Thailand is not alone in collecting taxes on financial resources held overseas. The Straits Times reports on China's crackdown on foreign investments, including cryptocurrencies, offshore banking, and shares in international companies in Hong Kong and the United States. Peter Li of Zhong Lum Law Firm commented that Chinese tax authorities are now targeting income received from outside China, as tax revenues have fallen by 2.6% and land sales have plummeted by 25%. .
Unlike Thailand, China does not distinguish between taxable and non-taxable foreign income, but it abides by double taxation agreements with more than 100 countries. Moreover, China is primarily interested in the ultra-high net worth, targeting wealthy individuals with at least $10 million in assets overseas. The net is theoretically open to foreigners living in Thailand for more than 183 days a year, but the government has so far only asked Chinese nationals to self-report their tax liability. In some cases, you may be called to meet with the tax authorities.
Although China's approach is certainly different from that of the Thai Revenue Department (TRD), it points to a common trend across the continent to increase revenue. Meanwhile, expatriate retirees in Thailand who live primarily on already taxed pensions say they are perplexed by the inaction and lack of awareness of many local tax offices. Several European expatriates who attended the ASEAN NOW forum said they were told by TRD officials that they did not need a tax ID number if they were living on foreign pension income. no worries.
Although we cannot confirm specific conversations at the tax office, there are enough conversations to be reliable. Some foreign pensioners claim that they have been told that the tax office does not want them to contact them if they can point out a double taxation agreement. In reality, however, a new tax return for the 2024 calendar year will likely be issued before Christmas, and state tax officials will likely be awaiting policy confirmation from TRD. Check there for any changes to your allowances, credits, and exemptions. It's best to wait a little more quietly.
