Mike Lister

I don't know but I would strongly guess that the amount initially repatriated is relative to the initial outbound investment and that the amount repatriated is the investment capital and the remainder is assessable income, when it also is repatriated. Again, pure guess here.

Most private or state pensions arise in the UK and would be subject to the UK tax process hence excluded from tax here. Agreed on foreign savings accounts.

True. But Sherrings reports that there will be no double taxation. And since Thai tax tables are much lower than those in other countries, it seems unlikely that a majority of people will end up paying higher rates of tax here than they would in their home country.

I suggest you read the link, I didn't retype everything that was said. I think what has been said is good news, read it and you'll see,

I think the latest news from Sherrings answers many important questions and should cut down substantially on the red herrings and distraction postings: 1) there will not be any double taxation 2) Foreign sourced assessible income is defined in the the tax code 3) Where tax has been paid on pensions overseas, they will not be subject to re-tax here. 4) Income earned during periods of non-tax residency, is not assessible here when it is remitted. 5) Capital gains is calculated in the traditional accounting manner and where tax has been paid overseas, non will be due here. 6) Only interest is assessable here, capital is not, where tax has been paid on that interest, non is due here. These things looks like a win to me. https://sherrings.com/foreign-source-income-personal-tax-thailand.html

I've just updated the op with the latest information which will effect many people. Please read it, the exact dates are in there.

I have made significant changes/updates to the document in the OP and also reformatted parts of it. I may make a second revision and update in a few days, time permitting.

You're not hogging anything, you're doing a tremendous job that is benefiting everyone. The end to end PIT process is generic to everyone, it's only the DTA's where there is a difference. It has been said at the outset and many times since that anyone and everyone can participate and do research into this subject and post their findings here. The fact that you and and couple of other people have done so is a credit to all of you. The fact that others have not and are merely waiting for somebody else to do it for them is the reason why the thread is heavily weighted towards one nationality.

An important update from Sherrings regarding the remittance of funds during a year when the tax payer not tax resident and their subsequent taxation. On 23 January 2024, the RD was asked and answered as follows, parahrased: Q: If I'm not resident in Thailand for a year and I earned foreign sourced income in that year, is it taxed when I bring it into Thailand? A: It is not taxed because you were not resident in Thailand in the year it was earned. Q: What types of foriegn source income is assessoble income and subject to PIT under Section 41, Para 2 law? A: ....those prescribed in Section 40 (1 to 8 ) but not including income that is exempt or on which tax does not have to be paid under the Revenue code. Q; a lengthy question about tax paid on income overseas. A; There is no double taxation in Thailand, tax paid overseas can be credited against tax payable. https://sherrings.com/foreign-source-income-personal-tax-thailand.html

An important update from Sherrings regarding the remittance of funds during a year when the tax payer not tax resident and their subsequent taxation. On 23 January 2024, the RD was asked and answered as follows, paraphrased: Q: If I'm not resident in Thailand for a year and I earned foreign sourced income in that year, is it taxed when I bring it into Thailand? A: It is not taxed because you were not resident in Thailand in the year it was earned. Q: What types of foreign source income is assessable income and subject to PIT under Section 41, Para 2 law? A: ....those prescribed in Section 40 (1 to 8 ) but not including income that is exempt or on which tax does not have to be paid under the Revenue code. Q; a lengthy question about tax paid on income overseas. A; There is no double taxation in Thailand, tax paid overseas can be credited against tax payable. https://sherrings.com/foreign-source-income-personal-tax-thailand.html

An important update from Sherrings regarding the remittance of funds during a year when the tax payer not tax resident and their subsequent taxation. On 23 January 2024, the RD was asked and answered as follows, parahrased: Q: If I'm not resident in Thailand for a year and I earned foreign sourced income in that year, is it taxed when I bring it into Thailand? A: It is not taxed because you were not resident in Thailand in the year it was earned. Q: What types of foriegn source income is assessoble income and subject to PIT under Section 41, Para 2 law? A: ....those prescribed in Section 40 (1 to 8 ) but not including income that is exempt or on which tax does not have to be paid under the Revenue code. Q; a lengthy question about tax paid on income overseas. A; There is no double taxation in Thailand, tax paid overseas can be credited against tax payable. https://sherrings.com/foreign-source-income-personal-tax-thailand.html

I'm busy updating and rewriting the Simple Guide to PIT to include the latest information and make it more easily readable. I have decided to rename it, the new title is: THE ONCE SIMPLE, NOW SLIGHTLY COMPLICATED GUIDE TO PERSONAL INCOME TAX IN THAILAND If there are any proof reading type volunteers in our midst, please let me know.......don't push and shove, volunteers should form an orderly queue. 🙂

A baiting post has been removed

Word reaches me from a friend who attended a Mazars briefing at a Embassy in Bangkok this week that Thailand is currently renegotiating several DTA's. allegedly.

Word reaches me from a friend who attended a Mazzars tax briefing at an embassy in Bangkok this week that Thailand is currently renegotiating DTA's with several countries, much more than that I don't know.

Good luck to you guys, arguing your point in a Thai court.......I'm not hopeful you stand a cat in hecks chance but you never know. :))

I was going to write, "nothing more than you have now", and probably should have.

This could all end in tears if they're not careful.

No it is not and I apologise that it has been so UK centric recently. Perhaps this is because there has been so little input from other nationalities and/or that UK expats are one of the largest groups here. The tax process and its rules are generic, up to the point of the DTA which is country specific. The generic parts of the process are fairly well understood and documented in the Simple Guide. I think where we are currently is attempting to second guess and understand the RD position in respect of the tax changes so it's useful to use an example of UK pensions as a straw man for that because once understood, the model should be easily transferable to other nationalities and DTA's. If anyone has country specific questions or issues, please raise them.

A very thorough and complete reply, thank you for taking the time and making the effort.

What frequently gets overlooked or forgotten in all of this is that the new tax rule is aimed at making native Thais pay their fair share of tax, foreigners are merely collateral damage who happened to get caught up in it all. That said, Thailand did have a poor reputation when it comes to enforcement of financial rules so many foreigners have taken advantage of that to evade tax in their home country and elsewhere. The average foreigner is very unlikely to be negatively impacted by any of these changes, there's even a good chance some will benefit financially by having their income taxed here rather than in their home country. The free seminar will hopeful stress that point and make people do their sums to find out what their own position is, many will be surprised. But you asked, what do you get in return. The answer is, nothing.

This has been one of the important open issues at the end of the document, for some time. So thank you for spotting and posting about it, if you are able to find a link that will be most helpful, if not, at least we have a good indication of the way the world will be.......not surprising really.

Done, thanks, well spotted!

2 - Any other type of pension that is already taxed in the UK. Not taxed in Thailand to prevent Double Taxation, or subject to tax credit reclaim. A second look at this: Now that I've thought this through a few times, I think this is almost certainly how things will turn out, is my guess. That UK pension arises in the UK so tax there is inescapable, unless the pension is moved, (which will be very much the exception). The Thai RD can either accept that tax was paid in the UK, which seems most probable, or, elect to tax it again. But since the rate of Thai tax would be lower, 5% or 10% versus 20%, DTA relief is possible, presumably, but in the form of tax credit, again presumably? I will be happy to go with this as a straw man with a high degree of confidence. EDIT TO ADD: the obvious caveat being, conditional upon what the RD finally speaks on this subject. One potentially open issue is that the UK State Pension falls into this category. Since it is currently below the level of the Personal Allowance and some resident expats don't need to file a UK tax return, how do they demonstrate that UK tax was paid on the pension or do they not even need to? (That pension will have been subject to the UK tax process and taxed in the 0% tax band). I'm going to guess this is a non-issue?

Thanks, I'll need to study this, it looks complicated at first glance but let me take a look later, it's too much for 2:30am. But thanks for the effort though.