Thank you for watching. We're sorry, we are unable to answer questions in the comments. If you have a follow-up question, please use the link on the website www.expattaxthailand.com/ask-a-question/, book a call, or send us an email.
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.
Unfortunately, Thailand's recent changes make it an undesirable retirement location for most newer generations of Americans wanting to retire without a pension. This is because Thai tax brackets are way way higher than those of the U.S., especially for someone retiring off of capital gains or dividends. So, even with the double tax agreement, you're still paying taxes in America, and then will owe taxes in Thailand as well. Keep in mind that the majority of pensions in America were mostly removed from Gen X and newer generations. Myself and most of the folks I know are in similar situations, where our 401k retirements are so low they can hardly be counted on, Social Security retirement probably won't be around, and unless you're a military or government retiree, you won't have an actual pension. So for many years, my retirement plan has been long term capital gains and dividends and I was seriously considering Thailand. Due to the recent changes, it's now off the table as an available location for me.
@rodhales9536 In the U.S., your dividend income is taxed at either 0, 15, or 20%, depending on how much income you make from dividends. Thailand only recognizes your dividend, capital gains, and crypto income as Personal Income Tax (PIT) though. According to the double tax agreement you're going to pay your U.S. taxes first, then pay whatever extra is owed via Thailand tax brackets since they're higher. So, if your dividend income is $500,000/year, you will pay the U.S. $75,000 as that's the 15% dividend tax rate for married filing jointly. That means you will transfer $425,000 to Thailand and are able to prove that you paid 15% in taxes already. $425,000 = THB 15,580,602 Thailand's tax brackets are much smaller and much more aggressive than the U.S. brackets are. So on that ~15.6mil THB, you would owe Thailand THB 4,961,049 ($135,334 in USD). However, since you can show you already paid 15% on that $425,000, you would only owe THB 2,623,959 ($71,582 in USD). This means that instead of only paying the 15% you should be paying, you will instead be paying about ~30% in taxes. Keeping in mind that there are deductions here and there, so these numbers aren't exact. To recap here... As I was saying previously, Thailand's updated tax laws will now ensure the vast majority of Americans will no longer be looking at retiring there because with those extra taxes, it'll just be cheaper to stay in America or look elsewhere. Adding to it... Filing taxes are already a massively stressful event for most individuals. Now imagine filing taxes in multiple countries... Ugh, no thanks!
I think I am in a similar situation. My potential gain on the sale of my personal residence in the U.S. is not taxable under U.S. tax law. If such a sale occurs during 2024, BEFORE permanent residency in Thailand EVER BEGINS, is the gain taxable by Thailand if the funds are later transferred to a Thai bank AFTER becoming a Thai resident?
Your not going to find a more favorable country. But good luck. There are many loop holes to avoid the Thai taxes. But sounds like you have closed you eyes and mind.
@@Mark-hf3bbexcellent explanation and example. Also in the UK our primary residence is protected from capital gains tax only 2nd or other properties have CGT.
Do ATM withdrawals and credit card usages (both on a foreign bank account) count as "remittances" (and therefore taxed)? Is this question answered anywhere?
1) Salaries, property income, etc - Gross or net of expenses or deductions? Many properties are owned at a loss - after mortgage interest, property maintenance cost, broker fee. 2) what if the income is not bank transferred into my Thai bank account - then not taxable?
Thailand solved their currency crisis ingeniously in 1998. This just undid 25 years of ingenuity. Bizarre. TL;DR: Way too complicated. Good luck, Thailand!
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
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!
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?
So, I can trasfer as much savings as I want to Thailand as long as I stay less than 180 days every year. Only risk is when I become a tax resident in the future and have to pay income tax for any trasferred amount since Jan 1 of 2024. Correct?
in this video, regarding tax on UK pension. You said something about you working out how much tax someone would pay on their pension, or NOT pay. How on earth would someone living here, on a pension, UK, NOT pay any tax when the allowance is ony 120k? So does a UK person have to pay tax on a UK State Pension or not? That is a very specific quesiton.......as the 80 year old asked, and I would appreciate a very specific answer please.
A gain on the sale of a personal residence in the U.S. is not taxable under U.S. tax law (subject to limits). If such a sale occurs during 2024, BEFORE permanent residency in Thailand EVER BEGAN, is the gain taxable by Thailand if the funds are later transferred to a Thai bank AFTER becoming a Thai resident?
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.
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.
@@tedosmond413 Most likely, the us rates won’t exceed Thai tax rates. In the US, a married couple could have close to a million baht equivalent in income, and not pay any tax, due to the standard deduction. In Thailand, you would already be hitting a 15-20% bracket, by the time you hit the 10% bracket in the US.
I thought I understood that gifts or loans from abroad are exempt from taxes in Thailand. But this seems to me to be too good and simple a way to circumvent taxation... What do you think?
Are you saying The Thai Revenue Department should note to audit your financial transactions into Thailand? Thailand is Capable of Auditing and enforcing Thai Tax laws. They have agreements with many Major Foreign Countries to provide financial information specific to Thailand and determining sender and receivers of money.
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?
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.
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.
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?
Depends, if Tax Resident you receive all deductions, exemptions under current Thai Revenue Code/Law. Additionally Wages earned and you can prove were earned prior to Jan 1, 2024 are remitted Tax Free 0 tax.
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.
Thank you for watching. We're sorry, we are unable to answer questions in the comments. If you have a follow-up question, please use the link on the website www.expattaxthailand.com/ask-a-question/, book a call, or send us an email.
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.
Agreed, filing taxes on top of having 0 rights and the draconian immigration laws are just too much for a retiree.
Tanks for yr webinar. Yes I wld like a webinar on Thai Belgium data. Thank you
Unfortunately, Thailand's recent changes make it an undesirable retirement location for most newer generations of Americans wanting to retire without a pension. This is because Thai tax brackets are way way higher than those of the U.S., especially for someone retiring off of capital gains or dividends. So, even with the double tax agreement, you're still paying taxes in America, and then will owe taxes in Thailand as well.
Keep in mind that the majority of pensions in America were mostly removed from Gen X and newer generations. Myself and most of the folks I know are in similar situations, where our 401k retirements are so low they can hardly be counted on, Social Security retirement probably won't be around, and unless you're a military or government retiree, you won't have an actual pension. So for many years, my retirement plan has been long term capital gains and dividends and I was seriously considering Thailand. Due to the recent changes, it's now off the table as an available location for me.
But under double tax you pay tax in the US on dividends don't you, on capital gains Im not sure on the US but do you pay tax there as well.
@rodhales9536 In the U.S., your dividend income is taxed at either 0, 15, or 20%, depending on how much income you make from dividends. Thailand only recognizes your dividend, capital gains, and crypto income as Personal Income Tax (PIT) though. According to the double tax agreement you're going to pay your U.S. taxes first, then pay whatever extra is owed via Thailand tax brackets since they're higher.
So, if your dividend income is $500,000/year, you will pay the U.S. $75,000 as that's the 15% dividend tax rate for married filing jointly. That means you will transfer $425,000 to Thailand and are able to prove that you paid 15% in taxes already. $425,000 = THB 15,580,602
Thailand's tax brackets are much smaller and much more aggressive than the U.S. brackets are. So on that ~15.6mil THB, you would owe Thailand THB 4,961,049 ($135,334 in USD). However, since you can show you already paid 15% on that $425,000, you would only owe THB 2,623,959 ($71,582 in USD). This means that instead of only paying the 15% you should be paying, you will instead be paying about ~30% in taxes. Keeping in mind that there are deductions here and there, so these numbers aren't exact.
To recap here... As I was saying previously, Thailand's updated tax laws will now ensure the vast majority of Americans will no longer be looking at retiring there because with those extra taxes, it'll just be cheaper to stay in America or look elsewhere. Adding to it... Filing taxes are already a massively stressful event for most individuals. Now imagine filing taxes in multiple countries... Ugh, no thanks!
I think I am in a similar situation. My potential gain on the sale of my personal residence in the U.S. is not taxable under U.S. tax law. If such a sale occurs during 2024, BEFORE permanent residency in Thailand EVER BEGINS, is the gain taxable by Thailand if the funds are later transferred to a Thai bank AFTER becoming a Thai resident?
Your not going to find a more favorable country. But good luck. There are many loop holes to avoid the Thai taxes. But sounds like you have closed you eyes and mind.
@@Mark-hf3bbexcellent explanation and example. Also in the UK our primary residence is protected from capital gains tax only 2nd or other properties have CGT.
You should have way much more subscribers and views!
Do ATM withdrawals and credit card usages (both on a foreign bank account) count as "remittances" (and therefore taxed)? Is this question answered anywhere?
I haven't a notion of filing a tax return in Thailand
1) Salaries, property income, etc - Gross or net of expenses or deductions? Many properties are owned at a loss - after mortgage interest, property maintenance cost, broker fee. 2) what if the income is not bank transferred into my Thai bank account - then not taxable?
I was going to get an O visa, will the transfer of the 800,000 baht be taxed???
Thailand solved their currency crisis ingeniously in 1998. This just undid 25 years of ingenuity. Bizarre.
TL;DR: Way too complicated. Good luck, Thailand!
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
I tried to get a TIN recently and was told to come back at the end of the year with a bank statement..
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!
Can you tell me if I come to live in Thailand in 2026 and I remit money in 2025? Will this money be taxable?
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?
So, I can trasfer as much savings as I want to Thailand as long as I stay less than 180 days every year. Only risk is when I become a tax resident in the future and have to pay income tax for any trasferred amount since Jan 1 of 2024. Correct?
in this video, regarding tax on UK pension. You said something about you working out how much tax someone would pay on their pension, or NOT pay. How on earth would someone living here, on a pension, UK, NOT pay any tax when the allowance is ony 120k? So does a UK person have to pay tax on a UK State Pension or not? That is a very specific quesiton.......as the 80 year old asked, and I would appreciate a very specific answer please.
A gain on the sale of a personal residence in the U.S. is not taxable under U.S. tax law (subject to limits). If such a sale occurs during 2024, BEFORE permanent residency in Thailand EVER BEGAN, is the gain taxable by Thailand if the funds are later transferred to a Thai bank AFTER becoming a Thai resident?
A Thai Tax expert said that retirees from 65 can deduct another 30‘000 baht.
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.
I have sent an email to your Q&A. I hope you will reply as promised. Thank you.
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.
@@tedosmond413 Most likely, the us rates won’t exceed Thai tax rates. In the US, a married couple could have close to a million baht equivalent in income, and not pay any tax, due to the standard deduction. In Thailand, you would already be hitting a 15-20% bracket, by the time you hit the 10% bracket in the US.
How do I approach the revenue department in Thailand next year regarding gifting to my Thai wife regarding cash or property.
I thought I understood that gifts or loans from abroad are exempt from taxes in Thailand. But this seems to me to be too good and simple a way to circumvent taxation... What do you think?
Are you saying The Thai Revenue Department should note to audit your financial transactions into Thailand? Thailand is Capable of Auditing and enforcing Thai Tax laws. They have agreements with many Major Foreign Countries to provide financial information specific to Thailand and determining sender and receivers of money.
What about crediit card withdrawal ?
Apparently not counted but a very expensive way of getting cash.
I was sent a Thai tax form in English and it said as I am over 60 married to a Thai my total allowances amount to 400,000 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.
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.
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?
Depends, if Tax Resident you receive all deductions, exemptions under current Thai Revenue Code/Law. Additionally Wages earned and you can prove were earned prior to Jan 1, 2024 are remitted Tax Free 0 tax.
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.
When did Thailand change the tax laws?
31-2-24 ......
@@BillyTheKid-l5j What was the change? I don't see any.
No