Personal Income Tax Guide (for foreigners) Thailand

[Mike Lister]

2 minutes ago, OJAS said:

 

This does, however, strike me as an issue of potential interest to those in receipt of UK company pensions in particular, the more so if these pensions are significant in financial terms and/or they are also in receipt of the UK State Pension*. As I understand the present position, HMRC would only allow taxation relief equal to the amount of tax paid (at lower rates in most cases) to the RD here.

 

I strongly suspect that this could, in practice, mean UK company pensioners having to file tax returns with HMRC for the first time ever in most cases, as well as with the RD here. Which would mean them having to enlist the services of a commercial software supplier if filing to HMRC online since they are UK tax non-residents. What with the differing tax years (6/4/Y1 to 5/4/Y2 in the case of HMRC and 1/1/Y1 to 31/12/Y1 in the case of the RD), this could all turn out to be a bureaucratic nightmare in their case!

 

* @billd766 - looks like you might come under this heading.

 

If anyone needs it, I have a tax accountant in the UK who files my tax returns. The work is not vatable because I an expat, the cost is 160 Pounds per year and she's very good.

[Mike Lister]

I'm going to cross post here because there is so much misleading and confusing information flying around that many people are getting confused, and no wonder why.

 

Firstly, poster The Cyclist went to the RD to see if he needed to file a tax return, this is because , " I was a Thai Tax Resident in 2023 and as the income was from pensions, technically it was remitted the year it was earned". So yes, he was required to file a tax return under the old rules. BUT, for whatever reason the RD said he didn't need to file a return, allegedly, and oddly, he didn't ask why! We may never know what the real story was here or the reasons behind it so we all must move on and find another new example because the information on this is not reliable or conclusive in any way.

 

Secondly, we are being told repeatedly by some that we don't know what assessable income is and that at some point, the RD will tell us. This is not true, we have always known what assessable income is, the definition has not changed. Assessable income in Thailand is any income that was remitted to Thailand and was earned after 1 January 2024, whilst tax resident and which is not exempted by the DTA between Thailand and your home country, or by the Thai RD. 

 

Thirdly, the Revenue Department may make some announcements in the coming months or there again they may not. I am hard pressed to understand exactly what announcements might be made or why. We have been told that new tax filing forms are being prepared, presumably they are being redesigned but I don't even know this for certain. It is not impossible to think that we might arrive at 31 December 2024 knowing nothing more than we do today, in respect of Thai tax. If that happens, anyone who has been tax resident here during this year, will be required to file a tax return, as long as they have assessable income that exceeds the threshold of 120,000. Assessable income is defined above. It will be YOUR responsibility to understand your country's DTA with Thailand and determine what constitutes assessable income. DTA's are available to download and are linked in the OP.

 

Lastly, it is possible that many different things might happen between now and the end of the year but at this stage, trying to imagine what they might be is nothing more than guess work so I'm not even going to discuss any of them because it only further confuses matters.

[UKresonant]

2 hours ago, Mike Lister said:

Assessable income in Thailand is any income that was remitted to Thailand and was earned after 1 January 2024

.......whilst tax resident in Thailand (?) re 162/2566....

 

(Just in case anyone is out on a 8month contract or back home to re-charge the financial batteries, have spoken to some doing that, on on flights home over the years)

[UKresonant]

13 hours ago, OJAS said:

 

This does, however, strike me as an issue of potential interest to those in receipt of UK company pensions in particular, the more so if these pensions are significant in financial terms and/or they are also in receipt of the UK State Pension*. As I understand the present position, HMRC would only allow taxation relief equal to the amount of tax paid (at lower rates in most cases) to the RD here.

 

I strongly suspect that this could, in practice, mean UK company pensioners having to file tax returns with HMRC for the first time ever in most cases, as well as with the RD here. Which would mean them having to enlist the services of a commercial software supplier if filing to HMRC online since they are UK tax non-residents. What with the differing tax years (6/4/Y1 to 5/4/Y2 in the case of HMRC and 1/1/Y1 to 31/12/Y1 in the case of the RD), this could all turn out to be a bureaucratic nightmare in their case!

 

* @billd766 - looks like you might come under this heading.

 

Reading UK HMRC form "DT-individual" in conjunction with the Digest of Double Taxation Treaties (2018). Getting any relief from the UK end seems unlikely perhaps.

 

Government pension - only if Thai national and resident in Thailand (N&R). Other Pensions "No Relief"

[Mike Lister]

I've updated Section 33 of the document in the OP, unresolved issues A & F are now closed until new evidence confirms otherwise:

 

33. UNRESOLVED, CONFLICTING or UNCLEAR  ISSUES

 

 A. The exact nature of the imported income taxation rules between the Thai RD and countries with whom it has DTAs

 

Individual DTA's are available for download and inspection, they are all different. Thai law appears to state that all income is assessible, until it is proven to be otherwise.

 

 

F. If, as far as expats are concerned, the existing tax code/law really does pertain only to income derived from inside Thailand, which existing tax code rules, obliges resident expats who receive offshore income to file a tax return, eg is Section 40/41 intended to include such people or not?

 

Section 41 of the RD Code is very clear and pertains to overseas income hence foreigners are required to declare assessable income, under the existing code.

 

 

[Mike Lister]

Added and closed H in the unclear items at the end:

 

H. Are Pensions considered to be assessable income?

According to the two links below, yes they are:

 

 if an expat receives a pension in 2024 from their work or business in the past, the pension will be taxable in the year that the expat remits income into Thailand.

https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Tax/Thailand-Tax-Foreign-Income-Taxable-from-2024

 

2.1 Under Internal Regulations
In Thailand
In Thailand pension income is regarded as assessable income under Section
40 (1) of the Revenue Code. 

https://www.rd.go.th/fileadmin/download/nation/Norwegian_answer.pdf

 

[CharlesHolzhauer]

@Mike Lister

I am a pensioner. My tax accountant lodged my FINAL tax return, and I became a non-resident of Australia for tax purposes. Since I reside in Thailand for more than 180 days, I am considered a tax resident of Thailand.

My private pension provider in Australia allows me to choose, to a certain extent, the amount of my pension payment. Currently, I choose to withdraw the minimum amount as approved by the Australian government. The pension payment is credited to my bank account in Australia and is tax-free!

 

According to what I've read in your original post, I accept that my pension payment is considered assessable income by the Thai Revenue Department.

 

Since the minimum amount in AUD significantly exceeds the minimum taxable threshold of THB 120K, I was thinking to remit only about THB 1M per annum.

 

However, I am unsure if the Thai Revenue Department will expect me to pay tax on the pension payment received in Australia or the amount remitted to Thailand - would you please clarify as the tax payable for the total pension amount would be immensely larger.

 

My apologies if I missed the pertinent information as the 4 threads relevant to this issue are very active.

 

In any case, what supporting documents will the Revenue Department request when filing the tax return, and how should I determine the acceptable AUD/THB exchange rate?

 

Also, my pension provider is reviewing my pension payment annually, which will change depending on my age and total account value. In Australia, the fiscal 'financial year' starts on 1 July and ends on the next 30 June. Due to the obvious difference, I am unsure how to accommodate this in the Thai tax return.

Thanks for considering my post.

 

 

[Mike Lister]

3 minutes ago, Charles_Holzhauer said:

@Mike Lister

I am a pensioner. My tax accountant lodged my FINAL tax return, and I became a non-resident of Australia for tax purposes. Since I reside in Thailand for more than 180 days, I am considered a tax resident of Thailand.

My private pension provider in Australia allows me to choose, to a certain extent, the amount of my pension payment. Currently, I choose to withdraw the minimum amount as approved by the Australian government. The pension payment is credited to my bank account in Australia and is tax-free!

 

According to what I've read in your original post, I accept that my pension payment is considered assessable income by the Thai Revenue Department.

 

Since the minimum amount in AUD significantly exceeds the minimum taxable threshold of THB 120K, I was thinking to remit only about THB 1M per annum.

 

However, I am unsure if the Thai Revenue Department will expect me to pay tax on the pension payment received in Australia or the amount remitted to Thailand - would you please clarify as the tax payable for the total pension amount would be immensely larger.

 

My apologies if I missed the pertinent information as the 4 threads relevant to this issue are very active.

 

In any case, what supporting documents will the Revenue Department request when filing the tax return, and how should I determine the acceptable AUD/THB exchange rate?

 

Also, my pension provider is reviewing my pension payment annually, which will change depending on my age and total account value. In Australia, the fiscal 'financial year' starts on 1 July and ends on the next 30 June. Due to the obvious difference, I am unsure how to accommodate this in the Thai tax return.

Thanks for considering my post.

 

 

Only funds remitted to Thailand are taxable under Thai Revenue tax law.

 

You should not require any additional documentation to file a tax return. If your return is subsequently queried, the Thai Revenue may ask for further information but you should cross that bridge when you come to it. As in Australia, some small percentage of tax returns will likely be audited, there's no reason to think Thailand will be any different.

 

The exchange rate used is that set my the Ministry of Finance (or BOT) as of the date of the funds transfer.

 

I also have a problem in the UK with my tax year versus income received in a tax year that is different. I prorate rate things to accommodate that difference and the UK HMRC is happy with that. I suggest the Thai RD may also be happy with similar.

 

[CharlesHolzhauer]

3 minutes ago, Mike Lister said:

Only funds remitted to Thailand are taxable under Thai Revenue tax law.

Thanks for making my day 🙂

4 minutes ago, Mike Lister said:

I prorate rate things to accommodate that difference

Excellent suggestion, thanks.

[TheAppletons]

5 hours ago, Mike Lister said:

Added and closed H in the unclear items at the end:

 

H. Are Pensions considered to be assessable income?

According to the two links below, yes they are:

 

 if an expat receives a pension in 2024 from their work or business in the past, the pension will be taxable in the year that the expat remits income into Thailand.

https://www.mazars.co.th/Home/Insights/Doing-Business-in-Thailand/Tax/Thailand-Tax-Foreign-Income-Taxable-from-2024

 

2.1 Under Internal Regulations
In Thailand
In Thailand pension income is regarded as assessable income under Section
40 (1) of the Revenue Code. 

https://www.rd.go.th/fileadmin/download/nation/Norwegian_answer.pdf

 

 

  Apologies (I try to stay out of posting in these threads) but in your zeal to be "Khun Tax Guy", you are now posting information that is opinion, at best, and contradictory in some cases.

 

  Your Mazars quote indicates they believe that pensions are taxable if remitted in the year in which it is paid.  Yet, various DTAs explicitly state that government pensions are not taxable in Thailand, e.g., US military pensions, US government civil service pensions, etc. Those types of pensions fit the Mazars "definition" - they are certainly from "work or business in the past" - but they are clearly not taxable by virtue of the DTAs.

 

  I would politely suggest you stop trying to construct a "one size fits all" model - it isn't possible.  As a result, you are posting conflicting information that is obviously confusing some of the people you think you are helping.  Further, you lend credence to "field reports" from interaction with Thai tax officials when it suits your own viewpoint but discount the "field reports" when they don't.  (Pretty sure that's a form of statistical bias.)  

 

  Take the above for what it's worth - some internet rando posting a comment on a public discussion board.  

[Mike Lister]

44 minutes ago, TheAppletons said:

 

  Apologies (I try to stay out of posting in these threads) but in your zeal to be "Khun Tax Guy", you are now posting information that is opinion, at best, and contradictory in some cases.

 

  Your Mazars quote indicates they believe th giftat pensions are taxable if remitted in the year in which it is paid.  Yet, various DTAs explicitly state that government pensions are not taxable in Thailand, e.g., US military pensions, US government civil service pensions, etc. Those types of pensions fit the Mazars "definition" - they are certainly from "work or business in the past" - but they are clearly not taxable by virtue of the DTAs.

 

  I would politely suggest you stop trying to construct a "one size fits all" model - it isn't possible.  As a result, you are posting conflicting information that is obviously confusing some of the people you think you are helping.  Further, you lend credence to "field reports" from interaction with Thai tax officials when it suits your own viewpoint but discount the "field reports" when they don't.  (Pretty sure that's a form of statistical bias.)  

 

  Take the above for what it's worth - some internet rando posting a comment on a public discussion board.  

No, fair comment.

 

The approach I have taken to this is to try and post what I understand the latest view to be, based on all the conversations and evidence. Some of those views will flip flop as more becomes known and new information surfaces. The alternative is to leave the issues open without even so much as a hint as to what the correct answer may be and I decided not to do that. For example. last night, somebody researched Thai law and found a link about assessable income which I think is worth including because it comes from a respected law firm and is current information. If later it turns out to be something else, what can I say, we're not going to get everything right all the time.

 

All DTA's are different. The US/Thai DTA allows more types of income into Thailand free of tax than the UK /Thai DTA. The UK/Thai DTA allows government pensions to be free of tax but not private and company pensions. The US/Thai DTA is different. US SSC and private pensions are free of Thai tax. So as you can see, reading Mazzars in isolation isn't helpful, you have to read what is said, in the context of the country being discussed.

 

We are purposely not trying to create a one size fits all, we try not to delve into individual DTA's because that's where the delta occurs, one it's inevitably however there will be some country specific information included in the document. 

 

Finally, I don't really want to be Khun Tax Guy, I'm truly sorry for those people that don't get it that I, and others, are trying to be helpful with all of this. Thus far this week I've been accused of making money out of this, being employed in some industry or position that profits from these posts and of being part of government. To those people who are looking for reasons why, other than what they are, y'all need to stay out of the sun and cut down on the alcohol.

 

 

 

[OJAS]

23 hours ago, Mike Lister said:

All DTA's are different. The US/Thai DTA allows more types of income into Thailand free of tax than the UK /Thai DTA. The UK/Thai DTA allows government pensions to be free of tax but not private and company pensions. The US/Thai DTA is different. US SSC and private pensions are free of Thai tax. So as you can see, reading Mazzars in isolation isn't helpful, you have to read what is said, in the context of the country being discussed.

 

On the subject of DTA's, the following disturbing comment you've recently made in the original thread now running to 255 pages would IMHO be worth repeating here:

 

"Word reaches me from a friend who attended a Mazars briefing at a Embassy in Bangkok this week that Thailand is currently renegotiating several DTA's. allegedly."

 

[JimGant]

47 minutes ago, OJAS said:

On the subject of DTA's, the following disturbing comment you've recently made in the original thread now running to 255 pages would IMHO be worth repeating here:

 

"Word reaches me from a friend who attended a Mazars briefing at a Embassy in Bangkok this week that Thailand is currently renegotiating several DTA's. allegedly."

 Well, DTAs can be amended with "protocols." Hopefully, one such protocol might be re the UK-Thai DTA, and will finally address private pensions, which the current DTA is silent on. Other protocols might just update DTAs that have grown long in the tooth, and thus have led to misunderstandings. Can't really envision a scenario where an updated DTA would be detrimental to me.... But, who knows...

Edited February 2 by JimGant

[Mike Lister]

I'm busy updating and rewriting the Simple Guide to PIT to include the latest information and make it more easily readable. I have decided to rename it, the new title is:

 

THE ONCE SIMPLE, NOW SLIGHTLY COMPLICATED  GUIDE TO PERSONAL INCOME TAX IN THAILAND

 

If there are any proof reading type volunteers in our midst, please let me know.......don't push and shove, volunteers should form an orderly queue. 🙂

 

[Mike Lister]

An important update from Sherrings regarding the remittance of funds during a year when the tax payer not tax resident and their subsequent taxation.

 

On 23 January 2024, the RD was asked and answered as follows, parahrased:

 

Q: If I'm not resident in Thailand for a year and I earned foreign sourced income in that year, is it taxed when I bring it into Thailand?

A: It is not taxed because you were not resident in Thailand in the year it was earned.

 

Q: What types of foriegn source income is assessoble income and subject to PIT under Section 41, Para 2 law?

A: ....those prescribed in Section 40 (1 to 8 ) but not including income that is exempt or on which tax does not have to be paid under the Revenue code.

 

Q; a lengthy question about tax paid on income overseas.

A; There is no double taxation in Thailand, tax paid overseas can be credited against tax payable.

 

https://sherrings.com/foreign-source-income-personal-tax-thailand.html

[Mike Lister]

I have made significant changes/updates to the document in the OP and also reformatted parts of it. I may make a second revision and update in a few days, time permitting.

[grain]

I'm considering keeping my time spent in Thailand to just under 180 days in future tax years. When exactly does the Thai tax year begin and end? What are the exact dates?

[Mike Lister]

41 minutes ago, grain said:

I'm considering keeping my time spent in Thailand to just under 180 days in future tax years. When exactly does the Thai tax year begin and end? What are the exact dates?

 

I've just updated the op with the latest information which will effect many people. Please read it, the exact dates are in there.

 

 

[Mike Lister]

Now that we have the latest set of questions and answers from Sherrings, many important questions have been favorably closed out. In light of those answers, I think the chances that tax clearance certificates will be operationalised once again is almost zero. The facts now seem to suggest that, unless the tax form is changed significantly and the financial reporting requirements increased, it will not be necessary for the average retiree in Thailand to file a  tax return. 

[smedly]

On 1/14/2024 at 7:37 AM, Mike Lister said:

If you hold a Foreign Currency Deposit account (FCD) in Thailand you may wish to understand the banks position regarding A) your eligibility to retain the account, if you become tax resident, and (B) the circumstances under which a withdrawal and conversion of foreign currency from the account, into THB, is considered a funds transfer and is therefore a taxable event.

 

Thailand does not have offshore banks within its boundaries, offshore banks/branches are, by their very nature, outside the borders of the country. Instead, many Thai banks operate accounts that have some similar characteristics to offshore accounts in that money can be transferred into the account and then withdrawn or transferred out again, without prior approvals. One of the larger banks offers this type of account under  two headings, one for Thai nationals and one for non-resident foreigners.  Thai nationals who open such an account are liable to tax on money earned within the account and from 1 January 2024 onwards, the account will likely come under scrutiny from the RD for inbound transfers.

 

But non-resident foreigners are not liable to tax on this type of account, unless they opened the account using a work permit. BUT, if the non-resident foreigner stays in Thailand beyond 180 days, they become de-facto tax resident. It is possible that their eligibility to hold the account could cease and that transfers from the account represent taxable income from day 181 onwards.

 

Confusing and messy? Possibly! It may well be this is not an issue for many, based on their circumstances but it is something that shouldn't be ignored or over looked.  I don't have all the answers on this yet but there is an issue that account holders need to satisfy themselves  on regarding the two aspects described above. I tried to have a discussion with another poster recently about this subject but it wasn't conclusive and it didn't end well!  What was clear however was that the moment the account holder withdraws funds from the account and they are exchanged for THB, that is potentially taxable income, subject to all the other usual factors.

I have an FCD account in Bangkok bank, the funds where deposited from Thai account (when it was possible) in a lump sum, the origin of the funds was a transfer from UK many years ago, the balance hasn't changed for a very long time, I use it for visa extension yearly, it is in Thailand in  Thai bank, I don't see how this can be taxed

[Mike Lister]

1 minute ago, smedly said:

I have an FCD account in Bangkok bank, the funds where deposited from Thai account (when it was possible) in a lump sum, the origin of the funds was a transfer from UK many years ago, the balance hasn't changed for a very long time, I use it for visa extension yearly, it is in Thailand in  Thai bank, I don't see how this can be taxed

If they earned no interest, they cannot be taxed. But there is an anomaly with FCD accounts which, if held by non-residents, are funds that are deemed to be offshore. 

[smedly]

33 minutes ago, Mike Lister said:

If they earned no interest, they cannot be taxed. But there is an anomaly with FCD accounts which, if held by non-residents, are funds that are deemed to be offshore. 

i am resident, been here over 20 years but only had visa extensions from 50, my FCD was opened about 13 years ago internally transferred from my Thai current account, note the facility to do that was removed from online banking, you can of course do it the other direction, FCD to BAHT, clearly I have had these funds pre 2024

[jeffandgop]

I'm a U.S. citizen residing full time in Thailand.  I am required to file a U.S. federal tax return where my income is principally private pension and Social Security.  Under the US-Thailand DTA, social security income is exempt from Thai taxation.  As for my pension, I end up with no U.S. tax liability for that income, as my total income level (combined social security and pension) is less than the minimum required to pay any taxes on my income, after deductions and allowances.  Does Thailand have a claim for taxation on the pension when I remit funds from my U.S. bank to my Thailand bank? (Putting aside my U.S. bank receives both Social Security AND pension payments into the same account, the RD would have no way of knowing what amount of the remittance derives from either social security and/or pension......)

Edited February 5 by jeffandgop

[Mike Lister]

14 minutes ago, jeffandgop said:

I'm a U.S. citizen residing full time in Thailand.  I am required to file a U.S. federal tax return where my income is principally private pension and Social Security.  Under the US-Thailand DTA, social security income is exempt from Thai taxation.  As for my pension, I end up with no U.S. tax liability for that income, as my total income level (combined social security and pension) is less than the minimum required to pay any taxes on my income, after deductions and allowances.  Does Thailand have a claim for taxation on the pension when I remit funds from my U.S. bank to my Thailand bank? (Putting aside my U.S. bank receives both Social Security AND pension payments into the same account, the RD would have no way of knowing what amount of the remittance derives from either social security and/or pension......)

Paging @JimGant

 

Who will be along shortly to answer your question. Jim is a retired US CPA and well versed in US tax matters..

[tomkenet]

If I'm a resident in Thailand for a year and I earn foreign sourced income in that year,

next year I reside outside of Thailand, remit that income to Thailand, then move back to Thailand the year after.

Any tax to be paid in Thailand?

 

 

[Mike Lister]

2 minutes ago, tomkenet said:

If I'm a resident in Thailand for a year and I earn foreign sourced income in that year,

next year I reside outside of Thailand, remit that income to Thailand, then move back to Thailand the year after.

Any tax to be paid in Thailand?

 

 

Income earned outside Thailand in a tax year when you were not tax resident in Thailand, is not subsequently taxable in Thailand, when you become resident once again.

[Noker]

58 minutes ago, Mike Lister said:

Income earned outside Thailand in a tax year when you were not tax resident in Thailand, is not subsequently taxable in Thailand, when you become resident once again.

Related to Point 26 in the "Tax Guide" and to the post quoted, it remains unclear how the Thai RD is going to distinguish between non-taxable remitted money and remitted capital gains, like from a simple fixed deposit account or even shares.

Being a tax resident in 2024 in Thailand only, continuously generating earnings from shares or deposits not being taxed overseas and not covered by any DTA, this money becomes taxable when remitted in any year now – if being an Tax-Resident in that year of remittance.

Being no tax resident in 2025, these types of earnings generated in 2025 are of no business to Thai-RD when remitted in 2025 or in any year.

Being a tax resident in 2026 again and remitting money in this year – how will it be possible for RD to distinguish between taxable and non-taxable of that remitted money. Or if the tax payer will have to proof it – how is that even possible to proof until 31.03.2027, that money remitted in 2026 were earning from 2025 only and not from 2024, not from year 2026…

Edited February 5 by Noker

[Mike Lister]

12 minutes ago, Noker said:

Related to Point 26 in the "Tax Guide" and to the post quoted, it remains unclear how the Thai RD is going to distinguish between non-taxable remitted money and remitted capital gains, like from a simple fixed deposit account or even shares.

Being a tax resident in 2024 in Thailand only, continuously generating earnings from shares or deposits not being taxed overseas and not covered by any DTA, this money becomes taxable when remitted in any year now – if being an Tax-Resident in that year of remittance.

Being no tax resident in 2025, these types of earnings generated in 2025 are of no business to Thai-RD when remitted in 2025 or in any year.

Being a tax resident in 2026 again and remitting money in this year – how will it be possible for RD to distinguish between taxable and non-taxable of that remitted money. Or if the tax payer will have to proof it – how is that even possible to proof until 31.03.2027, that money remitted in 2026 were earning from 2025 only and not from 2024, not from year 2026…

It's down to you as to what you declare and. To keep track of what is assessable 

[JimGant]

5 hours ago, jeffandgop said:

Does Thailand have a claim for taxation on the pension when I remit funds from my U.S. bank to my Thailand bank? (Putting aside my U.S. bank receives both Social Security AND pension payments into the same account, the RD would have no way of knowing what amount of the remittance derives from either social security and/or pension......)

 

The DTA says Thailand has exclusive taxation rights on your private pension (but the US has secondary rights, due to the saving clause that allows the US to override all aspects of DTA language). So, if your private pension exceeds all those allowances, deductions, 150k freebies offered in a Thai tax return -- then, yeah, you have Thai taxable income, and thus need to file a Thai tax return. But you get a credit for these Thai taxes against your US tax bill; but, as you say, you owe no US taxes. Well, then, the credit is worthless (well, not quite -- you could file an extensive Form 1116, which would allow a carry-over of this credit, should you have future US taxable income.... a lot of work if your future shows no US taxation). Anyway, this is a case where having to pay Thai taxes, and no US taxes -- means you're now in a situation of owing someone taxes (but, without exploring various math scenarios, I really think if you owe no US taxes, because the standard deduction exceeds your adjusted gross income, then you most likely won't meet the Thai taxable income threshold either).

 

As far as someone parsing your Social Security remittances apart from your private pension remittances -- of course this won't, and can't happen -- fungibility of money remittances is a wonderful thing. As said a monotonous amount of time on these threads -- it will all be self-assessment. Keep good records; report what looks correct to you; and give yourself the benefit of the doubt, particularly if you can support a good argument, should it (unlikely) ever come to that.

 

[I give myself a tax credit for Bangkok Bank withheld taxes on my US return. Rules say, if I can get this withholding refunded, I can't get the credit. My excuse, should I ever get a letter audit from the IRS, is that I read on an expat forum that I can't get a tax refund without a TIN; and I can't get a TIN without a work permit. This would be my excuse if ever audited (weak as it may be). Integrity? No tax evasion? Nope -- Thailand keeps the taxes, and the US gives a credit, vice US gets the taxes, and Thailand has to refund their withholding taxes to me. Thus, taxes working where I live.]

[Mike Lister]

I've made a second update to the document, I've fixed broken links, replaced a couple of para's with different wording and links and also updated the definition of assessable income to include the legal interpretation. Some wording has been improved and a couple of points clarified.

 

If you spot things that are unclear, wrong, broken, please say.