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ResourcesCorporate and Tax AdvisoryThailand Tax LawWill All Tax "Resident Expats Need To Register With Thai Revenue"?

Will All Tax "Resident Expats Need To Register With Thai Revenue"?

Transcript of the above:

As the title of this video suggests, we are asking "Are all expats going to need to register for tax?" I thought of making this video after reading a recent article from the Pattaya Mail, that is pattayamail.com, the article is titled: Income tax fears replace insurance worries in latest Pattaya expat poll. Quoting directly: "The issue is whether all resident expats will need to register with Thai Revenue to obtain a Tax Identification Number to explain their individual circumstances."

As we have discussed, there have been quite a few misconceptions regarding Thai Tax Identification numbers and tax liability. As discussed in a prior video, having or not having a Thai Tax ID number is not the end of the analysis on whether or not there is tax liability. There may be tax liability for someone who does not have a Tax Identification Number and there may not be tax liability for someone who does have a Thai Tax Identification number, again, it is going to depend on circumstances. But the question posed is sort of "do all folks, tax resident in Thailand, and what is tax resident as we discussed, basically anybody staying in Thailand for more than 180 days at a stretch, do they all need to apply for TIN numbers, Tax Identification Numbers?" As we have discussed in prior videos, maybe, maybe not, depending on their circumstances. If there is no underlying tax liability associated with their presence or activities in Thailand, then not presumably. But if there is, then yes, they may need to get a Tax ID Number in order to go ahead and deal with the payment of whatever taxes they have currently owing or they have liability on and that is the way to deal with it. You have got to get the ID Number in order to make that payment, in order to go ahead and deal with one's tax obligations. 

But the thing to take away from this video I would say is no, not necessarily do all folks who are here for over 180 days necessarily need to get a Tax Identification Number, they may not have any reason to. In fact, as I have said in most of the videos that I have made the past couple of weeks, most retirees aren't affected by this in any way shape or form; they don't have any tax liability; not something they need to worry about; don't need to get a Tax ID number. Now there may be some retirees who depending on how their retirement financials are structured, may need to deal with it for their own tax return as well as for their tax return, excuse me for their tax return in their home country perhaps as well as for their tax return here in Thailand, so again it is going to be very circumstantially dependent. 

For those who feel a bit overwhelmed by this and it is easy to feel overwhelmed because there is a lot of information here and quite honestly trying to do the analysis to figure out which mechanisms have or have not been triggered with regard to tax liability can be a pretty painstaking, meticulous process, but for those who do feel a bit overwhelmed, it may be a good idea to contact a legal professional, gain some insight and guidance into how best to proceed.