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BKK Banger
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The amounts are all going up because they want to keep out;
1. competition for low paid managerial jobs
2. foreigners retiring here who may become a burden
3. businessmen who open SME businessess and declare a low salary for tax purposes.
Basically anyone who is not well off by Thai standards. And you are right, tax is calculated on the minimum even if you receive less, similair to the company tax where you would be foolish to declare less than the minimum turnover related profit.
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 8:13 pm on Mar. 7, 2004
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Vancouver Jay
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Banger, re: your second item... A burden to whom or what?
Thailand has no social welfare system to speak of and foreigners can't get in on what little they have.
Unless shown the documentation, I'm not ready to believe that all retirement income is Thai-taxable anyway.
If all that happens is that you get a wire transfer once a month from farangland, how is this different from any other wire you receive at a younger age?
If the money comes from a pension plan or a blind trust and involves no exercise of intellect to create, there's no basis for taxation.
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Bangkok Women : Meet Sensual Bangkok Women
Posted on: 3:32 am on Mar. 8, 2004
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BKK Banger
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Quote: from Vancouver Jay on 4:32 pm on Mar. 8, 2004
Banger, re: your second item... A burden to whom or what?
Thailand has no social welfare system to speak of and foreigners can't get in on what little they have.
Unless shown the documentation, I'm not ready to believe that all retirement income is Thai-taxable anyway.
If all that happens is that you get a wire transfer once a month from farangland, how is this different from any other wire you receive at a younger age?
If the money comes from a pension plan or a blind trust and involves no exercise of intellect to create, there's no basis for taxation.
Perhaps I should have explained a little bit.
The Thais have identified a market for long term retirees such as from Japan, USA etc. They are actively encouraging such people to come to Thailand and in particular out of the way areas of Thailand such as Isaan which need a boost.
This is not an altrustic move, no country wants retirees who are not contributing to economic growth, unless they bring in a lot of money each month they are not worth taking.
As you rightly noted there is no welfare system so they want to make sure they are secure financially before granting the long term retirement visa. Medical bills can rapidly escalate for instance.
Income Tax is a matter for your conscience and your tax office. In general it applies to earned income from employment worldwide, rental of property, dividends, certain interest received etc.
Exemptions cover interest on savings at Thai banks (not much anyway) Thai govt bonds etc.
As to whether your pension or trust fund would be taxed I would suggest you talk to a tax adviser. I have never been too bothered to find out but I suspect it is all taxable.
As you would not have a work permit it is unlikely you would ever be asked to pay tax.
Tax thresholds are relatively high (last time I checked at 30,000 Baht p.a. for a single and 60,000 p.a. for a couple) compared to average income so a lot sneak in under the radar. Even if all people were honest I would expect about 55% of the population would not be taxable on income.
Trust this is useful. If you are considering retiring here and you have a Thai partner and are really committed you could consider Permanent Residency.
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Thai Girls : Meet Sexy Thai Girls
Posted on: 11:35 pm on Mar. 8, 2004
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