Mike_S, Author at FRANK Legal & Tax

Setting Up a Second Residence in Thailand

April 27, 2023 11:17 am Comments Off

Setting up a second residence in Thailand has become a popular option for many high-net-worth individuals looking for a safe, stable, and convenient location to reside. With its favorable climate, world-class healthcare system, and vibrant culture, Thailand offers a unique and appealing lifestyle for those seeking a second home. However, before making the decision to establish a second residence, it is important to consider the legal and tax implications, as well as the family’s circumstances and priorities.

In this article, we will outline the key steps based on our experience to take in order to establish a second residence in Thailand, as well as some of the legal and financial considerations you should keep in mind.

Determine your eligibility

The first step in setting up a second residence in Thailand is to determine whether you are eligible to do so. In order to establish a second residence in Thailand, you must have a valid non-immigrant visa. This can be obtained through a variety of means, including work, education or retirement.

Setting up a business in Thailand

There are many legal requirements associated with setting up a business in Thailand. You may need help during the planning stage of your investment or during your day-to-day business operations. In our experience, without the expertise of a law firm that can communicate in Thai, registering your company in Thailand can be complicated and time-consuming.

Obtain the necessary work permit and visa

In order to live in your second residence in Thailand, you will need to obtain certain permits, such as a work permit if business is bringing you to Thailand. As with all work permit applications, experience really speeds up the whole process.

Research property options

The next step once you have decided where in Thailand you would like to set up a second residence is to research the different property options available to you. This may include apartments, condos, or houses. There are many websites and resources available to help you find the right property for you, including real estate agents and online listings. When researching properties, it is important to keep in mind your budget, as well as any legal and financial considerations, such as taxes and insurance, and legal limitations for foreigners.

Register your property

Once you have found the right accommodation, you will need to register your property with the appropriate authorities. This will typically involve filling out various forms and providing proof of ownership.

Tax implications

Thailand has a number of taxes that you will need to consider when setting up a second residence. These may include income tax, property tax, and other taxes and fees.

When considering the tax implications, it is important to keep in mind that taxes are not typically the top priority for families setting up a second residence. Higher priorities include safety, geopolitical stability, healthcare, language, location, climate, schools, cost of living, and quality of life. However, the tax rules and legal system should still be evaluated and considered before making a decision.

Conclusion

When setting up a second residence, it is crucial to work with a reputable and reliable law firm that can guide you through the process. The law and tax firm will work closely with the client’s external advisors to evaluate the family’s matrimonial property regime, estate plan, and tax breaks offered by the destination country. They will also play a key role in ensuring that no aspects are overlooked, as they have a holistic view of the situation.

If you have any legal or tax questions about setting up a second residence in Thailand, please contact our expert team at [email protected]

Fabian Doppler
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Fabian, a founding partner of FRANK Legal & Tax, is a German-trained lawyer with expertise in corporate/commercial, real estate law, and litigation, and has been practicing law in Thailand since 2005.

Applying for a Boating License in Thailand

March 4, 2023 8:18 am Comments Off

Thailand is a popular travel destination for many international tourists, but for those who own a boat, it’s important to understand the laws and regulations for obtaining the appropriate license in the country. This article will cover the legal requirements and procedures for obtaining a boating license in Thailand based on our experience.

Requirements:

To apply for a boating license in Thailand, the applicant must provide the following documents:

A copy of the passport
Residence certificate issued by the Immigration Bureau

Medical certificate (eyes and ears must be in good condition)
International boat driving license (if any)
A copy of the ship’s license (applicant must be the boat owner for more than two years and the boat must be in Thailand)
3 photos (2×2 ID size)

The applicant’s boat must be Thai national, registered under Thai law, and must have a Thai flag installed.

The applicant must also pass a test, and an English test is available.

The fee for a 5-year boat driving license is 5,000 THB and can be renewed later.

The process of obtaining a boat driving license in Thailand usually takes about 5-7 days, depending on the completeness and correctness of the applicant’s documents.

In practice

For boat owners who hold a boat driving license from another country, such as Singapore, and the boat is registered in another country, such as Langkawi, Malaysia, they can bring the boat to Thailand’s territorial waters without obtaining a Thai boat driving license.

They must complete the registration process at the Marine Department and the Immigration and Customs Department in Phuket Marina. The arrivals process is typically completed in one day, while the departure process takes 1-3 working days and costs 100 THB. The required documents for this process are the boat registration, passport of the boat owner and crew, vaccine certificate, radio handbook (NNSI number), and power of attorney (if the captain is not the boat owner).

We explore this in more detail in the following article: Obtaining Permission for Your Boat to Enter Thailand

If you have any questions about the above, please contact us at [email protected]

Fabian Doppler
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Obtaining Permission for Your Boat to Enter Thailand – Phuket

8:17 am Comments Off

When you are entering Thailand’s territorial waters, based on our experience, you must comply with the instructions as follows:

Find a parking space for your boat

You can choose between a public (government-owned) or a private port.

Tha Chalong is a public port in Phuket, usually free of charge. However, there are very few parking spaces available. The officer informed me that you might dock your boat outside the port by dropping an anchor, but since there are many storms, the officer does not recommend it.

On the other hand, private ports are great alternatives. You can choose from the following list:

1. Phuket Boat Lagoon Marina

2. Ao Por Grand Marina

3. Phuket Yacht Heaven Marina

Phuket Marina registration process

After the boat docks, you must complete the process at the Phuket Marina Building:

1. Registration: you can pre-register via the website (https://seb.md.go.th/arrival) or at the Marine Department Office on the arrival date.

2. Public Health Room

3. Marine Officer Room: to submit all documents

4. Immigration: normally, it is free of charge; however, under the following circumstances, there shall be an additional fee of 200 THB.

4.1 If you come to immigration outside of the working hours (9 a.m. to 3 p.m.)

4.2 If you dock your boat outside Tha Chalong

4.3 If you make an appointment with the officer

5. Customs:

Arrival: free of charge on weekdays and 800 THB on weekends

Departure: 200 THB on weekdays and 1000 THB on weekends

Required documents:

Boat Registration: if issued in Malaysia, you must scan the QR Code and present the expiry date to the Customs officer.
Passport and Immigration stamp
The name in the Boat Registration and the boat’s owner must be the same. If the captain is another person, the boat’s owner must assign a power of attorney to the captain to be submitted to Customs.
Your boat photos (the name of the boat must be clearly visible).

6. Marine Officer Room: to receive the documents

*The process takes approximately an hour to an hour and a half, depending on the situation.

In the event that you hold an international boat license, you are eligible to drive your foreign-registered boat within Thailand’s territorial waters. However, if you wish to drive a Thai-registered boat, you must apply for a Thai boating license under Thai law.

*Kindly be informed that there might be additional costs apart from the above list.

If you have any questions about the above, please contact us at [email protected]

Fabian Doppler
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Acquiring a Driving License in Thailand

8:02 am Comments Off

Driving a car in Thailand requires obtaining a valid driving license. If you are a foreigner, it is important to familiarize yourself with the requirements and processes involved before applying for a driving license in Thailand. In this article, we will focus on driving licenses for vehicles (cars) based on our experience.

Requirements

To obtain a driving license for a car in Thailand, the applicant must meet certain conditions. The applicant must be at least 18 years old, hold a valid non-immigrant visa, and be in good physical and mental health. The required documents include a passport with a non-immigrant visa, photos, a residence certificate issued by the Immigration Bureau, a medical certificate, and a valid international driving license (if any).

The examination for obtaining a car driving license in Thailand involves both a theory and a practical driving test.

The theory and practical driving tests include the following:

Color blindness test
Reflex test
Peripheral test
Depth perception test
Theory test
Practical driving test

The theory test is a 50-question exam that must be taken via an electronic examination system after completing a 5-hour training program. The applicant must score at least 90% (45 questions) to pass the exam. The practical driving test includes forward and backward driving, sidewalk parking, and parking in a car park.

The cost of a 2-year driving license for a car in Thailand is approximately 300-400 THB, which can be renewed and changed to a 5-year license after its expiration. The entire process, from training to obtaining the license, takes approximately 2 days.

Training

For new applicants, you must attend the training at the Department of Land Transportation office. The training period will be at least 5 hours, which is divided into two parts: the morning (from 9:30 a.m. to 12 p.m.) and the afternoon (1 p.m. to 3:30 p.m.).

Writing test (theory test)

After the training is completed, the applicant is required to take the writing test via an electronic examination system. The exam consists of 50 questions, and the applicant must get at least 90 percent, or 45 questions, correct. If the applicant fails to meet such criteria, they will have to retake the exam on the next day or no later than 90 days after the training.

Practice test (practical driving test)

The practical driving test includes forward and backward driving, sidewalk parking, and parking in a car park.

If you have any questions about the above, please contact us at [email protected]

Fabian Doppler
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“Shop Dee Mee Kuen” Offers 2023 Tax Deduction in Thailand up to 40,000 THB

January 29, 2023 9:33 am Comments Off

According to a ministerial regulation (No. 386) issued on December 29, 2022, and a notification from the Director-General of the Ministry of Finance, a person liable to personal income tax (other than an ordinary partnership or non-juristic body of persons) is entitled to an income tax deduction under the “Shop Dee Mee Kuen 2023” program for certain expenses incurred for the purchase of goods and services from VAT registrants, provided that a full tax invoice is presented. This article details the specific items, what you need, and the time period covered based on our experience.

This 2023 tax deduction initiative also applies to expenses incurred for certain purchases from non-registered VAT sellers, such as physical book purchases and subscription fees for e-books obtained through an electronic system, as well as expenses incurred for the purchase of a type of good registered with the Department of Community Development under the “One Tambon, One Product” (OTOP) program.

Tax deduction limitations

Taxpayers in Thailand can claim tax deductions of up to 40,000 THB under two categories:

Purchasing goods or service fee for the 1^st payment amount up to 30,000 THB with the original receipt papers or electric receipts
Purchasing goods or service fee up to 10,000 THB with electric receipts only

The program is eligible for purchases from January 1 to February 15, 2023 (a period of 46 days)

Products and services included in “Shop Dee Mee Kuen” 2023

Goods and services that are covered by this program include:

Gasoline or fuel
Food and beverages, such as meals at a restaurant or a hotel (excluding alcoholic beverages)
Products sold in convenience stores such as Family Mart, 7-Eleven, and others.
IT equipment, computers, smartphones, and so on.
Books (including electronic books)

The following items and services are not tax deductible under this program:

Alcohol
Cigarettes
Vehicles such as automobiles, motorcycles, and boats
Newspapers and magazines including e-newspapers and e-magazines

It is important to note that in order to qualify for the tax credit under “Shop Dee Mee Kuen” 2023, you must request either an original or electronic tax invoice for the purchase of goods and services.

You can find a list of the businesses that are able to issue an e-tax invoice and e-tax receipt by email here.

If you have any questions about tax deduction in Thailand, please do not hesitate to contact us at [email protected]

Fabian Doppler
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2023 Tax Return Filing in Thailand

January 22, 2023 9:00 pm Comments Off

The season for filing personal income taxes in Thailand has now arrived.

Thai taxpayers have the right to report their income to the Revenue Department from 1 January to 10 April 2023. It is useful to know how much money you made in Thailand between January 1 and December 31, 2022.

Are you a tax resident in Thailand?

A person who spends 180 days or more in Thailand during a calendar year is considered a Thai tax resident according to Thai tax law. Keep in mind that each day will count as one no matter what time you enter or leave Thailand. For tax purposes, a tax year that you are a resident in is treated as a full year. Keep a copy of your passport on hand to confirm this.

Submitting your tax return

Personal income tax returns must be filed electronically by 10 April, but hard copies must be received by the Revenue Department by 31 March. The Revenue Department’s website, https://efiling.rd.go.th/rd-cms/, is where individuals can file their personal income tax returns.

In order to file a hard copy personal income tax return using form PND 90/91, taxpayers must do so at any Revenue Department Area Office along with any additional tax that is owed in cash, by cashier’s check, or by QR code, and that must be paid within seven days of the date the tax return was issued. The deadline is March 31; after that, late filers will be charged an additional 1.5% monthly surcharge (or fraction thereof) on top of the unpaid tax. Those who apply will have access to interest-free installment payment plans for up to three months. The penalty for submitting documents late ranges from THB 200 to 2,000.

When submitting your Personal Income Tax Returns (PND 90, 91), please make sure that the correct taxable income has been reported. This includes income from all sources in Thailand (especially those connected to your Thai employment), regardless of where it came from or whether you are a Thai resident, as well as income from abroad brought into Thailand in the same tax year.

The tax rates range from 0% to 35% for both residents and non-residents. The distinction between residents and non-residents will be discussed in more detail below.

Income from abroad

The “Residence Rule” states that if you are a Thai tax resident and bring such foreign income into Thailand in the same year it is earned, Thailand will tax you on it. It might also be related to your employment abroad.

If you plan to bring in foreign income like capital gains, rental income, or interest income into Thailand before you begin working in the Kingdom, please think it through carefully before you do. Non-residents, however, are permitted to bring in such foreign income without being subject to Thai taxation.

Deductions for dependents

An individual who has no income during a tax year is considered a dependent. Children and spouses who reside abroad can also be considered dependents.

If you are a Thai resident, you can claim a family allowance deduction for your dependent spouse and up to three dependent children.

To qualify for this allowance, you must give the Revenue Department a copy of your entire passport—from front to back, including the blank pages—that you used for travel during the tax year, as well as a marriage certificate and/or copies of any children’s birth certificates.

If you can demonstrate that your children are students—for example, by providing a copy of a tuition fee receipt—you may be able to claim them as dependents for tax purposes. For instance, it may be deducted from your taxes if your child qualifies as an incompetent person or a quasi-incompetent person and is 25 years of age or older during the tax year.

If your dependents are Thai citizens, you can still claim these deductions even if you are not a Thai resident by giving the Revenue Department copies of their entire passports, front to back, including the blank pages.

Tax reduction

Let’s look at some legal ways that foreign workers can lower their tax obligations, starting with the different deductions that will be available in 2022.

Up to THB 60,000 can be claimed by the taxpayer.
The taxpayer’s spouse is eligible for THB 60,000 Baht under the proviso that the union must be legally recognized and that the spouse has to be unemployed.
Up to THB 30,000 can be claimed by the taxpayer, which is limited to 3 children.
Due to the social security rate reduction in 2022, the social security fee shall be applied as a tax deduction based on the actual paid amount of no more than THB 6,300.
According to the actual paid amount of not more than THB 100,000, life insurance premiums and savings insurance premiums may qualify for a tax deduction under the following circumstances:

Must have 10 years or more of insurance coverage with a Thai life insurance company, and the insurance cannot be surrendered during the first 10 years. If that is the case, it will be regarded as a breach and not eligible for a tax deduction.

The maximum tax deduction for the spouse’s insurance premiums is THB 10,000 if there is no income from the spouse.

Premiums for accident and health insurance: Premiums which cover the health part can be used for a tax deduction according to the actual paid amount of not more than THB 25,000. Additionally, the total sum cannot be greater than THB 100,000 when combined with savings insurance and life insurance.

Annuity life insurance premiums can be used to claim a tax deduction of 15% of your income, up to a maximum of THB 200,000. The requirements are that the insurance must be with a Thai Life Insurance Company, that it must cover a period of at least 10 years, and that the insurance company must pay benefits to the insured from the time they are 55 years old until they are 85 years old or older.

Retirement Mutual Fund (RMF) contributions can be deducted from taxes at a rate of 30% of taxable income, up to a maximum of THB 500,000, and for a period of five years.

Super Saving Funds (SSF) (for long-term saving) are eligible for a tax deduction of 30% of taxable income based on the actual amount paid, up to THB 200,000, with benefits for a five-year period.

Investment fund for social enterprises are eligible for tax deductions up to THB 100,000 and subject to the following requirements:

These businesses must be registered as nonprofit social enterprises, and the taxpayer must hold shares until the social enterprise is dissolved.

Tax deduction from donations

Donations to charitable, educational, and religious organizations that does not exceed 10% of annual net income
Donations to state hospitals, schools, sports teams, and other charitable organizations are tax deductible up to two times the amount of the donation, but not more than 10% of gross income after other deductions.
Donations to political parties are tax deductible up to a maximum of THB 10,000.

Tax deduction from immovable property

A tax deduction of up to THB 100,000 can be claimed for loan interest on residential property purchases.

Other tax deductions such as the government’s economic stimulus program

The Shop Dee Mee Kuen Project 2565 allows a maximum deduction of THB 30,000 for purchases of goods and services in the country between January 1 and February 15, 2565, based on the actual paid amount. Goods and services subject to Value Added Tax (VAT) such as OTOP products and books (including e-books), are examples of tax-deductible goods and services.

The following are deductible for those with a Thai dependent spouse:

1. Life insurance premiums of up to THB 10,000 per year for the spouse.

2. An amount up to THB 30,000 for each dependent parent of the spouse.

3. Up to THB 15,000 in annual health insurance premiums for you and your spouse’s parents if they are covered by a Thai plan.

Remark: If you receive income from a foreign source and bring it into Thailand, you must show a receipt proving that you already paid tax on it so that Thailand can credit your account for it.

If you have any questions related to tax in Thailand, please do not hesitate to contact us at [email protected]

Fabian Doppler
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FRANK Legal & Tax Blog Continues to Grow in Popularity

January 15, 2023 8:48 am Comments Off

The FRANK Legal & Tax blog is one of the largest legal blogs in Thailand and has been ranked as the best Thailand law blog by Blogspot, one of the leading authorities on blogs.

Our blog provides readers with useful and up-to-date information about the Thai legal system. Founded in 2019, the blog has quickly become one of the most popular sources of legal information and analysis in the country.

All our articles are written by experienced Thai lawyers and legal experts who provide readers with a helpful overview of the Thai legal system. Our blog covers a wide range of topics, including corporate law, tax law, civil law, international law, and more. It also provides readers with detailed information about the legal processes, regulations, and procedures in Thailand.

Overall, the FRANK Legal & Tax blog is one of the most comprehensive and up-to-date sources of legal information and analysis in Thailand. With its broad coverage and helpful advice, our blog is an invaluable resource for anyone interested in learning more about the Thai legal system.

Visit our blog here and subscribe to stay up-to-date with the latest legal and tax news in Thailand https://www.franklegaltax.com/news/

Nathathai Joins Corporate and Commercial Team as Senior Associate

January 8, 2023 12:16 pm Comments Off

FRANK Legal & Tax is pleased to announce Nathathai Pichaisawad as the firm’s latest Senior Associate in the Bangkok office.

“We are delighted that Nathathai has joined our team of highly-skilled Senior Associates”, said Fabian Doppler, Managing Partner of FRANK Legal & Tax. “Her expertise in contract negotiation, business licenses, and cross-border transactions is valuable to our clients, and she will be a great addition to the expansion of our corporate legal services”.

“I am excited to join a team of such skilled and experienced legal professionals, and I look forward to continuing to represent FRANK Legal & Tax’s culture of excellence”, said Nathathai.

About Nathathai

Nathathai is a Thai attorney with a focus on corporate and commercial law. She has extensive experience advising domestic and international clients on successful contract negotiations, hospitality industry business licenses, and various cross-border transactions. She also has experience in compliance and regulatory matters, particularly in the areas of governmental infrastructure projects. Nathathai holds a Bachelor of Law from Thammasat University (Thailand) and Master of Laws Degree from the University of California, Berkeley, in the United States.

Reduction of Land Office Registration Fees in 2023

11:11 am Comments Off

Thailand’s cabinet on Tuesday, 20th December 2022 approved tax measures to help boost public consumption to stimulate the economy moving into recovery. Land and property tax was reduced to 15% along with some registration fees being cut for the year 2023.

Measures to reduce the registration fee for rights and juristic acts for housing in 2023 include reducing the registration fee for transferring real estate from 2% to 1% and reducing the registration fee for real estate mortgages from 1% to 0.01% for housing purchases.

These measures will cover single houses, twin houses, row houses, commercial buildings, and condominiums (both new and pre-owned houses). This relates only to cases where the purchase price and the cost appraisal price do not exceed 3 million baht and the mortgage amount does not exceed 3 million baht per contract.

If you would like any further information, please contact us at [email protected]

Visit our real estate page for more details about our services at www.franklegaltax.com/services/real-estate/

Fabian Doppler
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FRANK Legal & Tax Opens New Office on Koh Samui

December 30, 2022 2:02 pm Comments Off

Now open for business, FRANK Legal & Tax will provide clients with specialist and dedicated legal and taxation services on Koh Samui. Our team of advisors will advise commercial investors and private individuals in all areas of law and taxation. This includes, in particular, consultations on property law. So, contact us for support regarding investments you intend to make on Koh Samui.

The firm’s operations on Samui will be run by Guillaume Federle, who has several years of experience managing law offices. Furthermore, FRANK Legal & Tax will continue to offer our full range of legal services, including real estate, from our main Bangkok office.

According to Fabian Doppler, FRANK Legal & Tax Managing Partner, “The goal at FRANK Legal & Tax is to deliver an exceptional level of service to our clients and reach them where they are, which is why it’s so important to offer this new location to our real estate clientele on Koh Samui to give clients a dedicated and tailored way to acquire quality legal advice and services”.

Contact FRANK Legal & Tax on Koh Samui at [email protected]

Author Archives: Mike_S