Pension lump sum, paying tax

[stevomaesot]

Hi

Has anybody recently taken a lump sum from a Qrops pension fund? Ive been to my local tax office to request a TIN, Whilst there i enquired on if or roughly how much tax i will pay on my lump sum.. As always the answer was very vague, it was come and see us when you receive  the sum. Just wondered if anyone has recent experience of this. 

Many thanks Steve 

Edited October 2, 2017 by stevomaesot
grammar

[KittenKong]

Just make sure that you dont bring the money to Thailand until the year after you receive it.

[garzhe]

Just make sure you dont transfer in to your Thai bank more than 50,000 USD or equivalent in one sum and no questions asked. More and you will get a call from Bank of Thailand to explain. As I understand it Thailand will only require you to pay tax if you declare a monthly pension. 

[retarius]

I have recently arranged for my US SS to be paid here via Bangkok Bank instead of into my US bank......will the Thai authorities want tax paid to them? (It's about $2400 a month if that makes a difference). If they want tax here I'll have it paid in the US.

I have a small pension from the UK from when I worked there for a few years....the lump sum (17000 GBP and the monthly payment of 550 GBP) has never been taxed in Thailand.

[bazza73]

I fail to understand why any pension or pension lump sum which is not earned in Thailand would be taxed in Thailand.

 

I regularly transfer sums of AUD 10K - 20K to my Bangkok Bank account from an Australian credit union. The only thing that is taxed is the interest on deposits here. I understand I can claim it back; however, the amount is so small it's not worth the hassle of the paperwork.

[KittenKong]

18 minutes ago, bazza73 said:

fail to understand why any pension or pension lump sum which is not earned in Thailand would be taxed in Thailand.

 

Many (most?) countries tax residents on their worldwide income.

[bazza73]

Just now, KittenKong said:

 

Many (most?) countries tax residents on their worldwide income.

True. The OP has not indicated he is aThai resident.

[topt]

33 minutes ago, KittenKong said:

 

Many (most?) countries tax residents on their worldwide income.

 

31 minutes ago, bazza73 said:

True. The OP has not indicated he is aThai resident.

I would guess the OP is from the UK originally (QROPS) and now living here and possibly non resident for tax purposes but he really needs to tell us that otherwise it is all supposition.

 

I would further ask the OP why he want's a TIN unless his QROPS demanded one for payment but I am completely amazed why anyone, especially using this forum, would go to the Thai tax man and ask how much tax he needs to pay if he was not earning money here...............

[wordchild]

There would be no Thai tax liability,in any event , as long as the OP held the pension encashment proceeds offshore (ie outside Thailand) until ,at least ,1st January of the year following the encashment. Any transfer in after that date would be regarded as a transfer in of capital rather than bringing in current year income.

[tonray]

5 hours ago, KittenKong said:

 

Many (most?) countries tax residents on their worldwide income.

Most countries also have tax treaties that state if you pay tax on that income in 1 location, you do not pay it again in the second. Thailand and US for example. Even if you earn salary in Thailand, as  US citizen for example, you can exempt nearly 100K dollars per year from US Tax.

[stevomaesot]

Hi all

Many thanks for all your replies.  i live here above 180 or so days per year so i am a resident for tax purposes so i believe . my Qrops provider required a TIN when the application was made.. googled this subject many times... some say no tax would be made as the amount wasn't earnt in Thailand and some say i will pay tax ranging from 10% - 25% up to 35% 

When i comes to the transfer would like to have the facts so i dont get tucked up

Cheers 

Edited October 3, 2017 by stevomaesot
Grammar

[garzhe]

40 minutes ago, stevomaesot said:

Hi all

Many thanks for all your replies.  i live here above 180 or so days per year so i am a resident for tax purposes so i believe . my Qrops provider required a TIN when the application was made.. googled this subject many times... some say no tax would be made as the amount wasn't earnt in Thailand and some say i will pay tax ranging from 10% - 25% up to 35% 

When i comes to the transfer would like to have the facts so i dont get tucked up

Cheers 

 

[garzhe]

Wherever your QROPS is located you can have the funds paid to a bank anywhere then transfer the funds as savings in to your Thai Bank account. Best not more than 50k USD at one time. Regarding a TIN (Tax Identification No) surely you are taxable in the country where your QROPS is held and you would have a TIN there. I believe you are taxed locally wherever your QROPS is. Im not aware of any country where you can transfer to a QROPS that does not require you to pay some tax on withdrawals, albeit maybe 2.5 or 5%. Best if you have a bank account wherever your QROPS is located and where you have a TIN. Im not aware of anyone paying tax on private pensions here in Thailand but If you really want to pay additional tax in Thailand then Im sure the tax office will gladly accommodate you.

[stevomaesot]

On 02/10/2017 at 1:10 PM, garzhe said:

Just make sure you dont transfer in to your Thai bank more than 50,000 USD or equivalent in one sum and no questions asked. More and you will get a call from Bank of Thailand to explain. As I understand it Thailand will only require you to pay tax if you declare a monthly pension. 

 

[KittenKong]

2 hours ago, stevomaesot said:

i live here above 180 or so days per year so i am a resident for tax purposes so i believe . my Qrops provider required a TIN when the application was made.. googled this subject many times... some say no tax would be made as the amount wasn't earnt in Thailand and some say i will pay tax ranging from 10% - 25% up to 35% 

When i comes to the transfer would like to have the facts so i dont get tucked up

 

As I mentioned in my first post, just be sure that you dont remit the money to Thailand until the year after you receive it. If you send it here in the same year as you receive it then tax will be due (less any dual-taxation allowance and personal allowance that may be applicable).

 

Thailand taxes you on worldwide income remitted to Thailand in the year in which you receive it.

[KittenKong]

On 02/10/2017 at 1:10 PM, garzhe said:

Just make sure you dont transfer in to your Thai bank more than 50,000 USD or equivalent in one sum and no questions asked. More and you will get a call from Bank of Thailand to explain.

 

This is not relevant to income tax which is due from Baht 1 (less allowances) if you remit the money in the year in which you receive it. You will not get any calls from anyone for remitting any sum, though the sending and receiving banks will both want you to state a motive for the transfer, which can be as simple as "personal expenses".

[stevomaesot]

Many thanks for your comments.. so if for arguments sake i take the lump sum from my Qrops next June. When could i transfer to Thailand and not be liable for there tax? 

Thanks again 

[KittenKong]

8 hours ago, stevomaesot said:

Many thanks for your comments.. so if for arguments sake i take the lump sum from my Qrops next June. When could i transfer to Thailand and not be liable for there tax? 

Thanks again 

 

The Thai tax year is the calendar year, so in theory January 2019. Cautious as I am I would probably leave it to January 2020, but that's just me.

[wordchild]

Jan 1st 2019, that should be safe.