Thai Income Tax On Unearned Income

[lungbing]

I have part of the proceeds of the sale of my house in UK invested in a bank in Jersey. Until recently the interest on this this was tax-free and was re-invested which as a UK non-resident is what I wanted.

But recently they have started to tax the interest and the tax rate is going up to over 30%, next year I think.

I have the option of reclaiming the tax from the UK taxman with all the paperwork that involves, or asking the bank not to stop tax and inform the authorities in Thailand so they can tax it. The tax involved is only two or three hundred quid a year.

Would the Thai tax authorities chase me up and what rate would I have to pay here on unearned income? Do I have an allowance of any kind? The money is not brought into Thailand.

Thanks for any advice,

[wordchild]

I obviously dont know all the facts about your situation and i would say when it comes to tax obligation its always worth getting specialist advice. However, in your case ,it looks fairly straight forward,i assume that you are now resident in Thailand, the Thai tax system is remitance based, ie; if this is income that arises outside Thailand in a particular year ,and you do not bring it into the country during that year, then there is no tax to pay in Thailand,end of story.

Edited September 13, 2009 by wordchild

[12DrinkMore]

Unless something drastic has changed all you have to do is to confirm that you are living outside the UK to avoid paying tax in the UK.

[personchester]

I have part of the proceeds of the sale of my house in UK invested in a bank in Jersey. Until recently the interest on this this was tax-free and was re-invested which as a UK non-resident is what I wanted.

But recently they have started to tax the interest and the tax rate is going up to over 30%, next year I think.

I have the option of reclaiming the tax from the UK taxman with all the paperwork that involves, or asking the bank not to stop tax and inform the authorities in Thailand so they can tax it. The tax involved is only two or three hundred quid a year.

Would the Thai tax authorities chase me up and what rate would I have to pay here on unearned income? Do I have an allowance of any kind? The money is not brought into Thailand.

Thanks for any advice,

No, that is not correct, to fall within that range one has to be a resident of any of the 27 European union countries, but the bank needs to have prove of this, so ask for their request form to be filled in as required, in the meantime go online and search for "EUSTD" and you will get all the answers you need.

[Jonathanpattaya]

I have part of the proceeds of the sale of my house in UK invested in a bank in Jersey. Until recently the interest on this this was tax-free and was re-invested which as a UK non-resident is what I wanted.

But recently they have started to tax the interest and the tax rate is going up to over 30%, next year I think.

I have the option of reclaiming the tax from the UK taxman with all the paperwork that involves, or asking the bank not to stop tax and inform the authorities in Thailand so they can tax it. The tax involved is only two or three hundred quid a year.

Would the Thai tax authorities chase me up and what rate would I have to pay here on unearned income? Do I have an allowance of any kind? The money is not brought into Thailand.

Thanks for any advice,

Do you have any tax liabilities in the UK?

If so, this may explain the fact that you are being taxed on your interest in Jersey.

Edited September 14, 2009 by Jonathanpattaya

[personchester]

I have part of the proceeds of the sale of my house in UK invested in a bank in Jersey. Until recently the interest on this this was tax-free and was re-invested which as a UK non-resident is what I wanted.

But recently they have started to tax the interest and the tax rate is going up to over 30%, next year I think.

I have the option of reclaiming the tax from the UK taxman with all the paperwork that involves, or asking the bank not to stop tax and inform the authorities in Thailand so they can tax it. The tax involved is only two or three hundred quid a year.

Would the Thai tax authorities chase me up and what rate would I have to pay here on unearned income? Do I have an allowance of any kind? The money is not brought into Thailand.

Thanks for any advice,

Do you have any tax liabilities in the UK?

If so, this may explain the fact that you are being taxed on your interest in Jersey.

No, expats are entitled to have their offshore interest tax free, providing of course that the are expats, that is to say not resident in any EU state, that of course includes the UK, but that has to be proved to the bank in question, contact the bank and ask them what they want to have from you in terms of prove, and if that is positive, no tax will be deducted, even if you have tax liability in the UK from any UK incomes i.e. state pension, private pension, etc ... you offshore income is tax free.

[lungbing]

Thank you all very much for your advice.

Yes, it is EUSTD and it looks like I have to inform my Jersey bank I am UK non-resident and then try and reclaim the tax already paid.

Thanks again.

[benno]

To be totally legit, you must register yourself in Thailand, and then reclaim any taxes imposed on you here against taxes deducted in your EU country.

That means signing out of the EU, and put yourself at the mercy of the local Mandarins..

Did that, survived and now have the T-shirt.

Now happy to pay the 25% tax in the EU.

Oh yea, you get the cert of residence and so on, but trust me, not worth it.

Benno

[wordchild]

frankly probably best ,in the long run,to get your money out of Jersey anyway (too much EU influenence). Move it all to Singapore,the banks here could not care less about EU directives as long as you give them a non EU address! This sort of thing is one of the reasons Singapore is pulling in so much global dosh at the moment.