Does it pay to have pension money sent direct to a Thai bank?

[Godders]

As a British citizen resident in Thailand for tax purposes, is it possible to have UK state and private pensions paid directly into a Thai bank account? And do they charge for this service?

All UK pensions are taxed at source and are subject to a deal covering double taxation, though its terms are not clear. I gather all income remitted to Thailand is taxable but capital sums are exempt, and a 15 per cent standard tax deduction is made from all Thai bank interest.

Assuming, therefore, that one only imports (already-taxed) pension income and non-taxable capital, and since the interest on both is also taxed, does one nonetheless need through the hassle of obtain a Thai tax ID and make annual returns? (Nobody I know has (yet) been asked for one by the UK tax gestapo, but of course this could change).

If so,does one still face the annual form-filling chore even if one's income (in this instance, bank interest paid net of tax) falls below the 150,000-baht minimum taxable earnings threshold which applies here?

[CharlesWayne]

I am American and have pensions direct deposited into Bangkok Bank with no problems. No Thai taxes as the finds originate offshore. I have no idea the procedure to direct deposit British funds, perhaps the bank or your source could help.

[Max in Udon]

I have my UK state pension paid direct to my Thai bank account every 4 weeks. No charges or commissions deducted. I check the exchange rate on Forex the day before the pension is due, and it is correct to a few baht either way. 2 small pensions in the UK paid into my UK bank account, and the dear UK tax man has given me a code number for each pension provider so that everything is paid to me tax free. I don't bother to transfer money from the UK bank to Thailand, but use that account for shopping on the internet, as most British or American companies will not accept a Thai debit card.

The only tax I pay now is Thai tax on the interest paid by the Thai bank, which is deducted automatically by the bank.

[padsist4]

Has the uk stopped your pension yearly increases since you are a overseas resident and not in a country that allows the yearly increase

Has the uk stopped your pension yearly increases since you are a overseas resident and not in a country that allows the yearly increase

Anyone who is out of the uk for more than 6 months a year is classed as a non resident and not entitled to pension increases

Edited February 26, 2015 by padsist4

[Anon999]

I have my UK state pension paid direct to my Thai bank account every 4 weeks. No charges or commissions deducted. I check the exchange rate on Forex the day before the pension is due, and it is correct to a few baht either way. 2 small pensions in the UK paid into my UK bank account, and the dear UK tax man has given me a code number for each pension provider so that everything is paid to me tax free. I don't bother to transfer money from the UK bank to Thailand, but use that account for shopping on the internet, as most British or American companies will not accept a Thai debit card.

The only tax I pay now is Thai tax on the interest paid by the Thai bank, which is deducted automatically by the bank.

You would not be paying tax on a UK state pension at the current rate of allowances if paid into a UK bank.

[Anon999]

Has the uk stopped your pension yearly increases since you are a overseas resident and not in a country that allows the yearly increase

Has the uk stopped your pension yearly increases since you are a overseas resident and not in a country that allows the yearly increase

Anyone who is out of the uk for more than 6 months a year is classed as a non resident and not entitled to pension increases

I believe that for the first two years of your absence the increase is paid.

[czhteck]

Hello All

I am a Australian and get my Pension paid direct into my Thai Bank account each month. Been getting it for the last 6 year paid into Bangkok Bank.

Pay no tax from the Australia Government end and no tax at Thailand end. Pension paid into my account in Thai BAHT.

Regards

All

[business guru]

I am American and have pensions direct deposited into Bangkok Bank with no problems. No Thai taxes as the finds originate offshore. I have no idea the procedure to direct deposit British funds, perhaps the bank or your source could help.

any australians doing the same thing ??

[weegee]

Check your statements from BKK Bank....They are definitely charging transfer fees this end....and pay roughly .5% less than the going rate to get more out of you.

Was told this be another member on TVF and checked....he was right. In Aust you are charged roughly $24 AUD for the transfer from the bank there.

When it gets here you get charged a handling fee of roughly $15 AUD from the BKK bank....They get you both ends, if you look at it.....

[delgarcon]

My pension is paid into my bank account in the UK and I transfer sterling to my Thai bank as and when I need it. I am not taxed in the UK (having moved to France in 1997) and I don't pay tax or bank charges in Thailand. I'm surprised that the OP who is "clever" enough to live in Thailand as a tax exile is asking such questions and if you're paying tax at source on your UK pension Godders, you're obviously not so clever as UK pensions are paid gross and are only subject to income tax if you are a UK tax payer!

I think that this is a "look at me I've got plenty of money" thread.

[masuk]

Another Aussie here: I have my pension sent up each month from my Oz bank. I decide how much, leaving a bit to cover the cost of the telegraphic transfer and to keep the VISA card sweet.

Centrelink will also post it direct to your bank in Thailand, therefore saving $20 - $30 transfer fees.

A month back, just for a change, I had my salary sent up in Thai Baht. A DISASTER!

First, the bank in Oz gave me a really bad exchange rate. Then the money did not appear in my BKK bank account. Chased around for 5 days and it suddenly appeared. BKK bank (as usual) also charged a percentage. No-one knew why the funds went astray.

The term 'short term investment' comes to mind.

The pension sent up by Centrelink is at a rate set by the Central (Reserve?) bank and seems good, according to a mate of mine.

[watcharacters]

Check your statements from BKK Bank....They are definitely charging transfer fees this end....and pay roughly .5% less than the going rate to get more out of you.

Was told this be another member on TVF and checked....he was right. In Aust you are charged roughly $24 AUD for the transfer from the bank there.

When it gets here you get charged a handling fee of roughly $15 AUD from the BKK bank....They get you both ends, if you look at it.....

I did a wire transfer this week from USA to Kbank. It arrived Tuesday in Bangkok and I got a phone call around 10:00 a.m. The USA cost was $25 and the Kbank fee came to 1034.10 THB. They did use an exch. rate of 32.4 which was fine with me as it was as posted on the bank's website.

No way to get away from fees from banks unless a 1% member.

[masuk]

Check your statements from BKK Bank....They are definitely charging transfer fees this end....and pay roughly .5% less than the going rate to get more out of you.

Was told this be another member on TVF and checked....he was right. In Aust you are charged roughly $24 AUD for the transfer from the bank there.

When it gets here you get charged a handling fee of roughly $15 AUD from the BKK bank....They get you both ends, if you look at it.....

Some banks in Oz charge $20 for a telegraphic transfer. Bendigo/Adelaide Bank charge $30.00. Last month Bendigo exchange rate was ฿24 to the Oz $, and as Weegee has said, the banks here take a slice of the cake too.

[siampolee]

My pensions go into my bank here and have done so for a number of years (UOB Asia) from the U.K free, bank charge a 100 baht fee, that cost I can live with,

[bob009]

padsist4, on 26 Feb 2015 - 16:41, said:

Has the uk stopped your pension yearly increases since you are a overseas resident and not in a country that allows the yearly increase


Has the uk stopped your pension yearly increases since you are a overseas resident and not in a country that allows the yearly increase

Anyone who is out of the uk for more than 6 months a year is classed as a non resident and not entitled to pension increases



I believe that for the first two years of your absence the increase is paid.

__________________________________________________________________________________________________

Wrong on that one mate. They stop any increases as soon as you tell them. UK Government dont miss a trick.

[wwest5829]

Check your statements from BKK Bank....They are definitely charging transfer fees this end....and pay roughly .5% less than the going rate to get more out of you.

Was told this be another member on TVF and checked....he was right. In Aust you are charged roughly $24 AUD for the transfer from the bank there.

When it gets here you get charged a handling fee of roughly $15 AUD from the BKK bank....They get you both ends, if you look at it.....

I did a wire transfer this week from USA to Kbank. It arrived Tuesday in Bangkok and I got a phone call around 10:00 a.m. The USA cost was $25 and the Kbank fee came to 1034.10 THB. They did use an exch. rate of 32.4 which was fine with me as it was as posted on the bank's website.

No way to get away from fees from banks unless a 1% member.

Hmmm. My financial institution does an Electronic Funds Transfer monthly to the Bankok Bank, NYC. Within 2 working days, normally, the funds are available for my withdrawal here. My financial institution nicks me for $5.00. The funds transfer in at the Bangkok Bank daily rate. I found this considerably cheaper than a wire transfer as I got hit on both ends resulting in a cost of about $40.00.

[colinneil]

I have my UK state pension paid every 13 weeks direct to my Krung Thai account.

No charges made, i get the exchange rate payable that day.

[steve187]

OP

state pension can be paid direct to Thailand, private pension maybe

Edited February 26, 2015 by steve187

[GR8fun in LOS]

Hello All

I am a Australian and get my Pension paid direct into my Thai Bank account each month. Been getting it for the last 6 year paid into Bangkok Bank.

Pay no tax from the Australia Government end and no tax at Thailand end. Pension paid into my account in Thai BAHT.

Regards

All

Hi just a quick suggestion you are better to have the AUD transferred as aussie dollars to your Thai bank account.

The Aussie banks are renowned for ripping you off on the exchange rate, when they convert to Thai baht. Better to get your Thai bank to make the conversion in Thailand, their rates are much better than the aussie rates.

[Jonmarleesco]

'As a British citizen resident in Thailand for tax purposes, is it possible to have UK state and private pensions paid directly into a Thai bank account? And do they charge for this service?' Yes, and yes. The DWP claims that their bulk FX arrangement enables them to pay your pension at competitive rates, but their paying you in GBP is likely - though not certain - to result in a better exchange rate. You should be able to make similar arrangements with your private pension provider. On the other hand, if you have a UK-based GBP account, have them paid into that and bring in what you need.

FTR: in case you are unaware, state payments to UK residents of Thailand don't benefit from the annual increases - though they do if you live, for example, in the Philippines.

'All UK pensions are taxed at source and are subject to a deal covering double taxation, though its terms are not clear. I gather all income remitted to Thailand is taxable but capital sums are exempt, and a 15 per cent standard tax deduction is made from all Thai bank interest.' Read HMRC's DT18650 agreement (http://www.hmrc.gov.uk/manuals/dtmanual/DT18650.htm).

'... (Nobody I know has (yet) been asked for one by the UK tax gestapo, but of course this could change).' Annual returns to HMRC? I don't think so, but you would be better advised to check with them; by writing, since they will likely ignore an emailed enquiry.

'If so,does one still face the annual form-filling chore even if one's income (in this instance, bank interest paid net of tax) falls below the 150,000-baht minimum taxable earnings threshold which applies here?' Don't know this one.

[yardrunner]

quite simple to register as a taxpayer in Thailand and worth doing if you live on a pension or investments from abroad and you have a fixed rate savings account, (not sure about other savings accounts you would have to ask your bank) in Thailand (I have one to keep extension of stay money in) and then you can reclaim the 15% withholding tax.

As for the double taxation agreement, I went to the Thai revenue department legal office in Udon Thani and this is what they said no mention of pensions so you can not reclaim tax paid in the UK. any property rent is only taxed in the country where it is earned the same as any interest from savings accounts

[Thaimike370]

The British government stops State pension increases from the date you let them know you are living in Thailand.

[smotherb]

Check your statements from BKK Bank....They are definitely charging transfer fees this end....and pay roughly .5% less than the going rate to get more out of you.

Was told this be another member on TVF and checked....he was right. In Aust you are charged roughly $24 AUD for the transfer from the bank there.

When it gets here you get charged a handling fee of roughly $15 AUD from the BKK bank....They get you both ends, if you look at it.....

I imagine most of you spend it all, but why transfer it all to Thailand? You get transaction fees, exchange rate commissions, and a good chance of a loss on monthly rate fluctuation when transferring lump sum. If you left it in your home country and used a fee-reimbursing debit card, you'd get the rate du jour, have the chance to play the rate game, and you may be able to make believe you still live there, instead of here for tax purposes.

[Moonlover]

OP. I'm very confused by your opening statement. What exactly do you mean by 'As a British citizen resident in Thailand for tax purposes'? Are you working here or what?

If your are indeed what you say you are, I strongly suggest that you direct your tax questions to a professional adviser, not this forum. All you'll get here are answers from 'bar stool lawyers'

One question I can answer is that: yes you can have your state pension paid directly into a Thai bank account. There is a small charge which is less than 3 pounds per payment, which is well offset by the favourable exchange rate and lack of bank charges.

Edited February 26, 2015 by Moonlover

[louse1953]

If you are too lazy to fill out a form in your very busy day you will not get your 15% back.Lets call it a donation to the Thai people,very generous of you.

[louse1953]

I have my UK state pension paid direct to my Thai bank account every 4 weeks. No charges or commissions deducted. I check the exchange rate on Forex the day before the pension is due, and it is correct to a few baht either way. 2 small pensions in the UK paid into my UK bank account, and the dear UK tax man has given me a code number for each pension provider so that everything is paid to me tax free. I don't bother to transfer money from the UK bank to Thailand, but use that account for shopping on the internet, as most British or American companies will not accept a Thai debit card.

The only tax I pay now is Thai tax on the interest paid by the Thai bank, which is deducted automatically by the bank.

Which will be refunded if your retired.

[louse1953]

Check your statements from BKK Bank....They are definitely charging transfer fees this end....and pay roughly .5% less than the going rate to get more out of you.

Was told this be another member on TVF and checked....he was right. In Aust you are charged roughly $24 AUD for the transfer from the bank there.

When it gets here you get charged a handling fee of roughly $15 AUD from the BKK bank....They get you both ends, if you look at it.....

Some banks in Oz charge $20 for a telegraphic transfer. Bendigo/Adelaide Bank charge $30.00. Last month Bendigo exchange rate was ฿24 to the Oz $, and as Weegee has said, the banks here take a slice of the cake too.

Oz banks are thieves.

[usnftcret]

"Hmmm. My financial institution does an Electronic Funds Transfer monthly to the Bankok Bank, NYC. Within 2 working days, normally, the funds are available for my withdrawal here. My financial institution nicks me for $5.00. The funds transfer in at the Bangkok Bank daily rate. I found this considerably cheaper than a wire transfer as I got hit on both ends resulting in a cost of about $40.00. "

Why does your bank charge for an ACH transaction? My bank never charges an ACH EFT fee to any domestic US Bank.

[Farang99]

I'm British andhave both my state and work-related pensions deposited direct to Bangkok Bank. Have done so for 17 years with no problems. No tax issues at all - the trivial interest on the balance is subject to a 15% tax, but that is the only charge.

[Si Thea01]

I am American and have pensions direct deposited into Bangkok Bank with no problems. No Thai taxes as the finds originate offshore. I have no idea the procedure to direct deposit British funds, perhaps the bank or your source could help.

any australians doing the same thing ??

No pension but have investments in Australia and transfer living expenses monthly, depending on he exchange rate. I get a better interest rate in Australia so hence the accounts there.. As I am now classified as a non-resident, I am taxed at the rate of 10% on the interest earned in those accounts. When I want to transfer I check the exchange rate a couple of hours prior to and when I do, I find it is normally what has been quoted or sometimes a little higher, rarely lower.

However, I always transfer in Australian dollars, as the banks in Australia give you a baht or two lower exchange rate. It only cost $20.00 to transfer any amount from $1.00 to $20,000, and I do this via internet banking, which is secured by an SMS security code sent from the Bank and entered into the transfer process. No code entered, no transfer, very safe. If transfered before 10.00pm Thai time, I get the funds by 10.00am Thai time the following day, weekends excluded.

I've set my daily internet limit at $10,000 but if I need larger amounts I contact the bank and they transfer for me, still at the $20.00 fee. Anything over $10,000, is reported to the regulators, but as everything I do is legitimate , I do not have any worries in that regard. I have two accounts, with the same Thai bank, one based in BKK , the other in the regional city, where I live, so I cop a transfer fee but this is minimal. The interest earned in Australia covers all those costs including the tax charged by the Australian government. I am not charged any tax in Thailand.