Taxation of Retirement Income Brought Into Thailand

[itsari]

Many countries have a double taxation agreement with Thailand . If your country has that there is no taxation involved .

You can choose to pay tax in Thailand rather than your home country in that situation . I think the savings are small for all the extra work involved .

[JackGats]

Now what about if your are not a taxpayer in "your" country.  Such a case would be for example if your get a pension from country A which gets paid untaxed into a bank account in country B before getting transfered to Thailand. I wonder how many expats are in that grey area.

 

A double taxation agreement can only kick in if you are a taxpayer in 2 countries.

[Tropposurfer]

Like UJoe said and I in my finite way agree I never ever heard of anyone being taxed for bringing money into LOS to live on as a retiree as you propose to do.

I am others I have known here, from tiny pensions transferred each month (with minimum funds in the Thai bank to satisfy IO retirement visa requirements) to folks buying multi million dollar homes and imported cars after retirement and transferring large sums for these purposes to their Thai banks have never had any issue that I ever heard of.

It would be another matter of course if you were here conducting business as in a company and trading in some form of goods or services within Thailand or from Thailand then naturally Tax Officialdom here would have a different take on money circulating in and out from that entity.

If you are planning on transferring to a Thai savings account from O/S as you say (re: 800K visa requirement compliance pathway) then you're quite okay to make periodical transfers of money into the country for your personal living purposes. 

If the funds coming into your Thai account are (from your business and banking arrangements) in another country, such monies are then (as others have mentioned) taxed in your home country and are umbrellaed under the tax laws of your home country and funnelled legally to your personal account here as and when you decide. The Thai Govt don't give a toss about this. 

[topt]

1 hour ago, ubonjoe said:

A pension is not any of them.

I don't profess to know the intent of the Thai tax authorities especially when we are both quoting an English translation of a Thai regulation.

However, certainly in the UK, simplistically a pension payment is classed as income and is taxable dependent on other considerations like tax thresholds etc.

 

Question from me is why that would not be the case in Thailand?

 

Secondly if pensions were not taxable in Thailand why would they be included in most DTA's?

 

Finally @Geir Rasch suggests he has personal experience doing that and he is not the first.

 

Fortunately for most of us the Thai tax authorities seem generally to currently ignore it and, whether it should be taxed or not, hopefully, that will long continue.  

[khunPer]

19 hours ago, BangkokBaksida said:

Will that money be taxable by the Thai authorities?  If so, at what rate?  And even if it might be taxable by law (which is my question), how does it work in practice?  Will immigration ask me any questions about this money during my annual visa renewals?  Or are they satisfied to know that I am able to support myself?

In principle you are tax-resident when staying in Thailand more than 180 days within a tax-year, which is a calendar year, i.e. you shall pay income tax.

 

Income from abroad is first of all depending of your home country's DTA (Double Taxation Agreement) with Thailand, and the the sources of income. Some income might be taxable in both countries, but one of the countries will repay tax, if they charge it.

 

Thailand has two ways to eliminate double taxation...

 

C. Elimination of double taxation
The focus of a DTA is the elimination of double taxation. Each DTA may prescribe different methods of elimination of double taxation of a person by the resident country:

(1) Exemption method
The country of residence does not tax the income which according to the DTA is taxed in the source country.

(2) Credit method
The resident country retains the right to tax the income which was already taxed in the source country. It calculates its tax on the basis of the taxpayer's total income including income from the other country which according to the DTA is taxed in that other country. However, it allows a deduction from its own tax for the tax paid in the other country.
 

Only about 6 percent of Thailands population is registered for income tax, and circa 4 percent actually pays income tax (according to news articles); most foreigners with retirement pension as the only income, or living from savings, don't register for income tax - it might even be difficult to be registered without having any Thai income (I talk from experience) - but in principle you are eligible for income taxation.

 

In principle all foreign income brought into Thailand is income taxable; however, only if the income is transferred during the same calendar year as it's earned. The next calendar year, and any following calendar years, the income is considered "savings", which are free from income tax when transferred into Thailand.

 

Dividends from foreign stocks and interest from foreign bonds are only eligible to be taxed in Thailand at the same rate as Thai dividend and interest, i.e. 10 percent and 15 percent, so if you pay higher withheld dividend tax at source of income, you shall not pay tax in Thailand, or the Thai-tax will be repaid.

 

Foreign capital gain is income taxable, but I only hear about people that leave the capital gain offshore until next calendar year...????

 

When using the 800,000 baht bank deposit for applying of annual extension of stay, the source of fund is not asked for; i.e. you could have change from having a work permit to be retired, and use previous Thai income for the deposit. Only when using the income method of minimum 65,000 baht each month, you need to prove it's a foreign transfer, normally marked as FTT in your bankbook and bank statements (Foreign Telegraphic Transfer).

 

Any Thai income as interest from you bank accounts, or other investments, will be withheld tax - 15 percent from interest, and 10 percent from dividends - if you accept that tax, then you don't need to do any further. However, you might be able to reclaim your withheld tax, if your total taxable Thai-income is under the tax limit, but do consider if it's worth the paperwork depending of the size of money; i.e. 800,000 baht might in best years pay around 1.5 percent interest that equals 12,000 baht, of which 15 percent tax is 1,800 baht.

 

You can find you home country DTA in the link HERE.

 

Depending of you home country's DTA and source income, you might have some tax-benefits from dividend tax when residing in Thailand, which can be 15 percent flat rate - which for example is eligible for US dividends paid to non US citizens (I dont know if US-citizens are also eligible) - or Thai 10 percent tax, if the dividend is transferred into Thailand during the same calendar years as it's earned, but only eligible for the actual transferred dividend sum...????

[khunPer]

1 hour ago, itsari said:

Many countries have a double taxation agreement with Thailand . If your country has that there is no taxation involved .

You can choose to pay tax in Thailand rather than your home country in that situation . I think the savings are small for all the extra work involved .

That is unfortunately not correct. A DTA is just a way to avoid paying tax twice of the same income, you might still be income taxable both in your home country, and at the same time full tax-resident in Thailand, if you stay more than 180 days in Thailand during a calendar year.

 

I would love to pay income tax in Thailand of all my income instead of in my home country, which has a DTA with Thailand, unfortunately I'm stuck with the World's highest taxation on my retirement income, even that the DTA says that it's "taxable in both states"...

[Chongalulu]

19 hours ago, kokesaat said:

At least with the US, the money you make/earn in the US is not taxable in Thailand......some sort of tax treaty with Thailand and the US (and, I believe, most if not all, other countries).

If you put money in a Thai bank, the interest you earn on that money is taxable.....although it's generally nothing to get worried about as interest rates are near zero.

I second the opinion that if you're coming here to live a quiet, retirement life, the best way to go is to park 800,000Baht in a Thai bank and leave it alone.  That will make your annual extensions so much easier.

When I look at the returns on my investments over the past couple of years 800k tied up in a Thai bank earning nothing would have been a very costly option - appalling investment advice. My embassy no longer does income letter but simply producing bank statements showing 65k coming in each month is a short task,especially as you’d have to be in the bank to get the letter anyway re 800k. At immigration it takes them no more time to check than the other. No advantage at all 
 

[khunPer]

1 hour ago, Tropposurfer said:

Like UJoe said and I in my finite way agree I never ever heard of anyone being taxed for bringing money into LOS to live on as a retiree as you propose to do.

I am others I have known here, from tiny pensions transferred each month (with minimum funds in the Thai bank to satisfy IO retirement visa requirements) to folks buying multi million dollar homes and imported cars after retirement and transferring large sums for these purposes to their Thai banks have never had any issue that I ever heard of.

It would be another matter of course if you were here conducting business as in a company and trading in some form of goods or services within Thailand or from Thailand then naturally Tax Officialdom here would have a different take on money circulating in and out from that entity.

If you are planning on transferring to a Thai savings account from O/S as you say (re: 800K visa requirement compliance pathway) then you're quite okay to make periodical transfers of money into the country for your personal living purposes. 

If the funds coming into your Thai account are (from your business and banking arrangements) in another country, such monies are then (as others have mentioned) taxed in your home country and are umbrellaed under the tax laws of your home country and funnelled legally to your personal account here as and when you decide. The Thai Govt don't give a toss about this. 

You said "...I never ever heard of anyone being taxed for bringing money into LOS to live on as a retiree as you propose to do."

 

Then you will hear about the first case right now - and I'm just one of several - the Thai tax authorities has begun to check retirees for retirement pension taxation. I, and many of my fellow Danish countrymen (and women) have had visit of the kind taxman (often a pair of ladies) that already have full statements about income from our home country. We need to prove that we have paid income tax in our home countries, and that the income tax is higher than it would be in Thailand (no problem when one's country is number one in the World). Mind you that the base of a DTA is that the two states share tax-information. According to the Thai taxman, retirees from Denmark and Finland, are only the beginning; however, you might not need to pay tax in Thailand, but they do wish to know about your income, in principle you are tax-resident and fully income taxable...????

[khunPer]

3 hours ago, topt said:

In the UK many pension payments are classed as "annuities" for example. Arguably pension income is derived from past earned income........

@khunPer regularly comments on DTAs and the opportunity to reduce home taxation for selected countries.

If I remember correct, then the GB and Thai DTA specific mention that pensions paid by government are only taxable in GB for GB-nationals, I'm not sure if private pensions are specific mentioned. You need to carefully read your home country's DTA. Some states might also have a further explanation to what has been agreed in the DTA, and how it works in practice.

 

I'm not at all specialist, I just wished to care about my own income taxation and fully legal ways for "tax planning"...????

[topt]

3 minutes ago, khunPer said:

If I remember correct, then the GB and Thai DTA

I am well aware of the UK DTA and wasn't asking you to comment on that thankyou and thanks for some of your other comments above. 

[jayboy]

36 minutes ago, khunPer said:

You said "...I never ever heard of anyone being taxed for bringing money into LOS to live on as a retiree as you propose to do."

 

Then you will hear about the first case right now - and I'm just one of several - the Thai tax authorities has begun to check retirees for retirement pension taxation. I, and many of my fellow Danish countrymen (and women) have had visit of the kind taxman (often a pair of ladies) that already have full statements about income from our home country. We need to prove that we have paid income tax in our home countries, and that the income tax is higher than it would be in Thailand (no problem when one's country is number one in the World). Mind you that the base of a DTA is that the two states share tax-information. According to the Thai taxman, retirees from Denmark and Finland, are only the beginning; however, you might not need to pay tax in Thailand, but they do wish to know about your income, in principle you are tax-resident and fully income taxable...????

Interesting.From what you say the Danish authorities, despite the fact you pay tax - at a higher rate than in Thailand - in your home country, have supplied the Thai tax authorities with details of your Danish income and your contact address in Thailand.It's true that most DTAs include provision for exchanging information but this would normally be in respect of people/entities "of interest" - not typical retirees. As a practical point there so many areas areas of greater interest to the Thai tax authorities that paying visits on blameless foreign retirees is odd to say the very least.Still I don't feel surprised particularly that the tax affairs of foreign pensioners would be further scrutinized. Most international banks have been asking similar questions over the last few years

 

One question.You quote the Thai taxman that scrutiny of Danes and Finns is only the beginning of retirees tax position being checked.What is your source for this?

[JimGant]

4 hours ago, ubonjoe said:

According to Thai tax law pension brought in to Thailand are subject to tax in Thailand if it is brought in the same year it is earned.

 

 

Can you quote in the tax laws that say that and post a link to it.

Number 2 here does not mention pension income. It only mentions earned income. https://www.rd.go.th/english/6045.html

Quote

Actually, in one example, it's found in the DTA between Norway and Thailand:

 

2.1 Under Internal Regulations
In Thailand
 In  Thailand  pension  income  is  regarded  as  assessable  income  under  Section  
40  (1)  of  the  Revenue  Code.  A  resident  of  Thailand  must  declare  his  worldwide income  on  the  basis  that  the  income  received  from  abroad  in  a  tax  year  must  be brought into Thailand within the same year, based on Section 41 paragraph 2 of the Revenue Code. 

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

Actually, the Norway-Thai DTA is pretty neat. If you're now a resident of Thailand, the DTA says Thailand has first dibs on taxing all your Norwegian pensions, including gov't pensions (unlike most other countries, like the US, whose DTA's reserve taxation of gov't pensions by the paying country). For Norwegians in Thailand, it's probably cheaper to declare all your pensions subject to Thai taxation, then proving to Norwegian tax authorities that, yes, Thailand taxed all your Norwegian pensions. As such, you're now exempt from Norwegian taxes. Can't show a Thai tax return? -- well, you must, then. pay Norwegian taxes on these pensions. Pretty slick, from the emerging point of view that everyone must pay taxes to someone, as shared data between countries is rapidly closing tax loopholes.

 

The US accomplishes the same outcome, i.e. you pay taxes to someone, either country of residence or home country US. They do this with the so called "saving clause," whereby, even if the DTA says Thailand has first dibs on taxation of private pensions (which it does), you must still declare this income on your US tax return -- and take a credit to avoid double taxation. So, for Yanks getting their private pensions direct deposited into a Thai bank -- the DTA says Thailand has first taxation dibs on that pension income. Most just ignore that, and declare the pension on their US return (so, you're really not a tax cheat, just paying the wrong country). Thailand doesn't (yet) have the resources to track such failure to declare down. And, unlike for Norwegians, Yanks wouldn't get a tax benefit from paying Thai taxes first, since a lower Thai tax payment means only a dollar for dollar credit -- not the whole tax bill from being excused, as per Norway.

[khunPer]

44 minutes ago, jayboy said:

One question.You quote the Thai taxman that scrutiny of Danes and Finns is only the beginning of retirees tax position being checked.What is your source for this?

The source is "the taxman" - i.e.that's what the kind people from the tax authorities have told not only me, but also other Danes in Thailand. 

 

They are mainly looking for income that might not have been taxed abroad, i.e. the data they have obtained is us retiree's net-income after home country taxation, and they say "money that the Danish government had not taxed", so we need to show that tax has already been paid. In Denmark all communication with authorities is digital, so we Danes can for example only print an income tax-statement ourselves - i.e. no official letterhead, and no rubber stamps, and no signature - luckily, they seems to accept that...????

[itsari]

2 hours ago, khunPer said:

That is unfortunately not correct. A DTA is just a way to avoid paying tax twice of the same income, you might still be income taxable both in your home country, and at the same time full tax-resident in Thailand, if you stay more than 180 days in Thailand during a calendar year.

 

I would love to pay income tax in Thailand of all my income instead of in my home country, which has a DTA with Thailand, unfortunately I'm stuck with the World's highest taxation on my retirement income, even that the DTA says that it's "taxable in both states"...

Might be and will be is not the way it works with pension income.

I believe I am correct with the country that I am paid a pension from.

 

[khunPer]

56 minutes ago, JimGant said:

Actually, the Norway-Thai DTA is pretty neat. If you're now a resident of Thailand, the DTA says Thailand has first dibs on taxing all your Norwegian pensions, including gov't pensions (unlike most other countries, like the US, whose DTA's reserve taxation of gov't pensions by the paying country). For Norwegians in Thailand, it's probably cheaper to declare all your pensions subject to Thai taxation, then proving to Norwegian tax authorities that, yes, Thailand taxed all your Norwegian pensions. As such, you're now exempt from Norwegian taxes. Can't show a Thai tax return? -- well, you must, then. pay Norwegian taxes on these pensions. Pretty slick, from the emerging point of view that everyone must pay taxes to someone, as shared data between countries is rapidly closing tax loopholes.

 

The US accomplishes the same outcome, i.e. you pay taxes to someone, either country of residence or home country US. They do this with the so called "saving clause," whereby, even if the DTA says Thailand has first dibs on taxation of private pensions (which it does), you must still declare this income on your US tax return -- and take a credit to avoid double taxation. So, for Yanks getting their private pensions direct deposited into a Thai bank -- the DTA says Thailand has first taxation dibs on that pension income. Most just ignore that, and declare the pension on their US return (so, you're really not a tax cheat, just paying the wrong country). Thailand doesn't (yet) have the resources to track such failure to declare down. And, unlike for Norwegians, Yanks wouldn't get a tax benefit from paying Thai taxes first, since a lower Thai tax payment means only a dollar for dollar credit -- not the whole tax bill from being excused, as per Norway.

The comments to the Danish DTA says that the so-called "standard DTA" states that taxation of retirement pensions are due in the state of tax-residence, however a state can claim taxation right as source of income, which is a deviation from the standard DTA. This might result in that an income is taxable in both states, but will be refunded, or partly refunded, due to a DTA.

 

Your Norwegian example is according to what follows from the standard DTA, whereas your US example follows state of source (I havn't checked if US' DTA says anything about taxation in both states, like the Danish DTA says).

 

The most easy way to avoid double taxation is the Thai exemption-method, i.e. 

(1) Exemption method
The country of residence does not tax the income which according to the DTA is taxed in the source country.

-however, the exemption method is up to the Thai authorities' decision, it's not up to the taxpayer...????

[jayboy]

2 hours ago, khunPer said:

The source is "the taxman" - i.e.that's what the kind people from the tax authorities have told not only me, but also other Danes in Thailand. 

That's not authoritative.Is it just what the "kind ladies" told you and some other Danes? Other expatriates have been told completely different stories by Thai tax officials on retirees liability for tax - there are many such accounts on this forum.

 

I certainly don't disagree that expatriates tax affairs are likely to be more closely scrutinized in the future.But there's something "off" in your account of the Danish authorities passing on tax information and contact details of their citizens (who have already paid tax in Denmark) to the Thai tax authorities who then send "kind ladies" to investigate.I don't buy it.You have perhaps neglected to advise some relevant information but there is something distinctly peculiar in your account of this incident.

[vibration]

I receive my pensions from Norway paid into my Norwegian bank account and I send money when needed to Thailand to live on.

 

Tax is automatically deducted on my pension payments in Norway and I also have to show the Thai tax authorities here every year how much money (International Transfers) I have transfered into my Thai bank account as money derived in the same year sent to Thailand is taxable in Thailand.

 

Because of the DTA between Norway and Thailand I always get my taxable income in Norway reduced by the amount of money sent to Thailand (International Transfers) and so far every year I have received a tax rebate from Norway.

 

I use a Norwegian Tax lawyer who lives in Thailand to write a letter to the Norwegian Tax Authorities documenting how much money I have sent to Thailand and I also get a Certificate of Residence and Certificate of Income Tax Paid in Thailand from the Thai Tax Authorities that is sent with the letter.

 

I believe that many who receive there pensions from Norway have the same benefits to avoid double taxation.

 

If any Norwegians would like the email of the Norwegian Tax Lawyer then please message me.

Edited September 29, 2021 by vibration

[JackGats]

Norway has been known as a special case for years. Just like Norwegian AOC laws or Norwegian prostitution laws apply to Norwegians who have sex abroad, instead of local laws.

 

Regarding pensions, expect hyperfeminist misandric countries to try and reduce the net income of MALE pensioners (sex refugees) in 3rd world countries. I wouldn't be surprised if Norwegian females living eg in Japan got their pensions free of tax. I mean taxed neither in Norway nor in Japan.

[Dogmatix]

On 9/28/2021 at 5:38 PM, MarkT63 said:

Hi BangkokBaksida.

 

There may be no tax liability at all.

“The imposition of tax on income derived outside Thailand will apply only to income derived and brought into Thailand in the same year in which such income is

earned”.

Not an expert so suggest you get that confirmed. 

 

 

That is correct. You are a Thai tax resident if you spend more than 180 days in the Kingdom per tax year which is Jan to Dec but you are only liable for overseas income remitted to Thailand in the same year it was earned.  In practice they don't have to file a tax return if you have no taxable income and they don't look into foreigner's pension remittances.  If they ever did, you just say that you save your pension in your home contry and just remit the income paid more than a year earlier. It's not going to be a problem. 

[khunPer]

5 hours ago, jayboy said:

That's not authoritative.Is it just what the "kind ladies" told you and some other Danes? Other expatriates have been told completely different stories by Thai tax officials on retirees liability for tax - there are many such accounts on this forum.

 

I certainly don't disagree that expatriates tax affairs are likely to be more closely scrutinized in the future.But there's something "off" in your account of the Danish authorities passing on tax information and contact details of their citizens (who have already paid tax in Denmark) to the Thai tax authorities who then send "kind ladies" to investigate.I don't buy it.You have perhaps neglected to advise some relevant information but there is something distinctly peculiar in your account of this incident.

Not at all "neglected to advise some relevant information but there is something distinctly peculiar in your account of this incident" - there are 21 other Danes on the tax-list besides me on the island where I live, so it's about all Danes, furthermore numerous Danes further up north have shared about it in a Danish-language forum, many are retirees with no other income than their government pensions - so please don't speculate in something you have no knowledge about, and make accusations based on your speculations. The basics of a DTA is to share tax-information between the two states...????

 

I have based on this incident been in contact with the Danish tax authorities, who confirms in writing that they share tax-information with Thailand...

[placnx]

16 hours ago, OJAS said:

But please note that @alanrchase's link specifically relates to a question specifically posed in the Swiss context, the answer to which is, in fact, dependent on the provisions of the double taxation agreement between Thailand and Switzerland. So it may not necessarily be applicable to non-Swiss retirees. It would also appear to contradict the following official RD link:-

 

https://www.rd.go.th/english/6045.html

 

1.Taxable Person

 

Taxpayers are classified into “resident” and “non-resident”. “Resident” means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. A resident of Thailand is liable to pay tax on income from sources in Thailand as well as on the portion of income from foreign sources that is brought into Thailand. A non-resident is, however, subject to tax only on income from sources in Thailand.

I really wonder about the logic in many of these posts. Technically, I believe that money brought into the country is considered as income to the extent that one has such income in the current year. Any excess would be considered savings. Obviously, how the Thai government could verify this income short of examining foreign tax returns, etc, is a good question.

[jayboy]

5 hours ago, khunPer said:

Not at all "neglected to advise some relevant information but there is something distinctly peculiar in your account of this incident" - there are 21 other Danes on the tax-list besides me on the island where I live, so it's about all Danes, furthermore numerous Danes further up north have shared about it in a Danish-language forum, many are retirees with no other income than their government pensions - so please don't speculate in something you have no knowledge about, and make accusations based on your speculations. The basics of a DTA is to share tax-information between the two states...????

 

I have based on this incident been in contact with the Danish tax authorities, who confirms in writing that they share tax-information with Thailand...

I'm not questioning your veracity but since this is a discussion forum feel entitled to point out some aspects that are peculiar, even outrageous.

 

To be specific and as an example it is a bizarre that a Danish government pensioner with no other income, who has paid all due tax, is visited by the Thai tax authorities.Why on earth should that happen? It simply doesn't make sense.

[Geir Rasch]

22 hours ago, ubonjoe said:

Can you quote in the tax laws that say that and post a link to it.

Number 2 here does not mention pension income. It only mentions earned income. https://www.rd.go.th/english/6045.html

Post A 1 in document 91:

Salaries, wages, pensions etc,
https://www.rd.go.th/english/62734.html

 

[Geir Rasch]

21 hours ago, topt said:

I would have thought it came under item 3 - 

In the UK many pension payments are classed as "annuities" for example. Arguably pension income is derived from past earned income........

@khunPer regularly comments on DTAs and the opportunity to reduce home taxation for selected countries.

No, pensions is in same group as salaries and wages. Pensions is in fact withhold salaries.

[ubonjoe]

14 minutes ago, Geir Rasch said:

Post A 1 in document 91:

Salaries, wages, pensions etc,
https://www.rd.go.th/english/62734.html

 

That is only a form not a regulation or act. It could also be an error in translation from Thai.

[Geir Rasch]

As I wrote in my first post it is more or less up to you if you will pay tax to Thailand or not.

What you gain depend of the tax law in your home country. In Norway the average tax on pensions is 20%+. Average tax of Norwegian pension in Thailand is less than 10%, so there is quit a lot of money to save.
Since filing the forms and pay tax is as easy as paying tax in your home country, it is waist of money to pay so called lawyer to do it for you! Well, I admit there are some that have problem with filling forms and those I know I help and do it for free - what are friends for?

Before 2010 Norwegians that emigrated and did not have a home i Norway did not pay tax at all to Norway. In 2010 a new law said that government pensions and pensions from pension funds would be taxed 15% if you where emigrated for tax purposes. This people would not pay tax to Thailand before after 2010. People who emigrate after 2010 should never apply for tax emigration. Tax to both Norway and Thailand gives you a Norwegian tax below 15% if you are not tax emigrated.

I am reasonable up to date about taxation Norway/Thailand. For other countries involved I have no knowledge. So may be the situation for some will be that paying tax to Thailand is not a smart choice, but for Norwegians it indeed is! And it is simple!

[Geir Rasch]

28 minutes ago, ubonjoe said:

That is only a form not a regulation or act. It could also be an error in translation from Thai.

In thai form:

ก
1. เงินเดือน  ค่าจ้าง  บำนาญ  ฯลฯ

 

Try translate and you find those 4 words to be:

Salary - wages - pensions - etc

No possibility for translation error. Why deny the obvious? If you do not want to pay tax, it is OK. But do you want to pay tax to Thailand, then pensions transferred to Thailand same year as it is obtained is taxable in Thailand, period.

[khunPer]

7 hours ago, jayboy said:

I'm not questioning your veracity but since this is a discussion forum feel entitled to point out some aspects that are peculiar, even outrageous.

 

To be specific and as an example it is a bizarre that a Danish government pensioner with no other income, who has paid all due tax, is visited by the Thai tax authorities.Why on earth should that happen? It simply doesn't make sense.

"Why on earth should that happen? It simply doesn't make sense", is exactly what the Danes thought, but if you read the tax rules and the DTA, it makes sense. The DTA between Denmark and Thailand for example says in article 18 that "pensions and annuities may be taxed in both Contracting States".

 

In principle you still need to report your income, and then either be exempt from tax, or having the tax refunded. Denmark claims it's right to tax pensions as "source Country".

 

The DTA between USA and Thailand is for example more specific in USA's right for taxation as source country, it says that "pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State" (Article 20).

 

Therefore you cannot generalize, each country might have separate rules about double taxation, even that the so-called "standard agreement" says that pensions are taxable in the state of residence, which is mention in posts above to be used by Norwegians...????

 

A country can also have different type of DTAs with other states, for example it was before a tax heaven for retired Danes to settle in France or Spain, as the DTA said that their pension should be taxed in the state of residence - just like for the Norwegians in Thailand - and as both France and Spain have very beneficial low tax for retirees, they became "tax heaven" combined with in general also little lower living costs in the areas, where retired Danes would settle. However, Denmark cancelled both DTAs and suddenly all the "tax heaven"-Danes were subject to double taxation

...????