Khun Jean Posted February 20, 2013 Share Posted February 20, 2013 I would like to hear thought, experiences, information about taxes that have to be paid when residing in Thailand for more than 183 days a year and having money send over from abroad. There is a tax treaty with his home country, in this case Germany and The Netherlands. Scenarios: 1 ) Foreigner lives in Thailand and gets a pension (Government and private) from his own country. 2 ) Foreigners lives in Thailand and gets dividend from limited company in which he holds shares. 3 ) Mix of scenario 1 and 2 Link to comment Share on other sites More sharing options...
Swiss1960 Posted February 20, 2013 Share Posted February 20, 2013 You need to find out, whether their is a double tax treaty between your home countries and Thailand. As an example, Switzerland has a tax treaty with Thailand, published on the government websites and it says (excerpt): - if you live in one country only, that is where you pay taxes an all income for which you would pay taxes in the other country. - if you live in both countries, you pay taxes in the country where you have the most personal and economical interests - it also covers (one example) where you pay taxes i.e. for houses you rent out... so if I own a house in Switzerland, rent it to somebody and live in Thailand, I will pay taxes on that income in Thailand - it specifically covers dividends and how they can be taxed - there is a special paragraph about income from retirement pensions - it covers information exchange between the two countries Thus, get hold of the double treaty contracts between Thailand and Germany / Netherland or - if they don't exist, find out whether the countries might additionally have signed the international OECD standards for tax assistance between countries. Link to comment Share on other sites More sharing options...
Naam Posted February 20, 2013 Share Posted February 20, 2013 - it also covers (one example) where you pay taxes i.e. for houses you rent out... so if I own a house in Switzerland, rent it to somebody and live in Thailand, I will pay taxes on that income in Thailand only if you are completely ignorant as far as Thai taxation is concerned Link to comment Share on other sites More sharing options...
wordchild Posted February 20, 2013 Share Posted February 20, 2013 Like many countries Thailand taxes foreign earnings on a remittance basis ie you are only liable on income that you bring into the country. Thailand does not tax capital (savings) brought into country. Even if you bring earnings (eg dividends) into Thailand it is possible to avoid any tax liability as long as you avoid bringing them in in the same tax year (ie calender year ) as they were earned. eg get a dividend in December hold offshore till January then bring it in = no tax to pay. The logic is you are bringing in capital or savings rather than earnings. This would apply to any form of income. 1 Link to comment Share on other sites More sharing options...
Jingthing Posted February 20, 2013 Share Posted February 20, 2013 (edited) Practically speaking if you're on a retirement visa, no income in Thailand, and you regularly import funds into Thailand for your living purposes, you are totally off the radar of being taxed even one baht on your foreign income or savings in Thailand. No matter what the so called rules about when earned, treaties or no treaties. Who do you think is going to ask you about that? Who do you think expects a Thai tax return from someone with no business or work in Thailand? Feel free to disagree with me. Never heard of any Thai tax issues with such scenarios. Edited February 20, 2013 by Jingthing Link to comment Share on other sites More sharing options...
Naam Posted February 20, 2013 Share Posted February 20, 2013 Practically speaking if you're on a retirement visa, no income in Thailand, and you regularly import funds into Thailand for your living purposes, you are totally off the radar of being taxed even one baht on your foreign income or savings in Thailand. No matter what the so called rules about when earned, treaties or no treaties. Who do you think is going to ask you about that? Who do you think expects a Thai tax return from someone with no business or work in Thailand? Feel free to disagree with me. Never heard of any Thai tax issues with such scenarios. it's only a matter of time JT! sooner or later the Thai taxman will catch you when he finds out about all those properties you own and rent out in Swaziland Switzerland. Link to comment Share on other sites More sharing options...
BlackPuddingBertha Posted February 20, 2013 Share Posted February 20, 2013 Like many countries Thailand taxes foreign earnings on a remittance basis ie you are only liable on income that you bring into the country. Not sure about the "many". I think that (for residents anyway) worldwide income is a more common basis for taxation and Thailand is a fairly notable exception to this. Link to comment Share on other sites More sharing options...
Khun Jean Posted February 20, 2013 Author Share Posted February 20, 2013 Would there not be a tax withheld at source by the Germany or Netherlands government when paying out a pension? If you payed all your live for a government or private pension giving you a good amount for a pension would it not be better to do the tax in Thailand as the rates here are probably lower. Link to comment Share on other sites More sharing options...
JAS21 Posted February 20, 2013 Share Posted February 20, 2013 (edited) This might be useful for UK PEOPLE I'm Not Resident and Not Ordinary Resident 6.3 not resident in the UK, we will only charge UK tax on investment income arising in the UK. Except in the case of UK rental income, if you are not carrying on a trade, profession or vocation through a UK branch or agency, your liability on investment income from 1996-97 will be limited to the tax, if any, deducted at source. However, if you have other UK income which is fully taxable, any personal allowances will be set against your investment income first. If you are a resident of a country with which the UK has a double taxation agreement (see Chapter 9), you may in some cases be able to claim exemption or partial relief from UK tax on investment income (other than rental income from property in the UK). Does anyone know if you have to pay tax on income from off shore when it is remitted to the UK? Edited February 20, 2013 by JAS21 Link to comment Share on other sites More sharing options...
wordchild Posted February 20, 2013 Share Posted February 20, 2013 (edited) Would there not be a tax withheld at source by the Germany or Netherlands government when paying out a pension? If you payed all your live for a government or private pension giving you a good amount for a pension would it not be better to do the tax in Thailand as the rates here are probably lower. whether you have the option to do this depends on the double taxation treaty between Germany or the Netherlands and Thailand. I dont know the answer to this but the UK/Thailand treaty,for example, excludes pension payments, so it is not possible for UK citizens to opt to have their UK sourced pension taxed in Thailand. Edited February 20, 2013 by wordchild Link to comment Share on other sites More sharing options...
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