Thai tax riddle: Elite Visa holders off the hook?

Whispers on Facebook’s Elite/Privilege Group suggest that holders of the controversial five to 20 years visa could dodge the Thai Revenue Department’s (TRD) new tax ruling.

Starting January 1 this year, assessable income sent from abroad by Thais or foreigners residing in Thailand for at least 180 days will be subject to personal income tax.

A group member claimed, after attending a webinar, that Elite members might be exempt from needing a tax number or filing tax forms, potentially aligning them with the tax-friendly Long Term Residence (LTR) visa holders, who enjoy no personal taxation on overseas income sent to Thailand. This revelation quickly spread like wildfire across Thai media outlets.

However, the excitement was short-lived. A group moderator stepped in, clarifying that the attachment shared during the webinar was merely a PowerPoint presentation, not an official document from the TRD.

“We’re not going to take comments on its accuracy or validity,” they stated, putting an end to the speculation. To date, neither the TRD nor the official Thai Privilege website has commented on the matter.

The TRD’s ruling applies to all tax residents, excluding those with the 10-year LTR visa, allowing overseas income to remain untaxed until December 31 last year. Thailand’s unique tax structure raises questions, especially for retirees relying on pensions already taxed in their home countries.

Additionally, many countries maintain double taxation agreements with Thailand, aimed at preventing individuals from being taxed twice on specific earnings.

As the TRD gears up to release new tax forms before Christmas for the 2024 calendar year, expectations run high. Some tax accountants predict clarifications in accompanying notes, while others remain sceptical. The primary aim of the TRD appears to be increasing revenue from untapped sources like cryptocurrency and offshore earnings, reported Pattaya Mail.

In related news, soon, Singaporeans and travellers from 92 other visa-exempt countries will need to apply for an electronic travel authorisation (ETA) before their trip to the Land of Smiles.