Tax residency in Thailand and taxing overseas income

[hhinner]

I think that the interesting new part is the inclusion of savings. As of now, money can be freely imported if it's classed as savings, ie not earned in the current calendar year. In other words, earnings from previous calendar years (Thai tax years) can be imported to Thailand tax free whether or not taxed in another jurisdiction.

[Green Nomad]

I 'm a non uk tax resident and I am looking to retire to Thailand in about 2 years. I have already done homework on this issue as I plan to not only take my armed forces pension but use a few other means as an income. My financial advisor has already said besides my non tax status and the liability, I will, as it stands, I would in addition become liable to any taxation incurred from Thailand, with any money going in.

[dundrillin]

I 'm a non uk tax resident and I am looking to retire to Thailand in about 2 years. I have already done homework on this issue as I plan to not only take my armed forces pension but use a few other means as an income. My financial advisor has already said besides my non tax status and the liability, I will, as it stands, I would in addition become liable to any taxation incurred from Thailand, with any money going in.

this is very confusing, like you I am non uk resident for tax purposes but pay UK tax on all income ie pensions , investment income (but not capital gains) If as suggested we are liable for Thai tax on income that has already been taxed I think that will neatly solve the Thai governments problem of getting rid of Thailands unwelcome guests.

On a separate issue although non UK residency status means no capital gains on equity investments, we are still liable for gains on the sale of property such as second homes, buy to lets etc. I hope this is correct as I have incurred a loss on a recent sale of property and I hope to set this off again my income. we will see.

[Dannie Boy]

Out of interest dundrillin, is the second home in Thailand or back in the UK?

[dundrillin]

Out of interest dundrillin, is the second home in Thailand or back in the UK?

bonnie Stonehaven

[HarryVardon]

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.

[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.

How is your UK pension taxed?

[Benroon]

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

[malcolminthemiddle]

I think that the interesting new part is the inclusion of savings. As of now, money can be freely imported if it's classed as savings, ie not earned in the current calendar year. In other words, earnings from previous calendar years (Thai tax years) can be imported to Thailand tax free whether or not taxed in another jurisdiction.

Hhinner has knocked the nail on the head. Speaking for myself, any monies brought into Thailand are savings, i.e not earned in the current calendar year and therefore free from Thailand income tax under current legislation.

[Gregjam]

The word resident appears in the BP article. Most of us I think are here on non-O visas so are not “resident” so is this likely to affect us at all. Also mentions 180 days so the snowbirds are probably not included too.

[HarryVardon]

As far as I know the rules about state pension (and any Civil Service pensions) are that tax must be paid in the country of origin and they are tax free in any other country having an agreement not to double tax (UK, Europe, Thailand, etc.). As far as Thai tax is concerned the current rates for taxable income are:
0 - 150,000 Baht (0%)
150,000 - 300,000 Baht (5%)
300,000 - 500,000 Baht (10%)
500,000 - 750,000 Baht (15%)
750,000 - 1,000,000 Baht (20%)
1,000,000 - 2,000,000 Baht (25%)
2,000,000 - 5,000,000 (30%)
Over 5,000,000 (35%)

There are lots of things that can be deducted to calculate taxable income. A few examples are: everybody gets a deduction of 100,000 baht, marriage 100,000 Baht, over 65 100,000, various types of insurance - cost price, support for wife's parents 50,000 - 100,000, etc., etc.

[Dannie Boy]

The word resident appears in the BP article. Most of us I think are here on non-O visas so are not “resident” so is this likely to affect us at all. Also mentions 180 days so the snowbirds are probably not included too.

Also in the article attached yesterday, it includes the sentence “Also exempt will be those who have been taxed in a foreign country that has a standing Double Tax Agreement with Thailand.” Not sure what other countries have one, but the UK does.

[HHTel]

Quite a few:

Armenia Hungary Poland
Australia India Romania
Austria Indonesia Russia
Bahrain Israel Seychelles
Bangladesh Italy Singapore
Belarus Japan Slovenia
Belgium Korea South Africa
Bulgaria Kuwait Spain
Cambodia Laos Sri Lanka
Canada Luxembourg Sweden
Chile Malaysia Switzerland
China Mauritius Taipei
Cyprus Myanmar Tajikistan
Czech Republic Nepal Turkey
Denmark Netherlands Ukraine
Estonia New Zealand United Arab Emirates
Finland Norway United States of America
Germany Oman Uzbekistan
Great Britain and Northern Ireland Pakistan Vietnam
Hong Kong Philippines

[Big Boy]

Yes, I read it yesterday, and concluded it was another slow news day, so lets publish a story with a headline to make a few expats crap themselves. Gutter Press.

[buksida]

Looks like the Bangkok Post is having a 'slow news day' as well then ...

Overseas earnings targeted
The Revenue Department has ruled that a person who resides in Thailand for up to 180 days a year and earns overseas income from work or assets will be subject to personal income tax, according to Section 48 of the Revenue Code.

According to legal experts, the policy appears to have three specific targets: residents trading in foreign stock markets through foreign brokerages, cryptocurrency traders, and Thais who have been exploiting a loophole that allowed them to bring foreign earnings into the country tax-free after keeping it in an offshore account for more than a calendar year.

"The principle of tax is that you must pay tax on income you earn from abroad no matter how you earn it and regardless of the tax year in which the money is earned," said a Finance Ministry source who requested anonymity.

The previous rule allowed residents with a foreign income to be taxed only if the money is remitted into Thailand in the same year in which it was earned. The tighter measure is meant to close the loophole of people deferring transfer of their overseas income to a different year.

https://www.bangkokpost.com/business/ge ... s-targeted

Someone has to pay for their big 10k handout