Tax by foreigner

[darrenr]

Hello all, I have written this post in the Visa immigration forum as I think paying of Tax by a foreigner is relevant to living in Thailand and immigration. Question: I am an Australian who is retired and over the age of 55 year and receiving a pension from my private Superannuation fund ( Not Australian Government Pension).  If I live in Thailand under a Retirement visa, do I have to pay tax in Thailand ? My understanding is that Thailand has a Tax treaty (agreement ) with Australia and that Pensions ( and I am assuming private Pensions such as a Superannuation pension) are not taxable and therefore even though technically I am a resident of Thailand as will live there more than 183 days per year , I don't need to declare my source of income from Australia. I could either keep the money in my Aussie bank account and withdraw as needed in Thailand or transfer regular money into my Thai bank account. Many thanks for any suggestions

[darrenr]

Hi also forgot to say , does it matter if you are resident of Australia for Tax purposes or non resident ( I am an Australian citizen).

[topt]

On 10/31/2018 at 10:22 PM, darrenr said:

If I live in Thailand under a Retirement visa, do I have to pay tax in Thailand ?

Have you tried to search and look at other posts as this question comes up often? 

 

In theory if you reside in Thailand for more than 180 days you are liable to pay tax. However it appears accepted that if you only bring funds in after the calendar year in which they were earned then this is exempt. If the current system changes then this potentially could be an issue for many people who have their pensions paid in every month.........

 

However in practice and simplistically, unless you are working here, and you go to the Thai Revenue and suggest you want to pay tax, they are unlikely (currently) to even think about it. I have yet to hear of anyone being seriously chased to either declare or pay any tax based on money brought in from abroad. 

 

I have no idea on Australian tax specifics.

 

[topt]

Maybe also have a read of this if you haven't already -

 

[OJAS]

On 10/31/2018 at 10:57 PM, darrenr said:

Hi also forgot to say , does it matter if you are resident of Australia for Tax purposes or non resident ( I am an Australian citizen).

The double taxation agreement between Australia and Thailand may be essential reading in your case:-

 

http://download.rd.go.th/fileadmin/download/nation/australia_e.pdf

 

[jkthai]

any suggestions/reccomendations for a good basic accountant who can confirm whats needed and perhaps put in some sort of record , so there are no comebacks in later years, ?

 

just a thought

[4MyEgo]

 

Hello all, I have written this post in the Visa immigration forum as I think paying of Tax by a foreigner is relevant to living in Thailand and immigration. Question: I am an Australian who is retired and over the age of 55 year and receiving a pension from my private Superannuation fund ( Not Australian Government Pension).  If I live in Thailand under a Retirement visa, do I have to pay tax in Thailand ? My understanding is that Thailand has a Tax treaty (agreement ) with Australia and that Pensions ( and I am assuming private Pensions such as a Superannuation pension) are not taxable and therefore even though technically I am a resident of Thailand as will live there more than 183 days per year , I don't need to declare my source of income from Australia. I could either keep the money in my Aussie bank account and withdraw as needed in Thailand or transfer regular money into my Thai bank account. Many thanks for any suggestions

You do not have to pay tax in Thailand.

 

If you are a non resident of Australia and earn money from within Australia, apart from the stock market, you will pay 32.5c in every dollar with no threshold, usually $18,200, so that is out the window if you are a non resident.

 

If you are a resident, the reverse works, i.e. you will retain the $18,200 threshold before you pay tax on any money earned in Australia, now when it comes to super, it gets tricky, because you pay tax going in and must pay tax going out, unless certain things are done, suffice to say, when I reached preservation age, in my case 57, I took my super and paid zero tax, i.e. there is a threshold that you can take, e.g. no tax up to I think it is $190,000 above that and you pay the tax on the balance, unless you leave it there till your 60 and then take the balance.

 

I would think by saying 55 you have reached preservation age, that said, sounds like you are taking it as an income stream and if the amount you are taking is less than the above, you shouldn't be paying any tax, but always best to get it from a qualified persons perspective, like an accountant or vist the ATO website. 

 

The below does say 60 years of age but I believe if you hit preservation age, i.e. between 55-60 depending on the year you were born, the same would apply, however if you haven't hit preservation age, you will pay tax on it for sure, but not 100% sure, although 99.99% sure.

 

The below may assist:

 

Super benefits paid either as lump sums or income streams from a taxed super fund to people aged 60 years or more are tax-free and not included as assessable income. ... However, you are entitled to a 15% tax offset on the taxable component of any super income stream payments you receive.Jun 29, 2018

Taxation of super benefits | Australian Taxation Office - ATO

https://www.ato.gov.au/Individuals/Seniors-and-retirees/.../Taxation-of-super-benefits/

 

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