have just been a typo on your end. That is like the only thing I do understand. 180 days.
You did not cover retirees. We just retired here in Thailand 2 years ago and settled in here. What about the money we transfer from savings? I can't believe how last minute this is.
TIT - This Is Thailand
What if you bought money into the country to buy property..(money your already been taxed on three times already)..the Thai housing market is already on thin ice if they are going to take 35% of say 300000 for a house purchase the housing market will just fall out the bottom.
Buy it the year before you are a tax resident? As he mentioned, you only pay taxes on foreign income if you live in the country 180 days or more. So get everything set up before you move. I'm not an expert. Just long time expat in Isaan. And I ain't paying taxes next year lol
@@masteryancodesani was thinking the same thing. Buy a house and stay for a few months in one year, then move the next.
The Thai housing market is not doing well ? Is this just in certain areas ? It seems like the beach areas are always booming.
the INCOME tax, not capital tax. If its money you already paid tax on, they are not interested in taxing that; Only income you earned in the year that you spent > 180 days in thailand
@pweb4941 I don't think you understand the situation. Any money brought into the country will be taxed no matter when you earned it. Likely a withholding tax on any transfers into a Thai bank account from overseas.
I am already paying tax in Australia as a foreign resident for tax purposes at 32.5%. Australia and Thailand has a tax treaty, so surely i dont have to pay a double tax. If thats the case i will probably go to the Phillipines.
Serious question (as I'm also Australian). Couldn't you just pay tax in Thailand as a Thai resident at a lower rate, and not in Australia?
If your country has a tax treaty you are fine. you dont have to pay double tax
you will pay 2.5% tax in Thailand
@@calky360if u live less than 147 days in Australia ( roughly) , you don't have to pay TAX in Australia. I'm currently living in Indonesia.
@@anawa2006 I think it is a bit more nuanced than that
This will have a devastating negative impact on high end housing, real estate markets, private schools, private hospitals and high end businesses as expats will explore and exercise other options. All the hurdles, hoops & loops an expat has to deal with to attain a retirement or marriage visa and to now have tax implications here in the Kingdom is not in the best interests of current or future expat retiree's. This tax issue has probably already changed the plans of many expats gearing up to move and retire into Thailand in 2024.
100% ... they are going after the wealthy Thais but hitting expats instead ... high end investments will dry up except for those who launder their money.
You must not live in Thailand. Every year I spend 2 hours filling out and signing some forms, bank statements, copies, and having documents reviewed for processing of a 1 year extension. Thank You Thailand as I am living as close to Paradise as I can afford. What a bunch of entitled, elitist that think they are above all other immigrants living in countries around the world and shouldn't have to spend 2 hours a year to complete immigration requirements for 1 year.
yes , me . choosing maybe Vietnam or Philippines
Mr. Dunn, I think what you meant to say, is that Thailand DID NOT tax S.S. income, at least up until Jan. 1 2024, after this date it is a whole new ballgame unless the new Thai administration decides to come forward and clarify this new law and how it is to be applied to Expats. As of now, the reading of this new law clearly says "remittances into Thailand"", it makes no distinction between wealthy Thai's with a foreign business or expats bringing in funds from S.S. and/or funds from any other retirement type program that was funded with AFTER TAX Dollars. Given the Thai governments penchant for shooting themselves in the foot, and even after realizing that they made a mistake, not coming forward to rectify the mistake due to a "loss of face" , I have a feeling that we will be discussing this same topic a year from now. Let's see how countries like Malaysia, The Philippines, and Vietnam step up and start courting the Expats in Thailand.@@timdunn2257
No. DTAT’s apply.
On a recent trip to Thailand, i've realized that is waaay overrated. Not the country used to be.
fact...works best for those who are into hookers...
it changed alot in the last 20 years
Many thanks for this clip. Please would you be able to have a clip for people wanting to retire in Thailand too as 35% tax is pretty steep!
Ridiculous. Remittances could include savings which you have already paid taxes on in your home country in the past and you’re getting taxed again when you bring those after tax funds into Thailand? Or if you’re an American you’re paying taxes on concurrent income regardless of where you’re living and then paying taxes again to the Thai government? What happens to the tax treaty between the two countries? And who is going to sort this mess and keep you clear of trouble from the authorities?
This is what the video should have focused on
I definitely like the optionality in Asia. I have the Thai Elite visa and like to spend about 6 months in Thailand on that visa, then 90 days in Malaysia and 90 in Singapore. With Vietnam, Cambodia, Bali, Japan, etc sprinkled in.
But that's not doable when you're already having difficulty being active.
That's awesome.... this is what I'm planning on doing
So much wrong here.
You cannot just get a residence permit. Try paying taxes for years, then speaking the language, doing charitable things, most likely needing to be married to a Thai, nah, go check on this one as there is no effective residence permit.
You're also missing the Thai difference between assets and income. Currently, income earned over 12 months ago is classified as capital and that is no taxed. So if you live on income earned anywhere 13 months ago, you're fine.
The new argument is that if you are in Thailand over 180 days and thus a tax resident, they want a piece of your income earned anywhere but whilst that is bad and like the USA, if they want to tax you on assets brought into the country to purchase property, then that is madness.
My bets are that this law gets canned as it is a piss poor thought out nonsense piece of legislation.
I think your bet highly to wrong , RD and Mof still continue this but right now it too quick to be say anything because it need 2-3 yrs to fully implement this start from technical detail , wait for committee report , may be reconstruct tax system overall , parliament process to revise the law so thing get more complicated than most people think.
For now they aim to set tax rate In 15% as maximum so 35% tax maybe a bit exaggerate.
I will not pay any cents at this country !! I have not worked almost an entire life to give my money at this country!!!
I already help the economy of this country spending and consuming here!!
I spend both my pensions in Thailand. It costs Thailand nothing to have most of my pensions being spent in Thailand. It is free. And now it looks like they might want to tax my pensions.
I hope not.
In fact.
All pensions coming into Thailand is a bonus of free money for the Thai economy.
if you don't pay tax on the pensions in the UK they will tax you 35% to bring that money into Thailand I think
Planning to move to Thailand but waiting on the Thailand tax law gets written more clearly. If they tax me. I will stay only 179 days at max.
I read that the Thai Tax Code further specifies that official government pensions from foreign countries are not considered to be taxable. Is that correct?
It would have been good if he could have gone to more details about other options in SE Asia. I’ve heard good things about Vietnam. I’m looking at doing 6 months in Thailand and 6 months somewhere else in SE Asia
you wont be able to go for Vietnam on 6months, maximum 45 days on regular visa
Ya Vietnam is not friendly to foreigners, or their own people in most cases. Laos is dirt poor. 5 star steak dinners are about $6. You can't own land in either of those countries. Cambodia is probably the most friendly to foreigners. You can own a business easily and it's a gateway to citizenship.
I think you can try Cambodia.
apparently phillipine 3 year visa is easy to get
@@Marcontheroad I heard Vietnam you could now get a three month Visa. Is that not correct?
Wish you could outline also the Philippines pros and cons, because in many cases this could be good choice
Thanks for the suggestion!
The Philippines has a territorial tax system- no taxes on income earned outside the Philippines. This incentivises remittances and is quite favorable to the upper classes as well, as many have holdings abroad.
Trust me when l say go to the Philippines and live there, l have lived in Thailand for many years l got so sick of this flip-flop system and all the problem with visa rules so l did move to the Philippines and boy it was 10 times better my friend, and they do not have any tax to pay if your an exspat with your own pension
@@janhansen6195 Where in the Philippines did you find most attractive ?
@@roderick2105 Fly direct to cebu city and check out the Visayas region. You won't regret it ..visit Bohol, safe, friendly people, nice beaches and the ladies are not hard on the eyes either
Too many interpretations where there are no written tax laws still are causing uncertainty and ambiguity in the financial landscape. It is essential for the Thai government to provide clear and concise guidance to both taxpayers and businesses to ensure a fair and transparent tax system. Tax laws with different scenarios will have hundreds to thousands of pages, currently, they only have less than 4 pages. I doubt these changes will happen in 2024. And if it did, they would lose full-time foreigners who spend and bring money to Thailand.
Oh yes this will come in 2024 l have lived in Thailand for many years and l know all about his flip-flop system with visa and now tax system this is how they operate mate, and why go there and live when you can live in the Philippines with no stress and hassel and if you feel like going to Thailand then it is only a 2 hour flight Mate
Why people refer to it as a third world country make huge tax changes that’s means 10s of thousands of Extra taxes to pay now and they don’t even know the law what a joke Thailand
Great content 🙏🏽 I love how you always get straight to the point !
It's very easy to change cash in Thailand at around the mid market rate too.... Under $10k doesn't need to be declared..... This should be a good chunk of living expenses for most ex pats..
what about gold coins?
@@cryptocrusader6078 Really low spread on Thai gold jewelry too... You can get pulled up on it in theory but in practice, it never happens...
@@cryptocrusader6078 it's prohibited to bring gold/silver into Thailand unless you have an import permit from the Dept of Commerce..
Great information, Andrew. This answers my questions I've had with the new changes to Thailand's tax laws. Very helpful!
Great to hear!
Philippines all the way. Highly underrated country with so much potential. Everybody speaks english.
Visa can easily be renewed every 2 month for approx 50 euros. Only once every 3 years you need to leave the country.
Amazing islands and beaches.
Living in boracay island since 8 years.
Thailand is my number 1 for vacation but i am not planning to leave this country to live somewhere else.
Have to take the poison jab, no thanks...
@@jdshemp no more but they took it way to serious here. Feel free to visit
@@windit5877 was the jab mandatory in PH?
@@drd3816 yes it was and they had restrictions for along time even when other countries already promoted tourism. But living here is great.
@@windit5877I was in Cebu Feb 2020 but left after a few days because covid turned into a panic type situation -I woman in fining back this year to PH to explore over a few months I live in Thailand now and like it but want to compare -I dint take the jab nor will I ever submit to that so it is an issue to me living in a country that forces garbage like that.
Can we just pay everything with a credit card?
Does the money you put in the bank for your retirement visa, is that taxed? How are retired individuals taxed if they are living off their savings and IRA accounts?
Great you mentioned the Philippines!
If you retire in the Philippines, you are not taxed on your foreign income remitted to the Philippines. Also the visa procedure is much simpler, its actually a residency, you can legally work, you can apply for national health services, all government facilities and paperwork is in English...People are very friendly...The beaches are even nicer than the ones in Thailand. Not as crowded with tourists. Draw your own conclusions.
"National Health System" good luck .,.
@@enzos711😂😂😂
Where are you getting the 2 or 2.5 percent tax from? Looking online, these are the tax brackets I'm finding (consistent across multiple sites, incl. official Thai ones):
0 to 150,000 THB is exempted from income tax.
150,001 to 300,000 THB is subject to a 5% tax rate.
300,001 to 500,000 THB is subject to a 10% tax rate.
500,001 to 750,000 THB is subject to a 15% tax rate.
750,001 to 1,000,000 THB is subject to a 20% tax rate.
1,000,001 to 2,000,000 THB is subject to a 25% tax rate.
2,000,001 to 5,000,000 THB is subject to a 30% tax rate.
5,000,001 THB or more is subject to a 35% tax rate.
Assuming even a no-frills annual budget of EUR 30.000, that puts you in the 25% bracket (1.17 million THB).
🤔
If i visit Thailand for six months, but im not working, just living off of my savings, will I be taxed even if i do not have a bank account?
If you are going on a tourist visa you won't pay taxes. You are not even registered. Or do you mean if you are a resident?
Depends how you bring it in.
No , if you stay less than 180 days and come with a tourist visa , there's zero reason they'd tax you
I believe he said 190 days then you won't be taxed as a resident
He said 180
lucid and practical explanation thanks
It’s not law. It’s talk. The Thai Gov does this sort of thing from time to time and it’s highly improbable it will happen.
This is what I need to be aware of for multiple countries. I need to talk to a tax attorney for expat issues.
I am wondering if a person whose net worth is encapsulated in 401k, IRA and taxable brokerage, is it a good idea to encapsulate these accounts in an LLC to keep the assets invisible to prying eyes from countries who want to tax you on global net worth? Countries like Spain and Argentina, where I want to spend time but not having them peer into my world via FATCA and tax me on latent offshore holdings.
Thank you for your comment. When dealing with multiple jurisdictions, things can seem challenging. Many firms specialize in only one country or region.
Click the link below, and let us be your architect and general contractor to implement the structures you need: nomadcapitalist.com/apply/.
Have you considered including in your analysis of countries the level of dollar denominated debt each of them are exposed to currently. Because that seems like it could be a contributing factor to the tax changes some of them might be making.
very good point. There are some very smart people around predicting the USD wrecking ball could return like in 1997. But to be fair, the THB is now floated and much of the adjustment has already occurred>
Hi, if I may ask you stated savings as equal to earned income, please clarify for me and all of us.I for example live in Thailand for more than 190 days now my savings is taxed as income, thanks
What are Switzerland & Italy's rules?
Your analysis is great and the best I heard so far. The tax change encourages expatriates to spend less in Thailand as they would be taxed now by how much they remit. Not to mention all the hassle in compliance with the new tax law, which makes Thailand's already expensive long term visas very unattractive.
So in short it's reverse migration that Thailand wants now.
U should not talk bad
.........
if they are going to tax my pension...im out of thai ASAP.
why stay in a country like Thailand that has this flip-flop system at all? If your an exspat you do not need all this stress and hassel right? l did live in Thailand for many years and l had a good pension from my home country and all of this went into Thailand, and in most of EU there are rules like I have to pay full tax the first year after I have moved out of Norway, then I only pay 15% tax afterwards. And I have to open a bank account in the country I'm moving to in order to have my pension paid there with tax relief, if I keep my Norwegian bank account and choose to withdraw my pension in Norway then yes I have to pay full tax which is much higher and I lose a lot of money on this, so here you can forget about everyone who has the same system as us and this applies to most people in Europe also so l got smart and l move to the philippines and it was totaly diffrent, no hassel at all, no stress with visa and no tax at all, so why stay in Thailand at all. l did go to the Philippines and it was 10 times better, no stress and hassel with visa no tax, and this is what you want as an exspat
Need the poison jab for filthypines, No Bueno....
Yes, I agree with you also. I lived in Cebu in 2008/ 2009..I've been in Thailand almost 2 years..really love it here ,but ,between immigration and this new tax law ,I am ready to go back to Philippines. Maybe Davao City this time
Where do you live half time ? Maybe you can talk more about how this work for japan
1) Be realistic, how would they check all the deductions from your foreign debit or credit card? Those will probably not be included.
2) You could put money in a Thai bank this year, so it falls under current law.
3) If double tax treaties would be violated, a country like Germany might simply enforce their law on the Thai king who resided there more than half a year and currently owes them 3 billion from his inheritance.
l do not know where you are from but many contryes in Europa has a system like in my country of Norway that if you move out of Norway you only pay full taxs to Norway the first years afther you move, then afther a year you pay 15% tax on the pension payed out only, because we have a much higer tax system right. And you then have to open a bank acount in the country you move, like Thailand, so you can not have a bank in Norway and get you pension payed out in Norway then you must pay full taxs in Norway and that is much more, so you can forget all of this because it will not work for any Scandinavian people at least, l do not know the rules in Europa but l think it is the same there in a form, so how can all the exspat from Europa stay in Thailand my friend?
The payment gateways have all details of the credit card when a payment is made at any terminal. They know if a local Thai issued credit card or an international credit card is being used for the transaction. The Thai authorities can just demand the details from the payment gateways……if they wanted to.
that will never happen, because the credit card companies are not allowed to disclose any details of their customers. Moreover, millions of tourists and business people use their credit cards in Thailand, it would be a hell of a job to track down the foreign residents, especially the ones without a tax ID.
My understanding is that as long as there is a double tax agreement, then it will count. But, you will be in a higher tax bracket in thailand, he only gave one number but for single people, the 35% bracket starts at $243,725 ($487,450 for married filling jointly) in the US, in Thailand it's $140,000. Don't forget you will lose all of your deductions and tax credits from your home country. If you want to retire on a fixed income, then you might want to wait to see what happens.
You are both stupid and don't understand the law. If Germany REALLY implemented their tax law on the Thai King then his liability would be zero. This is because all european countries, Germany included and a large number of other countries have signed up to an international treaty where heads of state have no tax liability. And the This King is head of state (of Thailand). Plus the Thai King no longer spends much time outside the country anyway.
Hi Andrew. I'm an early retired Swiss in Thailand and pay until now no income taxes here. I hope this stays. Thank u for some answers i had questions for. Maybe Ecuador is another good option. What u think ? Take care
What’s bout people that intend to move there next year bringing enough cash to buy property etc?
He, I will like to know if a person only living on his pension, which’s the person have pairs Tax of in his home country, will there be any Tax for the money he bring to Thailand.
As many people do not work and live in Thailand, will these people be paying Tax
My question is if I don't staying totally more than180 days per year, so I will not be asked for tax declaration?
I don't care about Taxes(I'm not working), but I don't like the paper work like declaration of income or capital.
Need to look at the retirement visa option and requirements around that
This does not affect countries with tax agreements as Norway have with Thailand. Everyone need pay tax for your pension in Thailand if you stay there over 180 days in a calendar year, with a tax agreement you split it and you can reduce your total tax even if taxable to 2 countries.
Thank you 🙏 🎉
If you remitting the money under a 180 days in that calendar year and you move there starting the next year, if money is already there from the previous 180 days, are you tax-exempt?
How would they be able to tax expenses paid by an overseas credit card?
I already have my Wise debit card on order.
As a nomad living in TH I believe its a much to do about nothing.
Great video.
What is benefit of a Wise debit card? I have Wise but didn't know you can have a debit card. Is that necessary if someone has a Thai bank account? When I want to get money into Thailand, I just use Wise to pull from my USA bank, convert it to Baht, then move it to my Thai bank.
@@markob17 no need for Thai Bank account. The transactions go through Wise no trace back to Thailand is an off shore card. Use it anywhere in the world
@@markob17following
@@ShoelessNomadThailand Unless you need to place 65,000 Baht per month into a Thai bank for retirement extension...
or you could just use an agency@@jdshemp
Is VA disability taxable in Thailand now?
This is the question I'm here for.
The Pitcairn Islands have no income taxes of any sort (for individuals and companies).
Beekeeping as a career could be an interesting business there.
There are currently no charges for land for settlement on Pitcairn Island. New migrants who have been approved for settlement can apply to the Pitcairn Island Council for land on which to build a home within 6 months of arrival at Pitcairn.
You will be picked up from the ship and welcomed with open arms. The most remote island in the world has a heart.
The nature there is absolutely untouched. Something for adventurers who want to build something.
The sale of postage stamps, coins, and local products such as honey to passing ships and via online shopping sites brings cash income, as does tourism. The island also receives significant budgetary aid from the British government.
If you're a tax resident it does not matter if your bringing the money into Thailand or not because you are still required to report all worldwide income or its a violation of the new law.
Excellent 👌
Hi, great information. Thanks. I stay in Thailand all year round, am on a marriage visa and my income comes from Ireland, I’m aware that I’m classed as a tax resident in Thailand but I file a tax return annually in Ireland. Thailand and Ireland have a dual tax treaty (to my knowledge), surely the tax treaties are still valid and I won’t be taxed in Thailand as well as Ireland?
I believe this is correct.
You are correct, I'm in the same boat, and pay my taxes in the UK. Ireland, like the UK has a tax treaty with Thailand so you won't be double taxed.
@@user-ic2ii2tr1k I wonder if we will be required to file a tax return in Thailand?
@@user-ic2ii2tr1kboth wrong as Thailand want to establish a differential tax system, means when the % you have to pay taxes in Thailand is higher than in xxx you pay the difference in Thailand. And a lot of nice bullshit paperwork with translated documents by approved translators and so on.. we will love it very much I believe
Can you pls let me know if i relocate to Thailand permanently and i transfer all my house sale money in Scotland with some savings to fund the purchase of a pool villa in either Pattaya, Wua Hin areas or Buriram will i be clobbered to pay Thai tax after my first 6 months? I am a 70 year old retired UK pensioner? Approx 13 million baht transfer plus income from my UK Government State Pension and from my Workplace pension. Q. Will i be taxed on my two pensions income? I would need all of this income to fund living in Thailand?
Also have a Thai partner.
I will have to check the UK Double Tax Laws before! I make my decision to move to Thailand or to another country in Asia possibly the Philippines. None of my wealth has come from owning a business in the UK.
Can you clarify whether, if thailand has a tax treaty with another country that you already pay tax in, this new legislation doesnt affect you?
In my context i own and rent property in the UK as my sole income. So I dont think this legislation impacts me, but please correct me if im wrong
it will affect you. Your income is earned. But none of us know if or how they will implement this ridiculous rule.
hey andrew ... if this directive actually goes through and is implemented, we may be seeking your services sooner than anticipated.
Thank you! We will be happy to serve you: nomadcapitalist.com/apply/.
i was going to apply for a Thai Elite Visa and I stopped the process for this reason. If you live on a budget of US$1500, your cost of living increases around 10% which is not the end of the world. What I am really concerned about is the paperwork.
Are you under 50? That is the only reason to get Elite. Most younger expats prefer an education Visa. Don't give the government a massive chunk of money lol
Thailand is pretty inexpensive. If it were me, I would contact an accountant there. I'd bet for a couple hundred you get get all your answers and some paperwork started.
A few of my friends on the elite visa. Have been assured they have nothing to worry about.
@@ShoelessNomadThailand Depends what they do for a living ... and where do they come from ...We can't make a single rule fitting for everyone.
I'm in the same situation as @LuiSeD86 , i made all the process for Elite visa , and just stopped it at payment stage ... paperwork is not what affraid me , my issue is capital gains with stocks and crypto , Thailand was 0 % on it , my bet is it won't last after 1 Jan 2024
I'm a commodity technical swing trader. Trade out of Cayman Islands, Bank in Gibraltar. I will just use my Wise debit card for all transactions in Thailand. All very simple.
Is VA compensation for us veterans taxed in Thailand?
Interesting how facing this income tax If Foreigner invest in Thailand like buy a property, and transfer the purchasing amount to his/her Thai account or his/her representative person.
I doubt that this goes forward. Another ridiculous proclamation that will likely be scrapped because of complete incompetence
I hope so. What a $hit show.
I just got the 20 year elite visa and planned on moving to Thailand within 1-2 years from now. Question for anyone who may know: Say I rent a condo with a one year contract, and I store some of my belongings there year round, BUT I physically only stay in Thailand for less than 180 days, will I still have to pay this income tax? In other words, is this law only applicable if my ass is in Thailand for more than 180 days, or can they use the fact that my possessions are there throughout the year to make me pay this tax? I'm guessing I should be ok if I'm not psychically there, but I want to make sure.
Very interesting question, I as well would think that makes sense but that is just assuming and we know how that works.
"this law only applicable if my ass is in Thailand for more than 180 days" - you wouldn't be a tax resident for the purposes of this levy. But on another TH-camr interviewing a lawyer about this...he does bring up the spectre of what happens when Thai immigration stops you and asks, "why are you returning here over and over for six months"
@@elnet1 Good point. We'll just have to see how this all pans out. Thanks Thai laws for being nondescript lol!
This is a counter incentive to living there long term and spending a lot of money there. Say you found a really nice condo for $120,000. This could add 10's of thousands to the purchase price. What do you do? Leave for 6 months that year? This is exactly what I'm looking at.
By the way, just a question...
I have moved and live in Thailand for the last 19 months. I make use of Retirement Visa and I have bought my condo (600.000 baht). I paid just once - 50.000 for the transfer. And... that's it! Nothing else or more, no taxation... Is this normal or I should be aware?
What is your monthly expenses? Do we get condo for 600k baht?
@@prakashbandekar4927 28 square meters, 15 years old building, in Nonthaburi...
I have a monthly income of 20.000 (baht, OK? NOT American dollars! 555)
No mention of the of Jersey, Cayman Islands Switzerland or Isle of Wight
The LAST thing I want to do is have to fill out tax forms in a second country! F-That!
what is the average cost of your service?
what if you keep your US bank accounts and simply use an ATM to draw out money for monthly or daily expenses. How can they tax ATM draws from a US bank?
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?
Nothing is going to change. No tax collection on retirees as it will be difficult and rich retirees, the big spenders, will either leave or be sure to spend
I totally understand what you’re saying. It seems patently unfair, but it is a sovereign country.
Is pension income likely to be taxed or does it really depend on how much?
How about from the UK? Any idea?@@timdunn2257
Anybody know what the approximate tax rate would be on say $24,000 remitted to Thailand in 2024?
I pay double tax - Thailand and the UK. The biggest tax bill I got in Thailand was around 30,000 baht. That year I remitted 15,000 pounds [600,000 baht]. The reason I pay income tax for the last 6 years is my UK bank made me get a TIN [tax identification number] plus my accountants in both countries showed no interest in helping me gain the dual tax exemption. It looks quite complicated.
For me, the problem isn't the tax. (My income source is a tax except inheritance). The problem is the red tape. I didn't envisage having to learn tax laws, obtain tax residency, and file taxes in my retirement! It's a lot of effort... And though at the end I won't pay any tax money.... I'm paying time out of my life (and I don't have so many years left now)... And/Or I'm having to pay a tax lawyer.
💯👍
Does this new tax law affect people who are buying residential properties and using them as investments?
if i get taxed on my pension from australia I will have to leave here as my pension is anly just enough. Lived in Thailand for 19 years.
I was never interested in Thailand to begin with and this further solidifies my opinion! I’d rather go to Montenegro or Croatia with my Ukrainian girlfriend! ❤
Careful now
Can I come?
Most "expats" in Thailand can't even get a Ukraininan girlfriend, never mind getting a GF from their home country.
How's that working out? I have been talking to a couple Ukrainian girls in the US and they seem amazing. Very traditional and feminine
@@andrewcarlson2178 One hopes that they are traveling voluntarily and not picked up like a washing machine.
based on how I understood it, if my foreign income is 100k dollars (30% taxes bracket) and I brought 10k into Thailand, I would have to pay 30% on those 10k... Basically, the percentage is decided based on the income, but the taxes are only on the money brought into Thailand. Is this correct?
I understanding is that you cannot work legally on a retirement visa. You have to get a work permit.
So any pension and disability would taxed in Thailand?
No
Any inward remittance will be taxed. We have yet to hear of any exceptions to this rule!
I have even heard tax experts who are still unclear on this. Some say pension will not be taxed other say they they will. No one really knows for certain yet because the Thai government officials have not issued any clarifications on the new tax rules. We must wait until we know more.
Apparently the US has a tax treaty that would prevent double taxation of pension payments.
Nobody know yet!
Any idea on Capital Gain Taxes for Dividends in TH? Zero....10 %...15 %? Confusing info s in the Web on this.....
Will they tax foreign pensions and social security? Under many bilateral tax treaties, foreign pensions are taxed in the country of origin only, so need to check each country’s tax treaty with Thailand.
I would like to know that too.
Is social security from the US included in this?
They won't do it
What will be interesting is how they define „remittance“. Is remittance paying goods with your foreign credit card? Is remittance paying your condo via Wise? Or is remittance only transferring money into your Thai bank account? If it’s the latter, the tax burden could be further alleviated by paying big expenses via Wise or foreign transfer (rent for example).
Remitted to Thailand will be all of the above. Sent to a Thai Bank, sent to a person in Thailand by foreign bank transfer, i.e. from Wise to your Thai landlord, brought into the country via ATM withdrawals, debit and credit card use. Any way the money ends up in Thailand is counted as a remittance. So you'll need to keep every receipt as a back up to your tax return.
Another tax video said all digital including "Wise" will be taxed, this was a Thailand tax person
@@DebyColes but how would anyone be able to track ATM withdrawals?
There is no way the Thai government will be able to track withdrawals from WISE or overseas credit/debit cards, impossible!
What about US social security benefits? Is that taxed or only from a business?
I get get a monthly Australian pension not taxed , will l b affected??
I stay there less than 180 days but have a Thai savings account. Will they tax money I send there?
I'm in a similar boat. If I snd money there to park into the account and then travel there to spend and vacation less than 180 days. All that money accumulated won't be taxed I believe since there is no triggering of the tax residency status. This is my understanding.....
@@mattlee4992 I think that as well
Under 180 days you are not a Tax resident of Thailand so it doesn't apply to you
I would love to hear you make a video about the tax laws changing in georgia for expats
Nobody is confused
Thailand has tax treaties with many countries. Example: If I pay 19% tax on
dividends received in country X that has a tax treaty with Thailand and I bring it into the country when you are a tax resident, are you then exempt from tax? (if the amount falls below the 19% income tax bracked in Thailand) This is mindbogglingly confusing to people.
This will be intresting times here in Thailand, because i think that many people will do borderruns to Cambodia to take out cash there, and take it into thailand. You can bring in 20.000 USD in Cash into Thailand whout declaring it, so it might be more cash flowing around in Thailand next year with all those people living there on multiple entry visas.
That's exactly what I was thinking, but once you come back into Thailand, you have to convert the USD into Baht which also gets you pegged. I don't yet live in Thailand so I'm not sure how much the average conversion rate is.