So, in my [previous article]( I was totally lost when it came to sorting out the tax situation for digital nomads in Thailand. And let me tell you, I wasn’t the only one scratching my head. I decided to reach out to two Thai tax advisors to get some clarity on the matter that leaves many of us feeling like we’re walking in a tax minefield. Now, I’m no lawyer, so I can’t dish out legal advice here, but I’ll do my best to break down the insights I gathered into a digestible guide. Unfortunately, I couldn’t record those conversations, so I’m here to give you a rundown of what I learned.
The two Thai tax gurus on my speed dial were American International Tax Advisers and Expat Tax Thailand. Let’s dive into the simplified steps to help you navigate the murky waters of Thai taxes as a digital nomad.
Step 1: If you’ve spent less than 180 days in Thailand in a calendar year, lucky you! You can skip the tax return and tax payment hassle.
Step 2: No Thai bank account? No worries. You are off the hook for filing taxes or shelling out cash to the Thai taxman. Why? Well, one of the tax experts pointed out that Thailand lacks efficient ways to track foreign income flowing in through ATM withdrawals and bank transfers. So, for now, if you don’t have a Thai bank account, you’re in the clear.
Step 3: Did you make any moolah during the year? If not, you’re not obligated to file taxes in Thailand, but hey, if you want to voluntarily submit a tax return, go ahead. However, if you did earn some cash, brace yourself for filing a tax return and settling your dues with the Thai tax authorities.
Step 4: Now, here’s the nitty-gritty part. To navigate the tax filing process in Thailand, you’ll likely need the assistance of a local tax filing firm. Trust me; the forms are in Thai and can be as confusing as solving a Rubik’s cube blindfolded. Missing the tax filing deadline of April 8th the following year can lead to some unwanted consequences, so make sure you’re on top of it.
When it comes to calculating your taxable income, Thailand only considers the money you bring into the country as taxable. So, if you transferred $24,000 to your Thai bank account from your overseas earnings, that’s