Taxation of Pension Income Thai Nationals

[Havenstreet1940]

Currently my UK pension providers tell me that my Thai wife would receive an annual pension of 750,000THB (44THB = 1 GBP) should I die (I am 83 but have no plans to do so yet and I have an objective to reach 100 years to get that Telegram! ),   

 

This will be paid forthe rest of her life (she is currently 48)with annual increases of 5% or the Annual rate of inflation, whichever is lower.

 

I understand that the UK and Thailand signed a reciprocal Taxation agreement in 1981 so I am assuming that the UK pension provider would pay the monthly pension without the deduction of UK Income Tax and my wife would have to make an annual return to  the Thai Tax Department as to her income.  I also understand that she has the option to pay UK Tax, should that be more beneficial to her.

 

I would appreciate advice on her best course of action.

 

Thai detractors NEED not comment!

[asiaexpat]

Government pensions are not taxed in Thailand.

[Havenstreet1940]

1 hour ago, asiaexpat said:

Government pensions are not taxed in Thailand.

I didn't write 'Government' I wrote Pension Provider.   In my case not one and the same.

[lungbing]

I believe that as your future widow's pension will arise in the UK (but not for at least 17 years!) then your future widow will have to pay UK tax on it, if it's over the annual tax free allowance.

 

She should inform your pension provider of your death asap and tell them where she wants her pension paying, ie her Thai bank account details.  She'll need  a copy of your death certificate. The pension provider will liaise with HMRC to get your widow an NI number so she can claim the tax allowance in force at that time. Doing it that way avoids the needs for her to transfer from your joint acccount, if you have one, to Transferwise (or similar) and then to her Thai account every month.

 

My best advice is to talk to your pension provider now and sort out how they operate, what they want at the time of your death and to send you any forms, like change of payment bank.  Do it now while you have time to go through the forms with her.  They might want a copy of your wedding certificate  and /or her birth certificate for example which you can get on record with  them now to save her the worry after you've gone(far in the future)

 

It's good of to think of her this way and to plan ahead.