The following is from our friends at Anglo Siam Legal in Pattaya, located in South Pattaya directly across from Big C.
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The following is from our friends at Anglo Siam Legal in Pattaya, located in South Pattaya directly across from Big C. More information on them and how to get further questions answered are below the article. Please contact Anglo Siam Legal with tax related questions, not The Pattaya News.
Introduction
Thailand has implemented a new set of tax laws effective January 1, 2024. These changes have significant implications for foreign residents living in the country.
This article aims to provide a comprehensive overview of the new tax laws, focusing on their impact on foreign residents’ taxable income, tax identification numbers, personal tax returns, and income from overseas sources, including pensions.
For your peace of mind:
Our client care manager is a Practicing British and International Lawyer & Duty Solicitor England and Wales and is a Member of the International Bar Association, IBA.
All of our in-house Thai Attorneys, Barristers and Accountants are all fully regulated by their Thai regulatory bodies.
Relevant Sections of the New Tax Laws
The new tax laws introduce several key changes, including:
Increased Personal Income Tax Rates: The highest personal income tax bracket has been increased, resulting in higher tax liabilities for high-income earners.
Expanded Tax Base: The definition of taxable income has been broadened, capturing additional sources of income such as rental income and capital gains from the sale of assets.
New Tax Incentives: Certain tax incentives have been introduced to promote investment and economic growth, such as research and development tax credits and reduced corporate income tax rates for qualifying businesses.
Implications for Foreign Residents
Foreign residents in Thailand are subject to Thai income tax on their worldwide income, earned after the first of January 2024, regardless of where the income is earned, and where it is sent into Thailand. (Some dual tax agreements and certain nationalities may have some exceptions, but one should consult with a tax advisor to ensure they qualify. See below for more.) The new tax laws have the following implications for foreign residents:
Higher Tax Liabilities: The increased personal income tax rates and expanded tax base mean that foreign residents may face higher tax bills.
Need for Careful Tax Planning: Foreign residents should carefully review their financial situation and consider tax planning strategies to minimize their tax liabilities. This may involve structuring income, claiming deductions, and taking advantage of available tax incentives.
TIN: The need for a Tax Identification Number.
Taxable Income for Foreign Residents
The following types of income are generally taxable for foreign residents in Thailand: This also applies to sources of income from outside of Thailand where the profit or finances are remitted into Thailand from overseas.
Employment Income: Salaries, wages, and other forms of employment income earned within Thailand.
Business Income: Profits from businesses operated within Thailand.
Rental Income: Income from the rental of property located in Thailand.
Investment Income: Interest, dividends, and capital gains from investments in Thai assets.
Other Income: Pension income, royalties, and other types of income received within Thailand.
Bilateral Tax Agreements
Thailand has bilateral tax agreements with several countries, which can help reduce double taxation for foreign residents. These agreements typically provide for a reduced or eliminated tax rate on certain types of income. Foreign residents should check if their country of residence has a bilateral tax agreement with Thailand and how it applies to their specific situation.
Tax Identification Number (TIN)
All foreign residents in Thailand are required to obtain a Tax Identification Number (TIN). The TIN is used to identify taxpayers and track their income and tax liabilities.
Foreign residents can apply for a TIN by contacting us at Anglo Siam Legal. We will complete and gain your TIN for 3250thb.
Personal Tax Return
Foreign residents are required to file a personal income tax return each year. The deadline for filing the return is typically April 30th of the following year. The return must be filed with the Thai tax authorities, either online or in person. Our Accountants at Anglo Siam Legal can complete your personal tax return from 3500thb plus depending on simplicity or complexity
Income from Overseas
Foreign residents may also receive income from overseas sources. The tax treatment of this income depends on several factors, including the nature of the income, the country where it is earned, and any applicable bilateral tax agreements. In general, foreign residents are subject to Thai income tax on their worldwide income, earned after the first of January 2024 when remitted into Thailand, but there may be certain exemptions or deductions available.
Pensions
Pensions sent to Thailand from overseas are generally subject to Thai income tax. However, there may be certain exemptions or reductions available depending on the type of pension and the country where it originates. Foreign residents receiving pensions from overseas should consult with a tax professional to determine their specific tax obligations.
Other Relevant Information
Tax Audits: The Thai tax authorities may at any time conduct tax audits to verify the accuracy of taxpayers’ returns. Foreign residents should maintain proper records and documentation to support their tax filings.
Tax Penalties: Failure to comply with Thai tax laws can result in penalties, including fines and interest charges.
Professional Advice: Foreign residents are encouraged to seek professional tax advice to ensure that they comply with Thai tax laws and minimise their tax liabilities.
Anglo Siam Legal: We can assist with those needs and advice.
Conclusion
The new tax laws in Thailand have significant implications for foreign residents. Understanding the changes and their impact is crucial for ensuring compliance and minimising tax liabilities. Foreign residents should carefully review their financial situation, consider tax planning strategies, and seek professional advice if necessary.
Anglo Siam Legal are here to advise and assist with your legal, Accounting and Tax needs. Let us keep you legal and stress free.
Contact us
www.anglosiamlegal.com
info@anglosiamlegal.com
Mobile- 061-018-4790
Office- 0333-138-420
Visit Us Anglo Siam Legal 565/103-104 Moo 10 Nong Prue Pattaya.20150
Opposite the car park of Big C
Legal and Accounting Consultations available in English and Thai by appointment at affordable rates.
This guide is for informational purposes only and does not constitute legal advice.
For tax related questions, concerns, and inquiries please contact Anglo Siam Legal NOT The Pattaya News Team.