Tax On Pension

[Mosha]

I am part way through an appraisal period for a visa extension. I am supposed to go back to Ranong immigration on the 25th. We have just had a call from Immigration in Bangkok, they now want me to go up there. They say they want proof that the money I get comes monthly. That's not the problem. What is the problem from my point of view is, I am already paying 22% tax to the vampires in the UK. Now immigration are saying I am liable to tax here too. Is this correct or are they trying it on?

The visa I have applied for is to support my Thai wife, not a retirement visa.

[ProThaiExpat]

The basic principle of taxation is that the land in which the income is earned has the right of taxation.

I am surprised to hear Immigration has any interest in tax. Are you sure they were speaking of income tax rather that using the word tax to describe their fees?

There are many Brit Pensioners who are members of TV and I am sure they will all say they pay no tax on pensions in Thailand.

[Mosha]

Thanks, that's what I thought. I've already paid the 1900 Baht visa fee, when I applied for this extension.

[lopburi3]

If you are earning money and it is being remitted into Thailand in the year earned it is indeed subject to Thai income tax and this is no change. There may be dual taxation agreements that will allow a write off of this income. Normally people are here using savings from previous years so there is no tax question. But with the requirement being 40k family income they may be checking this more closely. Be interesting if we hear more such reports. This seems to be the first. And for all we know may just be a misunderstanding and have nothing to do with income tax.

[Mosha]

Ok the tax thing is sorted, although they say my wife must pay 500/month on her non existant rubber production. I have to go up to Bangkok Immigration with proof of a monthly income though.

[Felt 35]

Lopburi

If you are earning money and it is being remitted into Thailand in the year earned it is indeed subject to Thai income tax and this is no change. There may be dual taxation agreements that will allow a write off of this income. Normally people are here using savings from previous years so there is no tax question. But with the requirement being 40k family income they may be checking this more closely. Be interesting if we hear more such reports. This seems to be the first. And for all we know may just be a misunderstanding and have nothing to do with income tax.

I have been through the below website but are unable to find anything about pensions. I have also sent e-mail regarding my own situation to the Revenue Department, but without any feedback.

http://www.rd.go.th/publish/index.html

I have Pension, and pay about 18-20 % tax and that tax covers me as member in my Country’s National heal plan when living abroad. Which again mean it cover expenses if I have to be in hospital also here in Thailand.

This 20% will in the future be lowered to 10% will I then have to pay tax in Thailand or is there no tax on Pensions.

Thanks & Regards

[lopburi3]

Actually I missed the pension part as tend to read body as so many thread change direction and he was asking about family extension. My mistake. As far as I am aware there has never been any interest in taxing those receiving pensions, with or without tax agreements.

[Estrada]

I am part way through an appraisal period for a visa extension. I am supposed to go back to Ranong immigration on the 25th. We have just had a call from Immigration in Bangkok, they now want me to go up there. They say they want proof that the money I get comes monthly. That's not the problem. What is the problem from my point of view is, I am already paying 22% tax to the vampires in the UK. Now immigration are saying I am liable to tax here too. Is this correct or are they trying it on?

The visa I have applied for is to support my Thai wife, not a retirement visa.

There is a double taxation agreement between the UK and Thailand. Since you are paying tax on your pension in the UK, you should keep your P60 that your pension provider sends to you at the end of every Tax Year. This is proof to the Thai Authorities that you have already paid Tax in the UK, and if you show this they cannot ask for tax to be paid again here. However, If you declare yourself non-resident to the UK Tax Authorities so that you do not pay UK basic Tax, then you are liable to pay Thai Income Tax. Depending on your income, it is possible that Thai Tax may be higher or lower than the UK, so you should check this out. If you want to avoid, but not evade, tax altogether, you could consider living in two Countries and organise your residencies so that you only spend 180 days a year in each Country with a balance of a week to be spent on holiday or on business trips in a third location.

Currently I work in Libya where tax is only 3.75% for 9 months per year with 3 months total in Thailand, so no tax to pay.

Edited July 13, 2007 by Estrada

[Nibor1945]

I am part way through an appraisal period for a visa extension. I am supposed to go back to Ranong immigration on the 25th. We have just had a call from Immigration in Bangkok, they now want me to go up there. They say they want proof that the money I get comes monthly. That's not the problem. What is the problem from my point of view is, I am already paying 22% tax to the vampires in the UK. Now immigration are saying I am liable to tax here too. Is this correct or are they trying it on?

The visa I have applied for is to support my Thai wife, not a retirement visa.

There is a double taxation agreement between the UK and Thailand. Since you are paying tax on your pension in the UK, you should keep your P60 that your pension provider sends to you at the end of every Tax Year. This is proof to the Thai Authorities that you have already paid Tax in the UK, and if you show this they cannot ask for tax to be paid again here. However, If you declare yourself non-resident to the UK Tax Authorities so that you do not pay UK basic Tax, then you are liable to pay Thai Income Tax. Depending on your income, it is possible that Thai Tax may be higher or lower than the UK, so you should check this out. If you want to avoid, but not evade, tax altogether, you could consider living in two Countries and organise your residencies so that you only spend 180 days a year in each Country with a balance of a week to be spent on holiday or on business trips in a third location.

Currently I work in Libya where tax is only 3.75% for 9 months per year with 3 months total in Thailand, so no tax to pay.

I am in receipt of UK pensions and also "Non resident for tax purposes" but that only applies to income generated outside of the UK. Income (pensions etc) generated within the UK are subject to UK tax at the standard applicable rates. There is a "Double taxation" agreement between UK and Thailand and I am not taxed here on income from UK.