Tax residency in Thailand and taxing overseas income

[Dannie Boy]

As an old saying from the UK goes, most of us will be pushing up daises by the time they introduce this!!

[buksida]

Another famous Thai u-turn imminent?

Rethink urged on proposed tax on overseas income
The government is being recommended to review foreign income tax collection as a new tax will affect many retail investors who have invested overseas, says Jitta Wealth Asset Management.

Jitta chief executive Trawut Luangsomboon said the Revenue Department should reconsider its plan to require those with income from abroad to include their assessed income in the calculation of personal income tax.

"The department may think people who invest abroad are wealthy," said Mr Trawut.

"In fact, over the years small investors have increasingly turned overseas because they see an opportunity to obtain better returns than in the domestic market, or they want to diversify their portfolio to lower risks."

Retail investors can now start investing abroad with as little as a few hundred or few thousand baht through online platforms, he said.

"If the department collects tax on investments in foreign stocks, small investors would be affected more than wealthy investors," said Mr Trawut.

He suggested the government also exempt capital gains tax for investments in foreign stocks, as such tax is now exempted for investing in local stocks.


https://www.bangkokpost.com/business/ge ... eas-income

[Benroon]

The 'reply' facility seems to have gone? Is there a problem?

However re from @dundrillin

"Benroon. I have a private pension in the UK and when I make a withdrawal it is taxed before I receive any cash. I'm a non UK resident for tax purposes".

I'm as sure as you can be you shouldn't be paying tax as a non resident from monies coming from a SIPP (private pension) - state pension yes, private pension no. I'm only sure as I have that in writing from HMRC and have it also confirmed from the fund managers that that is the case. Perhaps there is something different in the way yours is set up but as far as I know a SIPP is a SIPP with no variations that I'm aware of. Maybe ask again or ask HMRC directly as I did. As much as we dislike the taxman, the HMRC are very good at dealing with queries via their website, often within hours.

[Dannie Boy]

I was already non-resident Dora’s purposes when my private pension became payable and was taxed at source from day 1?


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[PET]

I was already non-resident Dora’s purposes when my private pension became payable and was taxed at source from day 1?


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As a non uK tax resident I transferred my private pension into a QROPS and this is administrated in Gibraltar - any withdrawal charges are 2.5%. NO uk tax .

[Dannie Boy]

I was already non-resident for tax purposes when my private pension became payable and was taxed at source from day 1?


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As a non uK tax resident I transferred my private pension into a QROPS and this is administrated in Gibraltar - any withdrawal charges are 2.5%. NO uk tax .

I have to admit to that I’m not an expert on the rules regarding pensions, but I recollect QROPS not being suitable for those who have a defined benefit pension scheme and better suited to defined contribution schemes - mine is the former and has many safeguards that could be at risk in a QROPS - my wife is entitled to 60% of my pension when the day comes, not something to put at risk!!

[Benroon]

I was already non-resident Dora’s purposes when my private pension became payable and was taxed at source from day 1?


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Do you have a UK tax code?

[Benroon]

The very first line on the HMRC website says:-

Tax when you get a pension: Tax when you live abroad - GOV.UK
If you're not a UK resident, you don't usually pay UK tax on your pension. But you might have to pay tax in the country you live in.

I'm sure everyones done it but you do actually have to inform HMRC you are no longer a UK resident before this will kick in. They then give you a tax code of zero and all private pension income should then be sent to you gross. That matches what I personally received from them and from the fund managers who administer my scheme. It could of course be the case that a few scheme administrators aren't up to speed, in which case it sounds like some of you are in for a rebate !!

[Dannie Boy]

I was already non-resident Dora’s purposes when my private pension became payable and was taxed at source from day 1?


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Do you have a UK tax code?

Yes.

[Benroon]

I was already non-resident Dora’s purposes when my private pension became payable and was taxed at source from day 1?


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Do you have a UK tax code?

Yes.

Then as far as I understand it they don't know about, or haven't applied your non-resident status. I would drop them a line if I was you. Again from HMRCthe following :-

If you're a British national living outside of the Uk, looking to drawdown an income or currently drawing down an income from a UK pension scheme, then applying for an NT (Nil Tax) code will be of great importance. An NT code means you won't pay tax on the same income in the UK and your country of residence.

Obviously the clear implication is you must then pay it in Thailand, but that is easier said than done.

[Dannie Boy]

Before I retired I was working in the Middle East and had been on a NT code for a number of years and went immediately from there to live in Thailand. I may be wrong, but thought that if your pension is paid in the Uk, it is considered as UK income even though I’m not tax resident there.

I’ve completed annual tax returns ever since retiring in 2011 so HMRC are fully aware of my status.

I might look into this further but am in no rush at the moment, but thanks for your advice


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[HHTel]

As far as the UK authorities are concerned, I arrived in Thailand in 2013 at which time my state pension was frozen. Since then I've paid several thousands in tax from drawdowns from private pensions. Tax is always taken at source.
Does that mean that technically I'm due for taxes I've paid since then to be returned?

[Benroon]

As far as the UK authorities are concerned, I arrived in Thailand in 2013 at which time my state pension was frozen. Since then I've paid several thousands in tax from drawdowns from private pensions. Tax is always taken at source.
Does that mean that technically I'm due for taxes I've paid since then to be returned?

As I said a bit further back, it's potentially disastrous taking advice from forums especially where tax is concerned, but precisely for that reason and given if you ask this question 10 times you'll get 10 different answers I went to HMRC directly and have emails back from them which essentially I've passed on above.

As for taken at source obviously the private pension schemes administrators need to know where you are, but then they should pick that up via your tax code. But again it's the NT tax code that will tell them. If theres a number there, you'll be taxed at source as that is your allowance. Though you do have to request that NT code. What hoops you have to jump through then I don't know.

But as you're paying tax and clearly nothing to hide I would fire off an email to HMRC - you never know. (I work on commission )

[Benroon]

Before I retired I was working in the Middle East and had been on a NT code for a number of years and went immediately from there to live in Thailand. I may be wrong, but thought that if your pension is paid in the Uk, it is considered as UK income even though I’m not tax resident there.

I’ve completed annual tax returns ever since retiring in 2011 so HMRC are fully aware of my status.

I might look into this further but am in no rush at the moment, but thanks for your advice


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Hmmm not sure DB - perhaps the scheme admin aren't up to speed or just unaware you're here? Though that NT code should tell them. I also found this info below which couldn't be more clear imo :-

NT Tax Code implies that there is no tax due on this withdrawal. Therefore, in general, HMRC has advised your employer, if you are still working, or the trustee or pension provider, if you have withdrawn the benefit of your pension pool, not to deduct any tax from this income source.

If you chaps do fire off anything to HMRC, it would be fascinating to know what you get back.

[Dannie Boy]

I’ve not had a NT code since I stopped working or at least soon after - I can’t remember now!!


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