Thai gov. to tax (remitted) income from abroad for tax residents starting 2024 - Part II

[Mike Teavee]

1 hour ago, chiang mai said:

No. Dividends has its own with holding rate, as I believe property rental does. 

Thanks, I suspected as much so kept my remittances below 235K but thought it wise to ask on the off chance I was missing out on being able to bring another 100K over.

[stat]

20 hours ago, oldcpu said:

 

My pension situation is complex. 

 

I worked in Canada for 27 years paying tax to Canada then (qualifying me for a partial Canadian pension and Old Age Security), worked for a company in Germany for a bit less than 5 years paying tax to Germany then (but paid extra to Germany to get 5 year credit to qualify for a very small German pension which I now receive) and worked for a European Government organisation for 13.5 years (my tax money went to Ireland then before I retired - although I never worked in Ireland - this is a complex European organisation thing) and I now receive a pension from that European organisation.  I won't go into all its tax aspects here.

 

On the 'private' side, next year I will start receiving money from a Canadian Registered Retirement Income Fund (RRIF) (sort of like a US 401k) which will be taxed in Canada (per DTA), ...  and also some money from a private German Health insurance/pension scheme that my wife had my buy many years back (which I forgot about - and I assume taxed in Germany).

 

 

The Canadian pension and Canadian RRIF money will be taxed in Canada (per my understanding of the Thailand/Canada DTA). The German pension will be taxed (or not taxed) in accordance with the Thailand/German DTA (and in accordance with the Thailand LTR exemption on assesable income).  The private German Health Insurance pension scheme pension I assume will be taxed in Germany < not sure > Its small and I even forgot about it, until I received a letter a week ago from them reminding me ...  The European government organisation pension will be taxed or not taxed in accordance with my Thailand LTR visa.  I have always planned to have it taxed, so not being taxed by my having a Thailand LTR visa would be a nice financial perk/extra.

 

So regardless as to how this plays out, it won't affect my future plans for Thailand.   My wife is 13 years younger than myself, so my main long range financial future plan is to ensure she is looked after when I pass away (hopefully I don't pass away too soon).

Just try to make sure you do not remit the German gov. pension to TH. Best keep the pension aside in a different account if possible. So as long as they do not change to ww taxation you should be tax free. I do not know anything about the other pensions you mentioned, sorry.

[stat]

19 hours ago, JimGant said:

Why do you say that? The DTA says German govt pensions are exempt from Thai taxation.

 

I am not allowed to post sources in German here that confirm my statement, sorry.

[chiang mai]

21 minutes ago, Mike Teavee said:

Thanks, I suspected as much so kept my remittances below 235K but thought it wise to ask on the off chance I was missing out on being able to bring another 100K over.

Rental income has a 30% standard deduction but if income is received in first half year, two returns are due, June and January.

[JimGant]

5 minutes ago, stat said:

I am not allowed to post sources in German here that confirm my statement, sorry.

Someone already explained that your "government pension" was actually a social service payment of some kind, not a pension for services rendered to German government. This would be akin to the UK, where their State Pension is not for services rendered to the govt -- and is taxable by Thailand. But a UK pension paid for service to the govt is solely taxable in the UK -- same for a German pension paid for your work for the govt.

[Mike Teavee]

Just now, chiang mai said:

Rental income has a 30% standard deduction but if income is received in first half year, two returns are due, June and January.

Is that rental income from Thailand or does it apply to rental income from overseas?
 

Doesn’t matter to me as I can show that the 235K I sent over came from UK dividends (though commingled with rental income the dividends I received just before remitting the money far exceeded 235K) but would be good to know for future reference. 

[chiang mai]

1 minute ago, Mike Teavee said:

Is that rental income from Thailand or does it apply to rental income from overseas?
 

Doesn’t matter to me as I can show that the 235K I sent over came from UK dividends (though commingled with rental income the dividends I received just before remitting the money far exceeded 235K) but would be good to know for future reference. 

Both, either/or

[JimGant]

2 hours ago, chiang mai said:

According to some members, filing a null return is not wanted and makes you a stupid person. But if you want to get back the tax with held on your interest, I would certainly recommend filing anyway.

Actually, if you're a Yank, you can still not be stupid by filing a Thai tax return to get back your withheld tax on interest -- and just take a tax credit on your US tax return for those Thai withheld taxes. No proof of Thai taxes withheld is needed with your US filing -- and if those taxes are below 20,000baht ($600), filing jointly ($300, single) -- only a single line item entry is required. For higher amounts, a Form 1116 is required -- but it's an easy fill. All this plugs easily into your TurboTax actions.

 

The only requirement is that you're unable to get a refund from the Thai govt. But to get a refund, you need a TIN. And as we know from this forum, there are plenty of examples of folks being denied TINs for not having a work permit, etc. Good enough excuse for an IRS audit. Thus, one more reason not to get a TIN -- and to avoid all contact with the TRD.

[stat]

2 hours ago, chiang mai said:

No. Dividends has its own with holding rate, as I believe property rental does. 

Uk dividends come without a withholding tax, one of the few countries without WHT like Singapore, Ireland and some Aussie shares.

Edited 1 hour ago by stat

[anrcaccount]

54 minutes ago, chiang mai said:

55 minutes ago, Mike Teavee said:

Is that rental income from Thailand or does it apply to rental income from overseas?
 

Doesn’t matter to me as I can show that the 235K I sent over came from UK dividends (though commingled with rental income the dividends I received just before remitting the money far exceeded 235K) but would be good to know for future reference. 

Both, either/or

 

So, are you advising that a foreigner (Thai tax resident) who remits rental income from a property located overseas, to Thailand, can claim a standard 30% deduction on the gross income?