Thailand Capital Gains Tax on "Foreign Sourced Gains"

[flyinglow]

Hello,

I am aiming to make Thailand my tax base and home base for a couple of years in 2025. Most things make sense at the moment, however one aspect I've tried to do some research on and come up short is the status of capital gains.

I understand that foreign sourced income is not taxable until remitted in, but does anyone know whether this applies to Interactive Broker accounts with Thai residency?

Currently my Interactive Broker account is tied in with my Cyprus residency, and I'm sure that no one at IB or in Cyprus would really care if I kept it that way, but if for some reason I had to do it by the books, and change my IB residency to Thailand, would this count as having 'remitted' the capital into the country? Or would it still be foreign sourced?

In essence, is it likely that my stated Thai residency on IB would make me liable for CGT at the marginal rates?

Thanks

 

[belarus]

In Thailand, if you make money from outside the country, you don’t have to pay taxes on it unless you bring it into Thailand the same year you earn it. Regarding your Interactive Broker (IB) account, just changing your account’s residency to Thailand doesn’t mean you’re bringing money into the country.

The money would still be considered as coming from outside, unless you actually move it to a Thai bank account during that year. But really, to make sure you’re doing everything right, it would be best to talk to a tax advisor in Thailand.

 

[foreverdoomed]

In Thailand, if you make money from outside the country, you don’t have to pay taxes on it unless you bring it into Thailand the same year you earn it. Regarding your Interactive Broker (IB) account, just changing your account’s residency to Thailand doesn’t mean you’re bringing money into the country.

The money would still be considered as coming from outside, unless you actually move it to a Thai bank account during that year. But really, to make sure you’re doing everything right, it would be best to talk to a tax advisor in Thailand.

That changed in 2024 though

Thailand Tax – Foreign-sourced income to become taxable from 2024 - Mazars - Thailand

On 15 September 2023, the Revenue Departmental instruction number Paw. 161/2566 (“DI. Paw. 161”) was issued, which provides a new interpretation of the personal income tax treatment of foreign-sourced income derived by a Thai individual tax resident under the Revenue Code (the "Code").

www.mazars.co.th

 

[belarus]

That's why it is good we have this forum to get things straight.

 

[ecool]

When you load the money in your IB account, you usually transfer to a IB bank in UK or US, not a Thai bank. So the money doesn’t go to Thailand

 

[belarus]

When you load the money in your IB account, you usually transfer to a IB bank in UK or US, not a Thai bank. So the money doesn’t go to Thailand

you mean it is tax free?

 

[ecool]

you mean it is tax free?

As long as you don’t transfer it eventually to Thailand, yes

 

[Radko]

Hello,

I am aiming to make Thailand my tax base and home base for a couple of years in 2025. Most things make sense at the moment, however one aspect I've tried to do some research on and come up short is the status of capital gains.

I understand that foreign sourced income is not taxable until remitted in, but does anyone know whether this applies to Interactive Broker accounts with Thai residency?

Currently my Interactive Broker account is tied in with my Cyprus residency, and I'm sure that no one at IB or in Cyprus would really care if I kept it that way, but if for some reason I had to do it by the books, and change my IB residency to Thailand, would this count as having 'remitted' the capital into the country? Or would it still be foreign sourced?

In essence, is it likely that my stated Thai residency on IB would make me liable for CGT at the marginal rates?

Thanks

If you're going to live in Thailand you'll be taxed on money remitted, at least that's what they say.
It wouldn't make any difference if you kept your IB account with your address in Cyprus.
If you don't want to be taxed on the money that you transfer to Thailand, them don't become tax resident in Thailand, or you can transfer a lot of money to Thailand before you settle down there.
Having said this, they're still a lot of questions about what Thailand will tax when you bring some money from abroad. I don't think it's clear right now, will they tax everything, pensions, savings, and so on? I don't think anyone really knows right now.

May I ask why you're leaving Cyprus? And why Thailand? There is a massive heat wave in Thailand right now, and pollution is overwhelming this time of the year, unless you go south to the Islands.

 

[flyinglow]

If you're going to live in Thailand you'll be taxed on money remitted, at least that's what they say.
It wouldn't make any difference if you kept your IB account with your address in Cyprus.
If you don't want to be taxed on the money that you transfer to Thailand, them don't become tax resident in Thailand, or you can transfer a lot of money to Thailand before you settle down there.
Having said this, they're still a lot of questions about what Thailand will tax when you bring some money from abroad. I don't think it's clear right now, will they tax everything, pensions, savings, and so on? I don't think anyone really knows right now.

May I ask why you're leaving Cyprus? And why Thailand? There is a massive heat wave in Thailand right now, and pollution is overwhelming this time of the year, unless you go south to the Islands.

Thanks.

I am moving due a tax-treaty between Aus & Thailand + lifestyle reasons (I like martial arts) and also the fact I can continue running my Cyprus business without any worry of CFC laws.

Girlfriend is European, so kinda a mid-way point between EU & AUS

Also want to use it as a base to explore Asia.

 

[Radko]

Thanks.

I am moving due a tax-treaty between Aus & Thailand + lifestyle reasons (I like martial arts) and also the fact I can continue running my Cyprus business without any worry of CFC laws.

Girlfriend is European, so kinda a mid-way point between EU & AUS

Also want to use it as a base to explore Asia.

You and I think alike.

Best of luck with the adventure!

 

[JackAlabama]

If you're going to live in Thailand you'll be taxed on money remitted, at least that's what they say.
It wouldn't make any difference if you kept your IB account with your address in Cyprus.
If you don't want to be taxed on the money that you transfer to Thailand, them don't become tax resident in Thailand, or you can transfer a lot of money to Thailand before you settle down there.
Having said this, they're still a lot of questions about what Thailand will tax when you bring some money from abroad. I don't think it's clear right now, will they tax everything, pensions, savings, and so on? I don't think anyone really knows right now.

May I ask why you're leaving Cyprus? And why Thailand? There is a massive heat wave in Thailand right now, and pollution is overwhelming this time of the year, unless you go south to the Islands.

more or less its clear and its a pretty simplistic approach.

Tax due on everything except savings (which is all income earned while not tax resident). Keep account statement of 31.12 of the year of concern.
Its a non-dom system, so only upon remittance if your stay is more than 180 days.

 

[Radko]

more or less its clear and its a pretty simplistic approach.

Tax due on everything except savings (which is all income earned while not tax resident). Keep account statement of 31.12 of the year of concern.
Its a non-dom system, so only upon remittance if your stay is more than 180 days.

Hi!
Will they ask you to declare all your savings when you move there? So they know that anything above that will be money earned, and therefore taxable?

What about Pensions, also taxed?

What if you withdraw money from an ATM using your foreign debit card?

My lawyer tells me things are not clear at the moment.

 

[wellington]

What if you withdraw money from an ATM using your foreign debit card?

tracked.

Will they ask you to declare all your savings when you move there? So they know that anything above that will be money earned, and therefore taxable?

no, but if audited just show savings prior, i know we are grandfathered in, unsure about noobs coming over though.

 

[ecool]

tracked.

yes, but how easy or likely is it that they dig that information? If you are evading millions and you are living a lush lifestyle, then it might happen, but if you fly under the radar and you get a regular auditing, I think it's going to be very difficult for them to retrieve this information, or whatever you have paid with foreign credit cards

 

[JackAlabama]

Hi!
Will they ask you to declare all your savings when you move there? So they know that anything above that will be money earned, and therefore taxable?

No, not needed. You have to keep your statements from the year prior you become tax resident for the first time. It is that simplistic.
You can topup your savings by being absent during a year (also pretty straight forward), and you keep these statements as well.
Dont pollute your account with additional income to keep it easy.

What about Pensions, also taxed?

yes, income.

What if you withdraw money from an ATM using your foreign debit card?

all forms of remittance count, like many other countries do to (non doms).

My lawyer tells me things are not clear at the moment.

some fine tuning are surely open, e.g. you pay wht from divis e.g. in the usa etc. and remit these funds.

 

[JohnLocke]

If you don't want to be taxed on the money that you transfer to Thailand, them don't become tax resident in Thailand, or you can transfer a lot of money to Thailand before you settle down there.

Don't you have to declare where this money comes from in that case?

 

[Radko]

Don't you have to declare where this money comes from in that case?

As long as you can prove that you had the money before becoming a tax resident in Thailand, you're fine (they won't ask you how you made the money), so a bank statement showing that you had the money prior to moving to Thailand is enough.

I'm still not sure how they will track all the money that gets into Thailand from abroad. I have a personal debit and credit card, as well as a corporate debit and credit card. Difficult to track how you use any of those cards in Thailand. Time will tell.....

 

[toums]

Was thinking also for an alternative concerning the ATM withdrawal with an oversea card.

To stay under the radar, maybe you can use :

a) You can bring 20K$ in Thailand without custom declaration. If you do it let's say 2-3times a year you can get 5K$ a month for your daily 'expense'.
For the change in Baht, just asking some friends/ familiy or people you know well (they are tourist ou non thai resident) and they do for you the exchange at Superrich exchange. Then your name doesn't appear on any transaction.

b) You use oversea bank cards from your family, parents etc.. you just top up and you spend it in Thailand (maybe better still to do PAYMENT directly and no withdrawal)

c) As said wellington in some other posts related to Thailand, you can borrow money and get 'credit' line (so loan), and it's not considered as income.

 

[ecool]

c) As said @wellington in some other posts related to Thailand, you can borrow money and get 'credit' line (so loan), and it's not considered as income

Eventually you have to pay the loan back (and bring money to Thailand to do so)

 

[toums]

Eventually you have to pay the loan back (and bring money to Thailand to do so)

hm why? If you have your credit line and you send it in Thailand, and use that amount.

regarding the collateral / loan oversea, you pay back from oversea and it's staying oversea.. no?