Establish your Tax Residency (CRS)

[beachbuggy]

I am a UK citizen Living in Thailand 8 years on Retirement Visa.

I have HSBC accounts in both UK and HK.

HK are asking me to establish my tax residency but I dont know what to do. I get a UK state pension and no taxable income.

any advice welcome

 

[4MyEgo]

I believe the UK are under the same principle as most countries, i.e. if you live outside of your country of birth for more than 183 days in any financial year, you are deemed a Non Resident for tax purposes, although the UK has different tax rules to Australia, i.e. more lenient.

 

The reasons they are asking you these questions and others is because most countries are cracking down on money laundering and the taxation offices have now made it mandatory for banks to comply with these questions and forward any information to them.

 

I would say your a non resident for tax purposes, this should not affect you in the slightest as I and my wife were recently asked the same questions by ING bank in Australia.

[topt]

1 hour ago, ragabob said:

HK are asking me to establish my tax residency

Unless you have officially told HMRC you have left the country and asked to be made "non resident for tax purposes" officially you are still a tax resident so it could be the UK and you could just give them your UTR or NI number.

 

The only issue with that is if any income arising via there takes you over the tax threshold you may have to pay tax on it - bearing in mind current allowances etc.

 

The other option is to say Thailand as theoretically if you spend more than 180 days here you are also tax resident in Thailand. They will then probably want a TIN (taxpayer identification number) from Thailand. You can argue you have no income and therefore don't have one/need one which they may eventually accept or apply at your local Thai Revenue office - which may or may not bring some unwelcome attention. 

 

If you search CRS (Common Reporting Standard) on here you should find a number of threads over the last couple of years with different posters experiences.

 

Edit - if you ignore them then potentially they will just close your account or threaten to do so......

[4MyEgo]

2 hours ago, ragabob said:

I am a UK citizen Living in Thailand 8 years on Retirement Visa.

Like I said, he is a Non Resident for tax purposes.

 

1 hour ago, topt said:

Unless you have officially told HMRC you have left the country and asked to be made "non resident for tax purposes" officially you are still a tax resident so it could be the UK and you could just give them your UTR or NI number.

I disagree, with technology and all today, generally speaking most government departments know how long he has been out of the country and will treat him as a Non Resident unless he has completed tax returns to state otherwise.

 

https://www.expertsforexpats.com/answers/tax/how-long-do-you-have-to-stay-out-of-the-uk-to-avoid-paying-tax/

[topt]

7 minutes ago, 4MyEgo said:

I disagree

Doesn't really matter - he just needs to be able to give answers so HSBC HK can tick some boxes. So I have given him 2, hopefully easy, options he can use. 

 

 

[huawei]

It does matter.

 

he is a non resident for tax purposes.

 

it still means he will pay income tax on income derived in the uk which is in excess of his personal allowances. In this case no tax, so he can for tax purposes not have to do an annual return. Although he is suppose to request this waiver.

 

 

[topt]

1 hour ago, huawei said:

It does matter.

 

he is a non resident for tax purposes.

 

it still means he will pay income tax on income derived in the uk which is in excess of his personal allowances. In this case no tax, so he can for tax purposes not have to do an annual return. Although he is suppose to request this waiver.

 

 

Did you bother to read the OPs actual question.......

????

[JAS21]

I am from the UK ...Living here 10+ years. I am classed as Non Resident and Not Ordinary Resident and also a non-resident landlord. As far as I'm concerned I am Tax Resident in the UK ...paying them 'a good wack' every year!

 

I also have a tax number here but just for reclaiming withholding tax.

 

I would say you are the same as me! I am on Retirement extension also ............