Holidayed to Thailand in 1983, Moved to Thailand 1997, Left Thailand 2019,

[4MyEgo]

44 minutes ago, Leaver said:

You may wish to Google, "not resident for taxation purposes  Australia." 

You mean when I return I have to wait two years before I can have the pension made portable, i.e. after I convince them that I am back to stay when I return, too easy, already have my plan already worked out, the only problem I have is how to shift the $'s I have from the sale of my property at least 5 years prior to applying for the OAP.

 

Do I gift it to my daughter who could purchase an apartment over there, she could live in it for a couple of months then rent it and provide me the money from the rent to survive on, it's a tough one putting all your eggs into someone else's basket.

 

I suppose I could live in it during the 2 years I was there waiting for the OAP to be made portable, then I could sell it after the OAP was made portable.

 

A lot of planning to do in the years to come.

[Leaver]

23 hours ago, 4MyEgo said:

You mean when I return I have to wait two years before I can have the pension made portable, i.e. after I convince them that I am back to stay when I return, too easy, already have my plan already worked out, the only problem I have is how to shift the $'s I have from the sale of my property at least 5 years prior to applying for the OAP.

 

Do I gift it to my daughter who could purchase an apartment over there, she could live in it for a couple of months then rent it and provide me the money from the rent to survive on, it's a tough one putting all your eggs into someone else's basket.

 

I suppose I could live in it during the 2 years I was there waiting for the OAP to be made portable, then I could sell it after the OAP was made portable.

 

A lot of planning to do in the years to come.

Nothing to do with old age pension. 

 

All to do with income earned in Australia, while you are not a resident of Australia, as in, you are physically not in the country.  That's all income.  Eg. rent, dividends etc.

 

Your exposure drastically changes when you are not "domiciled" in Australia.  

 

Look into it, because the taxation on non residents is severe. 

[b4n9]

On 4/1/2019 at 9:01 AM, Gecko123 said:

Interesting and enjoyable post.

 

The OP describes being able to move to Thailand at the age of 46 without needing to sell his house to finance the adventure, while at the same time having been able to secure a UK based income stream over the past 23 years. I, for one, would be curious to know more details about how he was able to do this.

 

I had good paying jobs, and saved aggressively in order to retire to Thailand at age 50. But to do what you described would have been very difficult. Maybe if the house was very modest I might have been able to swing it. Looking at the OP's story, I see he was an early baby boomer who might have been able to get into the real estate market before it started to really take off, and he might have benefitted from moving to Thailand in 1997 at the height of the Asian Contagion financial crisis.

 

But I doubt doing what he did would be possible today for very many 46 year olds. He is to be commended for pointing out the hidden risks surrounding unplanned repatriation, but I don't think 'don't leave unless you have a house to return to' is necessarily the right message. Very few people can afford to eliminate that risk entirely, especially when they are still only in their mid-40's. It's just a risk that most will have to bear if they take the plunge.

You are right.

[4MyEgo]

12 hours ago, Leaver said:

Nothing to do with old age pension. 

 

All to do with income earned in Australia, while you are not a resident of Australia, as in, you are physically not in the country.  That's all income.  Eg. rent, dividends etc.

 

Your exposure drastically changes when you are not "domiciled" in Australia.  

 

Look into it, because the taxation on non residents is severe. 

Thanks for the heads up, the old age pension does have to with it, if you will read on.

 

I sold my property before my 183 days was up, i.e. becoming a non-resident and invested 50% of my money in the ASX in a mixed portfolio of fully franked shares and shares that aren't paying dividends, I stay away from unfranked shares if I can as I would have to pay 32.5% tax on the dividend as a non resident. So on fully franked shares there is no tax payable, and there is no capital gains tax payable on shares I sell.

 

Currently, i.e. since 1 August my portfolio is returning me 8% tax free, e.g. 1% per month and I am on track to repeating last years return, i.e. 12%, remembering the higher the return, the higher the risk.

 

I do make a modest income from some clients back in Oz who obviously don't want me to retire, so I take on the consultancy work and pay my 32.5% after expenses, which you could say gives me and the family our annual holiday trip back to Oz to visit family and friends with a week at Phuket on return, so I will keep taking the work as it comes as it is real easy stuff, keeps me up to date and allows me to spoil the family once a year.

 

I did my due diligence a long time before I left Australia, and the way I see it is the government is losing money in my opinion, e.g. no tax on fully franked dividends or capital gains tax for non residents such as myself investing in the Australian Stock Market, the property market has dropped between 15%-20% since I sold, suffice to say if I held onto my property which was my intention they would be making money from the rent received, now they are making nothing from the rent that I would have been receiving, and there would have been capital gains tax payable in the future.

 

What do I lose out on: Medicare after 5 years absence, I cannot vote, yes I do pay 32.5% of income earned within Australia, excluding fully franked share in the stock market. I have to physically apply in Australia for the old age pension and wait two years before its made portable, i.e. if I qualify at the time.

 

What do I benefit on: No tax on fully franked dividends, no capital gains tax on shares, I pay 10% withholding tax on interest earned from the monies held in the banks.

 

The way I see it, my research has paid off, i.e. I make the same amount of money now (net) that I used to back in Australia without having to kill myself working 12-16 hours a day in a job that I once used to enjoy until the industry dropped it's pants, so I'm a happy chappy you could say ????

 

I just follow the government's rules, as stupid as they are IMO.

 

[Leaver]

10 hours ago, 4MyEgo said:

Thanks for the heads up, the old age pension does have to with it, if you will read on.

 

I sold my property before my 183 days was up, i.e. becoming a non-resident and invested 50% of my money in the ASX in a mixed portfolio of fully franked shares and shares that aren't paying dividends, I stay away from unfranked shares if I can as I would have to pay 32.5% tax on the dividend as a non resident. So on fully franked shares there is no tax payable, and there is no capital gains tax payable on shares I sell.

 

Currently, i.e. since 1 August my portfolio is returning me 8% tax free, e.g. 1% per month and I am on track to repeating last years return, i.e. 12%, remembering the higher the return, the higher the risk.

 

I do make a modest income from some clients back in Oz who obviously don't want me to retire, so I take on the consultancy work and pay my 32.5% after expenses, which you could say gives me and the family our annual holiday trip back to Oz to visit family and friends with a week at Phuket on return, so I will keep taking the work as it comes as it is real easy stuff, keeps me up to date and allows me to spoil the family once a year.

 

I did my due diligence a long time before I left Australia, and the way I see it is the government is losing money in my opinion, e.g. no tax on fully franked dividends or capital gains tax for non residents such as myself investing in the Australian Stock Market, the property market has dropped between 15%-20% since I sold, suffice to say if I held onto my property which was my intention they would be making money from the rent received, now they are making nothing from the rent that I would have been receiving, and there would have been capital gains tax payable in the future.

 

What do I lose out on: Medicare after 5 years absence, I cannot vote, yes I do pay 32.5% of income earned within Australia, excluding fully franked share in the stock market. I have to physically apply in Australia for the old age pension and wait two years before its made portable, i.e. if I qualify at the time.

 

What do I benefit on: No tax on fully franked dividends, no capital gains tax on shares, I pay 10% withholding tax on interest earned from the monies held in the banks.

 

The way I see it, my research has paid off, i.e. I make the same amount of money now (net) that I used to back in Australia without having to kill myself working 12-16 hours a day in a job that I once used to enjoy until the industry dropped it's pants, so I'm a happy chappy you could say ????

 

I just follow the government's rules, as stupid as they are IMO.

 

https://www.ato.gov.au/Individuals/International-tax-for-individuals/Work-out-your-tax-residency/

 

It's my understanding It's $0.32 in the dollar from $0 to $90,000 on ALL earnings, if you are a non resident for taxation purposes. 

[OneMoreFarang]

On ‎3‎/‎30‎/‎2019 at 7:30 PM, huckingfell said:

after my first holiday here in 1983 I did everything I could to live here permanently, and made the big move in 1997

Newbie
2 posts
 

How does that add up? Would anybody really subscribe to TV when he leaves the country after more than 20 years living here?

[cranki]

7 minutes ago, OneMoreFarang said:

Newbie
2 posts
 

How does that add up? Would anybody really subscribe to TV when he leaves the country after more than 20 years living here?

Umm...some people do have a life ya know.....not everyone is stuck in their house on the internet ???? 

I've lived in Thailand for over a decade.....but look at my post count....I only decided to sign up for giggles...

Edited April 4, 2019 by cranki

[OneMoreFarang]

1 minute ago, cranki said:

Umm...some people do have a life ya know.....not everyone is stuck in their house on the internet ???? 

Sure, and after 20 years being busy all day and night he gets bored and writes about leaving Thailand...

 

P.S.: I heard there are even people who use the internet on their phones and tablets outside of their houses these days.

[4MyEgo]

 

24 minutes ago, Leaver said:

https://www.ato.gov.au/Individuals/International-tax-for-individuals/Work-out-your-tax-residency/

 

It's my understanding It's $0.32 in the dollar from $0 to $90,000 on ALL earnings, if you are a non resident for taxation purposes. 

Tax is only payable on unfranked dividends, i.e. the company does not deduct tax on unfranked dividends, i.e. it is usually your responsibility to do it come tax time as an Australian Resident, however as a foreign resident you have to advise the company that you are a foreign resident and they will withhold the tax and give it to the ATO, banks will withhold 10% of the interest you earn and forward it to the ATO and same applies to royalties.

 

Like I said, fully franked shares (already have the tax taken out before you receive the dividend) so there is no double taxing so to speak, no capital gains tax on the sale of shares either as I mentioned.

 

If you own property that is producing an income, you pay the 32.5% tax, splitting hairs 32/32.5c and you pay capital gains tax when you sell, add to that the ongoings costs as I mentioned in my previous reply, foreign land tax as well which is a different rate to Ozzies, so you would be mad to own a property/s if your a non resident.

 

Trust me, I have done my due diligence and got it backed up by my accountant and the ATO.

 

https://www.ato.gov.au/individuals/international-tax-for-individuals/investing-in-australia/interest,-unfranked-dividends-and-royalties/ 

Edited April 4, 2019 by 4MyEgo

[cranki]

5 minutes ago, OneMoreFarang said:

Sure, and after 20 years being busy all day and night he gets bored and writes about leaving Thailand...

 

P.S.: I heard there are even people who use the internet on their phones and tablets outside of their houses these days.

Yeah I know, but not everyone is interested in an internet forum ???? ie; (I say again) they have a life ???? 

[Hank Gunn]

On 4/1/2019 at 2:27 AM, canuckamuck said:

The whole world is going to <deleted> anyhow, best just to find a safe place, keep your head down and take care of your loved ones as the curtain closes on the enlightenment.

“I just wanna get my kicks before the whole $#1/house goes up in flames.”

 

 

[Leaver]

On 4/4/2019 at 10:52 PM, 4MyEgo said:

 

Tax is only payable on unfranked dividends, i.e. the company does not deduct tax on unfranked dividends, i.e. it is usually your responsibility to do it come tax time as an Australian Resident, however as a foreign resident you have to advise the company that you are a foreign resident and they will withhold the tax and give it to the ATO, banks will withhold 10% of the interest you earn and forward it to the ATO and same applies to royalties.

 

Like I said, fully franked shares (already have the tax taken out before you receive the dividend) so there is no double taxing so to speak, no capital gains tax on the sale of shares either as I mentioned.

 

If you own property that is producing an income, you pay the 32.5% tax, splitting hairs 32/32.5c and you pay capital gains tax when you sell, add to that the ongoings costs as I mentioned in my previous reply, foreign land tax as well which is a different rate to Ozzies, so you would be mad to own a property/s if your a non resident.

 

Trust me, I have done my due diligence and got it backed up by my accountant and the ATO.

 

https://www.ato.gov.au/individuals/international-tax-for-individuals/investing-in-australia/interest,-unfranked-dividends-and-royalties/ 

Would it be better to claim you are "domiciled" in Australia, to make use of the $18,000 tax free threshold?  

[4MyEgo]

23 hours ago, Leaver said:

Would it be better to claim you are "domiciled" in Australia, to make use of the $18,000 tax free threshold?  

Not possible in my situation as the kids go to school here and I sold my principal place of residency.

 

If I did try to keep my domicile as Australia which would be pretty hard after reading the legislation and law cases, i.e. some people think it's cut and dry, I would claim a $36,400 threshold with the wife who is also an Australian resident, that said, I would end up paying tax on my share portfolio after the $36,400 and also pay capital gains tax on top of that.

 

Being a non-resident works for me tax wise, and knowing I have Australian citizenship, means I have a place to fall back on anytime.