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ResourcesCorporate and Tax AdvisoryThailand Tax LawHow Can a Bank Wire Transfer Be a Taxable Event?

How Can a Bank Wire Transfer Be a Taxable Event?

Transcript of the above video: 

The question posed in this video is how can a bank wire transfer be a taxable event. Let me be clear, there may be bank wire transfers that are a taxable event in multiple jurisdictions, but it's the transfer itself that I am getting onto here, because unfortunately we have got a bunch of illegal Interlopers here in Thailand who are telling people, 'oh if you have money transferred to yourself, that alone is enough that you need to file for taxes in Thailand; you need to get under the tax jurisdiction of Thailand; you need to go ahead and get a Tax ID Number.'

No. There is a major analysis that goes to go to all that. How long have you been in Thailand? But more importantly, what's the nature of the underlying funds? The transfer itself is not what is at issue. The transfer is the medium of exchange, okay? The bank transfer itself just is what it is. It's the funds, the purposes of the funds and the intentions behind the funds that are what you have to analyze in order to decide whether something is a taxable transaction, a taxable event. The act of simply transferring money via new bank wire is not enough. That's not in and of itself a taxable event.

Again I'm saying this because again there are a lot of charlatans out there who are just throwing around a lot of nonsense saying that, 'oh if you ever had money transferred into Thailand, therefore you have got to go sign up for a Tax ID Number; you have got to go file a tax return; you have got to go subject yourself Thai Tax jurisdiction.' You may have to depending on the nature of the transaction, but you may not. 

The point of this video is the act of transferring money itself may or may not be a taxable event. It all depends on the underlying purpose of the funds being transferred.