Tax residency in Thailand and taxing overseas income

[Dannie Boy]

About 7 or 8 years ago, my UK bank HSBC, asked me to complete a tax residency statement and insisted that as I was living in Thailand that I provide a Thai TIN number as well. I’d never been near a Thai tax office (still haven’t by the way) but doing some research I found advice saying that the TIN and pink ID number were the same, so that’s what I used, so I’ll be interested in BB’s reply.

As an aside, I always carry my pink ID when I go out as it’s a means of identification if I ever get stopped, as I don’t carry my passport with me.

[musungu]

About 7 or 8 years ago, my UK bank HSBC, asked me to complete a tax residency statement and insisted that as I was living in Thailand that I provide a Thai TIN number as well. I’d never been near a Thai tax office (still haven’t by the way) but doing some research I found advice saying that the TIN and pink ID number were the same, so that’s what I used, so I’ll be interested in BB’s reply.

As an aside, I always carry my pink ID when I go out as it’s a means of identification if I ever get stopped, as I don’t carry my passport with me.

Regarding this whole subject matter I have for many years completed my HMR&C annual tax return and each year receive their Tax calculation under a covering letter.
I notice that many posting on this matter like myself are British subjects and refer to having a P60 form (from HMRC ?) I have never heard about this form and many posting replies mentioning a personal Number this P60 gives.
Can somebody tell me what it is to do with ones UK tax affairs and what it represents? Perhaps BB can assist.

[Dannie Boy]

A P60 shows how much tax you’ve paid in a tax year on your earnings, whether that’s from paid employment or from a pension if you’re retired. It’s not issued by HMRC but by your employer or pension provider.

[caller]

I notice that many posting on this matter like myself are British subjects and refer to having a P60 form (from HMRC ?) I have never heard about this form and many posting replies mentioning a personal Number this P60 gives.
Can somebody tell me what it is to do with ones UK tax affairs and what it represents? Perhaps BB can assist.

Without trying to find my latest P60, I think the personal number is your unique tax reference, which consists of 10 numbers. If you haven't already, have a look at www.Gov.uk, where all this information is readily available.

[Dannie Boy]

I’ve just checked my P60 and there’s no reference to my Unique tax reference number, the only identifiers are my pension payroll number and my National Insurance (NI) number.

[caller]

I’ve just checked my P60 and there’s no reference to my Unique tax reference number, the only identifiers are my pension payroll number and my National Insurance (NI) number.

Ah, okay, thanks for checking.

I guess as a P60 is issued by a single employer / pension provider, its not really relevant. I only get the one, but I'm guessing there will ne members here who get a few.

[musungu]

Thank you all very much for your clear and understood answers and so fast as well.

[Big Boy]

I was given a piece of paper with a number on it. I didn't compare the number on my pink ID. I'm away at the moment, but will try to remember to look when I get home. If I haven't responded to your question by Sunday, please remind me again.

I've just checked my TIN against the number on my Pink ID Card - the 2 numbers are completely different. The only resemblence is they are both the same length.

[buksida]

Department to amend tax on foreign income remittance
The Revenue Department is preparing to draft legislation to amend the collection of tax on foreign income remitted to Thailand.

According to Panuwat Luengwilai, deputy director-general of the department, Thais with income earned abroad who remit it to Thailand regardless of the tax year must include that income in their personal income tax filing in Thailand.

The tax rate is progressive, with rates ranging from 5% to 35%.

These regulations regarding the taxation of foreign income remitted to Thailand were amended during the previous government and have been in effect since Jan 1, 2024.

For foreign income earned before Jan 1, 2024 and remitted to Thailand after that period, the previous rules still apply. That means if a Thai earned foreign income before 2024 and remitted it after the year the income was earned, the remittance is not subject to the tax.

Mr Panuwat said the department is drafting a royal decree to amend the current criteria, in line with the policy of Finance Minister Pichai Chunhavajira, who is encouraging Thai nationals with foreign income to repatriate funds for domestic investment.

Under the new guidelines, Thais with foreign income will not be taxed if they remit that income in the year it was earned or the following year. For example, if income is earned in 2025 and brought into Thailand in 2025 or 2026, it is not subject to tax.

However, if the income is remitted after that period, normal tax obligations apply.

This condition is intended to expedite the repatriation of foreign income, potentially supporting domestic investment, in line with government policy.

Mr Panuwat said the current rules on taxing foreign income have discouraged Thais investing abroad from bringing their money back into the country.

A source from the Finance Ministry who requested anonymity said the taxation of foreign income follows the residency-based principle, whereby Thailand taxes the income of individuals who reside in the country.

This rule applies to persons who stay in Thailand for 180 days or more and have foreign income.

The department has consistently applied this residency-based taxation principle, which aligns with OECD guidelines.

https://www.bangkokpost.com/business/ge ... remittance

They must have noticed a big decline in foreign inflows, so from what I understand, if you can prove you earned it in the same year you bring it in, its not taxable.

[404cameljockey]

This article throughout refers only to Thais with foreign income. Let's hope they are not changing previous policy and taxing non-Thais in a different way to Thais.

[buksida]

It says any person who stays in Thailand for more than 180 days, which includes foreigners on long-stay visas. So I presume this rule change applies to us as well.

[Hahuahin]

Under the new guidelines, Thais with foreign income will not be taxed if they remit that income in the year it was earned or the following year. For example, if income is earned in 2025 and brought into Thailand in 2025 or 2026, it is not subject to tax.

So, if I understand this correctly, we are now back to square one, well more or less. For me personally following the above and the tax treaty with my home country then I don't need to pay tax on my pension transferred here this year (monthly transfers) and home country will be happy because tax treaty says clearly "what you don't proof to have paid tax on in Thailand you pay tax on in home country"
hahuahin

[Big Boy]

We're back to the same problem I encountered. How do you prove it?

I had to prove I'd paid tax. The requirement is now having to prove when you earned it.

[Big Boy]

They must have noticed a big decline in foreign inflows, so from what I understand, if you can prove you earned it in the same year you bring it in, its not taxable.

I for one have stopped bringing more than I need into Thailand, and have been spending much less. If every expat is the same, they must have noticed a huge difference.

[buksida]

Not to mention all the rich Thais leaving their capital overseas where it earns better yields and doesn't get scrutinized by the Thai taxman.