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lyseoy

How expats can live in Thailand and legally avoid income tax

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17 hours ago, lyseoy said:

From D.7 it's clear that someone who derives all his/her income from sources outside Thailand AND doesn't bring this income into Thailand the same year it's earned, actually has zero assessable income. And D.9 says that in that case, no tax return needs to be filed.

Your forgetting the fact that most countries on the earth tax income of non residents. So no matter where your foreign income comes from, you're paying taxes somewhere, even if you're not actually filing taxes anywhere. 

 

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Posted (edited)
46 minutes ago, Time Traveller said:

Your forgetting the fact that most countries on the earth tax income of non residents. So no matter where your foreign income comes from, you're paying taxes somewhere, even if you're not actually filing taxes anywhere. 

 

I'd figure an offshore company would solve that problem. I work remotely using a Seychelles offshore. And The Seychelles don't tax offshore companies either, you just pay a small nominal fee each year to maintain the company. Perhaps around 700 EUR in my situation. I definitely intend to make use of that ruling in the near future.

Edited by wolf81
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21 minutes ago, Rod the Sod said:

Actually it gets even better than that.

 

I have no earned income coming into Thailand so I am not liable to complete a tax return nor register for tax. But I do....

 

Why? Firstly, I can reclaim the withholding tax on my 800k Time Deposit (currently worth TB1,800p.a.). Secondly I feel that I have done everything I can to make my presence known to the authorities with nothing to hide, but thirdly, and most importantly, I can get Tax Residence letters from Thailand which I use to reclaim withholding tax on dividend income from Switzerland (currently worth circa TB100k p.a.).

 

The Tax man did look at me rather strange when I volunteered to complete previous years tax returns and pay the late lodgement penalty even though I had no tax to pay, but he did see my logic in doing it to get the Residency Letters.

 

Hope it helps someone out there....RtS

Hi. What did you do to get a Tax Residence letter, and presumably a tax number? Searching this site and googling hasnt given me any results. Thanks.

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5 minutes ago, Rod the Sod said:

Oznomad, first go to your local Tax Office and register for tax (take passport, Blue Book etc.) and they give you a number. The tax year runs Jan 1 - Dec 31 and so before end March go and ask to complete a tax return taking your Tax Number with you. If you are late they charge you TB200 penalty. They will probably complete it for you. If you are reclaiming withholding tax on Bank deposit interest you need a certificate from your Bank beforehand (just ask them for it). After two weeks you receive your tax refund. So that is your tax registration and return completed. Now armed with a copy of your tax return (duly stamped and signed by the Tax Office to show it is legit) and usual ID/Blue Book papers you go to the Department that issues Tax Residency Letters. I asked the first tax officer and he gave me the details for my area (if you are in Wattana BKK I can let you know these). The only other thing you need do is photocopy your passport pages and highlight the entry and exit stamps. You need to show that you have been in Thailand for 181 days (I think or thereabouts), so I created a table in "Word" that showed them the dates and I cross referenced to the photocopy stamp pages. They were happy that I had taken away the hard work for them and was told to return 2 weeks later. I claimed Tax Residency letters for 2017 and 2018 and on the due date, there they were. Without these you cannot claim tax back under double taxation laws so well worth the small amount of effort involved. Good luck. Let me know if you need to know anything else. RtS

A most excellent post. Thanks Rod. I am in Jomtien. We can safely assume that the rules will be different here but it's a great starting point. Cheers.

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Most people file and pay tax in their home countries. Before the money ever arrives in Thailand....

 

Plus if someone's withholding tax on interest or dividend is 100kpa at per say on a modest 2% return that's like 250 million in the bank. With that sort of budget there are far better places to retire than Thailand...

 

If it is withholding tax on a return of 100k then Thailand it is. For me anyway..

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3 hours ago, Rod the Sod said:

Actually it gets even better than that.

 

I have no earned income coming into Thailand so I am not liable to complete a tax return nor register for tax. But I do....

 

Why? Firstly, I can reclaim the withholding tax on my 800k Time Deposit (currently worth TB1,800p.a.). Secondly I feel that I have done everything I can to make my presence known to the authorities with nothing to hide, but thirdly, and most importantly, I can get Tax Residence letters from Thailand which I use to reclaim withholding tax on dividend income from Switzerland (currently worth circa TB100k p.a.).

 

The Tax man did look at me rather strange when I volunteered to complete previous years tax returns and pay the late lodgement penalty even though I had no tax to pay, but he did see my logic in doing it to get the Residency Letters.

 

Hope it helps someone out there....RtS

Tks for your informative post.

I have got as far as getting a tax no. (Pathumwan office). My pension has been arriving in Thailand monthly for some years. 

While I had the good intention to declare my income, the obstacle is how do I go about it. I cannot read Thai nor do I speak enough to deal with tax issues. The tax residency letter would be very useful to reclaim withholding tax back home.

I do spend more than 183 days in Thailand.

Are there tax advisors one can get to deal with the Thai side?

Tks for any help you can give.

 

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12 minutes ago, Letseng said:

Tks for your informative post.

I have got as far as getting a tax no. (Pathumwan office). My pension has been arriving in Thailand monthly for some years. 

While I had the good intention to declare my income, the obstacle is how do I go about it. I cannot read Thai nor do I speak enough to deal with tax issues. The tax residency letter would be very useful to reclaim withholding tax back home.

I do spend more than 183 days in Thailand.

Are there tax advisors one can get to deal with the Thai side?

Tks for any help you can give.

 

Hi Letseng. I originally found my starting point from an old post on this site, and then the rest unfolded as I went along. You do not need to know much and I found (as I was told I would) the Tax Officer to be really helpful. He knows what we need to do and in my case he got on and did it. If you have not declared tax before you will have to put your hand up and ask for previous years declarations to be made for which you will pay the princely sum of TB200 for each year missed. As I have no income I am not sure of how quickly they will assess how much you owe and ask you for it. In my case, after I left the Tax Officer I had to go to a lady who photocopied the tax form for me (at a minimal cost) and then (this is the most important bit) she signs and stamps it. This makes it "real" and acceptable elsewhere. I would ask either the Tax Officer of the lady for the location of the office for Tax Residency Letters. For the office in BKK for the Tax Residency Letter in my case, just take your papers (as described in my previous post) to Manoonphol Building 2 (Google Maps), and I think it is the 8th Floor.

 

No need for professional help but if that makes it easier for you, I am sure a quick google will give you names in your location who will be happy to ease a few thousand TB from you.

 

So to answer your question, I would recommend you just grab your papers and head down the Tax Office. You might be pleasantly surprised. In effect, the resident Tax Officer becomes your Tax Advisor. He also spoke enough good English for us to get by and also he is dealing with this stuff all the time, so he will know what to do.

 

Good luck - should be a walk in the park all being well.

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2 hours ago, Rod the Sod said:

After two weeks you receive your tax refund.

In Jomtien for me it is more like two months.

And as far as I know they have stopped sending cheques and now send some sort of voucher applicable to an electronic payment card which is only available from one bank (Krungthai). Not too hard to get one though, apparently.

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