Tax law confusion
Re: "Taxing times" & "Retirees seek clarity", (PostBag, June 19).
The new tax law applicable to those who are in Thailand for 180 days (tax resident) is subject to tax on any overseas "income" brought into the country.
That change has caused havoc among expats due to a lack of adequate clarifications. The situation has become more aggravated by the news of a proposal to tax Thai residents on world income, irrespective of whether it is being brought into Thailand or not. The latest is only a proposal and is subject to the approval of the cabinet and eventually ratification in parliament. It is meant to be equitable and applicable more to Thais investing abroad.
However, regardless, it is known that income from wherever the sources should not be taxed twice.
Thailand has treaties for the avoidance of double taxation with 61 countries, of which some provided for the tax to be taxed at the source, to be deductible against Thai tax or completely exempted from Thai tax again.
It is most likely that the nationalities of all expatriates in Thailand are covered under one of the treaties. The commercial attache of each embassy should be of help. The alternative is to consult tax advisers in Thailand.
Songdej Praditsmanont
Harmful remarks
Re: "New overseas income rules", (Business, June 5).
Isn't it about time the Ministry of Finance got a handle on the Revenue Department, whose statements concerning foreign taxation are damaging the country?
Thailand told the Organisation for Economic Cooperation and Development last year that it planned to increase the number of bilateral tax treaties from 61 to 150 countries.
These treaties normally include the avoidance of double taxation, something which is widely regarded as detrimental to growth.
The OECD Global Forum made a number of recommendations about Thailand's taxation performance regarding companies and partnerships. It appears that there is still much work to be done.
Ian Cruickshank
Crimes ignored
Re: "Tale of 2 sides", (PostBag, June 15) & "Success story", (PostBag, June 18).
There is a lucrative business operating in China. Part of its success is due to the healthy quality and amazing freshness of its products and the fact they are readily available. Of course, it is controlled by the Communist Party of China.
But let's go back in time to when a spiritual group began to grow in numbers and popularity. In fact, so popular did this group become that it reached an estimated 100 million followers. The group practised meditation, yoga-like exercises, and moral discipline.
The Communist Party grew fearful of this group and began to treat it as they had done with Tibetan Buddhists, Christians, and Muslims. Persecution, legal action, imprisonment, and censorship of all Falun Dafa teachings were systematically undertaken until Falun Gong had been reduced.
Songej Praditsmanont claims in his recent apology for China that "when one is less hungry, based on history, those shortfalls will be rectified, pressuring (sic) by incessant criticisms". Really? By all appearances, Mr Xi has been "less hungry" for quite some time, yet there is no rectification in sight. It must be another one of those "quaintnesses" which Mr Sondej refers to.
Michael Setter
