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In response to Paco Pep's experiences, I also share my experience with the Thai Tax Authorities in Chon Buri. I read an article about taxes by Lammert de Haan on Thailandblog, which got me thinking.
My Thai wife and I have been living in Thailand since 2008, but I only received my pension from the Netherlands in 2018. So until that time I was not a tax resident in Thailand (as far as my tax knowledge goes). In response to Lammert's article, I immediately contacted him, and he advised me to quickly go to the tax office, as they strictly check for "fraudsters". We made an agreement that Lammert would fill in the paperwork and I would go to the tax office myself to handle everything and pay.
Coincidence does not exist, because my wife also happened to have to go to the tax office to pay the annual tax for the apartments in her name. I had never been inside because I preferred not to show my white head and wait in the car.
Upon entering, my wife's name was found on the computer, after which the question arose quite quickly whether her husband was still living at her expense. My wife replied that I had been receiving a pension from the Netherlands for several years, which immediately prompted the question why I had not yet filed a tax return. They were kindly requested to report it, especially because they strictly checked for "fraudsters". I happened to have the annual statement from the Netherlands on my phone, so my wife went back in and it was quickly calculated that I would have to pay about 1700 THB in tax. However, I did not have to pay because taxes had already been withheld in the Netherlands. My wife told me that I wanted a TIN number, which told me to provide proof of the amount I had transferred from the Netherlands to Thailand. So I went to Kasikornbank to have the 2022 statements made.
Upon arrival at the tax office, it was immediately said that no declaration could be made if I did not go inside, so I went inside anyway. A highlighter and a counting machine were pushed under my nose and I had to calculate how much money had been sent to the Thai bank. Then I had to sign some signatures and the friendly lady behind the counter left with the papers.
After about ten minutes the lady came back and gave the bill to my wife, who had to pay it at another counter. The bill came to more than 12.000 THB, but my wife said that this was impossible and that the lady in question had probably made a wrong calculation. My wife handed the bill back to the lady, who took it with a smile and left. After about ten minutes the lady came back and handed the bill to my wife again. I asked her how much the new amount was now, to which she told me to shut up. Then I gave her my wallet and went to the car myself. When my wife came to the car with a smile, I was of course very curious about the end result. She told me that in 2022 I had to pay the absurd amount of 363,69 THB and come back next year. I did not have to pay taxes for the previous years.
So you can see that things can turn out differently than expected. However, I feel comfortable that mainly thanks to my Thai wife here in Thailand I will not be known as a fraudster. Of course I kindly thanked the helpful Lammert de Haan for his services. He even told me that I didn't have to pay 363,69 THB, but only 155,57 THB. I told him that I did not want to appeal and that I would be happy to pay the same amount again next year.
I have been coming to Thailand since 1990 and have lived there since 2008. I still feel happy among the Thai people in the “Land of Smiles”.
Submitted by Henk (spelling and grammar check performed by ChatGPT)
Could you also pay it in 12 installments? …..
In Chonburi I was sent away 4 times to request a tin number. I just stopped.
You also have to bring in a lot of money for the privilege of paying taxes in Thailand.
In that respect, Thailand's choice to let the Netherlands collect the tax is not such a bad one.
A lot of work, but no income from taxation with most clients.
This year almost 400.000 Baht taxed income, but 0 Baht tax.
Last year the amount was above 400.000 Baht, but they were also not allowed to pay anything.
Unfortunately I didn't get the calculations as the amount this year shouldn't be lower than last year unless things change in the taxation but with 0 Baht tax I'm not going to make a fuss about it .
Well, "a lot"? In short, if you are not married and over 65 years old, you only pay taxes above 500,000฿ (as a rule of thumb) income per year. So nothing up to 500k฿. Then 5% over 150k more and then 10% over the next 200k more etc. It's not all that difficult though. That 500k is, depending on the exchange rate, about 40,000 a month! To get a year extension as a single person, you already need 65,000฿ per month!
If you were subject to tax in the Netherlands, you would already have to pay a “considerable” amount of tax. (quite between ” “) and incomes in Thailand are lower than in the Netherlands.
So in proportion you have a lot of exemption.
That's actually what I compared it to.
Well, that will soon be a thing of the past.
In Jomtien I had the same experience as Timon. Only pension from the Netherlands, including AOW that was already taxed in NL. gave no reason to file declarations, partly due to the high exemption and deductions, so no TIN number either. And next year in the Netherlands withholding tax, then there will be little left for Thailand. But yes, I pay 7% VAT (VAT) on all my expenses, so I don't feel completely guilty that I don't contribute anything to Thai society.
You don't have to feel guilty either, because the AOW money is spent in TH. You satisfied and the Thai more than because it's quite funny to see how perception works.
An entrepreneur has to find a customer, but the shop TH receives money every month just because it is transferred from another country because someone has to meet the necessities of life. In addition, there is also at least 400k or 800k baht in the bank at barely any interest. The more foreigners in TH, the more popular the baht and therefore a stronger value for a baht abroad, resulting in a poor euro exchange rate. That 7% is the extra bonus because you do not pay VAT on the market.
Well, VAT, like excise (tax on liquor, tobacco, etc.) is very different from income tax. You also have the same difference in the Netherlands! I only received a TIN number in Korat after I had actually paid. I also needed to get the RO22 document for exemption from tax in the Netherlands.