Australian taxation and it's effect on Australians living in Thailand.

[machans88]

Lots of great information here. Rather than start a new thread.

I was just wandering how many aussies here have been able to remain a tax resident back in Oz for over two years whilst living in Thailand for most of the year?

The reason is I may be moving to Thailand this year with the plan on just living off dividend payments. As others have mentioned

without the tax free threshold there would be around 8k more in income taxes. I would like if I could to stay a tax resident as long as possible.

Not sure if this makes any difference with the ATO trying to establish a non residency status, but the wife owns two houses in different cities which we will be staying at but not any one in particular and no fixed time frames in each city/town.

E.g maybe 6 months in Chiang Mai, maybe 2 months in Bangkok, maybe 4 months Hua Hin.

fully franked dividends from shares on the stockmarket or through a private business are tax free as a non resident

.

[Somebodee]

Lots of great information here. Rather than start a new thread.

I was just wandering how many aussies here have been able to remain a tax resident back in Oz for over two years whilst living in Thailand for most of the year?

The reason is I may be moving to Thailand this year with the plan on just living off dividend payments. As others have mentioned

without the tax free threshold there would be around 8k more in income taxes. I would like if I could to stay a tax resident as long as possible.

Not sure if this makes any difference with the ATO trying to establish a non residency status, but the wife owns two houses in different cities which we will be staying at but not any one in particular and no fixed time frames in each city/town.

E.g maybe 6 months in Chiang Mai, maybe 2 months in Bangkok, maybe 4 months Hua Hin.

fully franked dividends from shares on the stockmarket or through a private business are tax free as a non resident

.

Even though 'tax free' the franking credits are not fully utilised.

Lets say dividends of $50000pa fully franked have approximately $21425 imputation credits:

As a non resident collect $50000 , no other income tax imposed = $50000 net in hand

As a resident for tax purposes collect $50000, get taxed calculated with 18k tax free threshold and under the marginal tax rate. $50000 + $13628 imputation credit refund = $63628 net in hand

Somebody please chime in if my calculations are way off, but this is my understanding so far.

[ThaiBunny]

As someone who's been a tax agent in Australia myself, I'll set out my understanding on this topic. 

 

Australia has a number of double tax treaties.  One of them is with Thailand.  Where there is conflict or uncertainty as between the Income Tax Act and a Double Tax Treaty, the treaty takes precedence.

 

The Thailand-Australia Double Tax Treaty is unambiguous.  If you receive income from either Thailand or Australia then you are deemed to be a tax resident of one or the other.  You can't be a tax resident of neither.  If one of them has no interest in taxing you, and you receive income from the other, then you are a tax resident of that other country (the "tie-breaker" test)

 

AFAIK Thailand is not interested in taxing Australian income of Australians living in Thailand.  Therefore, Australians living in Thailand receiving income from Australia are and always will be tax residents of Australia.  Their physical residence is irrelevant.  Easy peasy.

[theoldgit]

This is a four year old thread and not visa related, I’ll close it.


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