My Thai Tax Office Tax Filing Experience...

[WingNut]

58 minutes ago, HappyExpat57 said:

Well I certainly won't be opening any new accounts over here. Three is enough for me. Thanks for the info.

 

Your welcome. The truth is that due to FATCA, many overseas financial institutions refuse to open accounts for Americans to avoid the nuisance of the complex IRS compliance requirements. While Thailand is an helpful exception, in many developed countries, it's significantly more difficult for Americans to even open bank accounts. This means it's also more challenging for Americans to live life as an expat in some Western countries. 

 

[baansgr]

11 hours ago, Wyabcp said:

from my limited knowledge trying to figure all this out, the capital gains from an ISA is taxable in Thailand. Also, the DTA may cover some of the pension tax, but the UK tax free allowance is also taxable in Thailand. As for transferring to spouse, this needs to be fully documented and proved that you won't benefit from it...

I really hope I'm wrong, I'm from the UK and in similar situation...

Cheers for the detailed answer, 

[Yumthai]

12 hours ago, KhunHeineken said:

Then, there will be cases of enforcement being publicized to ponder. 

Can't wait to see that. The only few cases will be the scared sheep running to file putting themselves in the tax system with unstraightforward foreign income situation where TRD is not able to process the DTAs and other exemptions from the foreign supporting docs then will tax full remittances regardless.

[Sheryl]

Nrw question: does anyone have a link to an official source stating there is a 100k pension allowance/exemptikn? Gets mentioned in various places but I csn't find it in any RD publication nor a space for it on any tax form. 

[Mutt Daeng]

1 hour ago, Sheryl said:

Nrw question: does anyone have a link to an official source stating there is a 100k pension allowance/exemptikn? Gets mentioned in various places but I csn't find it in any RD publication nor a space for it on any tax form. 

Less Expenses:

On PND90 it is on page 2  Section 1.5

On PND91 it is on page 2 Section A.4

[Raindancer]

1 hour ago, Sheryl said:

Nrw question: does anyone have a link to an official source stating there is a 100k pension allowance/exemptikn? Gets mentioned in various places but I csn't find it in any RD publication nor a space for it on any tax form. 

This might help.

 

Check first Deductions for Expenses:

 

It was clarified that income derived from pensions counted towards exemptions/ allowances of 50%, but no more than 100000 baht could be included. 

 

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

 

 

This link from Jan 2024 was also given:

 

 

 

[KhunHeineken]

6 hours ago, Yumthai said:

Can't wait to see that. The only few cases will be the scared sheep running to file putting themselves in the tax system with unstraightforward foreign income situation where TRD is not able to process the DTAs and other exemptions from the foreign supporting docs then will tax full remittances regardless.

I expect to see a couple of high net worth individuals, possibly Chinese, paraded before the media for not paying this tax. 

 

You've lived in Thailand long enough to know the Directory General will order it done, so he can say to his boss and the public, "See, we are catching them and making them pay tax."   It goes to "face."  

 

Time will tell. 

[KhunHeineken]

18 hours ago, rocketboy2 said:

 

Yes, think your right, should be some interesting stories over the coming weeks.

it's all a big crock of Do Do. fun times ahead. not. 

 

 

The Thai's know they are on to something with this, and no way will they just let it fade away. 

 

2025 is just the start.  This tax policy will evolve, but at the end of the day, it will have something in it for all foreigners living here.

[jesimps]

On 1/31/2025 at 2:21 PM, topt said:

DTA states UK Govt. (civil service etc) pension can only be taxed in the UK.

Both private pensions and the state pension can be taxed in Thailand.

Probably because the tax for government employees is taken out by the government at source. It is never given to you so  the Thais know for certain that the tax has been paid. The same can't be said for the state pension.

[Sheryl]

1 hour ago, Raindancer said:

This might help.

 

Check first Deductions for Expenses:

 

It was clarified that income derived from pensions counted towards exemptions/ allowances of 50%, but no more than 100000 baht could be included. 

 

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

 

 

This link from Jan 2024 was also given:

 

 

 

Yes I have seen those but can't find anything ftom the RD. 

[rocketboy2]

59 minutes ago, KhunHeineken said:

The Thai's know they are on to something with this, and no way will they just let it fade away. 

 

2025 is just the start.  This tax policy will evolve, but at the end of the day, it will have something in it for all foreigners living here.

 

Yes think your right.

Maybe they will give us all something like,  free mango and sticky rice once a year at counter 

24 in the immigration car park. 

[Sheryl]

2 hours ago, Mutt Daeng said:

Less Expenses:

On PND90 it is on page 2  Section 1.5

On PND91 it is on page 2 Section A.4

How would this be considered expenses? Doesn't make sense Expenses are costs incurred in earning income.  ????

 

This eoulf be an allowance or exemption not an expense.

[Raindancer]

11 minutes ago, Sheryl said:

How would this be considered expenses? Doesn't make sense Expenses are costs incurred in earning income.  ????

 

This eoulf be an allowance or exemption not an expense.

Well, it's how you interpret it.

 

It states: income derived from pensions, is exempt from taxation.   Sure its badly  labelled under Expenses.  But the wording is quite explicit.

 

This was explained by Mike Lister in numerous posts, in Jan 2024 and onwards.

 

And @Mutt Daeng clearly posted, where it can be included, in income tax returns.

 

Perhaps it might ease your mind by contacting Sherrings or one of the Tax experts for a free 15 minute call. 

[NoDisplayName]

22 minutes ago, Sheryl said:

Yes I have seen those but can't find anything ftom the RD. 

 

On the PN90 you, you enter your pension in section 1(1), then

1(2) you deduct contributions 1(3) you add allowances.  1(4) is the total, then in 1(5) you take up to 100K off.

 

No. 1 item 5.
Enter allowable expense equal to 50% of the amount stated in item 4. but not exceeding 100,000 baht. If you and your spouse both have income and you are filing jointly, you and your spouse can each deduct expense as stated above. Thus, the maximum allowable expense is 200,000 baht in this case.

[NoDisplayName]

31 minutes ago, Sheryl said:

How would this be considered expenses? Doesn't make sense Expenses are costs incurred in earning income.  ????

 

This eoulf be an allowance or exemption not an expense.

 

Not just salary..........section 1 is income derived from employment

 

Section 40(1) income includes your salary, wage, per diem, bonus, bounty, gratuity, pension, rent allowance, employer-provided rent-free lodging, debt liability paid by your employer, and any money, property or benefit you received in connection to your employment.

 

"Expense" may be a poor translation.  I think of it as a standard deduction any taxpayer may take without supporting documentation, instead of filing an additional Schedule A itemizing expenses.  Isn't that available for rental income also?  You can take a standard 30% deduction or elect to itemize expenses?

[MartinL]

4 hours ago, Sheryl said:

Nrw question: does anyone have a link to an official source stating there is a 100k pension allowance/exemptikn? Gets mentioned in various places but I csn't find it in any RD publication nor a space for it on any tax form. 

 

I can't provide a link but I can show an actual example of it being applied.

 

The attached is a page from my wife's tax return from last week. She only has pension income so uses Form 91. She's 69 so qualifies for the 65+ allowance. The 100k 50% 'expenses' is deducted at Line 4. Those two and the personal allowance of 60k puts her in the 0% tax band. The figure of about 7,700 baht is the withholding tax taken during 2024, to be refunded.