Tax laws. Is it happening?

I've just been watching some videos about these new tax laws. I was intending on renting out my apartment here in Australia and living on that money plus some savings account interest. Both are taxed here at the full rate but now I understand Thailand are going to double tax people. If this is true I can pretty much kiss retiring in Thailand goodbye.

Not happening. Read the forum. It's designed to get more tax from wealthy Thai people. Don't worry.

@rbakker


Additionally if there is a DTA with your country, which Thailand has with most developed countries, there is nothing to worry about as well

@martinoo2002. But won't we still have to file a return?   

@Teatowel


I understand from your question you mean at your home country?

That is correct for certain countries like the US who follow the global income regulation strict

In other countries the tax residence law is taken in account and that means you are liable for

income tax over generated income in the country if you stay longer than 180 days in said country


In Thailand it depends if you want to be 'more catholic than the pope' or if you work here...

But then still I would not declare any foreign income

There are sufficient legal ways to prevent that.....

In Australia you must declare income but apparently if in thailand longer than 180 days you have to declare there also.

@shenpa

Australia has a DTA with Thailand. Income from Australia will be taxed there and then under DTA is free here

Income in Thailand is taxable in Thailand


You have to declare your Aussi income in Thailand but can deduct as taxed in homeland in the same form/income declaration


In below link for example there is no direct mentioning about 'income for foreign sources, so I would not declare foreign income

either from pension, state allowance or otherwise unless it comes from doing business in Thailand (which is income in Thailand)


https://www.rd.go.th/english/6045.html

According to Section 42: "The assessable income of the following categories shall be exempt for the purpose of income tax calculation:


(25) Compensatory benefit received by the taxpayer from the social security fund under the law governing social security."


My social security comes from the US. Does anyone know if that is exempt or are they referring to Thai social security?

@rzugnoni

They refer to Thai SS

Any other SS should be taxed in the related country.

Thank you for the response. I was afraid that was the case. I do get taxed on it in the USA. Please correct me if I am wrong but I believe that there is a DTA between the US and Thailand which should mitigate it somewhat.

I repeat: Not happening. Read the forum. It's designed to get more tax from wealthy Thai people. Don't worry.


    I repeat: Not happening. Read the forum. It's designed to get more tax from wealthy Thai people. Don't worry.
   

    -@rbakker


Thank you for the response. I do understand that it is targeted to wealthy Thai people . However, it sounds like people like me will get caught up in that. Are you saying that I should just not report it at the end of the year because the Thai government isn't interested in it?


Thanks,


Randy

You can report it if you want but you've already paid tax on it.

Disclaimer: not a tax expert, just repeating what I have read on this forum and around the internet

@rzugnoni

The DTA basically means that if you are taxed in your home country you will not be taxed in Thailand.

Not sure what migation you are referring too, things remain the same as before

@martinoo2002 does it matter how much you are taxed in your home country?

@shenpa

No , you need to pay in home country what you have to and with DTA are exempt of paying in Thailand  IF you do a tax return which under normal circumstances

you would not do

If you work you will have to and then you have the deductible for the tax payment in the US over global income, again IF your report it, which also under normal circumstances you would not do......


    @rzugnoni
The DTA basically means that if you are taxed in your home country you will not be taxed in Thailand.
Not sure what migation you are referring too, things remain the same as before
   

    -@martinoo2002


That's a slight over-simplification of how DTAs work. DTAs specify the type of income covered by the treaty and for those income types covered, the tax you pay in your home country is offset against the tax due in your expat country. So in the case of Thailand, if the tax you have already paid in your home country exceeds what would be due in Thailand (which would usually be the case because Thai tax rates are low compared with most Western countries) then there will be no tax to pay in Thailand, even if you were to declare it, which you may decide not to do since it could complicate things unnecessarily.

@Retiree

Thanks for your elaborate confirmation1f600.svg1f600.svg