By Barry Kenyon

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The emerging scenarios: Thai expats and income tax

By Barry Kenyon

July 5, 2024

Countless foreign tax residents of Thailand daily search the internet for answers, but ignorance is not bliss. How does the Department of Thai Revenue (DTR) rule to tax remitted income from overseas from the start of 2024 affect me? Do I need to fill in a Thai tax form in the new year 2025 even if I think I do not have assessable income in 2024? How can I obey the tax laws if I can’t find out what they are? Will I be arrested? Meanwhile, the DTR remains inscrutable as the relentless calendar year passes the half-way mark.

To address the void, various scenarios are springing up on the internet and at webinars or meetings of various kinds. Mike Lister, a widely-respected and “advanced member” of the Asean Now popular forum on the subject, has suggested in a personal capacity that the remitted tax rule will be introduced softly at first. Overstretched DTR officials will concentrate on the big fish with large and untaxed remitted income and will leave largely unscathed the little fish such as run-of-the-mill pensioners (unless they are spotlighted for some reason).

If true, it could take several years of semi-implementation before every foreign tax resident is the glum recipient of a tax identification number and the provider of a multi-page, completed PND 90 tax form. The downside of this view is that typical expats may spend the next few years still muddled and fearful about their personal futures. Incidentally, the PND 90 tax form is available in English contrary to some social media warriors, although reports say it will anyway be altered soon. Another reason for waiting.

Another softish approach to DTR was provided in a recent Pattaya Mail article by financial analyst and tax expert Victor Wong. He gave a lot of common-sense advice, such as keeping all your financial documentation in good order and – very importantly – emphasizing that submitting tax forms does not necessarily mean you have anything extra to pay. He also committed himself to the view that, because of double taxation treaties, elderly foreign residents here would not pay more cash in Thailand on previously taxed pensions.

Hopefully, this broad interpretation of double taxation treaties will stand the test of time. It should, however, be noted that the 61 international agreements with Thailand are far from unanimous in scope. For example, the US one insists that social security payments may only be paid in America, whereas the British equivalent covers only “government” pensions and also excludes the state or old-age pension. Moreover, some analysists maintain that double taxation treaties may only give limited cover because exempt income allowances may be more generous abroad than in The Land of Smiles. Thus the international agreement may only give a tax credit for Thailand rather than total immunity here.

All commentators agree that there are so many unanswered questions. Even an obvious matter such as whether use of a foreign (non-Thai) credit card is remitted income, in whole or in part, is the subject of blistering debate on social media. There is also much nonsense out there such as the claim expats will be taxed by Thai banks a uniform 35 percent on foreign remittances or that annual extensions of stay in some immigration offices already require proof of a Thai tax identification number. Like the tale that Adolf Hitler escaped Berlin and retired to a relaxing hill resort in Paraguay, such tales are best regarded as click bait.

The whole issue of taxing more thoroughly Thai or foreign residents was raised by prime minister Srettha Thavisin in the first two weeks after the Pheu Thai election victory last year: he wants more Treasury cash and quickly. The DTR responded with alacrity and, last month, went so far as even to speculate (that’s what it is) that from 2025 all worldwide income would become taxable whether remitted to Thailand or not. Given the Thai government’s ambitious policy to recruit one million wealthy foreigners to Thailand over five years, a rethink is already overdue. The prime minister started this whole ball game but has been silent publicly ever since. He should “come-out” clearly on the tax issue scope, or exempt certain categories, or even delay any move until proper research has been completed. The current silence is truly deafening.

https://www.pattayamail.com/latestnews/ ... tax-464827

[Gaybutton]

Just how "well heeled" do you have to be? Barry says "The best care may require a budget as high as US$2,000 monthly". That works out to about 72,000 baht per month - not much more than the 65,000 baht per month minimum for the retirement visa. US$2,000 works out to be about US$64 per day. Does that really go beyond affordability for most reading this?

The last place I would want to end up is in a "retirement residence" - aka "nursing home" - even if it is an upscale one. But if it comes to that it at least is financially do-able.

Does anyone besides me remember the movie "The Treasure of the Sierra Madre"? I would have no objection to ending up the way Howard (Walter Huston) ends up.



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Retirement homes in Thailand strictly for the well-heeled

By Barry Kenyon

July 10, 2024

Private companies are now getting seriously involved in upscale residences for retirees. Scarisbrick International, an Australian 6-star company, is collecting expressions of interest (not yet bookings) from potential customers in Thailand including the Pattaya area. Hospital City, a huge medical facility under delayed construction near Mabprachan Lake, will include onsite village facilities for the elderly, Thai and foreign.

Most countries in south east Asia are fast becoming ageing societies. Malaysia in particular has developed facilities quickly and now offers over 1,400 private aged care homes. Younger generations throughout the region are now less likely to take on the responsibility of caring for elderly parents, posing all sorts of questions about future provision. In Thailand there are approximately 800 homes covering both the public and private sectors which will need to be dramatically expanded during the present decade as Thai citizens inevitably become less independent.

Expat retirees in Thailand too, as they age, can face serious problems once their health deteriorates. The lucky ones are cared for by their Thai families or even find charitable accommodation in Thai religious foundations. The huge gap in provision is likely to be filled by private providers, although the service costs will be high. Some care homes say their monthly prices start at 20,000 baht (US$550), but there are many additional charges such as all medical services, transport, meals apart from breakfast, games, special help for mental deterioration etc.

These extras can push the monthly bill much, much higher. The best care may require a budget as high as US$2,000 monthly even without significant surgical procedures. For the well-heeled, retirement villages may well become the norm although the motivation in Thailand will be profitability rather than social responsibility or community engagement. Expat retirees, even if they are to be taxed on assessable cash – whether remitted or part of their worldwide income – will not receive any state subsidy.

Elderly foreigners are present in Thailand under a multiplicity of visa arrangements: principally annual extensions of stay based on retirement or marriage, the Elite visa or the new ten-year Long Term Residence visa. Although no reliable statistics are available, most (except for the handful with LTR) do not have comprehensive medical cover and will likely find it’s too late to start. As Thai lawyer and visa specialist Jessataporn Bunnag puts it, “Thailand welcomes retirees from all over the world, but expects them to fund their own care from insurance or cash as they inevitably decline.” This issue is the elephant in the room when retirees contemplate their future in the Land of Smiles.

https://www.pattayamail.com/news/retire ... led-465229

[Jun]

Just how "well heeled" do you have to be? Barry says "The best care may require a budget as high as US$2,000 monthly". That works out to about 72,000 baht per month - not much more than the 65,000 baht per month minimum for the retirement visa. US$2,000 works out to be about US$64 per day. Does that really go beyond affordability for most reading this?

I consider that to be very affordable. I suppose you need to add medical insurance & visa costs on top, but not much else ? Unless they still have boys visiting the care home.

However, I suspect not everyone is good at saving, budgeting, doing inflation projections or even leaving a big fat safety margin to allow for exchange rate moments.

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Myanmar junta’s survival depends on foreign supporters including Thailand

By Barry Kenyon

July 11, 2024

As the Myanmar military continues to lose significant ground in the civil war, Amnesty International has accused neighboring countries of supporting junta chief senior general Min Aung Hlaing. Myanmar’s state banks continue to buy huge quantities arms and fuel from China and Vietnam in particular, often using Thai banks as intermediaries. The Siam Commercial Bank has denied that cross-border related transactions are illegal.

Meanwhile, the junta’s domestic hold continues to weaken. It has now lost control of some townships in 86 percent of the country, including key junta bases in the Shan state and in Mandalay, the heart of military dominance. The Myanmar official currency, the kyat, has lost almost a third of its value to the US dollar. As inflation rages at around 30 percent, banks are now restricting the cash that citizens can withdraw.

The Myanmar public is now banned from using VPNs (virtual private networks), thanks to the latest surveillance technology from China. Radio Free Asia says that the ban on free speech is a sign the military is losing control throughout the country. In reply, junta spokesman Zaw Min Tun denied digital dictatorship arguing that some citizens were “disloyal” and in league with public enemies.

Thailand, in particular, has a difficult relationship with Myanmar. The two countries share a land border of more than 2,500 kilometers, much of it poorly policed, amid an ongoing concern in Bangkok about a refugee crisis spreading uncontrollably. There is also a fear about the growing lawlessness in remote parts of Myanmar (near to the Chinese border) leading to a thriving but illegal drugs trade, kidnapping, casinos and phone scamming.

If the junta were to collapse, as predicted by much of the international media, there is concern that the several opposition movements, such as the Ta’ang National Liberation Army, would not coalesce around a single party, thus creating ongoing political chaos. Recent research by the Thai real estate authority shows that Myanmar nationals have been buying more condominium units in Bangkok than any other nationality. This suggests the beginnings of an exile strategy by some members of the Myanmar ruling elite.

https://www.pattayamail.com/latestnews/ ... and-465286

[Gaybutton]

In my opinion, rather than trying to end Pattaya's reputation as a "sin city", they ought to instead be promoting it. I believe it would attract a huge number of tourists beyond the numbers they usually get.

I am still waiting for an explanation as to just what is the bad part about sex.
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Pattaya rejects hostile labelling as Sin City

By Barry Kenyon

July 13, 2024

Pattaya leaders are up in arms about the stereotype of Pattaya as a haven for prostitutes. High-sounding names such as the Pattaya Night-Business Entrepreneurs and the Pattaya Business and Tourism Association stress that the city has lots to offer those not seeking horizontal leisure pursuits. Disney-style fun parks, museums, sports facilities, conference facilities and tip-top restaurants and hotels are given as prime examples.

Thairath TV, which had posted a negative report, has now apologized for denigrating the resort and claimed it just wanted to present unseen aspects of the city. In a recent report, the UK’S Daily Mirror argued that the sex image remained in spite of diversification, claiming that prostitutes here serviced mostly British men (really?) who were sometimes subject to violence if their wallets ran dry. A current recruitment drive by the Thai tourist police to attract foreign volunteers as unpaid assistants emphasized the importance of maintaining order in districts blessed with bars and clubs.

Shaking off Pattaya’s Sin City image has a long history. For example, international travel magazines highlighted the AIDS crisis of the 1980s and suggested that Pattaya’s immoral residents would soon be dying in the streets like flies. But nobody took much notice. In 2010 the New York Times stated that, if Los Angeles was Sin City, then Pattaya was a “bear hug from Lucifer himself”. The post-coup government of general Prayut Chan-o-cha in 2016 made a semi-serious attempt to change Pattaya’s image by restricting bar opening hours and cracking down on shows which might offend your grandmother. But the covid crisis, the lack of tourists and the cash collapse caused a liberal rethink.

In fact, market reality is currently the factor changing Pattaya. Walking Street security officer Atwit Supornrungsi, with 30 years’ experience, said the tourist numbers were well down on even last year. “Walking Street is still the famous landmark,” he said, “but it is nothing like its heyday.” He added that Indian dance clubs and open bars and quality restaurants were rapidly replacing the old dingy go-go bars, suggesting that Asian visitors and not sex-starved Europeans were the new order.

The most popular sex-orientated districts are now Soi 6 and Soi Buakhao, though both are less busy with serious spenders than in the past. Other bar-orientated areas are experiencing shake-down problems, witness the shuttered units throughout the resort and the demolition of former entertainment districts, especially in north Pattaya. Jomtien Complex, the center of organized gay life, now has at least five permanently-closed bars and restaurants, although the cabaret shows and bingo nights are surviving. Pattaya is indeed transforming though arguments inevitably persist about the speed and the new visitor profiles. It is always a mistake to try and hurry the Orient.

https://www.pattayamail.com/latestnews/ ... ity-465441

[Gaybutton]

As Barry says, I have received no such letter and I don't expect to. I doubt anyone reading this has received this letter.

Even if I do receive it, you know what I'm going to do? Dump it right into the bin and ignore it. They would have to do more than "urge" me to register before I would bother with it.

Is there anyone reading this who still believes their pensions and Social Security are going to be taxed?
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Don’t panic because Thai Revenue has written to 100,000 tax residents urging registration

By Barry Kenyon

July 16, 2024

Panicky expats in Thailand have been advised that none of the 100,000 tax residents in receipt of advisory letters from the Thai Revenue Department (TRD) are foreigners. Nor does the letter have anything to do specifically with transmitting overseas income to Thailand. According to mainstream media, TRD Director General Kulaya Tantitemit stated that the letters had been posted to Thai nationals with financial assets, urging them to register. About half that number had done so and staff were following up on the rest.

Director General Kulaya stated that her department was widening the tax base and looking to increase revenue which had been negatively affected by the reduction in the number of condominium units sold over the past year. She anticipated that the main growth areas in taxation would be in energy businesses, financial services and tourism. She made no specific reference to overseas income although, of course, that is potentially taxable.

Expats are currently concerned about the closing of a tax loophole which means that their “assessable” overseas income to Thailand becomes taxable from the start of 2024 provided they are tax residents remaining in Thailand for at least 180 days during the calendar year. The actual parameters and liabilities remain unclear to say the least with some tax lawyers saying they expect TRD to make further announcements before the year’s end.

The TRD does not have access to foreigners’ Thai addresses unless, of course, they choose to register with the government department. It has been rumored that such registration could become part of the process of renewing annual extensions of stay based on retirement or marriage, but the immigration bureau knows nothing of such a plan. In any case, there is no automatic connection between the type of visa granted and eligibility for tax residency. For example, some tourists could clock up 180 days in a year by exploiting the recently revised exempt visa regulations. There’s a huge amount of water still to pass under this particular bridge.

https://www.pattayamail.com/latestnews/ ... ion-465598

[Gaybutton]

I have lost count of how many times immigration rules have changed over the years, many of which were imposed and later discarded. We never are told just who comes up with these changes or why. The usual excuse is the new rules enhance security and reduce crime. I know of no evidence ever presented to back that up.

One thing I do know - holders of these new visas don't have to keep 800,000 baht in a Thai bank. They don't have to have a Thai bank account at all. They don't have to have medical insurance. They don't have to report their address every 90 days. They don't have to have a TM-30 receipt in their passports. They are not under any kind of threat of having to pay income tax.

But expats on the retirement visa - many of whom have been living in Thailand for many years and spending much more money per year than the average tourist, and almost never commit any crimes or other infractions - we have to do all those things. And instead of ever giving us any consideration or breaks, all that ever seems to happen for us is tacking on even more regulations and now threatening us with the possibility of having to pay income tax.

I love living in Thailand and I'm perfectly willing to comply with the rules and regulations, but at the same time, I want expats to be treated fairly and in my opinion, that is not happening. I wish there was someone with influence and authority to speak for us, but don't hold your breath for any embassies or ambassadors to speak one word in our favor.
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Expats angry at huge concessions in latest Thai visa announcements

By Barry Kenyon

July 19, 2024

Longstay expats with expensive visas say the new 60 days visa-exempt policy and the 180 days Destination Thailand Visa have made the Elite visa and the annual extensions of stay for retirement and marriage worthless. Geoffrey Fisher, a Brit who recently paid 900,000 baht (about 20,000 UK pounds) for the five year Elite visa said he had wasted his money as more or less anyone can now stay in Thailand almost indefinitely for a paltry sum.

The disenchanted argue that the 60 days visa-exempt can evidently be extended at local immigration for 30 days more followed by a border run to start the whole process again. Some immigration officers at Bangkok’s Suvarnabhumi airport have allegedly told new arrivals they can now do as many border runs as they like. Separately, the five years and multi-entry Destination Thailand Visa (DTV) offers 180 days on entry for 10,000 baht (around 200 UK pounds) plus the chance to extend for a further 180 days. The process can then be repeated by briefly leaving the country.

American expat Dan Silverman, who holds a yearly extension based on retirement, said, “It’s just ridiculous. I have to keep 800,000 baht in a Thai bank, obtain medical insurance, face ever-changing regulations and regularly report my Thai address throughout the year, or be fined.” He added, “And for what, when you can come and go as you please with the new visas?” Views such as this are currently being voiced widely on social media as expats digest the latest visa announcement.

Of course, the critics may be over-reacting. Information officially published so far does not specify the number of times the visa-exempt discretion may be used. The DTV requires a cash bond or other proof of 500,000 baht. It is principally aimed at digital nomads and freelancers working for foreign companies (not Thai based) and applicants are expected to show to embassies contracts of employment or portfolios of work undertaken.

Yet the foreign affairs ministry also accepts DTV applications from participants in Thai “soft power” activities such as Thai cooking classes, Muay Thai training, medical treatment, music festivals or seminars. Although applicants have to show some relevant documentation on application, there is wide concern about the ambiguities. One expat with a one year marriage extension said, “Would an appointment letter from a hospital for extracting your teeth enable you to get 180 days plus an extension of 180 days? Does a foreigner learning Thai cuisine need five years to learn how to cook?”

Immigration consultants say that the basic problem is that the foreign affairs ministry controls visas from embassies, but the immigration bureau under the interior ministry is responsible for extensions and what happens after arrival. Immigration lawyer Jessataporn Bunnag said, “The DTV throws a great deal of responsibility on embassies to check out initial applicants and on the immigration bureau to monitor extensions and repeats.” He expected some clarification once the impact of the changes had been analyzed.

Meanwhile, the Bangkok Post suggests that questions may be emailed to [email protected] Next week that newspaper will interview Narunchai Niddad, deputy director of consular affairs at the foreign affairs ministry. One is bound to wonder how many of the beneficiaries of the new visas will understand that, once they are in Thailand for six months or more in a calendar year, they become tax residents of Thailand and subject to the income tax policy of the Thai Revenue Department. Whatever that is.

https://www.pattayamail.com/latestnews/ ... nts-465898

[Jun]

Just a different set of hurdles for this 180 day visa ?
It doesn't seem like your typical board member would qualify without major changes to lifestyle.
https://www.thaiembassy.com/thailand-vi ... a-thailand

However, the 60 day visa exemption is a welcome change.

[Gaybutton]

The restaurant owner who runs Pattaya’s Walking Street

By Barry Kenyon

July 22, 2024

Sukhraj Kalra (Chup) should know a thing or two about Walking Street. He owns the only Indian restaurant on the strip and acts as president of the Walking Street Community which represents 60 businesses. But he also heads up the foreign division of the Pattaya tourist police volunteers and attends Pattaya court as an official mediator between the parties in both civil and criminal cases.

Born in Bangkok, Chup moved with his family initially to Sattahip and then to Pattaya in the 1970s. He opened in Walking Street an Indian tailor’s shop, Rani Fashion, which he later converted to a popular Indian restaurant Shalimar in 2017 managed by his wife Anu. “We have some choices you won’t find elsewhere,” she says. They include Mutton Sukka (spicy goat meat with caramelized onions), Peanut Masala, Rani Palak (spinach based vegetarian) and Honey Chilly Potatoes which are delicious chips like you never tasted before.

With 40 years business experience in the city, it’s not surprising Chup was elected president of the Walking Street Community which monitors environmental issues, such as keeping the street clean, acts as a pressure group reporting to City Hall on issues such as the booze licensing laws and defends Pattaya when under attack by foreign media. “Nobody could have predicted the future of Walking Street,” he says, “moving from dingy nightclubs to a more upmarket zone with diversified entertainment.”

The customer base has changed as well. “The street is dominated now by Chinese and Indian tourists and there are now six or seven dance halls and discos catering specifically for the Indian market,” he explains. “Most of the former night-owl markets for single guys, including the Brits, have moved to Soi Sex (Sorry Soi Six) and Soi Buakhao where Pattaya’s former reputation as an anything-goes resort still maintains a foothold.” But he adds that underage dancers and sex shows are a no-no these days owing to governmental pressure and police swoops in years gone by.

Chup also heads up the 25-strong group of foreign tourist police volunteer assistants who work exclusively on the nighttime Walking Street, generally assisting the regular tourist police carry out their duties. Twenty years ago the volunteer group, then led by Howard Miller, starred in the popular TV documentary series Big Trouble in Tourist Thailand. “Yes, things are quieter these days with far fewer drunks making a scene,” says Chup. Another change is that the tourist police are no longer the only visible police presence. The Special Affairs police, representing City Hall, are the dominant presence in the Street these days.

But Chup manages to fit in even more responsibility, acting as a mediator and counsellor at Pattaya court when two opposing parties fall out. “The issue can be a civil dispute between neighbors, financial arguments or even criminal offences,” he says. Chup speaks near-perfect English so it’s no wonder he is a regular visitor to the court house. He also maintains good contacts with City Hall officials and the mayoral office, not forgetting he’s a founder of the India-Thai Pattaya business association.

So what’s the future of the Walking Street? Chup says the market will increasingly be Asian. “Already those gogo clubs which still survive are visited mostly by wealthy Singaporeans and South Koreans and the trend will continue. The Street has been fully renovated and you won’t find overhead power lines as they are all underground now.” He expects within 10 years to see Pattaya as “neo” or new Pattaya with a mixed economy, partly tourist-orientated and partly a business community as reflected in the activities of the Eastern Economic Corridor and massively improved rail and sea communications with Bangkok. In other words, you ain’t seen nothing yet.

Story and photos: https://www.pattayamail.com/latestnews/ ... t-2-466363

[Gaybutton]

"Expats with one year extensions of stay based on marriage or retirement or the Elite visa are virtually ignored in the latest set of changes." - Why am I not surprised?
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The 60 days visa exempt and Destination Thailand Visa empower immigration officers

By Barry Kenyon

July 27, 2024

An interview between the Bangkok Post and a deputy director general of the foreign affairs ministry has clarified some visa ambiguities but left others to immigration discretion. The actual recording is, according to the newspaper, available only by downloading the digital web player Spotify. Naruchai Ninnad, representing the ministry, emphasized that the new policies were designed to increase foreign tourism, in accordance with the prime minister’s desire to benefit the economy.

Khun Naruchai clarified that tourists from 93 countries receiving the visa-exempt 60 days on entry could indeed extend for a further 30 days at local immigration. They could then, if they wished, leave the country and return the following (not the same) day to obtain a new 60 days and repeat the whole procedure. This has implications for the celebrated, single-day border runs which have traditionally operated through agencies in Bangkok and the provinces. If implemented fully, repeat if, these tourists would need to pay for a night’s accommodation in a foreign country, thus raising costs.

The deputy director general emphasized the number of repeatable visa exempts will depend on individual immigration officers who have absolute discretion. Accordingly, it appears that tourists could still be challenged with the cry “you come to Thailand too often without a visa”. The interview also clarified that if visa-exempt tourists wanted to do ad hoc work – lasting fewer than 15 days – they needed to inform the immigration officer on entry or report to the employment ministry soon afterwards.

Turning to the new Destination Visa Thailand, available only at foreign embassies or via the e-portal of the foreign affairs ministry, Khun Naruchai emphasized that the main target group were digital nomads and remote workers employed by overseas companies. But applications are also welcome from “activity” based tourists, assuming they have suitable documentary evidence such as enrolment for Thai boxing or cookery classes. Or even as hospital patients. Another surprising category is “music festivals” though precisely what evidence and updates would be required for any of the above remains blurry. These matters are presumably for the discretion of the immigration officer on entry throughout the multiple-entry five years validity of the DTV.

Expats with one year extensions of stay based on marriage or retirement or the Elite visa are virtually ignored in the latest set of changes. It will probably be many months before the visa exempt and DTV ambiguities begin to clear up, so expats are probably safer to stick with what they have. Separately, any foreigner (with any visa or no visa at all) now residing in Thailand for 180 days or more in a calendar year is subject to taxation on “assessable” overseas income with many details yet to be unfolded. There is no elephant in the room. There are several.

https://www.pattayamail.com/latestnews/ ... ers-466938