UK investors to get Thailand tax boost

by News DeskAdvertisement

A treaty to eliminate British investors in Thailand incurring double taxation of income and capital gains arising in one country and paid to residents of another has been signed.

HM Revenues & Customs announced the new Double Taxation Treaty (DTT) between the United Kingdom and Thailand will commence on March 31st 2009.

The new taxation treaty will aid investors with more stability in their tax affairs.

The news is particularly good for international second home property developers and their clients - once these new agreements are in place investors will be able to sell their property in one country and repatriate the profits to their home nation, whilst not having to pay any more than the maximum amount of capital gains tax in any one of the countries.

The Netherlands, Libya and Ethiopia will join Thailand in becoming the latest countries to sign up to bilateral taxation conventions.

NO, it seems to give the UK government the right to charge you CTG on the condo you sell in Thailand.

But it shouldn't be a problem if you are non-resident status in UK.

Does that mean that I will pay tax at Thai rates instead of UK rates which would be better for me?

- once these new agreements are in place investors will be able to sell their property in one country and repatriate the profits to their home nation, whilst not having to pay any more than the maximum amount of capital gains tax in any one of the countries.

What's this bit mean?

It's not clear. And what about income? My guess would be that it simply gives Brits the option of paying tax in UK from property / income sourced in Thailand, and vica-versa.

Lucky us

Does that mean that I will pay tax at Thai rates instead of UK rates which would be better for me?

It means you'd get clobbered for the highest amount.

For example if CGT is 10% in Thailand and 30% in UK you will now have to pay 10% to the Thai Revenue Department and 'only' 20% to the UK Revenue Department. (By the way these % are examples, I don't know the CGT rates)

But I guess the 'advantage' is that before the double taxation treaty you would have had to pay in Thailand AND UK (if they found out about it that is)

Same with income tax.