yes<\/em>, then you should get ready to register with the Thai Revenue Department. Simple as that.<\/p>\n\n\n\nIf you\u2019ve registered a Thai business and you\u2019re making your bank digitally, you don\u2019t really have to worry, as you\u2019ll have to file your business taxes as normal anyways.<\/p>\n\n\n\n
Where this becomes tricky is if you do freelance work outside the jurisdiction of your registered business. I have zero doubt in my mind that there will be people who flat out ignore this tax legislation or try to avoid it by splitting up their revenue through multiple businesses, countries, banks, etc.<\/p>\n\n\n\n
I don\u2019t condone this whatsoever, as I think \u2018nomads\u2019 that eventually settle into a country they\u2019ve taken a liking to will run into tax issues when revenue agencies dig into their past.<\/p>\n\n\n\n
When will Digital Nomad Taxes in Thailand be in effect?<\/h3>\n\n\n\n
As far as I\u2019m aware, the drafted legislation went into effect on June 9th, 2020 but its actual implementation is a big question mark. Is the Thai government knocking on doors of tech CEOs to collect tax revenue right now? I have no clue. ASEAN Briefing seems to think so, hinting that it\u2019s part of Thailand\u2019s plan to recover its corona-damaged economy.<\/p>\n\n\n\n
Taxes on Digital Service Providers in Southeast Asia<\/h3>\n\n\n\n
As previously mentioned, implementing taxes on foreign tech companies is a growing trend. Singapore introduced its Overseas Vendor Registration regime<\/a> back in January for the same 7% and Malaysia sits at 6% with its Digital Service Tax<\/a>. Indonesia has also passed similar amendments, making Bali a weaker choice than for digital nomads over the long term.<\/p>\n\n\n\nTo summarize, these are the countries in Asia with taxes on digital providers:<\/p>\n\n\n\n
- Thailand<\/li>
- Singapore<\/li>
- Malaysia<\/li>
- Indonesia<\/li><\/ul>\n\n\n\n
Who\u2019s next? The Filipino government is in deliberations to follow its peers\u2019 lead, with a rumored 7% VAT to match Singapore and Thailand.<\/p>\n","protected":false},"excerpt":{"rendered":"
Thailand Introduces 7% VAT on Digital Service Providers So long and farewell to the digital nomad scene of Thailand! If coronavirus hadn\u2019t already thrown the Thai economy for a loop, this new tax bill is sure to do the trick. Although the days of coworking in Thailand have already been dwindling, this recently passed legislation … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":1439,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[91],"tags":[16],"yoast_head":"\nDigital Nomad Taxes in Thailand: 7% VAT Imposed on Foreign Talent<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n