OA retirement questions

[ubonjoe]

Question: To extend a visa based on retirement, you have to have a confirmation of income, or you have to transfer money from overseas every year to have the THB 800,000 in the account in time for seasoning. Since this means you have income (and also transfer moneys to Thailand that are less than one year old), does that mean you have to pay income taxes?

I know that nobody would pay income tax on this, and I believe it is perfectly legal not to. However, a friend of mine is currently in panic as he wants to do everything by the law and asks me. Over to the experts over here, thanks for your kind advice.

You don't have to transfer the 800k baht every year. You can leave it sitting the bank if you want to.

You only have to pay taxes on income earned during the tax year that is transferred into the country. If you read the tax code pensions are not earned income so no tax is due.

Well, my friend fills up his account to THB 800,000 every year and then uses the money during the year. So, each year he has to transfer money again.

Where in the tax code does it say that pensions are not earned money? He has certainly earned his pension, but it would be great to see that the code states that it is not subject to income tax.

Bringing in the money the way he does it would be easy to assume that it is money earned in previous years.

It does not specifically specifically state pensions are not taxable ti defines earned income as basically income from working. This page has personal income info look at 2.1. http://www.rd.go.th/publish/6045.0.html

[johnatong]

Question: To extend a visa based on retirement, you have to have a confirmation of income, or you have to transfer money from overseas every year to have the THB 800,000 in the account in time for seasoning. Since this means you have income (and also transfer moneys to Thailand that are less than one year old), does that mean you have to pay income taxes?

I know that nobody would pay income tax on this, and I believe it is perfectly legal not to. However, a friend of mine is currently in panic as he wants to do everything by the law and asks me. Over to the experts over here, thanks for your kind advice.

You don't have to transfer the 800k baht every year. You can leave it sitting the bank if you want to.

You only have to pay taxes on income earned during the tax year that is transferred into the country. If you read the tax code pensions are not earned income so no tax is due.

Well, my friend fills up his account to THB 800,000 every year and then uses the money during the year. So, each year he has to transfer money again.

Where in the tax code does it say that pensions are not earned money? He has certainly earned his pension, but it would be great to see that the code states that it is not subject to income tax.

Bringing in the money the way he does it would be easy to assume that it is money earned in previous years.

It does not specifically specifically state pensions are not taxable ti defines earned income as basically income from working. This page has personal income info look at 2.1. http://www.rd.go.th/publish/6045.0.html

Thailand also has a Double Tax Agreement with many countries. Therefor taxable income arising in one of these countries would not attract any further taxation by the Thai tax authorities.

http://www.rd.go.th/publish/766.0.html

Edited April 29, 2016 by johnatong

[bkk6060]

I am from California and already pay federal and high state taxes. But some Euro countries it is much higher.

If people who were living here were taxed here for income from other countries, not many would come and there would be a mass exodus.

[onthemoon]

Question: To extend a visa based on retirement, you have to have a confirmation of income, or you have to transfer money from overseas every year to have the THB 800,000 in the account in time for seasoning. Since this means you have income (and also transfer moneys to Thailand that are less than one year old), does that mean you have to pay income taxes?

I know that nobody would pay income tax on this, and I believe it is perfectly legal not to. However, a friend of mine is currently in panic as he wants to do everything by the law and asks me. Over to the experts over here, thanks for your kind advice.

You don't have to transfer the 800k baht every year. You can leave it sitting the bank if you want to.

You only have to pay taxes on income earned during the tax year that is transferred into the country. If you read the tax code pensions are not earned income so no tax is due.

Well, my friend fills up his account to THB 800,000 every year and then uses the money during the year. So, each year he has to transfer money again.

Where in the tax code does it say that pensions are not earned money? He has certainly earned his pension, but it would be great to see that the code states that it is not subject to income tax.

Bringing in the money the way he does it would be easy to assume that it is money earned in previous years.

It does not specifically specifically state pensions are not taxable ti defines earned income as basically income from working. This page has personal income info look at 2.1. http://www.rd.go.th/publish/6045.0.html

Thanks a lot, this is very helpful. I'll pass it on to him.

[onthemoon]

I am from California and already pay federal and high state taxes. But some Euro countries it is much higher.

If people who were living here were taxed here for income from other countries, not many would come and there would be a mass exodus.

I am not aware of any EU country that charges any income taxes at all if you don't live there for more than 183 days per year.

[JimGant]

I am not aware of any EU country that charges any income taxes at all if you don't live there for more than 183 days per year.

British expats are apparently subject to income tax on UK-derived income.http://www.expertsforexpats.com/expat-tax/expat-tax-advice/

However, they may not meet your definition of "any EU country" very soon.....

[onthemoon]

I am not aware of any EU country that charges any income taxes at all if you don't live there for more than 183 days per year.

British expats are apparently subject to income tax on UK-derived income.http://www.expertsforexpats.com/expat-tax/expat-tax-advice/

However, they may not meet your definition of "any EU country" very soon.....

the UK have never been a truly EU country: No Euro, no Schengen Visa, and they drive on the wrong side of the road. (Well the Irish do the last one too, but they agree with the other two items.)

My friend is not a UK citizen, and he is exempted from any income taxes in his home country. As he should be, since he does not live there and does not benefit from anything that is paid for from the taxes paid there. For any services he uses at the embassy (including passport issuance) he has to pay the service fees, which are not cheap.

But we might be heading off-topic here...

[onthemoon]

You don't have to transfer the 800k baht every year. You can leave it sitting the bank if you want to.

You only have to pay taxes on income earned during the tax year that is transferred into the country. If you read the tax code pensions are not earned income so no tax is due.

Well, my friend fills up his account to THB 800,000 every year and then uses the money during the year. So, each year he has to transfer money again.

Where in the tax code does it say that pensions are not earned money? He has certainly earned his pension, but it would be great to see that the code states that it is not subject to income tax.

Bringing in the money the way he does it would be easy to assume that it is money earned in previous years.

It does not specifically specifically state pensions are not taxable ti defines earned income as basically income from working. This page has personal income info look at 2.1. http://www.rd.go.th/publish/6045.0.html

Thanks a lot, this is very helpful. I'll pass it on to him.

My friend called back and expresses his profound thanks.