NEW TAX RULES FOR THAILAND AS OF 1ST JANUARY 2024

I have attended meetings with various International Tax planners, as well as a meeting last
week with our company accountants.

What I can say so far, is that Thailand have joined the Common Reporting Standards (CRS)
This became effective in September 2023.

Due to Thailand joining this worldwide sharing of financial information, it means that they will
now implement a more stringent stance on their existing rule 41 which has been in place for
36 years now.

What this means so far is as follows: POSSIBLE SCENARIOS WHERE TAX COULD BE
CHARGED
1. People in receipt of Income from overseas, will have to pay tax if there is no Double
taxation agreement in place with the country where the income was derived from.

2. If you are in receipt of pension income, where Tax has been deducted from the source
country, as long as the tax paid is at least the same, or higher than what would have to
be paid in Thailand, there will be no further Tax. In the situation where the Tax paid
from the source country is lower, then proportional tax will be paid in Thailand for
the difference. This may be taken gross in Thailand and a tax credit issued to the source
country. Only for Thailand Tax residents (180 or more combined days in the Kingdom)

3. For clients that have offshore pensions, that are situated in Tax jurisdictions where the
Tax rate is lower than Thailand, then additional Tax will be paid. This will be after any
Double Taxation agreement has been applied. This rule is the same as above, but effects
people who thought offshore assets would be safe, they are not. Thailand will deduct
their Tax at the rate applicable and a tax credit issued to the source country)

4. Any person that holds an Offshore investment and wishes to bring investment income
or interest from those assets into Thailand, will be liable for Tax in Thailand. This also
applies to Income paid to an offshore Bank Account, that the person withdraws cash
using the debit card in Thailand, will be deemed to have remitted income to Thailand,
due to the money being used for living purposes. It also extends to income held in an
offshore bank account and remitted the following Tax year, this is no longer applicable,
and all income remitted, regardless of the year income was earned, is now taxable.
Although for this year, the Revenue have announced it will not include, so all from
2024.

5. Any rental Income from Foreign Ownership Condo properties held in Thailand will
be liable to Tax, this will be combined with any other income derived from Thailand,
or offshore and appropriate tax paid.
Within all of the above, as with most countries, there is a personal allowance available for Tax
residents, then a tiered tax rate depending on the overall income per annum.

Allowances will be crucial to offset and reduce any liability to Tax, so we advise that you
consider all available reductions, which must always be Thailand based.

For example, no foreign Health Insurance premiums are taken into consideration, only Thai
schemes and paid in Thai Baht, the same for Life Insurance schemes.

Please see attached the current Personal Allowances in Thailand, along with the Tax rates on
applicable income.

What we are not yet sure about is how Personal allowances of the source country will be
dealt with, there is no guidance from the Revenue department at this stage. We will do our
best to question this and report to you once understood.

It is our thoughts that this upgrade in the TAX RULE 41, means that many foreigners and Thai
Citizens, will be liable to pay Tax on offshore income. The Worldwide clamp down on Tax
avoidance is closing in, so we will have to use appropriate tax planning methods to seek ways
in which to MITIGATE these potential charges.

Below we have listed only two of the known options at present: POSSIBLE WAYS TO
REDUCE OR MITIGATE THAI TAX
1. If a person holds an offshore Investment, then we would advise them to only sell down
capital, there is no ruling that Tax has to be paid on the sale of assets as a whole, only
interest derived from the asset. This means that we would recommend that assets are
split into smaller amounts, each percentage would hold one asset, be it a stock or
mutual fund, this could then be sold, and capital moved back to Thailand, where no
further Tax would be payable. In the situation where the Capital made a gain that
could be considered for Tax, we would recommend a system as we call it (Bed &
Breakfast the Asset) quite simply put, we would sell the asset with the gain, then hold
cash and re-purchase the asset again before then selling down the whole amount and
this would be classed as a Capital disposal. The main rule would quite possibly be that
you could not re-purchase the same asset within a 30-day period, so the potential of
being out of the market could have risks. Either way, we are in talks with International
Tax advisers as to the robustness of this scheme.

2. The other option would be annual gift allowance between Spouse, this could be in the
form of Maintenance income for the spouse, or as a lump sum gift, not exceeding 20
Million Baht per tax year.

The second option could be the easiest way of mitigating the tax, yet again, we are in further
talks to make sure that this rule can be applied for Foreigners. Please note that this requires
a legal marriage in Thailand to be applicable.

As you will note, the new Thai Tax Rules from 2024 are all encompassing, with very little
room for maneuver. We feel that the measures that will be implemented, will not be tested
until a full tax year has passed, so we may not receive any further answers to our questions
until we start to see claims being made against individuals, which could be the Tax year 2025
or beyond.
Our intention will be to keep you updated on a monthly basis from now on, with any important
guidelines to support you in your financial planning requirements, and most importantly, how
you receive income with mitigating as much tax as possible.

These are the current scenarios and what we have interpreted from the meetings. They are
by no means exhaustive, and we would recommend that if you require guidance, then a review
meeting should take place with us. For all work carried out in regards to these Tax issues, we
will be charging hourly fees, these rates are available upon request.

The information contained in this document constitutes our thoughts only, they should
be taken with appropriate advice, which should be considered after a full financial
analysis has taken place with your adviser. We will also be working closely with a large
Tax consultancy team in Thailand, so that we may offer you a referral for any tax self-
assessment that you may require.

Please also note that for all work carried out in regard to these new rules, we will
charge per hour as a fee, rates are available upon request.

The same is afforded to the Tax consultancy company, who will provide their rates
before engagement with the client.

Craig Muldoon
CEO Corestone Capital Management Co Ltd

Our Investment Team comprise of the following people:

Craig Muldoon – Director Contact at: craig@corestone.online

Antonio Myers – Analyst and Research Contact at: antonio@corestone.online