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.
