A question regarding the dreaded Tax Identification Number saga

[pollyog]

Interest earned in Thai bank accounts is automatically taxed at source regardless of whether the account holder has a Thai Tax Identification Number..  How do the authorities assign this regarding TIN?  

 

Also, all the information does not make it clear regarding the necessity of a TIN for those of us who are here on 'Retirement' Visas, who are not allowed to work in Thailand and hence have no 'income' other than the interest earned in our Thai bank accounts, and who come from a country with a double taxation agreement such as the UK.  Is there anyone out there who can clarify this matter?

 

[Mutt Daeng]

12 hours ago, pollyog said:

Interest earned in Thai bank accounts is automatically taxed at source regardless of whether the account holder has a Thai Tax Identification Number..  How do the authorities assign this regarding TIN?  

 

Also, all the information does not make it clear regarding the necessity of a TIN for those of us who are here on 'Retirement' Visas, who are not allowed to work in Thailand and hence have no 'income' other than the interest earned in our Thai bank accounts, and who come from a country with a double taxation agreement such as the UK.  Is there anyone out there who can clarify this matter?

 

You're probably better asking your question here https://aseannow.com/forum/13-jobs-economy-banking-business-investments/

Quite a few threads about Tax, TINs etc

[TheAppletons]

16 hours ago, pollyog said:

Interest earned in Thai bank accounts is automatically taxed at source regardless of whether the account holder has a Thai Tax Identification Number..  How do the authorities assign this regarding TIN?  

 

Also, all the information does not make it clear regarding the necessity of a TIN for those of us who are here on 'Retirement' Visas, who are not allowed to work in Thailand and hence have no 'income' other than the interest earned in our Thai bank accounts, and who come from a country with a double taxation agreement such as the UK.  Is there anyone out there who can clarify this matter?

 

 

  https://aseannow.com/topic/1324294-introduction-to-personal-income-tax-in-thailand/

[Zaphod Priest]

18 hours ago, pollyog said:

hose of us who are here on 'Retirement' Visas, who are not allowed to work in Thailand and hence have no 'income' other than the interest earned in our Thai bank accounts, and who come from a country with a double taxation agreement such as the UK.

 

Sorry to break it to you, but the UK DTA does *not* cover the state pension.  (It only covers government pensions, i.e. those paid to former UK government employees.)  Whether Thailand will actually start taxing UK state pensions, that remains to be seen.

[newbee2022]

18 hours ago, pollyog said:

Interest earned in Thai bank accounts is automatically taxed at source regardless of whether the account holder has a Thai Tax Identification Number..  How do the authorities assign this regarding TIN?  

 

Also, all the information does not make it clear regarding the necessity of a TIN for those of us who are here on 'Retirement' Visas, who are not allowed to work in Thailand and hence have no 'income' other than the interest earned in our Thai bank accounts, and who come from a country with a double taxation agreement such as the UK.  Is there anyone out there who can clarify this matter?

 

What did your revenue office said??

[Expat68]

15 minutes ago, Zaphod Priest said:

 

Sorry to break it to you, but the UK DTA does *not* cover the state pension.  (It only covers government pensions, i.e. those paid to former UK government employees.)  Whether Thailand will actually start taxing UK state pensions, that remains to be seen.

You can offset your your UK tax paid (any income) against Thai tax

[CFCol]

19 hours ago, pollyog said:

Interest earned in Thai bank accounts is automatically taxed at source regardless of whether the account holder has a Thai Tax Identification Number..  How do the authorities assign this regarding TIN?  

 

Also, all the information does not make it clear regarding the necessity of a TIN for those of us who are here on 'Retirement' Visas, who are not allowed to work in Thailand and hence have no 'income' other than the interest earned in our Thai bank accounts, and who come from a country with a double taxation agreement such as the UK.  Is there anyone out there who can clarify this matter?

 

Any monies remitted to Thailand are assessable for Thai tax, unless otherwise exempted under your countries dta. It is classified as income. If your income is under the tax threshold you do not have to pay tax. Interest on bank accounts,savings and deposits certainly, has always been taxed at a standard rate across the board. If you are under the tax threshold, then you can request this tax back,(I believe on up to 20k in interest),so long as you are still under the tax threshold. My interpretation only.

[Guderian]

3 minutes ago, CFCol said:

Any monies remitted to Thailand are assessable for Thai tax, unless otherwise exempted under your countries dta.

 

Incorrect. Savings held abroad prior to 1/1/24 are not assessable when remitted into Thailand.

[JustinCredible]

48 minutes ago, Zaphod Priest said:

 

Sorry to break it to you, but the UK DTA does *not* cover the state pension.  (It only covers government pensions, i.e. those paid to former UK government employees.)  Whether Thailand will actually start taxing UK state pensions, that remains to be seen.

 

If you pay Tax on your Pension in the UK it is NOT taxable in Thailand. If you do not pay Tax in the UK it IS Taxable in Tahiland.

[hkblademan]

14 minutes ago, JustinCredible said:

 

If you pay Tax on your Pension in the UK it is NOT taxable in Thailand. If you do not pay Tax in the UK it IS Taxable in Tahiland.

Incorrect. If the tax paid on that pension that is brought in thailand is lower than what it would be in Thailand, it may incur additional tax in Thailand. 

[new2here]

20 hours ago, pollyog said:

Interest earned in Thai bank accounts is automatically taxed at source regardless of whether the account holder has a Thai Tax Identification Number..  How do the authorities assign this regarding TIN?  

 

Also, all the information does not make it clear regarding the necessity of a TIN for those of us who are here on 'Retirement' Visas, who are not allowed to work in Thailand and hence have no 'income' other than the interest earned in our Thai bank accounts, and who come from a country with a double taxation agreement such as the UK.  Is there anyone out there who can clarify this matter?

 

 

Hi,

 

I’ve asked this question to BBL before (I bank with them and at the Silom HQ office where most of these offices are located)

 

I was told it’s still remitted to Revenue, but with a “999” type tax identifier.. It’s coded with BBLs payor ID* (as it should) but is tagged with an “unknown” payee code.

(Note that BBL has many different tax IDs for its different operating divisions like retail banking, their asset management arm, etc) 

 

When/if it is later identified and assigned to a specific tax ID, then its re-coded and an update sent to revenue automatically 

[baansgr]

A storm in a teacup, much Ado about nothing...

[Wullie Mercer]

For retirement visa. Thai law says you must prove you have have 800kbaht in bank, and for set time prior and after visa being granted. Or alternatively prove you have a monthly minimum of 65kbaht coming in every month. So is it now 65k before tax or after tax? It follows that if 65k is min it should be the starting threshold for expat retirees, No?

.

[TheAppletons]

47 minutes ago, Wullie Mercer said:

 So is it now 65k before tax or after tax? It follows that if 65k is min it should be the starting threshold for expat retirees, No?

.

 

It's 65K THB foreign transfer (monthly) into your Thai bank account.  Nothing has changed regarding that.

 

Whether that is taxable or not depends upon the type of funds you are remitting - if the funds are assessable income, they are taxable in Thailand.  If they are non-assessable funds, they are not taxable in Thailand.

 

Since Immigration rules are not aligned with TRD rules - and vice versa - the "starting threshold" for tax is determined by TRD.  

 

 

[Thingamabob]

Give it a rest.

[khunPer]

22 hours ago, pollyog said:

Interest earned in Thai bank accounts is automatically taxed at source regardless of whether the account holder has a Thai Tax Identification Number..  How do the authorities assign this regarding TIN?  

 

Also, all the information does not make it clear regarding the necessity of a TIN for those of us who are here on 'Retirement' Visas, who are not allowed to work in Thailand and hence have no 'income' other than the interest earned in our Thai bank accounts, and who come from a country with a double taxation agreement such as the UK.  Is there anyone out there who can clarify this matter?

 

Withholding tax on interest and dividends don't need to be included in a tax return form, if you accept the tax as final. Some includes the interest and dividend earnings in a tax return, if they are eligible for some of the tax, or it all, to be returned from these witholdings.

 

Accoring to the news all foreigners staying more than 180 days in Thailand should have a TIN. However, your home country might well have a DTA (Double Taxation Agreement) with Thailand covering already taxed retirement pensions from your home country. If your home country's income tax is higher than the Thai tax, you should not pay tax in Thailand.

 

I'm not sure what UK's DTA covers – not my home country – but I think it is only partly covering retirement pensions.  You can find Thailand's DTAs in this link:

https://www.rd.go.th/english/766.html

 

There are two possibilities for the Thai tax authorities. The easy one is not to tax foreign retirment pension that has already been taxed in their home country. The other one is to tax it – the amount transferred into Thailand – and later return the tax, as agreed under a DTA.

 

Unfortunately, it seems like we foreigners are still missing information about how the system shall work in practise.

[Sheryl]

3 hours ago, JustinCredible said:

 

If you pay Tax on your Pension in the UK it is NOT taxable in Thailand. If you do not pay Tax in the UK it IS Taxable in Tahiland.

This is not correct.

 

Which pensions are assessable in Thailand is spelled out in the DTA. 

 

If UK taxes were paid on a pension or other income assessable in (and remitted to) Thailand, then  tax credit can be taken (or vice versa). 

 

While the the UK state OAP is assessable in Thailand,  people  for whom it is the sole or main remitted   income will usually not owe any Thai tax once all the various tax exemptions, deductions snd allowances (TEDA) are taken.