UK State Pension + QROPS Pension

[stament]

I'm new to this so forgive the question.

 

1). I presume income tax is payable in Thailand on QROPS pensions paid directly to Thailand.  If so what's the level of tax please?

 

2). How is the normal UK state pension taxed in Thailand if you are non-resident UK?

 

 

[fishtank]

2. It is not taxed in Thailand.

[cleopatra2]

The tax situation on your pension will be firstly dependent upon any DTA in force.

The UK / TH DTA only has provisions  only for Government pension which does not include the UK state pension.

Thus it is possible that it can be taxable income in both states. However it would fall into the article of eliminating double taxation. I.E receive credit for any tax paid in UK against tax due Thailand.

As a general rule Thai domestic tax law does not at present tax recognized pensions.

 

As for your Qrops is it based in a juristiction with a DTT

 

The above is a generalization and overview as tax is a complicated subject 

Edited July 25, 2019 by cleopatra2

[stament]

16 minutes ago, cleopatra2 said:

The tax situation on your pension will be firstly dependent upon any DTA in force.

The UK / TH DTA only has provisions  only for Government pension which does not include the UK state pension.

Thus it is possible that it can be taxable income in both states. However it would fall into the article of eliminating double taxation. I.E receive credit for any tax paid in UK against tax due Thailand.

As a general rule Thai domestic tax law does not at present tax recognized pensions.

 

As for your Qrops is it based in a juristiction with a DTT

 

The above is a generalization and overview as tax is a complicated subject 

Thanks for the response and apologies for not being more specific originally.

 

Currently I have a QROPS sitting in Malta. My assumption is I will be taxed on it at Thai rates if I transfer it to TH as a regular income.

 

However how would the initial capital drawdown work? Would that be taxable? 

 

 

[cleopatra2]

16 minutes ago, stament said:

Thanks for the response and apologies for not being more specific originally.

 

Currently I have a QROPS sitting in Malta. My assumption is I will be taxed on it at Thai rates if I transfer it to TH as a regular income.

 

However how would the initial capital drawdown work? Would that be taxable? 

 

 

A quick scan of the legislation and i do not see a DTA with Malta. 

Ths next quedtion would be if it fall into section 42 of the revenue code ( income exempt from tax ).

 

https://www.rd.go.th/publish/37749.0.html#section39

[stament]

11 minutes ago, cleopatra2 said:

A quick scan of the legislation and i do not see a DTA with Malta. 

Ths next quedtion would be if it fall into section 42 of the revenue code ( income exempt from tax ).

 

https://www.rd.go.th/publish/37749.0.html#section39

Thanks, assuming it didn't and there is no DTA in place am I correct in assuming that I would be taxed at the normal Thai income tax rates?

 

Sorry to keep asking but this issue is quite complex.

 

 

[cleopatra2]

6 minutes ago, stament said:

Thanks, assuming it didn't and there is no DTA in place am I correct in assuming that I would be taxed at the normal Thai income tax rates?

 

Sorry to keep asking but this issue is quite complex.

 

 

That is a good assumption.

The link provided gives allowances and the rates of tax.

 

 

Personally i would use the defence succesfully argued by Thaskin jn 2000/ 2001 . Namely the tax system is to complicated to understand.

[stament]

16 minutes ago, cleopatra2 said:

That is a good assumption.

The link provided gives allowances and the rates of tax.

 

 

Personally i would use the defence succesfully argued by Thaskin jn 2000/ 2001 . Namely the tax system is to complicated to understand.

Great, that's what I was assuming and happy to pay. Knew about allowances already but thanks for pointing out.

[cleopatra2]

8 minutes ago, stament said:

Great, that's what I was assuming and happy to pay. Knew about allowances already but thanks for pointing out.

It may be wise to discuss with the local tax office.

To understand how they intepret section 42 and foreign qrops pension

[UKresonant]

8 hours ago, stament said:

Thanks for the response and apologies for not being more specific originally.

 

Currently I have a QROPS sitting in Malta. My assumption is I will be taxed on it at Thai rates if I transfer it to TH as a regular income.

 

However how would the initial capital drawdown work? Would that 

Would you have been in Thailand more than 180days, if so isolate it in a bank temporarily, it will become savings, then you could move it to Thailand the next Calendar Tax year might be the safest way perhaps. I trust you are clear of any home country tax with the QROPS. If you roll up the state pension and similarly then send it to Thailand as savings the following year (as posted already, no current worries on the state pension).

They may view the QROPS not as a pension, but just as an investment fund, which would be tax liable, and get complicated, for money withdrawn and sent to Thailand in the same year.