UK tax relief

[offset]

Is the Tax free allowance (basic amount £12570) in th UK classed as accessible tax in Thailand

[ukrules]

I believe there is an overlap between the two very different thresholds and if they wanted to they could apply some tax to the bit inbetween the lower Thai tax free threshold and the higher tax free threshold in the UK and most other countries.

Taxation kicks in at 10% between 300k and 500k and £12570 is worth 551k Baht right now

So technically that untaxed 200k Baht between 200 and 500k would be taxed at 10% and the 51k above 500k stretches into the 15% band.

Because it's not taxed in the UK then it won't be double taxed.....

So in theory at least they could demand 10% of the 200k between 300 and 500k and 15% of the 51k between 500k and 551k which would be 20,000 Baht + 7,650 = 27,650 Baht.

Now this money would not be double taxed as it's untaxed in the UK so should be fair game for them to come after - but I haven't seen many people speak about this.

Is it excluded by the double taxation treaty? Who knows - I doubt it because it's not taxed is it - or if it is consdiered taxed at a zero rate - does that count at all? Also I doubt it.

It doesn't apply to me as I don't pay any tax anywhere else due to being non resident anywhere that I could pay tax so they would want to tax the lot in my case if I were to stay more than 180 days - which I don't.

You do mention a good point though as this 'overlap' as I'm going to call it is the first thing that came to mind when reading about this change long ago and I figured it would automatically affect every tax resident and bring them all into the tax net as the allowances in Thailand are very small compared to 'the west'.....

 

So it would likely come down to - where does the income come from and is it covered by the double tax agreement - and that gets complex fast - hence - see an accountant to confirm.

 

 

Edit - there is a lower 5% band as well which may or may not come into play depending on age.

[Everyman]

They’re not that clever. Reports are that the Thai revenue department’s approach to the myriad of dual tax agreements, is to ignore them. Best to stay off their radar. 

[steve187]

5 hours ago, ukrules said:

I believe there is an overlap between the two very different thresholds and if they wanted to they could apply some tax to the bit inbetween the lower Thai tax free threshold and the higher tax free threshold in the UK and most other countries.

Taxation kicks in at 10% between 300k and 500k and £12570 is worth 551k Baht right now

So technically that untaxed 200k Baht between 200 and 500k would be taxed at 10% and the 51k above 500k stretches into the 15% band.

Because it's not taxed in the UK then it won't be double taxed.....

So in theory at least they could demand 10% of the 200k between 300 and 500k and 15% of the 51k between 500k and 551k which would be 20,000 Baht + 7,650 = 27,650 Baht.

Now this money would not be double taxed as it's untaxed in the UK so should be fair game for them to come after - but I haven't seen many people speak about this.

Is it excluded by the double taxation treaty? Who knows - I doubt it because it's not taxed is it - or if it is consdiered taxed at a zero rate - does that count at all? Also I doubt it.

It doesn't apply to me as I don't pay any tax anywhere else due to being non resident anywhere that I could pay tax so they would want to tax the lot in my case if I were to stay more than 180 days - which I don't.

You do mention a good point though as this 'overlap' as I'm going to call it is the first thing that came to mind when reading about this change long ago and I figured it would automatically affect every tax resident and bring them all into the tax net as the allowances in Thailand are very small compared to 'the west'.....

 

So it would likely come down to - where does the income come from and is it covered by the double tax agreement - and that gets complex fast - hence - see an accountant to confirm.

 

 

Edit - there is a lower 5% band as well which may or may not come into play depending on age.

what about the Thai allowances. 60k that eveyone gets, 100k if money is a pension, 195k if over 65, 1st 150k is 0 tax rate, and other allowances for for family etc