It is undeniable that all the governments are, on different levels, chasing tax avoidance all around the world. The implementation of reporting schemes and exchange of information regarding taxes and bank transactions might have an effect of foreign high net worth in individuals in Thailand.
To start with, according to the Thai Revenue Code in section 41, any person staying in Thailand for a period or periods aggregating 180 days or more shall be deemed a resident of Thailand.
Therefore, many foreign individuals need to assess if they fall in the category of tax residents in Thailand so they must pay Personal Income Tax in Thailand if this is stipulated according to the definitions of the Double Taxation Treaty (DTA) signed between Thailand and their country or nationality or last residence. We need to point out that Thailand have signed 61 DTA to avoid the double taxation.
H&P Tax Lawyers in Bangkok found that there are several misconceptions and misunderstandings of Thai Elite Holders and other long term visa holders in Thailand, due to the fact they are not a non-B holder, or they don’t have a work permit issued by the Labor Department. On this regard we should not pay attention to the type of visa as the tax obligations remain the same as they are all considered tax residents with obligations and liabilities according to Thai Tax Law.
In the last quarter of 2023, H&P lawyers have obtained Tax ID number for many foreign individuals with tax residency in Thailand and prepared the necessary documentation to provide to the foreign revenue department in their home country.
Some of the most relevant documentation to obtain a Tax ID number for a foreign individual are: copy of passport/ visa and copy of house registration (in case of rental, the landlord must provide the consent letter to permit the use of the address for TAX ID registration and provide a copy the landlord’s ID).
The alleged “grey area” is about the lack of communication between different departments in Thailand that leads to many foreigners to believe that they don’t need to pay taxes in Thailand if they don’t have a work permit or non-B.
It is a fact that nowadays there is not much exchange of information between Immigration and the Revenue Department in Thailand but in the future, this might change and lead to many foreign individuals to face serious legal problems as they have not been paying taxes in Thailand, although they were tax residents in Thailand by the definition of the Thai Revenue Code. H&P lawyers strongly advice to avoid this lack of compliance and prepare all in advance to avoid unnecessary legal risks.
Our lawyers in Thailand can obtain your Tax ID number, regardless your visa, and prepare opinions and answers to the Thai and Foreign revenue departments on international tax exposure and obligations.
If you need to have a consultation with a Thai Tax Lawyer on your individual case, please do not hesitate to contact our law firm in Bangkok at [email protected]
