Reader Question: Why am I getting a 2015 Thai tax bill?

By Submitted Message
Posted in Reader question
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October 22, 2016

Dear readers,

I registered in the municipality of Cha am on 25-08-2016. In order to obtain contributions and exemption from payroll tax in the Netherlands, the tax authorities wanted a statement from the Thai tax office.

Thus arranged. Will I still receive an assessment of 90.000 baht on my ass for 2015 and the promise that the same assessment will follow at the end of 2016.

How can I receive an assessment for 2015 while I register in August 2016?

I don't think this can be right, who has an answer to this?

Regards,

Hans

14 responses to “Reader Question: Why am I getting a 2015 Thai tax bill?”

  1. ruud says up

    That depends on when you came to live in Thailand.
    The fact that you register with the tax authorities in 2016 does not say anything about the obligation to pay for 2015.
    If the Thai tax authorities send you an assessment for 2015, they apparently believe that you are liable for tax for 2015.
    Since an amount of tax has been calculated, apparently on something you yourself declared.
    (maybe money you transferred to Thailand for your residence permit?)

    You are liable to pay tax for 2015 if you have been in Thailand for more than 180 days that year.
    I cannot judge whether that is the case, but if it is not, you should enter into a discussion with the Thai tax authorities, on which that assessment is based.
    Preferably at a head office.

    This story also applies to income from the Netherlands.
    If you have had income (not interest income) in Thailand things get more complicated.

  2. erik says up

    Find a Thai accountant or tax professional. There are advertisements in the Bangkok Post. Pay attention to the deadline to complain so don't miss this! Hurry is required.

  3. Joop says up

    Yes, that's what you get when you let the Dutch tax authorities blackmail you. The tax authorities should simply respect laws and treaties and not pretend that they are above the law.
    Of course you cannot receive an assessment in Thailand for 2015, because you did not live here at the time. Apparently not properly explained to the Thai tax authorities.

    • ruud says up

      Hans writes that he registered with the municipality in 2016.
      He does not write how long he has been in Thailand.
      Since I do not assume that someone decides to emigrate after 3 weeks of vacation, it is very likely that in 2015 he has already stayed in Thailand for a long time.
      According to the Thai tax authorities - given that he received an assessment - apparently longer than 180 days.

    • Lammert de Haan says up

      The connection between the blackmailing Dutch tax authorities and the assessment imposed by the Thai tax authorities escapes me completely.

      In addition, unfortunately, information about whether or not to live in Thailand in 2015 and whether or not to contribute income in Thailand in that year by the questioner is missing. And that's what it's all about. So I would like an answer to that first.

  4. Somchai says up

    Registration in a municipality is not relevant for the amount of your tax assessment.

    In this case, it is about whether you have been in Thailand for more than 180 days (not necessarily consecutively) in 2015. This can be checked via the in/out stamps in your passport.
    In addition, tax can only be levied on the amount of your income in 2015 that you brought to Thailand.

    It is very clear on the website http://www.rd.go.th/publish/6045.0.html

    This may not apply to you. Then you can reclaim your money at the Thai tax office.

  5. Guus says up

    Just don't pay. They're just trying something out. And if you fall for it, they have provisional drinking money.
    Why don't you ask how they calculated this? Even if they have that data from the Netherlands. Can you prove you haven't lived here yet? And about 2016, it's best to negotiate. Or not pay at all. You have proof for the tax authorities in the Netherlands. So you tell them in Hua Hin that you will pay taxes in the Netherlands again. Here in Thailand you can always negotiate tax.
    Are there many people who pay their taxes here? I don't know anyone who does that.
    You're just an alien. So I don't think they can charge taxes.

    • Lammert de Haan says up

      “You are just an alien. So I don't think they can levy taxes."

      Then the Thai tax legislation must be adjusted this weekend. Last week this was still the case.

      Why don't people first consult the Tax File posted in Thailandblog (compiled by Erik Kuijpers and me). The answer to many questions about taxes can be found there.

      Incidentally, a number of matters in this file need a face-lift, but what do you want: two years after placement!

  6. erik says up

    “Do nothing” is the worst advice. The Thai tax authorities also have coercive measures.

    Find a tax expert in Thailand (I already advised) and bring with you the return you filed or everything you told or proved at the office.

    90.000 Baht you say? This amounts to about 26.000 euros taxed in Thailand if you are not 65 or disabled. Can, if you have that income.

    • ruud says up

      Hans probably brought money into Thailand in 2015 for his residence permit in Thailand.
      If he was in Thailand for more than 2015 days in 180, that money will be taxed.

      Whether that procedure in connection with the tax treaty is justified in all cases is another matter.
      The Thai tax authorities basically tax all the money you bring in because they just don't know where that money comes from.
      If tax has already been paid on that money in the Netherlands, Thailand does not levy.
      But you must first prove that yourself, otherwise they will simply assume that you have not paid in the Netherlands and therefore have to pay tax in Thailand.

      That in itself is not strange, of course, because if they did not ask for proof, (almost) everyone would say that they had already paid taxes in the Netherlands.

  7. david h. says up

    Here is a link to the revenue tax website of Thailand, where you can find all countries that have tax treaties with Thailand. You can also download the relevant treaty from your country per country in PDF.
    I understand that pensions paid by your home country are always taxed in the country that pays them, however for additional annuities or private pensions, insurance pensions this may be different, and may be taxed in Thailand if not taxed (at your choice then) in your own country.

    http://www.rd.go.th/publish/766.0.html

    PS
    that 180 days rule is apparently a general rule that then disappears again due to the tax treaties……, can understand that those complicated treaties cannot be put on a few lines on their website !!

  8. French Nico says up

    For the Dutch, here is the full text of the tax treaty between the Netherlands and Thailand: http://wetten.overheid.nl/BWBV0003872/1976-06-09.

    I couldn't find it for Belgium.

    • Lammert de Haan says up

      Just as an addition to this post.

      For the Belgium-Thailand Tax Treaty, see:

      http://ccff02.minfin.fgov.be/KMWeb/document.do?method=view&nav=1&id=c8b91e33-78aa-4f99-96fc-c6c368a2a5c9&disableHighlightning=c8b91e33-78aa-4f99-96fc-c6c368a2a5c9/#findHighlighted

      The main deviation from the Netherlands-Thailand Tax Treaty is that occupational pensions are also taxed in Belgium (see art. 17 of the Treaty). In addition, the Treaty does have a residual article. The Netherlands-Thailand Tax Treaty does not contain such an article (it is not of much importance, see art. 21 of the Treaty).

      For additional instructions see:

      http://ccff02.minfin.fgov.be/KMWeb/document.do?method=view&id=9f870d6b-aec0-4674-a815-bdbf95a639aa#findHighlighted

      David H. already posted the useful link to all tax treaties concluded by Thailand. This is what I use the most in my daily work:

      http://www.rd.go.th/publish/766.0.html

  9. Renevan says up

    If you receive a tax assessment from the Thai tax authorities, you must have provided information yourself. Whether you rightly receive an assessment depends on what you have supplied. If you have transferred THB 800000 to get an extension of stay, this is not income. However, if you have indicated that it is income, you must pay for it. That would be less than 75000 thb. If they see it as annual income then pay every year. So the question is exactly what you reported to the Thai tax authorities. This will usually be a pension that is not taxed in the Netherlands due to the treaty.


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