Plan B Countries - Any Advice or Ideas ?

[MangoKorat]

8 minutes ago, Scouse123 said:

So what is the difference?

I have no idea but if you have been following the many discussions on the tax changes affecting foreigners in Thailand - you must have missed the information on this subject.

 

On several occasions, people, apparently in the know, have stated that a UK State Pension does form part of your assessable income in Thailand whereas income from a Government Pension does not.

 

I have never understood the distinction but maybe a Government Pension is that provided to retired government employees?

 

In any case, although I have not looked into it yet as I am not yet resident in Thailand, from reading the various threads, I will be moving forward on the understanding that my pension, when I receive it, will form part of my assessable income in Thailand.

 

Before you go making any changes to your finances in Thailand or leaving for 183 days to avoid being classed as tax resident, you might want to look at the allowances you receive and do a 'dummy run' to see how much tax you will actually pay.  I believe you stated that you are not pension age yet but I would just note that the Thai allowances increase substantially when you reach 65.

 

With careful use of 'cash' and control of how much you actually bring in to Thailand, I think you might find that staying in Thailand and paying tax (if any) is much cheaper than moving around in order to avoid it.

 

That said, I still have to look into the 'Reported' possibility that the Thai authorities intend taxing the tax global income of 'tax residents'.  I really don't see how they will do that but its something I will be following and checking out in more detail before I 'make the move' early in 2025.

[chickenslegs]

32 minutes ago, Scouse123 said:

 

 

I am a bit confused by that.

 

I thought, rightly or not, that the UK state pension came under the DTA.

 

So what is the difference?

 

State pensions are what most elderly people use in Europe, I accept many have backup with private pensions.

 

If they were going after anything, one would have thought it would be the top-up additional private pension because most people are entitled to state pension, even those who have spent their lives unemployed.

 

The state pensions are supposedly to cover the needs of a pensioner to exist and pay their bills.

 

Anyway, it's got to be transferred in through the banks as income, I have no intention of remitting funds this way any more.

 

Government pension is paid to civil service, armed forces, police, NHS, state school teachers, and the like.

The State Pension is not covered in the UK/Thailand DTA - so it is liable to be taxed here.

However, I received a letter from HMRC recently, on an unrelated matter, that stated that it is "protocol" to provide relief for any double taxation.

An extract from the letter:

Quote

Your Police Pension is deemed as a Governmental Pension and therefore remains taxable within the United Kingdom.

Your State Pension is not covered by the current agreement and so also remains taxable within the UK.

Thailand may tax this income too, this can result in double taxation.

As the resident state it is protocol that Thailand would provide unilateral (independent) relief to any double taxation arising.
However, this is not for HMRC to decide but is down to the discretion of the Thai Tax Authorities.

 

[ukrules]

11 hours ago, Mahseer said:

An individual is deemed to be a Cambodian resident if he is domiciled in or has a principal place of abode in Cambodia or is present in Cambodia for more than 182 days during the calendar year. Cambodian residents are taxed on their worldwide salary income.

 

Yeah they keep saying that but when you look a little deeper things happen very differently on the ground.

For example, look up how to make a personal tax filing in Cambodia without being an employee or just getting a tax number without a job being employed at a Cambodian company.

See how far you get.......hint - not far.

 

Everything about global taxation in Cambodia you read is a lie - it doesn't exist.

Edited 2 hours ago by ukrules

[JimTripper]

On 11/24/2024 at 2:19 PM, GammaGlobulin said:

Maybe.

But, in these countries, medical dental care is not what it is in Thailand.

 

So, if on were to choose among countries with same or better medical and dental compared to Thailand...

Then which three alternate countries would people choose?

 

(No need to mention Malaya, because I have already considered Malaya.)

Depends on what your budget is. How wealthy are you?

[Scouse123]

1 hour ago, MangoKorat said:

I have no idea but if you have been following the many discussions on the tax changes affecting foreigners in Thailand - you must have missed the information on this subject.

 

On several occasions, people, apparently in the know, have stated that a UK State Pension does form part of your assessable income in Thailand whereas income from a Government Pension does not.

 

I have never understood the distinction but maybe a Government Pension is that provided to retired government employees?

 

In any case, although I have not looked into it yet as I am not yet resident in Thailand, from reading the various threads, I will be moving forward on the understanding that my pension, when I receive it, will form part of my assessable income in Thailand.

 

Before you go making any changes to your finances in Thailand or leaving for 183 days to avoid being classed as tax resident, you might want to look at the allowances you receive and do a 'dummy run' to see how much tax you will actually pay.  I believe you stated that you are not pension age yet but I would just note that the Thai allowances increase substantially when you reach 65.

 

With careful use of 'cash' and control of how much you actually bring in to Thailand, I think you might find that staying in Thailand and paying tax (if any) is much cheaper than moving around in order to avoid it.

 

That said, I still have to look into the 'Reported' possibility that the Thai authorities intend taxing the tax global income of 'tax residents'.  I really don't see how they will do that but its something I will be following and checking out in more detail before I 'make the move' early in 2025.

 

 

Yes,

 

Thanks for that.

 

I think the trick is, is to make sure it doesn't go through bank to bank into Thailand.

 

Other methods as I outlined earlier such as using foreign debit and credit cards and of course, Revolut and Wise cards.