Bangkok Bank deposit acc't for US Soc Sec payments

[Pib]

A person with only a foreign address can open an "international" Schwab account....the accont opening rules and amounts are different than a U.S. Schwab account.

[craigt3365]

A person with only a foreign address can open an "international" Schwab account....the accont opening rules and amounts are different than a U.S. Schwab account.

Exactly. One limitation is no trading in US mutual funds. But I just wanted it for the no fee ATM.

[tutsiwarrior]

^^thanx...I'll investigate...why, I wonder, did the Schwab person that answered my query not direct me to 'international new account services'?...he/she musta been from Thailand...

[craigt3365]

I did an email inquiry. I'm guessing they got the IP address and automatically routed it to the international staff????

[Fookhaht]

A side-bar question: anyone know if S.S. benefits are taxed in Thailand? Can you transfer the funds here to use within the same year (as payment) without Thai tax liability?

I ask this because I understand company pension funds are taxed here (by Thailand) if you transfer them here within the same year as paid to you in a U.S. bank.

Sorry about the slight detour of topic, but I'm not getting much a response in other threads on this.....

[lopburi3]

Lets put it this way: unless you are asking nobody is likely to ask the question.

[Pib]

A side-bar question: anyone know if S.S. benefits are taxed in Thailand? Can you transfer the funds here to use within the same year (as payment) without Thai tax liability?

I ask this because I understand company pension funds are taxed here (by Thailand) if you transfer them here within the same year as paid to you in a U.S. bank.

Sorry about the slight detour of topic, but I'm not getting much a response in other threads on this.....

No, they are not. See Article 20 of the Thailand-US Taxation Agreement available for download at this Thailand Revenue Department link....see listing number 58. Partial quote of Article 20 below.

[Fookhaht]

Lets put it this way: unless you are asking nobody is likely to ask the question.

That was my point--I asked about it already in another thread, but no response.

In some cases, Thailand taxes the other country's pension payments if they are brought into Thailand the same year in which they are remitted by the source to, say, a pensioner's bank in their home country. I'm still a little concerned about that scenario.

[Fookhaht]

A side-bar question: anyone know if S.S. benefits are taxed in Thailand? Can you transfer the funds here to use within the same year (as payment) without Thai tax liability?

I ask this because I understand company pension funds are taxed here (by Thailand) if you transfer them here within the same year as paid to you in a U.S. bank.

Sorry about the slight detour of topic, but I'm not getting much a response in other threads on this.....

No, they are not. See Article 20 of the Thailand-US Taxation Agreement available for download at this Thailand Revenue Department link....see listing number 58. Partial quote of Article 20 below.

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Thanks very much, Pib; that answers some of my concerns.

[JimGant]

In some cases, Thailand taxes the other country's pension payments if they are brought into Thailand the same year in which they are remitted by the source to, say, a pensioner's bank in their home country. I'm still a little concerned about that scenario.

I doubt Thailand examines the source of funds coming into the country for tax implications. The only red flag scenario would be a direct deposit into a Thai bank of a civilian pension. This would indicate it's same-year payments of a non-governmental pension -- and thus subject to Thai taxation. But, I don't think the Thais would waste resources on something that probably wouldn't translate into much additional revenue. Or maybe it would, I dunno...

But, it probably would be wise to not direct deposit a civilian pension, instead filtering it through a home country bank account, co-mingled with other money, so that a wire transfer could easily be explained (not that you would ever be asked) that it's last year's pension money, Roth IRA proceeds, whatever.

For expats who have no home country tax, a scrutiny of their money transfers by the Thais could be a rude awakening. But, for us Yanks, it wouldn't make any difference in total taxes paid: yes, under the treaty Thailand gets first dibs to tax that civilian pension. But under the so-called "savings clause," the US also reserves the right to tax this pension. So, your pension would still be taxed by Uncle Sam -- but with a credit for any Thai tax paid.

[lopburi3]

Lets put it this way: unless you are asking nobody is likely to ask the question.

That was my point--I asked about it already in another thread, but no response.

In some cases, Thailand taxes the other country's pension payments if they are brought into Thailand the same year in which they are remitted by the source to, say, a pensioner's bank in their home country. I'm still a little concerned about that scenario.

My post was for the others - for the US (and many others) there are dual tax treaties in place and as said if a government sourced pension it can not be taxed by anyone but first party. So your US SS payments would not be taxed. Company pensions would be best not asked about - but if on record you would want to make sure current years earnings were not what you bring into country - have it paid into US account and take money from that account as needed (in next year).

[gt162]

I did an email inquiry. I'm guessing they got the IP address and automatically routed it to the international staff????

I have US Schwab account with ATM card from California. Will Schwab let me keep my account? And also I want to get out as CA resident since I have no intention to move back once I retire to Thailand in near future.

[craigt3365]

I did an email inquiry. I'm guessing they got the IP address and automatically routed it to the international staff????

I have US Schwab account with ATM card from California. Will Schwab let me keep my account? And also I want to get out as CA resident since I have no intention to move back once I retire to Thailand in near future.

DO NOT TELL THEM! LOL I had USAA send me some stuff here in Thailand. They asked where I lived as my US address is just a PO box. I said I was back and forth. No good. They changed my address to Thailand and now I can't trade US based mutual funds. My account has been restricted. Thus, my move to Schwab. Who caught my foreign IP address! Ugh!!!!

[Fookhaht]

Lets put it this way: unless you are asking nobody is likely to ask the question.

That was my point--I asked about it already in another thread, but no response.

In some cases, Thailand taxes the other country's pension payments if they are brought into Thailand the same year in which they are remitted by the source to, say, a pensioner's bank in their home country. I'm still a little concerned about that scenario.

My post was for the others - for the US (and many others) there are dual tax treaties in place and as said if a government sourced pension it can not be taxed by anyone but first party. So your US SS payments would not be taxed. Company pensions would be best not asked about - but if on record you would want to make sure current years earnings were not what you bring into country - have it paid into US account and take money from that account as needed (in next year).

Ah, that completed my knowledge gap. Thanks.

[Fookhaht]

In some cases, Thailand taxes the other country's pension payments if they are brought into Thailand the same year in which they are remitted by the source to, say, a pensioner's bank in their home country. I'm still a little concerned about that scenario.

I doubt Thailand examines the source of funds coming into the country for tax implications. The only red flag scenario would be a direct deposit into a Thai bank of a civilian pension. This would indicate it's same-year payments of a non-governmental pension -- and thus subject to Thai taxation. But, I don't think the Thais would waste resources on something that probably wouldn't translate into much additional revenue. Or maybe it would, I dunno...

But, it probably would be wise to not direct deposit a civilian pension, instead filtering it through a home country bank account, co-mingled with other money, so that a wire transfer could easily be explained (not that you would ever be asked) that it's last year's pension money, Roth IRA proceeds, whatever.

For expats who have no home country tax, a scrutiny of their money transfers by the Thais could be a rude awakening. But, for us Yanks, it wouldn't make any difference in total taxes paid: yes, under the treaty Thailand gets first dibs to tax that civilian pension. But under the so-called "savings clause," the US also reserves the right to tax this pension. So, your pension would still be taxed by Uncle Sam -- but with a credit for any Thai tax paid.

Tremendously helpful insights. Thanks a bunch.

[4evermaat]

I did an email inquiry. I'm guessing they got the IP address and automatically routed it to the international staff????

I have US Schwab account with ATM card from California. Will Schwab let me keep my account? And also I want to get out as CA resident since I have no intention to move back once I retire to Thailand in near future.

DO NOT TELL THEM! LOL I had USAA send me some stuff here in Thailand. They asked where I lived as my US address is just a PO box. I said I was back and forth. No good. They changed my address to Thailand and now I can't trade US based mutual funds. My account has been restricted. Thus, my move to Schwab. Who caught my foreign IP address! Ugh!!!!

Why didn't you just use a USA residential address vs PO box? They have those maildrop places. But even if you use an actual residential address with family or someone you trust....why not do it that way?

Also, the advice about using US bank account for SS direct deposit and then forwarding it to thailand via ATM or ACH withdraw to bangkok bank would be a better option.

Edited May 4, 2016 by 4evermaat