UK Thailand Double Taxation Agreement

[Khun Bob]

Hi

Just been reading some other recent post about double taxation agreement between Uk and Thialand. Did a google and threw to UK Inland Revenue website.

http://www.hmrc.gov.uk/manuals/rgmanual/ht..._0068_RG8.4.htm

http://www.hmrc.gov.uk/manuals/DTRmanual/h...85_DTCONT4A.htm

Seems like there is such an agreement in place.

Some questions at this point :

* Is this a good or bad thing ? If I pay tax in Thailand what are the implications for income I recive in the UK and paymnent of NI in the UK. I would like to pay my NI so that I can get another year towards the pittance of a pension that I may get later.

An article on there states :

Double Taxation Relief Manual - DT18657

Particular agreements: Thailand: Relief from Thai tax

Persons wishing to claim relief from Thai tax under the agreement should be advised that no special forms are available for the purpose in this country and that application should be made by letter addressed to the Inland Revenue Department, Ministry of Finance, Bangkok, Thailand.

from http://www.hmrc.gov.uk/manuals/DTRmanual/h...052_DT18657.htm

Does this mean that if I work in Thailand i need to write to this Thai ? dept in Bkk to give them some information so that i doent have to pay a UK tax percentage of the money i have earned in thailand ?

Any insight on this or any other nuggetts of wisom well appreciated here..

Thanks for your time

[singa-traz]

From the RD site: http://www.rd.go.th/publish/7632.0.html

[Clip_My_Wings]

Hi

Just been reading some other recent post about double taxation agreement between Uk and Thialand.  Did a google and threw to UK Inland Revenue website. 

http://www.hmrc.gov.uk/manuals/rgmanual/ht..._0068_RG8.4.htm

http://www.hmrc.gov.uk/manuals/DTRmanual/h...85_DTCONT4A.htm

Seems like there is such an agreement in place.

Some questions at this point :

* Is this a good or bad thing ?  If I pay tax in Thailand what are the implications for income I recive in the UK and paymnent of NI in the UK.  I would like to pay my NI so that I can get another year towards the pittance of a pension that I may get later.

An article on there states :

Double Taxation Relief Manual - DT18657

Particular agreements: Thailand: Relief from Thai tax

Persons wishing to claim relief from Thai tax under the agreement should be advised that no special forms are available for the purpose in this country and that application should be made by letter addressed to the Inland Revenue Department, Ministry of Finance, Bangkok, Thailand.

from http://www.hmrc.gov.uk/manuals/DTRmanual/h...052_DT18657.htm

Does this mean that if I work in Thailand i need to write to this Thai ? dept in Bkk to give them some information so that i doent have to pay a UK tax percentage of the money i have earned in thailand ?

Any insight on this or any other nuggetts of wisom well appreciated here..

Thanks for your time

<{POST_SNAPBACK}>

i would recommend you make your NI contributions in the UK to ensure a full state pension. I would contact them direct about this. There is no obligation if you are out of the country to pay NI but it will effect any future state pension payments you recieve

[Clip_My_Wings]

Hi

Just been reading some other recent post about double taxation agreement between Uk and Thialand.  Did a google and threw to UK Inland Revenue website. 

http://www.hmrc.gov.uk/manuals/rgmanual/ht..._0068_RG8.4.htm

http://www.hmrc.gov.uk/manuals/DTRmanual/h...85_DTCONT4A.htm

Seems like there is such an agreement in place.

Some questions at this point :

* Is this a good or bad thing ?  If I pay tax in Thailand what are the implications for income I recive in the UK and paymnent of NI in the UK.  I would like to pay my NI so that I can get another year towards the pittance of a pension that I may get later.

An article on there states :

Double Taxation Relief Manual - DT18657

Particular agreements: Thailand: Relief from Thai tax

Persons wishing to claim relief from Thai tax under the agreement should be advised that no special forms are available for the purpose in this country and that application should be made by letter addressed to the Inland Revenue Department, Ministry of Finance, Bangkok, Thailand.

from http://www.hmrc.gov.uk/manuals/DTRmanual/h...052_DT18657.htm

Does this mean that if I work in Thailand i need to write to this Thai ? dept in Bkk to give them some information so that i doent have to pay a UK tax percentage of the money i have earned in thailand ?

Any insight on this or any other nuggetts of wisom well appreciated here..

Thanks for your time

<{POST_SNAPBACK}>

i would recommend you make your NI contributions in the UK to ensure a full state pension. I would contact them direct about this. There is no obligation if you are out of the country to pay NI but it will effect any future state pension payments you recieve

<{POST_SNAPBACK}>

the double taxation treaty really implies to income from investments and not by actually paid employmeny. If you receive a wage in thailand the british tax man will have no claim on this and no interest whatsoever. Howveer say you recieved a dividend payment. If you had paid the capital gains tax in britain you would not have to paid tax on this sum again in thailand.

[GuestHouse]

the double taxation treaty really implies to income from investments and not by actually paid employmeny. If you receive a wage in thailand the british tax man will have no claim on this and no interest whatsoever. Howveer say you recieved a dividend payment. If you had paid the capital gains tax in britain you would not have to paid tax on this sum again in thailand.

Not so.

If you are returning to the UK after an absence of less than one (Full and Complete) tax year (April4th through one year to April6th in the next) you are liable to pay tax on your income during your absence overseas.

Even the suspicion that you have been working and are unable to prove that you have not can and does result in emergency tax codes being applied. (Ouch!).

If you have been working, but have paid Thai tax, then under the joint tax agreement you can offeset your Thai tax against your British Tax liability.

If you would have paid GBP20K tax in the UK, but can demonstrate you paid GBP8K tax in Thailand then you would be liable to the difference GBP12K in to to the UK Tax.

I have the paperwork and receipts that demonstate this to be the case having been caught with this very rule earlier this year.

[alex100]

the double taxation treaty really implies to income from investments and not by actually paid employmeny. If you receive a wage in thailand the british tax man will have no claim on this and no interest whatsoever. Howveer say you recieved a dividend payment. If you had paid the capital gains tax in britain you would not have to paid tax on this sum again in thailand.

Not so.

If you are returning to the UK after an absence of less than one (Full and Complete) tax year (April4th through one year to April6th in the next) you are liable to pay tax on your income during your absence overseas.

Even the suspicion that you have been working and are unable to prove that you have not can and does result in emergency tax codes being applied. (Ouch!).

If you have been working, but have paid Thai tax, then under the joint tax agreement you can offeset your Thai tax against your British Tax liability.

If you would have paid GBP20K tax in the UK, but can demonstrate you paid GBP8K tax in Thailand then you would be liable to the difference GBP12K in to to the UK Tax.

I have the paperwork and receipts that demonstate this to be the case having been caught with this very rule earlier this year.

<{POST_SNAPBACK}>

[bkk_mike]

As well as the full year out of the UK, you can avoid UK tax by being out of the UK most of the time, but you have to be out for 3 tax years.

(Rule is no more than 180 days in UK over 3 tax years - April 5 to April 5, with no more than 90 days in any one tax year.)

This only gets you out of paying UK tax on non-UK income obviously. If you have UK income from things physically located in the UK (such as rental on a flat/house), then the double taxation agreement states it's taxed in the UK.

[Khun Bob]

So if your out of the Uk for less than 1 tax year the UK tax man wants his share (something like 23% now?) reduced by the smaller amount of tax that you have paid to the Thai tax man ?

I know it is probably my obligation to let the UK tax man know what I do, but how would they know if I had been working or not ?

NI wise there is an incentive, that if you are working abroad they significantly reduce the payments that are required - off the top of my head I think it is somethig like £3 per week if your working and £7 per week if your not. This is one thing I dont want to lose as even in 20 years time a UK pension will (hopefully) be able to get you by in LOS. (maybe this is being too optimistic)

Does anyone get special statements/payslips made that are for the purpose of disclosure of income the the UK Inland Revenue ? (read between the lines here...)

[GuestHouse]

Does anyone get special statements/payslips made that are for the purpose of disclosure of income the the UK Inland Revenue ?

Yes, if you are legally working in Thailand you will receive a receipt of tax paid.