Tax residency in Thailand and taxing overseas income

[Stevepiraq1]

As I have just said this is not related to immigration, at least not at this time. Immigration advised me that the Thai Revenue Department has no interaction with them in regard to issuing of visa's.

At the pubic hearing I attended the representative of the TRD stated that it is self-declaration. If you believe you may be liable for tax then you obtain a Tax identification Number and submit a tax return. The TRD will then assess your submittal and determine if any tax is due. Now if you do not submit and TRD subsequently determine that you should have, could this be classed as tax avoidance? no one knows at this time.

Also the TRD have not updated their web site for 2024 to include the e form for self submittal.

[404cameljockey]

I think you will find that Channel Islands as well as IOM do not count for UK tax and you are not taxed on them by HRMC.

Thanks for that clarification.

[404cameljockey]

As I have just said this is not related to immigration, at least not at this time. Immigration advised me that the Thai Revenue Department has no interaction with them in regard to issuing of visa's.

That isn't to say that Revenue will not take guidance from the well established practises of Immigration even if they are not integrated with them re data collection.

[caller]

I just had a quick look at Starling and you have to be a UK resident, no good if already living in Thailand, they also don't support Thai phone numbers. I suppose you can lie?

Lomu said he has a UK residence so he can quote that - he may also have a UK phone number - I have both and was able to open an account with them.


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Yes, I'm not thunking laterally here. I too still have a UK residence. I just don't live in it.

[Big Boy]

Now that we're in to the tax reporting period, does anybody have a clue what we need to do? I was confident they would issue some kind of instruction, which we could either follow, or seek help with. As far as I can see, it is very Thai - make it up as they go................ or have I missed something?

[Dannie Boy]

I’m sure they’re all on extended holidays - you might (or might not) see something next week!!

[PeteC]

My bet is that it will be awhile before we read anything (concerning expat retirees), and when we do it will be an extension for any kind of enforcement. I feel they bit off more than they can chew, not only with enforcement and cooperation from other countries, but because their automated systems aren't even close to being capable of keeping track. My 2 satang.

[Big Boy]

So, I guess I haven't missed anything.

I won't say I'll pay whatever is due with a smile on my face, but I've been paying all of my life, so what the hell. Let them do their worst.

[Dannie Boy]

For most people, if they’ve transferred pension income that’s already been taxed in their home country which has a tax treaty with Thailand (as is the case with the UK) there shouldn’t be any tax to pay!!


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[hhinner]

For most people, if they’ve transferred pension income that’s already been taxed in their home country which has a tax treaty with Thailand (as is the case with the UK) there shouldn’t be any tax to pay!!


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I don't think that this is completely correct. By reading the actual treaty I think that the following points are true for pensions.

1. UK Government Service (military and civil) pensions cannot be taxed by Thailand. Article 19 (2).

2. State (old age) pension is not explicitly mentioned and would presumably be subject to tax if remitted to Thailand. If taxed in UK it would be eligible for tax credit against the tax applied by Thailand.

So, if all of a remittance is from a govt pension there should be no tax liability in Thailand. I think. Subject to proper documentation I suppose.

Just my opinion. Happy (really!) to be shown as mistaken.

Maybe someone on the forum can clear this up.

Anyway, the DTA is available at:
https://assets.publishing.service.gov.u ... _force.pdf

[Dannie Boy]

What I said was, if you have transferred pension that has already been taxed in your home country and that country has a reciprocal agreement with Thailand (as is the case with the UK), then no further tax should be due - where is that wrong?


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[hhinner]

What I said was, if you have transferred pension that has already been taxed in your home country and that country has a reciprocal agreement with Thailand (as is the case with the UK), then no further tax should be due - where is that wrong?


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In the case of the state pension and private pensions remitted to Thailand they can be assessed for tax if declared. If tax has been paid in UK then that amount can be credited when assessed in Thailand. It's not an either or situation. If the tax in UK is less than that assessed in Thailand, then Thailand wants a slice as well. Except that UK government (national or local) service pensions cannot be assessed in Thailand.

The agreement is not that you can choose whichever will assess less tax.

That's just my opinion after reading the DTA. Please, please point out where I'm mistaken. I'd also rather not pay tax if not necessary.

Of course if you don't declare or make a tax return then you won't pay anything. Maybe it's worth the risk, which may be quite small.

[Dannie Boy]

What I said was, if you have transferred pension that has already been taxed in your home country and that country has a reciprocal agreement with Thailand (as is the case with the UK), then no further tax should be due - where is that wrong?


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In the case of the state pension and private pensions remitted to Thailand they can be assessed for tax if declared. If tax has been paid in UK then that amount can be credited when assessed in Thailand. It's not an either or situation. If the tax in UK is less than that assessed in Thailand, then Thailand wants a slice as well. Except that UK government (national or local) service pensions cannot be assessed in Thailand.

The agreement is not that you can choose whichever will assess less tax.

That's just my opinion after reading the DTA. Please, please point out where I'm mistaken. I'd also rather not pay tax if not necessary.

Of course if you don't declare or make a tax return then you won't pay anything. Maybe it's worth the risk, which may be quite small.

I don’t think either of us are disagreeing with each other, however I believe it’s unlikely that the Thai tax liability would be greater than the Uk tax liability.

[Big Boy]

My understanding was that UK state pensions are not taxed as such, but when pension age is reached, your tax code is amended accordingly.

[hhinner]

What I said was, if you have transferred pension that has already been taxed in your home country and that country has a reciprocal agreement with Thailand (as is the case with the UK), then no further tax should be due - where is that wrong?


Sent from my iPhone using Tapatalk

In the case of the state pension and private pensions remitted to Thailand they can be assessed for tax if declared. If tax has been paid in UK then that amount can be credited when assessed in Thailand. It's not an either or situation. If the tax in UK is less than that assessed in Thailand, then Thailand wants a slice as well. Except that UK government (national or local) service pensions cannot be assessed in Thailand.

The agreement is not that you can choose whichever will assess less tax.

That's just my opinion after reading the DTA. Please, please point out where I'm mistaken. I'd also rather not pay tax if not necessary.

Of course if you don't declare or make a tax return then you won't pay anything. Maybe it's worth the risk, which may be quite small.

I don’t think either of us are disagreeing with each other, however I believe it’s unlikely that the Thai tax liability would be greater than the Uk tax liability.

Depends how much income you have. If you're just within the UK tax free rate, you would still pay some Thai tax. But once into the basic UK tax band (20%) it wouldn't take that much for UK tax to be more than the Thai amount.