Tax residency in Thailand and taxing overseas income

[Big Boy]

The fact Bangkok Post says something, doesn't mean they aren't jumping on the gutter press band wagon. Very dramatic headlines that will make quite a few squirm.

I was wondering how my wife will get on with her OAP from the UK i.e. whilst it goes through the UK tax process, she doesn't receive enough for it to be taxed. However, if Thailand wants to pursue it, they are quite welcome to put in the work to boost their coffers by a maximum of 900฿ a year or 17฿ a week.

[Hahuahin]

One for all you rich folks, bringing tons of money in every month, to keep an eye on.

Thai government to tax all income from abroad for tax residents starting 2024
Thailand’s revenue departments has released new guidelines which will see all income from abroad taxed as personal income tax regardless of whether it was earned income or savings.

A senior official at the Ministry of Finance confirmed a document released by the revenue department over the weekend was accurate.

According to the document, “…those that have earnings from occupation or business abroad or wealth that is located abroad…and has brought these assets into Thailand…must factor this into their personal income tax for the year.”

The program will begin January 1, 2024 and apply only to tax residents in Thailand meaning tourists and short term workers will be exempt.

It is unclear at this point how this will apply to foreigners living in Thailand on a retirement visa.

https://www.thaienquirer.com/50744/thai ... ting-2024/

Great, I already pay tax here. However, if this will be introduced as report say then I believe. that the system will be so transparent that retires who pay tax on 800K or more can use the issued Tax payment certificate and/or certificate of residence from Revenue office as prov of income for their annual retirement extension...not
hahuahin

[lomuamart]

Seems as clear as mud to me but going by what the "experts" say in the linked BP article, it appears to me that they're going after Thais who have a foreign income.

If the new rules only apply to the three income areas mentioned, I don't see that those of us living here on annual extensions will be caught up in this.

But who knows?

[Dannie Boy]

Seems as clear as mud to me but going by what the "experts" say in the linked BP article, it appears to me that they're going after Thais who have a foreign income.

If the new rules only apply to the three income areas mentioned, I don't see that those of us living here on annual extensions will be caught up in this.

But who knows?

But as mentioned above, those countries that have a dual taxation agreement withThailand (the UK and many more) won’t be liable to Thai tax if they’ve already paid it at source.

[dundrillin]

I receive state pension from both the UK and the Netherlands. State pension is always taxed in the land that pays it. I also receive private pensions from insurance companies in the Netherlands. I can choose to pay tax on these in either Thailand or the Netherlands. I choose to pay tax in Thailand because it is considerably less than tax in the Netherlands. As an expat the Netherlands charges a straight 9% tax and I am not allowed to claim for anything. If I pay tax in Thailand I am allowed to claim many deductions such as age, marriage, upkeep of wife's mother, insurance, etc. This means that I pay 85% less tax than I would pay in the Netherlands. I have to prove to the Dutch tax authorities that I actually pay tax in Thailand otherwise they will instruct the insurance companies to deduct the tax straight from my pension before paying out. I go to the tax office in Hua Hin every March and show them a copy of my bank statement for the previous year with the pension payments highlighted. They accept this without any questions. They fill in the form for me and I pay the tax. This has to be posted to the tax office in Bangkok and I get a letter back from them stating that the tax has been paid and I use this for the Dutch tax authorities.

Thats interesting and the most straightforward post I've seen regarding this for years! What is the actual rate of tax in Thailand before any deductions?

Re your private pensions - when the time comes to claim mine, I'm told I only have to inform HMRC I am non resident, at which time they apply a zero tax code and the investment company then pay me gross. Thats it. They don't require any proof etc so it seems maybe a little more trusting than the Netherlands (or can't be bothered). Infact the UK government don't even get involved when it comes to private pensions apart from obviously taking an interest in whats declared on my tax return.

Cheers for the info

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.

[dundrillin]

Seems as clear as mud to me but going by what the "experts" say in the linked BP article, it appears to me that they're going after Thais who have a foreign income.

If the new rules only apply to the three income areas mentioned, I don't see that those of us living here on annual extensions will be caught up in this.

But who knows?

But as mentioned above, those countries that have a dual taxation agreement withThailand (the UK and many more) won’t be liable to Thai tax if they’ve already paid it at source.

I'm pretty hopeful that is the case.

[HarryVardon]

I don't know how it works in the UK but in the Netherlands I have to inform the tax authorities that I live abroad and tell them which pensions I wish to be taxed abroad. The tax authorities then send a letter to the companies that pay me the pensions informing them that they do not need to deduct tax. Without this letter from the tax authorities the pension companies are legally forced to automatically deduct tax!

[dundrillin]

I don't know how it works in the UK but in the Netherlands I have to inform the tax authorities that I live abroad and tell them which pensions I wish to be taxed abroad. The tax authorities then send a letter to the companies that pay me the pensions informing them that they do not need to deduct tax. Without this letter from the tax authorities the pension companies are legally forced to automatically deduct tax!

I'll look into it but my understanding is that the UK gave the tax relief on contributions and now they want their money back

[Dannie Boy]

When I looked into it, I don’t think there is any way you can avoid paying tax in the UK on pensions (state or private) they’re both considered as UK income and taxed accordingly.


Sent from my iPhone using Tapatalk

[malcolminthemiddle]

This would take a change in legislation which is normally a slow process in Thailand especially with an eleven-party coalition.

A withholding tax or condition of visa extension would make implementation easy enough.

But, imagine the negative effect on the Thai economy? Who is going to bring money into the country to buy a property, a new car or pay school fees with an effective increase of 25% + in the price corresponding to the tax that would now be charged?

[Big Boy]

As usual, they haven't actually thought it through, but the press have got hold of it, and potential bad news sells newspapers.

They normally release this sort of thing just before Christmas to make sure Expats don't enjoy themselves.

I used to worry about crap like this until I understood how Thailand works.

[caller]

More from the Thai Enquirer. Another Liz Truss moment?

https://www.thaienquirer.com/50755/opin ... f-clarity/

[Hahuahin]

More from the Thai Enquirer. Another Liz Truss moment?

https://www.thaienquirer.com/50755/opin ... f-clarity/

As report above mention this proposal will possibly hit the local "elite" hardest, so IMO as long as they have not devised a system that skim us "poor" foreigners and something "they" themselves only profit from, this is not relevant. Btw, what should all the paper pushers do with a well-thought-out and equal tax system connected to Immigration, Police and other public agencies! If they can, oh yes in 6 months, they could change to a transparent tax system plus the madness in the traffic, drug abuse and violence++ All about will and perhaps more so about spending budgets on other than wide roads, gold and the glorification of material things.
hahuahin

[Highflyer]

Re possible tax implications from the Thai Goverment, I have been resident in Hua Hin for 16 years, retired 5 years ago after nearly 40 years in the Oil/Gas industry. I have numerous pensions and investments, I spoke to my financial advisor today reference the situation, see his reply below.

[Highflyer]

We spoke to a tax lawyer in Thailand and he basically said it won't happen as they will need to change the entire system with regards to tax codes and enabling people to file a tax return.