I think this has to be seen in the current Thai political context, with the globalist Thavisin installed and in talks with the likes of Macron and Sunak to "better integrate Thailand in the global market". One of the proposed measures of this tax law is direct communication with the revenue authorities of every country (via AI automation no doubt) of assets owned in Thailand by all foreigners. In France, Macron tried last year to pass a law where banks would automatically send the monthly bank balances of French citizens to the authorities, all in the name of "fighting crime", of course, and under the principle that "if you do nothing wrong, you have nothing to fear". The law was struck down at the last minute for constitutionality reasons, but now we know that it is only a matter of time before it happens.
The goal, in my view, is to further implement the advent of the global citizen under the watchful eye of Big Brother, and if they have it their way, there will be no easy way to avoid it.
I do believe, however, that with the political changes coming in the US and the inevitable return to protectionism and multilateralism (already largely underway in the non-Western world), this dark plan is not going to happen. But their intent (and what they have in store for us) is clear.
This 'new' foreign tax rule obviously is a matter of great concern for all those staying permanently or semi-permanently (more than 6 months a year) in Thailand. And it is discussed endlessly on the Thai fora for expats.
I already delved into this matter, but quickly came to the conclusion that there are so many non-clarified options and issues re the matter, that it is currently still too early to assess the implications for anybody's personal situation, and that we would have to wait for clarification by the Thai Revenue Service on how they will implement it for 'farangs' staying in Thailand.
But here already some pointers:
#1 - There is actually no 'new' legislation re this taxation matter, it is simply that previously it was not enforced on foreigners staying in Thailand. But the Thai government is in dire need of revenue and this would be - at least on the surface - appears to be an easy way to get money from the farangs staying in Thailand. But as they have a tradition of shooting themselves in the foot, it is well possible that they would kill the Goose with the Golden Eggs, as many wealthy expats are already considering leaving Thailand when it would become a reality.
#2 - What is sometimes forgotten is that the main target for this new legislation are not the farangs, but wealthy Thais that are making use of a loophole in the current Thai Tax regulations, that funds/income abroad are not taxable when they have been earned in the year/years preceding the annual Tax declaration. Note: So it might be a tactic by wealthy Thai to raise the 'farang' issue and the ultra-complicated implications of such taxation, in the hope that the Thai government would abandon the plan altogether so that the wealthy Thai would get off the hook.
#3 - When applied to farang revenue declaration, the taxation would only be applicable for so-called 'assessable' income. E.g. income from pensions (which would be the main source of income for the majority of expats) would in majority not be be considered 'assessable' when there is a Double-Taxation treaty between Thailand and the home-country of the foreigner.
In conclusion > As with most if not all Thai legislation, there is currently no clarity on how this will pack out. And in Thai fashion with all things 'official' it is well possible that every Thai provincial Revenue Service dept will interpret and enforce or neglect it in their own way. Needless to say that would be an administrative bureaucratic nightmare.
Inflation is making the US dollar worth less each day, but when I transfer money into Thailand I still get nearly the best rates I've seen. I think that means the Thai baht is dropping in value even faster than the US dollar, but there is so much manipulation that maybe there are other reasons.
I do wonder who is behind this. Is it really the local governments, or are international organizations pushing for it. If they implement it as aggressively as advertised, we would most likely return to the US, which is what those groups seem to want.
I think this has to be seen in the current Thai political context, with the globalist Thavisin installed and in talks with the likes of Macron and Sunak to "better integrate Thailand in the global market". One of the proposed measures of this tax law is direct communication with the revenue authorities of every country (via AI automation no doubt) of assets owned in Thailand by all foreigners. In France, Macron tried last year to pass a law where banks would automatically send the monthly bank balances of French citizens to the authorities, all in the name of "fighting crime", of course, and under the principle that "if you do nothing wrong, you have nothing to fear". The law was struck down at the last minute for constitutionality reasons, but now we know that it is only a matter of time before it happens.
The goal, in my view, is to further implement the advent of the global citizen under the watchful eye of Big Brother, and if they have it their way, there will be no easy way to avoid it.
I do believe, however, that with the political changes coming in the US and the inevitable return to protectionism and multilateralism (already largely underway in the non-Western world), this dark plan is not going to happen. But their intent (and what they have in store for us) is clear.
Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman
Yeah, I'm the taxman
Should five percent appear too small
Be thankful I don't take it all
Hi Amy,
This 'new' foreign tax rule obviously is a matter of great concern for all those staying permanently or semi-permanently (more than 6 months a year) in Thailand. And it is discussed endlessly on the Thai fora for expats.
I already delved into this matter, but quickly came to the conclusion that there are so many non-clarified options and issues re the matter, that it is currently still too early to assess the implications for anybody's personal situation, and that we would have to wait for clarification by the Thai Revenue Service on how they will implement it for 'farangs' staying in Thailand.
But here already some pointers:
#1 - There is actually no 'new' legislation re this taxation matter, it is simply that previously it was not enforced on foreigners staying in Thailand. But the Thai government is in dire need of revenue and this would be - at least on the surface - appears to be an easy way to get money from the farangs staying in Thailand. But as they have a tradition of shooting themselves in the foot, it is well possible that they would kill the Goose with the Golden Eggs, as many wealthy expats are already considering leaving Thailand when it would become a reality.
#2 - What is sometimes forgotten is that the main target for this new legislation are not the farangs, but wealthy Thais that are making use of a loophole in the current Thai Tax regulations, that funds/income abroad are not taxable when they have been earned in the year/years preceding the annual Tax declaration. Note: So it might be a tactic by wealthy Thai to raise the 'farang' issue and the ultra-complicated implications of such taxation, in the hope that the Thai government would abandon the plan altogether so that the wealthy Thai would get off the hook.
#3 - When applied to farang revenue declaration, the taxation would only be applicable for so-called 'assessable' income. E.g. income from pensions (which would be the main source of income for the majority of expats) would in majority not be be considered 'assessable' when there is a Double-Taxation treaty between Thailand and the home-country of the foreigner.
In conclusion > As with most if not all Thai legislation, there is currently no clarity on how this will pack out. And in Thai fashion with all things 'official' it is well possible that every Thai provincial Revenue Service dept will interpret and enforce or neglect it in their own way. Needless to say that would be an administrative bureaucratic nightmare.
Inflation is making the US dollar worth less each day, but when I transfer money into Thailand I still get nearly the best rates I've seen. I think that means the Thai baht is dropping in value even faster than the US dollar, but there is so much manipulation that maybe there are other reasons.
I do wonder who is behind this. Is it really the local governments, or are international organizations pushing for it. If they implement it as aggressively as advertised, we would most likely return to the US, which is what those groups seem to want.
Hi Amy, I wrote about the new tax law and included a Q & A section from a conversation a friend had with a tax consultant on the implications:
https://open.substack.com/pub/nicholascreed/p/the-common-reporting-standards-crs?r=16xjwn&utm_campaign=post&utm_medium=web