Double Taxation Avoidance Agreement (DTAA) between Thailand and Australia

[CharlesHolzhauer]

I am classified in Australia as a self-funded retiree. My pension payments are drawn from a private pension platform and are automatically deposited into an external bank account. The investment earnings on the assets supporting these pension payments are tax-free, as approved by the Australian government.
Would anyone in a similar situation know if these tax-free pension payments become taxable once they are remitted to my Thai bank account? From my understanding, the Double Taxation Avoidance Agreement (DTAA) between Thailand and Australia does not specifically address private pension payments. Any insights or clarification on this matter would be greatly appreciated.

[gearbox]

1 hour ago, CharlesHolzhauer said:

I am classified in Australia as a self-funded retiree. My pension payments are drawn from a private pension platform and are automatically deposited into an external bank account. The investment earnings on the assets supporting these pension payments are tax-free, as approved by the Australian government.
Would anyone in a similar situation know if these tax-free pension payments become taxable once they are remitted to my Thai bank account? From my understanding, the Double Taxation Avoidance Agreement (DTAA) between Thailand and Australia does not specifically address private pension payments. Any insights or clarification on this matter would be greatly appreciated.

I'm in the same boat. AFAIK the private pensions like super are not covered by the DTA and are taxable...at least this was my impression after reading the DTA. Departing next month to spend 7 months in Oz then 2 months in Europe, this will prevent me being tax resident in Thailand in 2025. Planning to spend less than 180 days per year for forseeable future.

[CharlesHolzhauer]

6 minutes ago, gearbox said:

I'm in the same boat. AFAIK the private pensions like super are not covered by the DTA and are taxable...at least this was my impression after reading the DTA.

Bummer😀. I didn't make any money transfers in 2024 and my previous 2023 money transfers will last for a while. Enough time to make decisive arrangements.  

[In Full Agreement]

1 hour ago, CharlesHolzhauer said:

I am classified in Australia as a self-funded retiree. My pension payments are drawn from a private pension platform and are automatically deposited into an external bank account. The investment earnings on the assets supporting these pension payments are tax-free, as approved by the Australian government.
Would anyone in a similar situation know if these tax-free pension payments become taxable once they are remitted to my Thai bank account? From my understanding, the Double Taxation Avoidance Agreement (DTAA) between Thailand and Australia does not specifically address private pension payments. Any insights or clarification on this matter would be greatly appreciated.

 

 

 

Are you currently or have you in the past paid income tax/

[CharlesHolzhauer]

5 minutes ago, In Full Agreement said:

Are you currently or have you in the past paid income tax/

No, not in Thailand.

[Pattaya57]

I'm in the "bury my head in the sand" club. I remitted over a million baht in savings during 2024. Am I racing to get a TIN and file a Thai tax return when I've had no Thai income, no chance!

[gearbox]

1 hour ago, CharlesHolzhauer said:

Bummer😀. I didn't make any money transfers in 2024 and my previous 2023 money transfers will last for a while. Enough time to make decisive arrangements.  

I can work around the transfers but if they want to start taxing worldwide income irrespectively whether the income was transferred or not, I would have real issues. Too much uncertainty at the moment, the 100% fix is to spend less than 180 days.I live off money I transferred in 2022, but I'm planning to move to DTV, this would free my 800k in the bank to be used.

[Phillip9]

4 minutes ago, gearbox said:

I can work around the transfers but if they want to start taxing worldwide income irrespectively whether the income was transferred or not, I would have real issues. Too much uncertainty at the moment, the 100% fix is to spend less than 180 days.I live off money I transferred in 2022, but I'm planning to move to DTV, this would free my 800k in the bank to be used.

 

How will they find out about your income in Australia?  They would need to hire lawyers in Australia and take you to court there to get that information.  Seems completely impossible they could do that considering how much that would cost and the number of foreigners living in Thailand.  No reason to even spend a second worrying about that until we get at least one report that it's happened to someone else.

[CharlesHolzhauer]

45 minutes ago, Pattaya57 said:

I'm in the "bury my head in the sand" club. I remitted over a million baht in savings during 2024. Am I racing to get a TIN and file a Thai tax return when I've had no Thai income, no chance!

I am happily married and have settled comfortably in Thailand, with no intentions of looking back as my ties to Australia are firmly behind me. At my age, I have no interest in acting ignorant; my priority is to do what is right, stay out of trouble and live peacefully.

[CharlesHolzhauer]

22 minutes ago, gearbox said:

I can work around the transfers but if they want to start taxing worldwide income irrespectively whether the income was transferred or not, I would have real issues. Too much uncertainty at the moment, the 100% fix is to spend less than 180 days.I live off money I transferred in 2022, but I'm planning to move to DTV, this would free my 800k in the bank to be used.

I am 76 years young and financially secure. While the proposed tax on worldwide income would be a manageable setback, I have no intention of making any drastic changes to my current living arrangements.

[gearbox]

37 minutes ago, Phillip9 said:

 

How will they find out about your income in Australia?  They would need to hire lawyers in Australia and take you to court there to get that information.  Seems completely impossible they could do that considering how much that would cost and the number of foreigners living in Thailand.  No reason to even spend a second worrying about that until we get at least one report that it's happened to someone else.

Nope....Google CRS. At the moment is too mirky but if the Thais determine you are tax resident they may require the CRS info from the Oz side, and they may need to provide it. However it is all new and would probably need years to be worked out. One thing for sure - the things are going to get worse, not better. The governments are out to fleece you.

[Pattaya57]

28 minutes ago, CharlesHolzhauer said:

I am happily married and have settled comfortably in Thailand, with no intentions of looking back as my ties to Australia are firmly behind me. At my age, I have no interest in acting ignorant; my priority is to do what is right, stay out of trouble and live peacefully.

I understand this revised tax clause was never intended to tax retirees living in Thailand on a pension. It is meant to catch wealthy Thai's earning income overseas. Until someone says they were forced to pay Thai tax on their aussie pension I will remain as usual without doing a Thai tax return. Good luck to you trying to find an exact answer though as there isn't one, no-one knows.

[gearbox]

35 minutes ago, CharlesHolzhauer said:

I am 76 years young and financially secure. While the proposed tax on worldwide income would be a manageable setback, I have no intention of making any drastic changes to my current living arrangements.

At 76 I wouldn't worry too much....it will take probably years to get to effective worldwide taxation. The taxman can do little if they don't have info from overseas.

[KhunHeineken]

On 1/8/2025 at 5:59 AM, CharlesHolzhauer said:

I am classified in Australia as a self-funded retiree. My pension payments are drawn from a private pension platform and are automatically deposited into an external bank account. The investment earnings on the assets supporting these pension payments are tax-free, as approved by the Australian government.
Would anyone in a similar situation know if these tax-free pension payments become taxable once they are remitted to my Thai bank account? From my understanding, the Double Taxation Avoidance Agreement (DTAA) between Thailand and Australia does not specifically address private pension payments. Any insights or clarification on this matter would be greatly appreciated.

The DTA does not cover this type of income. 

 

It is taxable in Thailand.

[KhunHeineken]

For what it's worth, the word "pension" is used to describe monthly income generated by a super fund, but in many cases it's actually an "annuity."  Therefore, using the word "pension" for these payments can be incorrect.   

[CharlesHolzhauer]

9 hours ago, KhunHeineken said:

For what it's worth, the word "pension" is used to describe monthly income generated by a super fund, but in many cases it's actually an "annuity."  Therefore, using the word "pension" for these payments can be incorrect.   

You couldn’t be more mistaken! With an account-based pension, I have full control over how the funds are invested within the available options, offering far greater flexibility. Additionally, it allows for the seamless continuation of pension payments to my nominated beneficiary after my passing.

[KhunHeineken]

11 hours ago, CharlesHolzhauer said:

You couldn’t be more mistaken! With an account-based pension, I have full control over how the funds are invested within the available options, offering far greater flexibility. Additionally, it allows for the seamless continuation of pension payments to my nominated beneficiary after my passing.

I said "in many cases" and not "in YOUR case" or "all cases." 

 

Merely pointed out that the word "pension" is very broadly used to describe any regular payment once retired.  Not every single retiree will receive a "pension" but some may still call it a "pension" because that's what they believe it to be, however, it may be a different financial product. 

 

https://moneysmart.gov.au/retirement-income/annuities#:~:text=An annuity%2C also known as,sure about your future income.