Question 1

What is the conservative approach to gift assets?

Accepted Answer

The conservative approach to gift assets is to give the assets overseas to the recipient, draw up a gift document demonstrating that the gift will not be returned, and get this notarised by a lawyer in the country the gift was given in. Once this is done, translate the document into Thai and get this held on file. Then, have the person that the gift is given to remit the funds into Thailand. It is recommended that if you are to gift assets, you seek advice as it is more complicated than simply sending money to a third party.

Question 2

If I send monies from overseas directly to my Thai wife as an allowance, is this taxable and the same question if I send directly to the kids

Chas Begley · Accepted Answer

If you are benefitting from the money transferred in then this is still remittance. If you are not benefitting then this is a gift. Learn more about Gifts and Taxation in Thailand

Question 3

Can I wire using Wise or use another service, GBP to THB into my wife's account as a GIFT like I read up to 20 Mil THB per year? Is this actually something that can be done, from what I read it's there in black and white as a Gift so would like to know if I can actually do this.

Chas Begley · Accepted Answer

Only if it is a gift with no benefit for yourself and you never to benefit from this money. Otherwise it’s a gift with reservation of benefit and its not a gift. I don’t recommend this strategy if you will benefit.

We recommend that you gift the assets overseas and draw up a gift document with a lawyer in the juridiction you gift the asset. Then get this notarised, and translated into Thai and kept on file. Also you cannot benefit from the gift at anytime in the future.

Question 4

I understand Thai revenue department has a maximum 20 million baht tax-free allowance for amounts received a gifts.  Is this so, and does it provide a potential avenue to resolve any tax implications by gifting monies to a Thai spouse and she gives me the money back?

Chas Begley · Accepted Answer

Gifts are not taxed as personal income, but under gift tax rules. It is not a solution to ‘resolve’ tax implications if you are going to benefit from this in the future. You should seek advice before using this as a tax planning strategy, as this doesn’t seem like a gift as you mentioned you will receive the money back. This is called a ‘gift with reservation of benefit’ and is not a gift. You can gift assets, if you don’t benefit from the gift at anytime in the future and it is a legitimate gift. You cannot be seen to benefit from the gift and its best practice to get a gift document drafted and signed by a laywer that this is a gift and you will not benefit from this. We recommend that you gift the assets overseas and draw up a gift document with a lawyer in the juridiction you gift the asset. Then get this notarised, and translated into Thai and kept on file. Please seek advice if you are going to look at gifting. You might find out article on gift tax useful additional information.

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