Thailand CRS UPDATE (Sep 2023)

wellington

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#1
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Just been informed, from next month CRS will move forward in Thailand, it appears 'residents' will also have their information bundled and shared with their home country even if non-resident.

Data (transactions) go-back-to 2023 year, for some 2022.

All automated, every transaction (they can't be asked to break down to the basic requirements - sending everything).
 
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#3
Cloudbanck said:
Where exactly do they send it, to the country of citizenship? To the country of prior tax residency before moving to Thailand?
What if you have multiple citizenships, and moved from say the UAE to Thailand?
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Country of passport (that you would have provided during KYC).

They are taking the approach, we will do it, but its your 's**t' to deal with and send to your citizenship (passport kyc) country and create a mess for you there.
 
#4
Ok, then as long as you are not a tax resident in the country of the passport you give to Thailand during KYC, it shouldn't be a problem, even if your passport country is a high tax country.
And anyway, if one have any sort of drive and ambition, one shouldn't be a tax resident in a high tax country. Just avoiding that, solves many of the problems discussed in this forum.
 
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#8
Do you have any source web link?

Cloudbanck said:
Where exactly do they send it, to the country of citizenship? To the country of prior tax residency before moving to Thailand?
What if you have multiple citizenships, and moved from say the UAE to Thailand?
Click to expand...
1. Thailand banks did not request any CRS self certification from it's customers yet
2. CRS standard is exchange with country/es of tax residence
3. How do they know in which country/es you're tax resident??? They don't (no CRS self certification).
4. If all indicia shows to Thailand (residential address, tax id, longterm visa / residence permit, phone number) then you're tax resident in Thailand = no reporting.

And btw. they cannot report any "transactions" over CRS, it's not possible to enter. It's just an XML file with necessary data fields (your personal data, sending institution, account balance, gross interest, gross dividend, gross proceeds).
 
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#9
Relevant CRS information from the Thai Revenue Department (Updated as of 18 August 2023)

https://www.rd.go.th/fileadmin/user_upload/FATCA_File/crs/Thailand_CRS_Guidance_280823.pdf
CRS due diligence procedures for lower-value pre-existing individual accounts
(the account is a lower value-account: With a balance or value of THB 30,000,000 or less as of 31
December 2022 or account opened and maintained by Reporting FI during 01 January 2023 to
15 August 2023)

The first steps for a Reporting FI to perform due diligence in connection with a pre-existing lower value individual
account method is referred to as the residence address test. Reporting FIs can choose to adopt a residence
address test as a proxy for determining whether the account holder is a relevant reportable jurisdiction tax
resident. Alternatively, the second method is referred to as the electronic record search. Reporting FIs can choose
to rely on indicia test (searching for indicators that the account holder is a reportable jurisdiction tax resident) as
a proxy for determining whether the account holder is a reportable jurisdiction tax resident.

Residence Address Test

To apply the residence address test, a Reporting FI must have in its records the account holder's current residence
address and it must have been recorded based on documentary evidence. If this is the case, it can treat the
individual account holder as being a resident for tax purposes of the jurisdiction in which the address is located
for purposes of determining whether the individual account is a reportable person


So, if your Thai bank has recorded your residence address in Thailand with proper documentation (lease, property deed ...) your account will be treated as resident in Thailand for tax purposes.
 
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#10
Standard procedure as everywhere. No need for panic.

Mercury said:
So, if your Thai bank has recorded your residence address in Thailand with proper documentation (lease, property deed ...) your account will be treated as resident in Thailand for tax purposes.
Click to expand...
No. Whole indicia must be valid, together with residence permit / longterm visa.
 
#11
zzzzzz said:
No. Whole indicia must be valid, together with residence permit / longterm visa.
Click to expand...
Source?

Reporting FIs have the choice to either adopt a residence address test or to rely on indicia test.

Anyway, assuming you reside in Thailand you should be able to show a proper long term visa.

Additional quotes from the PDF linked:

Example 1 (Government issued identity card): M, a bank that is a Reporting FI has policies and procedures in place,
pursuant to which it has collected a copy of the identity card of all its Pre-existing Individual Accounts and pursuant
to which it ensures that the current residence address in its records for those accounts is in the same jurisdiction as the address on their identity card. M may treat such Account Holders as being resident for tax purposes of the jurisdiction in which such address is located.

Example 2 (Passport and utility bill): M has account opening procedures in place pursuant to which it relies on the
Account Holder’s passport to confirm the identity of the Account Holder and on recent utility bills to verify their
residence address, as recorded in M’s systems. M may treat its Pre-existing Individual Account Holders as being
resident for tax purposes of the jurisdiction recorded in its systems.

Example 3 (Utility bill with reporting obligations): H, a bank that is a Reporting FI, has a number of accounts opened
prior to 1990 that has been grandfathered from the application of AML/KYC Procedures and the related rules on
materiality and risk have not required re-documenting the accounts. H has in its records a current residence
address for these accounts that is supported by utility bills collected upon account opening. Such address is also
the same address as that periodically reported by H with respect to those accounts under its non-CRS tax reporting
obligations. Because H’s records do not contain any Documentary Evidence associated with these accounts and
H is not required to collect it under AML/KYC Procedures, and the current residence address in H’s records is the
same as that on the most recent documentation collected by H and as that reported by H under its non-CRS tax
reporting obligations, H may treat its Account Holders as being resident for tax purposes of the jurisdiction in
which such address is situated.

If the Reporting FI cannot apply the residence address test it must review the electronic records search for any indicia.
 
#13
zzzzzz said:
Don't give them the choice to improvize, that is the point.

Figure 13., page 75.
https://www.oecd.org/tax/exchange-o...e-of-financial-information-in-tax-matters.pdf
Click to expand...
What you don't understand with this diagram?

Is the Financial Account a Cash Value Insurance Contract/Annuity Contract effectively prevented by law from being sold to residents of the Reportable Jurisdiction
NO
Is the account balance or value (after aggregation) $1m or less at the date set to determine Preexisting Accounts or the end of any subsequent calendar year? (Lower Value Account)
YES
Does the Financial Institution hold Documentary Evidence and want to apply the residence address Test? (Where permitted)
YES
Is the current address in a Reportable Jurisdiction?
NO
Not reported, until change of circumstances

You need to understand how Thailand works. They will always go the easiest way.
The easy way is the residence address test. Residence address is de facto documented because mandatory to open a bank account. They are asking since years an address in Thailand, it's very difficult to open a non-resident account as a foreigner.
 
#15
I easily opened a bank account on a two-months tourist visa with a lease contract and certified copy of my passsport from my embassy.
I also went with a friend to another branch, and only with the passport he could open an account paying a health insurance that costs 4-5k THB. No questions asked.

It is very easy to open a bank account there if you know what branches to go.
 
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#16
Was that after or before 31 March 2023? As they have new stricter rules in place since then. How long was your lease contract, 12-months? Did you terminate your lease after two months?
 
#17
zzzzzz said:
Was that after or before 31 March 2023? As they have new stricter rules in place since then. How long was your lease contract, 12-months? Did you terminate your lease after two months?
Click to expand...
My lease contract was for 6 months. It was before that date. No, I did not terminate my lease contract, I stayed the 6 months.

But for my friend, If I recall well, was after that date.
 
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#18
Sure, if you are able to provide a documented Thai address residence.
These are TH resident bank accounts, not reported as per CRS rules.
 
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#20
churumbelo said:
As I said, in some branches only with the passport they open the account for you. No more documents required. But you have to pay a health insurance.
Click to expand...
Not my experience. For each bank account I opened in Thailand in different banks they all have asked an address in Thailand + supporting docs.

You mean bank recorded your friend's address abroad? If so, then this account will be reported.
 
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