No doubles for expats
Re: "Tax concerns valid" (PostBag, July 7).
MP Foscolos tried to enlighten me on expatriates' and retirees' concerns about taxing world income. On the contrary, after numerous inputs into PostBag, my impression is of a mixture of both imaginary and genuine concerns.
Imaginary as in the whining about having to keep evidence of tax paid in one's country to claim relief. The task of record-keeping is innate and the duty of all good taxpayers.
The respectable principle of tax collections is not to tax any income twice. Hence, any tax one pays in another country can be used as a credit (deduction) against Thai tax if world income comes into play in Thailand, which is unlikely to increase the tax burden of expatriates. In some treaties, pensions are also exempted from Thai tax.
The major disadvantage of taxing world income is a change in having to take on additional tasks in tax compliance to make Thailand appear suitable and at par with the Western world.
That is a valid point; one agrees with MP Foscolos and others. One does ask oneself why the government bothers, for appearance's sake, when our neighbouring countries like Malaysia, Singapore, and the Philippines are still taxing individuals on a territorial basis.
Also, the weak prospect of our economy when compared with our neighbouring countries, as explained by the central bank governor, means we are not likely to have an annual growth rate of over 3% for the next five years. Time is better spent on improvement than being concerned with our appearance.
However, MP Foscolos's statement that the ill-effects of Thailand in proposing taxation on world income would "have serious economic consequences for Thailand" is exaggerating one's importance too far.
With Thais' overjoyed at the number of tourists reaching nearly 40 million by the end of the year, the huge effects against Thailand, as expected by MP Foscolos, would likely be viewed as a drop in the ocean. That is what one calls whining for the downfall of our country to support one's argument.
Songdej Praditsmanont