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

[jacko45k]

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.

Only if you get a Thai tax number and claim it back I believe.......

It is deducted automatically as he says..... whether you want to be 'in the system' and reclaim it or stay below the radar is the choice.

[hugh2121]

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.

Annual increases terminate immediately. Fact.

[robertthebruce]

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

Hence the reason tell them NOTHING.....

I've kept my UK Address and even my UK Doctor.......and have no intention of changing it.....

[padsist4]

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.

And was your pension frozen 17 years ago

[billd766]

OP

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

I get a state pension, a military pension and a private company pension all from the UK paid into Kasikorn bank in Sterling from the UK.

The problem I have is that my military pension comes in as International Trade Department 05027, but both my state pension and company pensions come in as Domestic Moneys Trans Division 13276 with different exchange rates.

[macapie]

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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 telegraphic tr

I telegraphic Transfer $3000 AUD each 2 months and the Aust. Bank charge $ 20 Aud, and Thai Bank approx 300 Baht and I bring it in AUD. because the pension if paid direct goes through the Aust. Reserve Bank at approx 2 points less than the Thai Bank.

[Balance]

My U.S. social security payment is sent to Bangkok Bank in New York at about 2:00 am EST on the day of disbursement. An hour latter I get a sms message from Bangkok telling me that the transfer is complete, the net amount transferred in $ and Bhat and the exchange rate used for the transaction. I am charged B200 transaction fee. Best deal in Thailand.

[Jip99]

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

Not correct I am afraid.

The freezing takes immediate effect.

[JimGant]

UK pensions are paid gross and are only subject to income tax if you are a UK tax payer!

Are you saying as a non-resident of the UK, you are therefore not a UK tax payer -- and thus not subject to income tax?

How do you resolve that against the following, from https://www.gov.uk/tax-uk-income-live-abroad/overview

You usually have to pay tax on your UK income even if you’re not a UK resident. Income includes things like:

pension

rental income

savings interest

wages

You pay Income Tax on income above your tax-free limit (‘Personal Allowance’), if you’re eligible for it, eg you have a British passport.

[JimGant]

Using a US example, based on the Thai-US Tax Treaty, a direct deposit to a Thai bank of your private pension income could be problematic.

Gov't pensions and Social Security payments are directly addressed in the Treaty, and are taxable only by the US. But private pensions or annuitized payments are taxable by Thailand (and per the "savings" clause also taxable by the US, but with a credit for the Thai tax paid). But it's Thailand that gets first dibs with taxing this income. (The US taxpayer would have no double taxation, of course, when he uses the credit for the Thai tax paid against his US taxation for the same income.)

But Thailand doesn't tax any pension income it's entitled to -- because of this:

An individual who lives for 180 days or more in Thailand for any calendar year is subject to income tax on all incomes from within Thailand and from foreign sources if that income is brought into Thailand during the same year. (multiple sources)

Thai tax authorities realize that the smart Joe will co-mingle pension income into a home country account, then transfer from this account into Thailand. If confronted, Joe would only say, "Oh, that's from last year's income deposit into that account." Hard to prove otherwise.

But if direct deposited into Thailand? Case closed.

Not that US taxpayers, who would now pay Thai taxes, but offset completely in their US taxes, would have any financial hit. But if, indeed, the Brits aren't paying taxes on their pensions (see above query) -- and the Thais start doing a "gotcha" with direct deposits -- any Thai tax will not be compensated.

Actually, it's not really clear from the UK-Thai tax treaty who's got first dibs on private pension or state pension income (see this thread: http://www.thaivisa.com/forum/topic/803181-is-there-a-double-ukthai-taxation-agreement-that-means-anything/

In fact, there's not even a section on "other income," which most treaties have, that spells out that income not specifically addressed is taxable in the country of residence.

Anyway, just a "heads up" on direct deposit -- for you "old world" types.

[Godders]

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.

It sounds like you are the clever one. Everyone I know here is taxed at source on their UK pensions. My understanding is that irrespective of one's tax status, British citizens are liable for tax on any income arising in the UK, including pensions. If you have an authoritative source for believing otherwise, perhaps you be kind enough to quote it, so we can all share the benefit.

[Godders]

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.

It sounds like you are the clever one. Everyone I know here is taxed at source on their UK pensions. My understanding is that irrespective of one's tax status, British citizens are liable for tax on any income arising in the UK, including pensions. If you have an authoritative source for believing otherwise, perhaps you be kind enough to quote it, so we can all share the benefit.

[Manassas]

My U.S. social security payment is sent to Bangkok Bank in New York at about 2:00 am EST on the day of disbursement. An hour latter I get a sms message from Bangkok telling me that the transfer is complete, the net amount transferred in $ and Bhat and the exchange rate used for the transaction. I am charged B200 transaction fee. Best deal in Thailand.

I set up my pension and other payments to go to my U.S. financial institution and that institution then transfers to Bangkok Bank NYC, no fee. This allows me to schedule small monthly payments and it's easy to call my U.S. institution for occasional larger transfers. I feel this allows me to take advantage of exchange rate fluctuations. But that's just my personal preference.