Are Expats in Trouble with Thailand's New Tax Laws?

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[AndAWakeUp]

For me…it just means I won’t spend more than 6 months in Thailand a year.

[BlakeGabriel-]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[RasheedKhan-hexx]

180 day rule is quasi universal. No surprise there. I think the issue is there should be distinction between income and savings. People living off savings should not be taxed on transfers.

[ronhansen]

Every dollar brought in to Thailand is spent in Thailand. All the hotels, bars, street vendors are going to suffer from this. I myself am going to have to cut back on all my spending. It’s a very bad money grab that’s going to come back to bite them.

[HairyPixels]

So they exempting "wealthy individuals" but tax everyone else. That sounds like a real fair policy Thailand!

[warrpedd]

4 months Thailand, 4 Philippines, 4 Vietnam.

[jimjames]

Thai Gov taking a big risk in losing many expats who earn income / and pensions earning won't like this at all. If you combine the Poor Air Quality and other rising issues, could be the straw that broke the tourists' back. Vietnam has recently instituted a similar tax on money coming into Viet, but they call it a "Global Tax", goes from 15% to 45%, cheewawa. Philippines starting to look better again. Thai gov seems desperate for revenues, but in doing what they're planning, could put a real damper on tourism and real estate. Also I believe they want to keep those "tax credits" murky so they offer the gov flexibility and ability to interpret in the gov's favor. For those of us considering retiring in Thailand, starting to look murky and doubtful.

[AntiTheismForever]

Thanks Forrest, have now heard a few tax advisors in Thailand give the same interpretation of Section 41. As a retiree, I will go where I am treated best in terms of immigration and tax law. Thailand has now become too expensive and unattractive as a retirement destination. Must maintain $800, 000 of depreciating Baht in a Thai bank account earning almost no interest, expensive health insurance, annual visa renewal and now taxing retirement income earned on lifetime savings. I will continue to visit but will not expose my retirement income to Thai income tax under any circumstances or be compelled to register as a "tax resident". Expect much less foreign income to flow into Thailand. If not a Thai citizen, employed in Thailand or running a business there, you should not be required to pay Thai income tax period. Tax residency for foreign retirees, how absurd.

[DERISNER]

Welp, I was prepared to retire in Thailand and pump large quantities of capital into the economy. No longer. Sayonara, Thailand

[LikeAGentlemanPlease]

Hey Lee, could you please do a recap because I couldn’t understand him at all.

[RG-jvhm]

Looks like BKK condos will go on sale soon.. 50% discount?

[neila]

After 10 years in Thailand - me and my wife have already given up on this country. We are moving next year

[dansemacabre]

This is the "FOREIGNERS GET OUT" tax

[kevbrown]

So if Foreigners must now pay tax in Thailand then surely they will be eligible for the Universal Coverage Scheme of free health care .
It would not be fair to have to pay tax towards free government healthcare and not be allowed to use it .

[gzubeck]

What ever made Thailand attractive to foreigners is starting to disappear thru government Bureaucracy. Pensioners will be OK and bring in money that way but I can see a lot of people just leaving their money in foreign bank accounts. Too complicated to comply with laws.

[VictorHenderson]

This entire tax thing definitely has had me reconsidering my current plans to retire to Thailand ever since the news hit. What a sh#$ show.

[markwalker]

Section 41 has just made it more expensive to maintain a greedy Thai girlfriend. All that extra money bought in to pay for sick buffalo, gold jewellery, sick parents medical bills, 3 motorbikes, a house in the village etc is going to get taxed at 25%

[kurtstueger]

I will retire next year and planned to do so in Thailand. With that new tax I will definitely search for a different place. I think that tax is a good example for scare off retirees

[clay]

This is a real bummer. I'm an American eligible for the LTR work from Thailand visa and was looking forward to applying. Based on his interpertation, I wouldn't be exempt and be taxed by both the USA and Thailand. That's an automatic no for me.

[Vagas]

Form what I can understand, for a US citizen, according to this attorney, unless the income is strictly from the SSN, they will tax you. Pay tax but get no benefits = extortion. This country only see the tree and not the forest. Very short-sighted in their part.