US settlement taxable here?

[THAIPHUKET]

The settlement is negotiated, i.e. outside of the courts. 1 lumpsum + installments. I know details are crucial to an answer, may well be up  to a tax lawyer.

My question is only to get a sense of direction.

 

Anyone with a similar case?

[ubonjoe]

You can find some info here: http://www.rd.go.th/publish/6045.0.html

 

Quote

2.1  Assessable Income

3. income from goodwill, copyright, franchise, other rights, annuity or income in the nature of yearly payments derived from a will or any other juristic Act or judgment of the Court;

 

[THAIPHUKET]

Gosh, you are quick, had hardly enough time to read my post!  Thanks

[THAIPHUKET]

So it´s 40% maximum 60.000 baht for residents -deductibles.

Am I getting this right ?  = 

A retiree who has been in Th almost uninterruptedly for 10 years is a resident under 180 day rule.

Who issues a certification of residency if so required?

[THAIPHUKET]

Is here a consultant qualified to render an opinion on US double taxation?

I am not US resident but German, i.e not subject to regular US income tax.

[chiang mai]

If you are German and not US resident, why your concern over US taxes?

 

If you still maintain your green card (if that's what you have), you remain liable for US taxes

[Pib]

Since your topic title implies it's a settlement obtained in the U.S., this  2 page IRS document on Settlements Taxability may help.

 

https://www.irs.gov/pub/irs-pdf/p4345.pdf

 

 

[THAIPHUKET]

To All= your questions and / or input help to get more focus. The payment seems to fall under this IRS definition =

portion of the proceeds that is for lost wages (i.e., severance pay, back pay, front pay) is taxable wages . May be questionable, because the amount is the outcome of a interpretation dispute o international pension plans. These run from the first foreign assignment until retirement even if one gets reassigned to the home country - in my Germany.

in

- don't have a green card no more, my intern assignments took me only for a short period during the late 80ties. to NY. From that time I still have a SocSec No. And for this short period a tiny monthly check arrives here from SSA.gov with a 25% tax levy on it. ( No attempt to avoid US taxes. Whatever structure come out must be clean.)

 

If I can show that I can claim resident status in Thailand instead of Germany it could save substantial income tax on the settlement where the amount would be taxed with 42%

 

 

 

 

Edited December 11, 2016 by THAIPHUKET

[chiang mai]

4 hours ago, THAIPHUKET said:

So it´s 40% maximum 60.000 baht for residents -deductibles.

Am I getting this right ?  = 

A retiree who has been in Th almost uninterruptedly for 10 years is a resident under 180 day rule.

Who issues a certification of residency if so required?

 

Yes, 183 days per year and you are considered tax resident, get a Tax ID number to prove your status (a simple process, easily done) and file tax returns based on income. Note: ONLY overseas income that is remitted to Thailand during the year it was earned is taxable in Thailand.

[THAIPHUKET]

AGAIN HELPFULL

 

 Note: ONLY overseas income that is remitted to Thailand during the year it was earned is taxable in Thailand.

 

Means= pensions were earned in prior years are / are not taxable?

[taxout]

http://www.rd.go.th/publish/21978.0.html

You might first need to file null tax returns in Thailand showing no taxable income before you can get that certificate, I don't know.

It's hard to be certain your settlement payment is subject to U.S. withholding tax. E.g., to the extent it's in settlement of services you performed outside the U.S. it may well be non-U.S. source income. Of course, in the first instance it's the U.S. party paying you who will decide whether or not to withhold, though of course you can file a claim for refund if you think that party withheld U.S. tax in error.

[chiang mai]

6 hours ago, THAIPHUKET said:

AGAIN HELPFULL

 

 Note: ONLY overseas income that is remitted to Thailand during the year it was earned is taxable in Thailand.

 

Means= pensions were earned in prior years are / are not taxable?

 

Correct.

[THAIPHUKET]

My ex-employer will want to see a clean tax confirmation , e.g.. resident status , etc. Who can issue that?. Chiang Mai?

Bangkok?

 

US Withholding tax needs to be explored. Might be hard to avoid, NY contract, NY payer through out life time. 

[sgtsabai]

Actually you need a tax lawyer with knowledge of both US and Thai tax laws, maybe German. Unless you earn over 36,000 USD (I believe) a year in taxable income there should be no SS income that is taxable, My pensions are not taxable here but if I go over a certain amount I have to pay tax on that which I already paid tax on in the states. Your problem is way above my pay grade, get a tax attorney or maybe 2. Also there are agreements between the US and Thailand that other countries may not enjoy. Good luck. One thing I do know, if your settlement came from a law suit settled out of or in court and it is wages it is taxable. Punitive damages are not. But, a vindictive wife can tie you up in court until you go broke paying attorneys for an open and shut case on the same. A wife is also not entitled to a share of punitive damages, but wages yes.

[chiang mai]

On 12/12/2016 at 3:26 PM, THAIPHUKET said:

My ex-employer will want to see a clean tax confirmation , e.g.. resident status , etc. Who can issue that?. Chiang Mai?

Bangkok?

 

US Withholding tax needs to be explored. Might be hard to avoid, NY contract, NY payer through out life time. 

 

Am unsure what your question is when you say "clean tax confirmation", can you please clarify?

 

If you have lived in Thailand for at least 183 days in a particular tax year you are considered to be tax resident, that is not to be confused with being a permanent resident which is an Immigration status. If the former and you have a tax ID (you can get one easily if you don't) that will be your proof, that and your passport entry/exit stamps.

 

 

[THAIPHUKET]

SGTSABAI all is peaceful, no bitching wife, out of court. I'd wish someone would suggest an accounting firm .  According to http://www.rd.go.th/publish/6045.0.html these limits should apply. Pensions don't seem to considered income from current services/work.

 

 

[THAIPHUKET]

@ chiang mai    Yes, I am a tax resident since over 10 years. Most of that in CNX.  :-)

 

Certification issued by Certified Public Accountant (acceptable to the US party) stating that all applicable Thai Taxes were paid.