Speculation has replaced hard facts as the income tax moves rumble on.
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.
On July 4th, 2024, Thai Government spokesperson Chai Watcharong announced the successful outcome of the government's efforts to boost tourism in the first half of 2024, with over 17.5 million international tourists visiting Thailand and generating more than 825 billion baht in tourism revenue.
The success is attributed to the "IGNITE Thailand's Tourism" policy, which aims to support and promote tourism across all dimensions, including secondary cities, particularly in the Northeastern region, under the strategy "5 Must Do Things in Thailand".
The top five international tourists came from China, Malaysia, India, South Korea, and Russia. The number of visitors surged in the last week of June, with over 659,830 international tourists participating in Pride Month 2024, marking a 2.98% increase from the previous week.
Additionally, the Thai government highlighted its UNESCO Triple Heritage City in Nakhon Ratchasima, which includes the World Heritage site Dong Phaya Yen-Khao Yai, the Sakaerat Biosphere Reserve, and Korat Geopark, a recognized World Geopark. This makes Nakhon Ratchasima one of only four provinces in the world to achieve this status.
Tourists are also encouraged to visit nearby provinces and landmarks in Chaiyaphum, Buriram, and Surin (collectively known as Nakhon Chai Burin).
The Thai Government spokesperson also noted that the number of international tourists is expected to continue rising, driven by the recent release of LISA's music video "ROCKSTAR" which took place in Bangkok's Yaowarat and the start of the European summer holiday season.
Thailand faces a significant surge in COVID-19 cases, with infections expected to peak in July, according to Dr. Thongchai Keeratihattayakorn, chief of Thailand's Disease Control Department. The country reported 3,256 hospital admissions and 16 fatalities between June 23rd and 29th, highlighting an alarming rise in cases.
Out of these recent hospital admissions, 709 patients suffered from severe lung infections, and 336 required ventilators. Since the start of the year, Thailand has seen a total of 31,205 COVID-19 hospital admissions, resulting in 172 deaths, predominantly among those over the age of 69.
The Disease Control Department has issued renewed guidelines for those most at risk. Individuals over 60, those with pre-existing health conditions, and pregnant women are advised to take stringent preventive measures.
These include wearing face masks in crowded settings, frequent hand washing with soap or alcohol-based hand sanitiser, and undergoing rapid antigen tests if COVID-19 symptoms emerge. Positive cases should consult a doctor for appropriate treatment and avoid contact with vulnerable populations.
Dr. Apichart Wachiraphan, deputy director-general of the Disease Control Department, compared the current surge in COVID-19 infections to patterns seen with seasonal flu, often tied to crowded gatherings and activities.
He noted that while cases are expected to peak in July, the current fatality rate stands at 0.04%. This is a significant reduction from the 2.16% fatality rate recorded in June 2021, reflecting advancements in treatment and vaccination efforts.
As Thailand braces for the peak, health officials continue to stress the importance of adhering to preventive measures to mitigate the spread and reduce the impact on the healthcare system.
On July 2nd, 2024, the Thai Meteorological Department announced that Thailand will enter La Niña from July to September 2024, continuing through November 2024 to January 2025.
This phenomenon will result in a slight increase in rainfall and temperatures remaining above average in the second half of 2024. However, the winter season is expected to be cooler compared to last year.
Mrs. Kanwee Sitthicheapak, the Director General of the Meteorological Department, stated that the current situation shows the ENSO (El Niño-Southern Oscillation) phenomenon is in a neutral state. The sea surface temperatures in the equatorial Pacific Ocean have cooled almost entirely over the past month.
The average sea surface temperatures in the past week were approximately -0.9 to 0.5 degrees Celsius below average. It is anticipated that the neutral ENSO conditions will transition to La Niña from July to September 2024, continuing through November 2024 to January 2025.
The Thai Meteorological Department also issued a 7-day weather forecast. From July 1st to the 3rd, a southwest monsoon will cover the Andaman Sea and the Gulf of Thailand, while a low-pressure area will cover northern Vietnam. This will cause thunderstorms across Thailand, with heavy rain expected in some parts of the Northeast.
From July 4th to the 7th, the monsoon trough will pass through the northern and northeastern regions of Thailand, connecting to a low-pressure area over Vietnam. Coupled with the southwest monsoon covering the Andaman Sea and the Gulf of Thailand, this will lead to increased rainfall and heavy rain in some areas of the North, Northeast, East, and South.
Reforming Thailand's property laws has its critics as well as its supporters.
Online foreigners are warning the Thai government that they are changing their minds about buying condominium units here. They stress that the Thai Revenue policy to tax residents on overseas income remitted to Thailand from January 2024 is cautioning them, whilst the suggestion that worldwide income, whether remitted or not, could become taxable from 2025 is the last straw.
Prime minister Srettha Thavisin has resurrected the old idea of property-purchase legislation by arguing for an increase in the foreign ownership quota for condos to 75 percent and extending leasehold contracts to 99 years. Yet he and his Pheu Thai party attacked the proposal of his predecessor General Chan-o-cha who wanted to allow foreigners to buy one rai of land (0.16 hectares) provided they invested here very heavily. The General's plans were eventually dropped after an avalanche of complaints he was "selling" the country.
Real estate associations have urged Pheu Thai to reform the property laws because of weak demands from local Thai buyers and evidence that foreigners are using illegal Thai nominees in the purchasing process of both villas and condos. Although some projects in Thailand are currently undersold, others in popular locations such as beaches or overhead rail stations or industrial estates are selling like hot cakes. Colliers Thailand, the commercial real estate, say the best-selling provincial projects are in areas, such as Pattaya and Phuket, popular with foreigners rather than Thais. Several Pattaya real estate companies point out that the foreign market is changing and that most buyers are no longer Europeans or Americans worried about income tax for resident expats. The Real Estate Information Center confirms that the top three nationalities for foreign ownership transfers of condos overall in the first quarter of 2024 were Chinese, Myanmar nationals and Russians. However, the vast majority of purchases were for investment purposes and most commercial buyers were not pensioned retirees wanting to live in their purchases. Surachet Kongcheep, managing director of the consultancy Property DNA, urged caution about liberalizing the condo regulations as most projects had not reached their foreign quota. He also criticized developers who sold condo units at higher prices exclusively to foreigners as this could distort the market for Thais. He suggested a new rule that condo purchasers must wait at least three years before being sold or transferred to another individual. But the point is that traditional retirees on renewable visas or extensions of stay are no longer the hub of Thailand's property market. Pumping up the property market has new players.
Expectations are high that at least some visa ambiguities will soon be clarified.
The 60 days visa exempt for 93 countries This was announced prematurely by the foreign affairs ministry and has not yet started. Amongst the details to be clarified are whether the visa exempt can be extended for a further month at local immigration (90 days in all) and whether the whole exercise can be repeated by leaving Thailand and returning quickly.
The Destination Thailand Visa This looks like a 180 days "activity-related" visa with limited extension rights, but clarification is awaited. Will likely need documentation such as company papers to work overseas for remote workers, registration at a Thai martial arts training facility or enrolment at a cuisine college. It might be extended to tourists seeking gender reassignment surgery or listed medical procedures. Very unlikely to be an additional option for wannabe retirees or longstay tourists trying to avoid border or visa runs.
Long Term Residence Visa This 10 year visa, which requires an annual income of at least US$80,000 or very substantial investment in Thailand, has been touted as exempt from the Thai Revenue announcement that assessable income remitted to Thailand from January 1 2024 will be subject to personal income tax. However, it is unknown whether the exemption will apply to stage two of the Revenue's plans to tax worldwide assets, whether remitted to Thailand or not, from next year. This second Revenue proposal (unlike the first already in operation) would need a new law or Cabinet approval.
Review of retirement-related visas and extensions Due to be implemented in September 2024. A temporary reduction in medical insurance for those applying for a one year visa in Thai embassies was announced, but nothing more. Likely subjects for upward review are the 800,000 baht requirement in the bank or 65,000 baht in regular cash transfer from overseas: these sums have not been raised for over 15 years. Other subject reviews might center on why some longstay retirees have to provide medical insurance whilst others do not. Getting the foreign affairs ministry, which controls entries, and the immigration bureau, which controls extensions, to agree won't be easy.
Tax identification numbers There is speculation that holders of some longstay visas and extensions of stay could require registration with Thai Revenue and the issuing of a TIN and/or confirmation that a tax return had been submitted by the applicant. This is extremely unlikely at present as the requirement of at least 180 days in Thailand in any one year to be a tax resident does not require any particular visa. Some tourists, relying of visa exempts, extensions and border runs, could clock up six months plus without having any kind of visa.
Gay marriages Long-stay visas for gay partnerships won't likely be announced until the legal process is completed towards the end of the year. The current annually-renewable extension for foreigners with a Thai spouse of the opposite sex – the one requiring 400,000 in the bank or similar monthly income – is under review anyway as many of these foreigners are retired.
Prime Minister Srettha Thavisin may come under fire for a proposed real estate policy change, amid concerns of a conflict of interest given his previous role as head of a leading property firm.
Srettha's Cabinet has preliminarily approved a proposal to increase the maximum foreign ownership of condominium units in Thailand from the current 49% to 75%, and extend land leases from 30 years to 99 years. This move aims to invigorate Thailand's sluggish real estate sector, which has been hit by oversupply and a decline in local purchasing power.
Prior to his political career, Srettha was the president and CEO of Sansiri Plc, one of Thailand's top property developers. In an attempt to distance himself from his business ties, he transferred all his 661 million shares in Sansiri to his daughter.
Critics, however, are drawing parallels with former Prime Minister Thaksin Shinawatra's case. Thaksin was alleged to have taken advantage of his office to benefit his telecom business through third-party shareholding, leading to his eventual conviction and a five-year prison sentence.
Prinya Thaewanarumitkul, a law lecturer at Thammasat University, expressed concerns, stating, "Transferring ownership of shares to his daughter is still the Thavisin family's interest, and Srettha could face criticism."
Some suggest that instead of drastically changing existing laws, Thailand should consider simplifying the criteria for granting citizenship to qualified foreign investors and skilled professionals, akin to policies in the United States and European countries.
This could help address Thailand's aging population and declining birth rates more effectively.
The debate over this policy might also end up in Parliament for scrutiny rather than being enacted as an emergency decree, given its potential unpopularity. Public support remains a key challenge; a similar proposal in 2022 by the previous government faced strong opposition and was ultimately withdrawn.
As the debate continues, the question of whether these policies will significantly impact foreign investment in Thailand's property market remains.
On Tuesday morning, Bang Saen Beach in Chonburi was strewn with garbage after high tides and strong winds from a recent storm inundated the area on Monday night, flooding the road of Wonnapa Beach. Municipal officials quickly responded, cleaning and clearing the beach to restore its cleanliness.
Local residents, including Mr. Prakit Waewphet, a 60-year-old beach umbrella rental operator, and Mr. Samrit Phiphat, a 65-year-old fisherman, remarked that they had not seen such high waves and strong winds in the past decade.
Fra den 26. juni indføres der miljøtillæg på samtlige flybilletter udbudt af selskaber i Lufthansa-koncernen med afrejse fra 1. januar 2025. Miljøtillægget kan kommet helt op på næsten 540 kroner.
Det har længe været ventet, at forbrugerne ville komme til at betale en del af regningen for, at flyselskaberne fra den 1. januar 2025skal iblande i gennemsnit to procent grønt flybrændstof (SAF, Sustainable Aviation Fuel) stigende til fem procent i 2030.
Dette iblandingskrav sammen med EU ETS-kvoteordningen samt den internationale ordning via CORSIA kommer til at presse flyselskabernes økonomi, så det er nødvendigt at måtte dele en del af byrden med passagererne.
Derfor vil Lufthansa-koncernens flyselskaber fra den 26. juni opkræve et miljøtillæg på mellem 1 og 72 euro (7,50 til 537 kroner) afhængig af valgt rejselængde og destination. Tillægget vil blive pålagt på alle rejser solgt fra denne dato med afrejse fra den 1. januar 2025 og vil være gældende fra de 27 EU-lande samt Storbritannien, Norge og Schweiz.
Lufthansa oplyser i en pressemeddelelse, at den aktuelle omkostning vil fremgå i bookingbilledet på selskabernes hjemmesider, hvilket bliver tilgængeligt fra den 26. juni.
Kan ikke dække øgede omkostninger alene Tillægget vil således være gældende for rejser med Lufthansa, Swiss, Austrian, Brussels Airlines og Eurowings samt gruppens regionale flyselskaber, henholdsvis Lufthansa CityLine, Lufthansa City Airlines, Air Dolomiti, Edelweiss Air og Discover Airlines.
Lufthansa-koncernen argumenter for, at der årligt investeres milliarder i nye teknologier, men at det ikke vil være muligt alene at dække de stigende meromkostninger som følge af de nye lovkrav.
"En del af disse forventede omkostninger for år 2025 skal nu dækkes af det nye miljøomkostningstillæg," skriver selskabet i pressemeddelelsen.
Lufthansa-selskaberne arbejder selv med den grønne omstilling ved reduktions- og kompensationsforanstaltninger, og arbejder efter at halvere sine CO2-emissioner i 2030 i forhold til udgangspunktet fra 2019. Det skal blandt andet ske ved flådemodernisering, løbende optimering af flyoperationer samt stigende brug af SAF.
Thailand's Ministry of Tourism and Sports has extended its free insurance campaign for international visitors until the end of December. Originally slated to expire on August 31st, the program has been in place since January 1st and offers critical coverage for accidents, emergencies, and deaths.
The extended insurance program provides substantial coverage: up to 1 million baht for cases of death, 300,000 baht for incidents resulting in permanent disabilities or organ loss, and up to 500,000 baht for medical expenses due to accidents. This initiative aims to bolster tourists' confidence by ensuring they have financial protection during their stay.
Sermsak Pongpanit, Tourism and Sports Minister, emphasized the program's importance in assisting foreign visitors during emergencies, including accidents, crimes, and natural disasters. This move is expected to make Thailand an even more attractive destination for international tourists, fostering a sense of security and commitment to visitor well-being.
However, coverage is not provided if tourists have insurance from their travel providers or if the place of accommodation or tourist attraction offers independent insurance. The scheme intends to fill gaps left by tourists' current insurance plans, giving them peace of mind without incurring additional costs.
This year-long extension continues to support Thailand's tourism sector, which has faced significant challenges due to global economic uncertainties and the lingering effects of the pandemic. By maintaining this insurance coverage, Thailand aims to reassure potential visitors and stimulate its recovering tourism industry.
With this initiative, the government hopes that tourists can enjoy their travel experience without worrying about unexpected financial burdens due to unforeseen circumstances, boosting overall visitor numbers and extending stays.
The combination of natural beauty, rich culture, and now, enhanced safety measures, makes Thailand an increasingly appealing destination for global travellers.
TOP: Sermsak Pongpanich, Minister of Tourism and Sports. File photo courtesy: Wikipedia
Thailand recorded 16 million foreign tourists from January 1st to June 16th of this year, according to the figures released by the Ministry of Tourism and Sports.
The ministry on June 19th reported that the Eid al-Adha Islamic holiday led to a significant 97.82% increase in tourists from the Middle East. There were also increases in tourists from Malaysia, Indonesia, and Singapore by 32.99%, 37.70%, and 17.94% respectively.
Last week, Thailand welcomed 657,362 foreign tourists, an increase of 65,024 or 10.98% from the previous week, averaging 93,909 foreign tourists per day.
Overall, as of January 1st to June 16th, 2024, Thailand has welcomed a total of 16,200,706 tourists, who contributed an estimated 765.584 billion baht in spending to the Thai economy. The top five countries of origin for tourists are China (3,179,539), Malaysia (2,253,397), India (952,470), Russia (888,203), and South Korea (874,903).
Firefighters from Surasak Municipality carefully captured a large python near Panja Arena Football Field in Sri Racha. A clutch of 21 python eggs was also found nearby.
SRI RACHA, Thailand – Residents of Surasak Sub-District in Sri Racha were alarmed when a large python was found coiled in the bushes near the Panja Arena Football Field, prompting fears of potential danger to pets and children in the nearby community. Concerned residents immediately alerted municipality rescue workers asking for assistance.
On June 21, firefighters from Surasak Municipality discovered the python, measuring approximately 4.11 meters in length and weighing 40 kilograms, hidden among the bushes. Capturing the snake posed a significant challenge due to its size and resistance. Using specialized snake-catching tools, the team carefully extracted the python and secured it in a sack for safe relocation to a forested area far from residential zones. In addition to the python, the rescue team uncovered a clutch of 21 python eggs nearby, underscoring the presence of a breeding ground potentially close to human habitation.
Kanthanat Em-im, 30, who raised the alarm, recounted that the previous day, during a football match at Panja Arena, a young person spotted the python in the bushes and alerted him. Although he attempted to locate the snake, it had already slithered away. The following day, upon discovering fresh snake tracks, Kanthanat contacted the Surasak Municipality Fire Department for assistance. Firefighters found the python coiled under a tree and made the discovery of the eggs during their operation.
The swift action taken by the rescue team ensured the safety of the football field users and local children from the potential threat posed by the python. The reptile was relocated to a suitable habitat away from residential areas, ensuring the well-being of both the community and the snake itself.
Unified visas are making much more progress in the Middle East and in Africa than in south east Asia.
The Thai prime minister's campaign to introduce a Schengen-style visa program for travel across the region has become stuck in bureaucracy. Thailand, Cambodia, Malaysia, Myanmar, Vietnam and Laos each has different travel regulations which are proving hard to disentangle. For example, Thailand now allows no-cost visa exemptions for tourist traffic from 93 countries, about half the number agreed by Vietnam. Cambodia charges almost all visitors US$30 on arrival or via e-visa application, while troubled Myanmar insists on a pre-purchased visa which can take up to two weeks to issue.
Chief executive of VietSense Travel, Nguyen Van Tai, said that the ASEAN block should not rush into a common visa as political and security issues had not yet been resolved. The Cambodian immigration service last week reported there were no plans to lift the US$30 tourist fee. Marisa Sukosol Nunbakdi, a past president of the Thai Hotels Association, said any common visa would need to be 90 days, not 30 or 60, to reach its international potential. Thitian Pongsudhirak, a professor at Chulalongkorn University, stressed that standardized immigration procedures throughout the region were very rare.
Another ongoing complication arises from bilateral (two-country) agreements. For example, the Russian private lender Tinkoff has now started making Thai baht transfers through the Swift messaging system which may explain to some degree why Russians love Thailand. The Russian bank in fact sends funds to around 30 countries including China and Turkey. But some of Thailand's regional partners are unlikely to agree to link up with Tinkoff without lengthy discussion.
Meanwhile, Schengen-style agreements are doing better elsewhere. The Gulf Cooperation Council – comprising the UAE, Saudi Arabia, Oman, Qatar, Bahrain and Kuwait – currently requires separate e-visas. But a Grand Tours visa is expected to be available by the end of 2024 and travel companies are expected to launch packages covering several mi-east countries once implemented. A similar common-visa initiative covering five southern African countries, spreading across massive nature reserves, is expected to popularize tourist attractions such as exotic wildlife and spectacular waterfalls.
Schengen-style, visa-free travel in practice means seamless travel through the signatory countries without the burden of undue passport inspection. The concept creates a much more welcoming environment for tourists by simplifying the multi-entry process by air, sea and land. Given the hesitancy of ASEAN in agreeing any major policy changes and its history of non-intervention in the domestic affairs of member states, a joint visa plan by Thailand and her neighbors remains a worthy dream under discussion since 2010. ASEAN will sleep on it.
