The Ministry of Finance challenges the tax reduction proposal for holders of a new long-stay visa

A proposal to introduce a long-stay visa for 4 target groups of foreigners has already encountered a problem, with the finance ministry pushing back a suggested tax rate of 17% on local income. The ministry argues that the reduced rate will affect government revenue.

Under the proposal, wealthy foreign nationals could apply for a special visa that would allow stays of up to 10 years. Eligible foreigners could also own property and land in the Kingdom, while paying 17% personal income tax on income earned in Thailand.

The proposal was submitted to the Center for Economic Situation Administration at a meeting chaired by Prime Minister Prayut Chan-o-cha last Friday. However, an anonymous source told the Bangkok Post that the finance ministry opposes the proposed tax cut and has called for more agencies to be consulted and the proposal to be resubmitted.

According to the Bangkok Post report, long-stay visas are intended for wealthy foreigners of any age, who in turn would have to invest at least US $ 500,000 in government bonds or real estate or foreign direct investment. Applicants would also need proof of at least $ 80,000 of income in the previous 2 years and would need assets worth at least $ 1 million and insurance coverage illness of 100,000 USD.

Foreigners wishing to benefit from the visa for retirement purposes must be at least 50 years old, have an income of 40,000 USD per year and health insurance coverage of 100,000 USD. They would also be required to invest US $ 250,000 in government bonds or real estate. They would get a 10-year visa that would allow them to buy property and land, work a maximum of 20 hours a week without a work permit, and pay 17% tax on their income.

In the case of digital nomads, or employees of large organizations who are nearing retirement age, an annual income of US $ 40,000 would be required, along with health insurance coverage of US $ 100,000.

SOURCE: Bangkok Post

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