Question 1

I am a UK citizen and taxpayer, fully resident in Thailand, married to a Thai. I have UK pension income, which I put in a UK savings account, and then make occasional (irregular intervals) *gift* Thai baht payments from the UK directly into my wife's bank account. Are international gift transfers between married couples subject to the generous tax-free allowances (THB 20m?) as domestic transfers?

Chas Begley · Accepted Answer

If it is a legitimate gift that you do not benefit from and you can prove that, then this could be interpreted as a gift under the gift tax rules.nBest practice on gifting should include gifting the assets overseas (not directly into Thailand) and having a gift document drawn up and notarised overseas where the gift is made. This should be translated into Thai and filed in case of an audit in the future.nIf you are not filing a tax return, then the Thai revenue auditors can ask for information going back 10 years. 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.

Learn more about Gifts and Taxation in Thailand

Question 2

What happens if I did not file taxes in prior years while staying in Thailand on a DTV visa?

Chas Begley · Accepted Answer

If you qualified as a tax resident but did not file, you may need to file back tax returns. The Thai Revenue Department can audit filings going back 5 years, and in cases of suspected fraud, up to 10 years. Penalties include a surcharge of 1.5% per month on unpaid tax and fines of up to 200% of the tax owed.

Our back tax filing service can help you get up to date and compliant.

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