See comments/response in CAPS below:
The Thai revenue code has no specific provisions relating to foreign income.
CORRECT - APPLIES TO ALL TAX PAYERS/RESIDENTS REGARDLESS (NO DISCRIMINATION)
However most DTA's, including the Australia / Thailand one, have what's known as a non discrimination clause. That means Thai and foreigners are treated the same for tax collection. Therefore, the income equivalents, in terms of social security are exempt for Thais; and remitted social security is exempt for foreigners.
DISAGREE - BEFORE RESORTING TO THE DTA, THE PROVISIONS OF THE THAI TAX LAW MUST BE FIRST CONSIDERED. IN RELATION TO THE LATTER, SEEMS THERE ARE ONLY TWO POSSIBLE PROVISIONS UNDER SECTION 42 THAT EXEMPT ASSESSIBLE INCOME FROM TAX:
(12) Special pension, special gratuity, inherited pension or inherited gratuity.
(25) Compensatory benefit received by the taxpayer from the social security fund under the law governing social security.
MY UNDERSTANDING IS THAT IT'S GENERALLY ACCEPTED THAT AUSTRALIAN SOCIAL SECURITY PAYMENTS - ESPECIALLY THE OAP - DO NOT FALL WITHIN (12).
IN MY VIEW, (25) CLEARLY DOES NOT APPLY TO AUSTRALIAN S/S PAYMENTS AS (A) OAPs ARE NOT 'COMPENSATORY BENEFITS'; (B) THEY ARE NOT PAID FROM 'THE SOCIAL SECURITY FUND UNDER THE LAW GOVERNING SOCIAL SECURITY' IN THAILAND, OR INDEED AUSTRALIA [THERE IS NO SUCH FUND]. WITHOUT GETTING TOO FAR INTO THE WEEDS, ON A CURSORY READ I COULD ONLY SEE ONE REFERENCE IN THE THAI SOCIAL SECURITY ACT THAT MENTIONS 'COMPENSATION' PAYMENTS - AND THIS ONLY APPLIES TO COMPENSATION FOR LOSS OF EARNINGS.
CLEARLY AUSTRALIAN OAP PAYMENTS ARE ASSESSIBLE INCOME, SO THE DTA DOESN'T COME INTO PLAY UNTIL IT'S DETERMINED THAT REMITTED AUSTRALIAN OAP PAYMENTS ARE NOT EXEMPT FROM THAI TAX. MY RECOLLECTION IS THAT THE DTA CLEARLY PROVIDES THAILAND HAS THE RIGHT TO TAX OAP REMITTENCES. IN THE EVENT BOTH COUNTRIES HAVE TAX RIGHTS ON INCOME, DTA'S PROVIDE PROTECTION FROM DOUBLE TAXATION BY ENSURING CREDITS ARE AVAILABLE WITH THE RESULT THAT ONLY THE HIGHEST TAX AMOUNT IS PAYABLE - AND NO MORE
The TRD offices, based on multiple real world reports, are simply considering the Australian Old Age pension social security ( which it is) , therefore exempt for tax in Thailand.
I DON'T HAVE A DOG IN THIS FIGHT, BUT WHILE BENDING TAX PROVISIONS TO PROVIDE SOME SORT OF "DEFENSIBLE" POSITION MAY BE A STRATEGY, I FEAR IT IS BUILT ON QUICKSAND. AGAIN, MY RECOLLECTION IS THAT A BUNCH OF TAX ADVISORS HAVE REACHED THE SAME CONCLUSIONS AS ME. ALSO, I WOULD TAKE LITTLE CONFIDENCE FROM HOW DIFFERENT TRD OFFICES CURRENTLY INTERPRETE THE TAX LAWS - NO COMFORT AS I SEE THE REAL POSSIBILITY THAT A CLARIFYING EDICT WITH UNIVERSAL APPLICATION COULD BE ISSUED IN A HEARTBEAT, WITH NO PROTECTION FOR THE PAST.
Nothing absurd about it. Makes sense.
NOT TO ME. BUT I WISH EVERYONE WELL IN THESE SOMEWHAT CONFUSING TIMES