Thai Tax On Usa Pension And Soc Security?

[martin42f]

1) I have been living in Thailand for 3 years with a 1 year renewable retirement visa. I am retired, not working. Do I need to file/pay Thai Taxes on my USA retirement pension and Social Security? I report this income to US Federal Tax Revenue Office each year.

2) I am planning on a one week visit to UK. Other than a re-entry permit, do I need any Thai tax documents to leave and then return? I don't want any problems at the Thai airport.

Thanks

[lopburi3]

1. Policy is that Thai tax is not required for money brought into the country that is from savings (earned year earlier) so believe most people do that. There is also a tax treaty between the US/Thailand that exempts government paid pensions - tax to be paid in source country. You are safe.

2. There has not been a tax paperwork requirement for over a decade but they still have the wording on TM6. Just make sure you have the re entry permit and have a good trip.

[Dah fahrang]

1. Policy is that Thai tax is not required for money brought into the country that is from savings (earned year earlier)

This is very useful - I'm 53, about to leave UK with Thai wife of 25 years, to semi-retire to house already owned (by wife) in Photharam. We will be living off proceeds of UK house sale, which is already deposited - we have only interest income to give us the B400,000 per year needed from July for immigration requirements.

Is this rule 'absolute' about tax not being required on money brought in from savings? How is it proved? We have all the paperwork anyway, so presume at some point this may have to be proven to Thai Tax authorities?

Presume we have to file with the tax-man, even if our income is not liable for tax?

[JimGant]

Do I need to file/pay Thai Taxes on my USA retirement pension and Social Security?

Nope. As Lopburi says, US gov't pensions are exempt from Thai taxes. And so too are all pensions derived from US sources, plus 401(k) and IRA payouts, and any interest, dividends, and cap gains on US located investments. Effectively, everything you paid taxes on to Uncle Sam is free and clear from taxes in Thailand. *

The tax treaty says the US gets first dibs on these for taxation, and per treaty, Thailand can't double tax you on these. If they ever tried, there's a form you file with the IRS that will then provide you with a certification of US taxes paid, which you would then show to the Thais. But the probabilityof this happening is zilch.

The Thai law that money brought into the country must be from savings is either bad translation, or bad law, or both. To state that this money must be earned the year prior to forwarding to Thailand is ridiculous. How can you tell (if they ever looked, which they wouldn't) whether the money wired is from prior -- or current --year earnings? Besides, for us Yanks, it doesn't matter -- even if some Thai tax official says, 'ah, looks like income, not savings,' you just say, 'so what. tax treaty says you can't tax my income.'

Maybe this law was set up to be able to tax foreigners who don't pay taxes to their mother countries (Switzerland, for example, doesn't tax pensions/interest/dividends on their citizens who've immigrated). But even here, Thai authorities would be on thin ice to prove what's what.

* If you earn interest on, for example, a Thai bank account, the tax treaty says Thailand can withhold 10% of this for taxes. Whether or not they do this (because you opened the acct with an American passport), I don't know. But even if they do, you still shouldn't need to file a Thai tax return, at least just for this. Instead, you just let the Thais keep this withholding, and you file for a foreign tax credit on your US taxes (assuming you've declared this 'worldwide' interest on your US taxes).

Anyway, Martin, don't worry about Thai income taxes, or filing -- just ponder how much richer you'd be if you were Swiss

[JimGant]

Presume we have to file with the tax-man, even if our income is not liable for tax?

Don't think so. Like my post above to fellow Yank Martin, the Thai-US tax treaty precludes taxes -- and filing tax forms -- with Thailand, at least for income derived from outside Thailand.

I would imagine Britain has a tax treaty with Thailand, having been at this game slightly longer than America. But, I don't know -- I stopped following British law in 1776

[farangene]

Do I need to file/pay Thai Taxes on my USA retirement pension and Social Security?

* If you earn interest on, for example, a Thai bank account, the tax treaty says Thailand can withhold 10% of this for taxes. Whether or not they do this (because you opened the acct with an American passport), I don't know. But even if they do, you still shouldn't need to file a Thai tax return,

I use Bangkok Bank for my accounts and I opened accounts with an American passport. They automatically withhold 15% for taxes whenever interest is paid and no forms of any kind are filed with the tax authorities by me.

[martin42f]

Thanks to all for the good news.