Thai Tax Deductions and Allowances for Expat Pensioners

[Mike Lister]

This post is nothing more than a simple statement about some of the tax deductions and allowances that the typical, OVER 65 YEAR OLD pensioner, can expect to receive, when they file a Thai tax return. I’m writing this because there are still many older posters who are under the impression that their pension will be taxed in Thailand, perhaps this thread will put some minds at ease. It will help many if we don't turn this thread into a protracted discussion that mirrors what is being discussed in other similar threads and instead, leave it as a simple point of reference.

 

Anyone who is tax resident in Thailand (180 days or more) and receives an overseas pension, either by direct deposit or by way of a funds transfer, is potentially liable to tax in Thailand. US Social Security payments are excluded from tax by treaty, the UK State Pension is not. When you file a tax return to report your pension income, each person is allowed a series of deductions and allowances, the total of which will mean that the UK State Pension at its current level will escape tax in Thailand.  The deductions and allowances are as follows:

 

Personal Allowance - 60,000

Over Age 65 Exemption - 190,000

50% deduction for pension income, up to 100k - 100,000

 

The above totals 350,000 Baht. In addition, the first 150,000 Baht of income is zero rated for tax. These things combined mean that the first 500,000 Baht of income received in Thailand each year, will not be taxable.

 

Further deductions and allowances exist for a spouse, a partner, children, health and life insurance, school fees, mortgage costs and many other things. The following links describe deductions and allowances further.

 

https://www.rd.go.th/fileadmin/download/english_form/220364guide-allow.pdf

 

https://taxsummaries.pwc.com/thailand/individual/deductions#:~:text=There%20is%20a%20personal%20allowance,born%20in%20or%20after%202018.

 

https://sherrings.com/personal-tax-deductions-allowances-thailand.html

 

https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Payroll/Personal-Income-Tax

 

[ikke1959]

For people of 65 indeed, but when you are retired at an earlier age it doesn't count... Then you have only 60.000 free as personal allowance and of course the 150.000 zero tax. Now fair in fact pension is pension

[MartinL]

Mike Lister - Thanks for gathering this in one simple (I hope) thread.

 

While I could easily see where 60k฿ and 190k฿ allowances and exemptions come from, I was always dubious, after reading RD and various accountants' websites, of the applicability of the 100k฿ deduction to me as someone not working, in receipt of pensions and nothing else. It defied logic that a deduction could be made for expenses that were never incurred in the first place. 

 

However, somebody (or perhaps more than one 'somebody') in the multitude of pages in these threads - it might even be you, ML - has been filing tax returns for a few years and has received the 100k฿ deduction so I must conclude that it's valid.

 

No panic as far as my little family is concerned. I decide early on in this tax discussion that I had absolutely no intention of bailing out of Thailand - being with my wife here (she doesn't want to leave Thailand and I have no intention of leaving her!) is worth more than the few ££ in tax I might be required to pay in tax to Thailand. We're both past the stage in our lives where we want to buy expensive 'things' or take round-the-world trips - we have just about all we need with no debts now and can live quite adequately on our joint pensions even though they don't total a vast sum.

 

 

 

 

[Mike Lister]

2 minutes ago, ikke1959 said:

For people of 65 indeed, but when you are retired at an earlier age it doesn't count... Then you have only 60.000 free as personal allowance and of course the 150.000 zero tax. Now fair in fact pension is pension

The exemption of 190,000 is for being over age 65 years, not for receiving a pension.

[The Cyclist]

Good job @Mike Lister

 

Clear and concise and should put minds at rest for British State Pensioners. though not too sure how many are living in Thailand solely on the State Pension.

 

Could I respectfully ask you to amend the title to read ' British Expat pensioners  ' or you know what is liable to happen.

[Mike Lister]

46 minutes ago, ikke1959 said:

For people of 65 indeed, but when you are retired at an earlier age it doesn't count... Then you have only 60.000 free as personal allowance and of course the 150.000 zero tax. Now fair in fact pension is pension

I should also point out that in your case, having retired before age 65 and receiving a pension, your deductions and allowances are 60k for the personal allowance, max. 100k for 50% of your pension income, and, 150k zero rated for tax. Your tax free amount is therefore 310k per tax year.

[Celsius]

1 hour ago, Mike Lister said:

 I’m writing this because there are still many older posters who are under the impression that their pension will be taxed in Thailand, perhaps this thread will put some minds at ease

 

I doubt the pensioners are upset about some petty tax they will have to pay.

 

I am not a pensioner, but I am upset that I may be required to file a tax return.

 

When I arrived to Thailand I signed up to be treated like a mug by doing the following: 1 year extensions, 90 day reports, penalties for failing to register TM30, dual pricing, various scams.

 

I did not sign up to file a tax return in Thailand, so buh, bye if that is the case.

 

 

[Mike Lister]

6 minutes ago, Celsius said:

 

I doubt the pensioners are upset about some petty tax they will have to pay.

 

I am not a pensioner, but I am upset that I may be required to file a tax return.

 

When I arrived to Thailand I signed up to be treated like a mug by doing the following: 1 year extensions, 90 day reports, penalties for failing to register TM30, dual pricing, various scams.

 

I did not sign up to file a tax return in Thailand, so buh, bye if that is the case.

 

 

Well done, we can close the thread now that the whinging has started, the information in the first post is there for everyone else to see.

[Rimmer]

Per OP request

//CLOSED//

 

Pinned for future reference