Change in the tax law does target expats living in Thailand and extends reporting obligations

A former chairman of Baker McKenzie, an international law firm with offices in Thailand and a member of the National Reform Council has come out strongly against a recent move by the Revenue Department to change a 38-year regulation applicable to foreigners with overseas income on several grounds including the legality of the order and its broader impact on the Thai economy moving forward.

Top lawyer and former member of the National Reform Council, along with others, calls for a new Revenue Code and for Thailand to compete with World tax havens such as Singapore and Hong Kong. They condemn the current move as a backwards step for the country and its tired economy.

A former Chairman of a prestigious international law firm in Bangkok has warned that a new taxation directive issued by the Revenue Department targeting foreign income sources faces a legal challenge and will create more reporting obligations and confusion.

The order published on September 15 2023, altering a 38-year-old interpretation, is a definite step by the government to widen the tax base, meaning more significant reporting requirements, at the very least for expats living in Thailand. Kitipong Urapeepattanapong, along with other legal experts, including a Supreme Court judge, is calling on the Thai government to overhaul the tax system thoroughly to make it competitive with Hong Kong and Singapore.

Former Chairman of Baker McKenzie in Thailand, Mr Kitipong Urapeepattanapong, warns that the September directive issued by the Revenue Department, rescinding a previous legal interpretation that stood for 38 years, means more reporting for foreign residents and Thai nationals investing abroad as well as confusion. He predicts taxpayers will challenge the new measure in court. Along with other experts and even a former Supreme Court judge, the top legal practitioner cites the move as a retrograde one for the economy.

Full story: Thai Examiner

Expats now need THREE MILLION BAHT health insurance

Foreigners applying for non-immigrant (O-A) visas for stays in Thailand of up to one year are now required to have a health insurance policy with minimum coverage of three million baht for in-patient medical fees, instead of the previous 400,000 baht.
Deputy Public Health Minister Sathit Pitutecha said yesterday that the new rule is intended to ensure that they will receive proper medical treatment if they fall ill during their long stay in the country.

According to the Thai Immigration Bureau and the Department of Consular Affairs, 3,768 foreigners were granted non-immigrant visas last and this year.

The insurance policies can either be purchased in Thailand or in their home country, but the coverage amount of foreign issued policies must be on a par with the sum stipulated in policies issued in Thailand.

The announcement will likely be met with displeasure and backlash from international travellers hoping to make Thailand their home long-term, or at least for one year.

It is especially difficult for those hoping to retire in Thailand as insurance policy premiums are infamous for skyrocketing once the applicant passes a certain age, increasing exponentially with age under the assumption that older people are more prone to illnesses and accidents.

As Thailand releases plan after plan to lure back tourists, many complain that the complicated entry process, the rising costs, and constant changes to immigration policy, not to the benefit of international travellers, seems to be simultaneously pushing away the same expats with money that the country claims to be encouraging.

Source - BangkokJack

VISA AGENT

Thai cities getting pricier for expats

Bangkok and Chiang Mai remain among the 30 most expensive cities for expats in Asia, with Ashgabat in Turkmenistan still on top of the global and Asian tables.

The Thai capital ranked 28th, one place above Chiang Mai, according to the latest ECA International survey on the cost of living for expatriates. In the global rankings, Bangkok was 60th and Chiang Mai 142nd, it added.

But Bangkok dropped out of the top 50 global ranking from the last survey released in December last year.

Bangkok has lost a considerable amount of its appeal for budget-conscious expatriates, having risen 64 places over the past five years, according to the survey.

ECA International said the growing economy and increased foreign investment — at least, prior to the corona-virus pandemic — had made Thailand more expensive, fuelled by the stronger baht.

“The baht has strengthened considerably — making the country more expensive for expatriates and tourists,” said Lee Quane, regional director for Asia at ECA International. “However, this trend has slowed over the past year, partly in response to government attempts to weaken the baht in order to keep the country competitive.”

The survey has been carried out in March and September every year since 2005. It is calculated based on a basket of items such as accommodation rental and utility fees. Car prices and school fees are not included.

Hong Kong was the second most expensive city in Asia after Ashgabat but ahead of Tokyo and Singapore. Singapore was also the most expensive place for expats in Southeast Asia.

The Chinese territory also remained sixth in the global standings, one place ahead of the Japanese capital. Singapore was 14th in Asia despite dropping two notches from the previous survey.

Ashgabat’s meteoric rise to the top of the ranking is largely attributable to the economic problems of the Turkmenistan government, according to ECA. The energy-rich Central Asian nation has faced severe inflation and a black market for foreign currencies has caused the cost of imports to rise, said Mr Quane. Both of these factors have sparked a large increase in the costs visitors pay in Ashgabat.

Mr Quane said Chinese cities fell across the board in the latest rankings due to signs of a weakening economy and poorly performing currency, even before Covid-19 started to take its toll.

Source - Pattaya One News

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