Income tax , uk pension

[petewan]

Hi, I Have a pension from the uk and its my only income apart from interest on my savings in thai banks. Tax of course is taken from this interest by the banks. I have been told i can reclaim the tax paid by filling in a tax return. When i looked up the
rules on income tax in Thailand it says any resident has to pay tax even if it comes from abroad. The starting rate for tax says over 150.000 tax at 10%. As i pay tax in uk on this pension does this mean i should be paying tax here also or is a pension exempt. Anyone with first hand experience. i would be gratefully as i dont want to claim and end up worse off. Regards pete.

[Thetyim]

rules on income tax in Thailand it says any resident has to pay tax even if it comes from abroad

True but they have never enforced it.
That might change in the future though.

You can claim back the tax that you pay on bank interest by getting registered with the tax office and getting the tax statement from your bank. This is a form that some banks deny exist.

[Marmite the Dog]

If you pay tax on earnings in the UK you don't need to pay tax again in Thailand.

You can pay tax in Thailand, in which case you don;t need to pay in the UK. They have a recipricol(sp) arrangement regarding this.

[Thetyim]

^
The international agreement is that tax is liable in your country of residence.

[petewan]

So thats two yes and one no, 150.000 per an then pay tax at 10% is not a lot before you start to pay tax. the tax the bank takes with the low interest rates is not
worth risking having to pay tax on my pension so i guess i will give it a miss. unless
someone has reliable info . thanks Guys . pete

[taxexile]

if tax on your pension income is deducted and paid in the uk, then you wont need to pay tax here.

tax on interest earned in a uk onshore bank account cannot be claimed back.

tax on interest earned in an offshore bank need not be paid provided you have declared yourself as non resident in the uk, and filled out the relevant paperwork, if you have been paying tax on the interest and can fulfil the requirements for non residency then you should be able to claim that tax back.

you are supposed to pay tax on money earned and brought into thailand if
1. it has not yet been taxed in the country of origin, and
2.it is brought into thailand in the same year that it was earned.
if it comes into thailand in the following tax year, then it is not liable for tax.

i dont think any expat pays thai tax on a pension earned overseas and brought into thailand as living expenses.

[xanax]

if tax on your pension income is deducted and paid in the uk, then you wont need to pay tax here.

tax on interest earned in a uk onshore bank account cannot be claimed back.

.

It can if you have not gone over your tax allowance. You can claim back up to five years. Last year I got back three years tax on interest that I need not have paid. Bit of a headache filling in the forms but worth it. Now I fill in a form and the UK bank does not take any tax off at source. Guess you have to be pretty poor for this to work but the tax allowance keeps going up.

[taxexile]

it can if you have not gone over your tax allowance.

correct, thanks for adding that.

[Marmite the Dog]

The international agreement is that tax is liable in your country of residence.

The Thai tax officer I spoke to said I do do either country - "Up to you".

[jamiejambos]

Both my pensions are taxed in the U.K every month and paid directly into my bank account in Thailand..........

[nigelandjan]

Excuse me for sticking my oar in , but as I will soon be in a similar situation , is it not worth registering as a non dom if you are settled + retired in Thailand ?

Surely this would clear up the need to complicate the tax issue , with tax only due in Thailand ? or as usually the case , as I wrong ?

[draco888]

Excuse me for sticking my oar in , but as I will soon be in a similar situation , is it not worth registering as a non dom if you are settled + retired in Thailand ?

Surely this would clear up the need to complicate the tax issue , with tax only due in Thailand ? or as usually the case , as I wrong ?

I think you mean non resident for income tax purposes. You will find it hard if not impossible to lose your domicile.

[petewan]

Lots of info coming in but still not worth the risk. If i go to the tax office and register for tax to claim back the 15% tax i have paid the bank then i presume there will be a form to fill in giving detail of income and where from. As the thai tax starts at 150000 per an is so low its not worth rocking the boat . thanks for the info and any update.
pete,

[DrAndy]

If you start filling in forms, they will notice your existence

and send you more forms

[BobR]

I think this will answer your questions, both the UK and USA have agreements with Thailand to avoid double taxation, DT18650+ - Double Taxation Relief Manual: Contents

[taxexile]

Excuse me for sticking my oar in , but as I will soon be in a similar situation , is it not worth registering as a non dom if you are settled + retired in Thailand ?

Surely this would clear up the need to complicate the tax issue , with tax only due in Thailand ? or as usually the case , as I wrong ?

Any income generated in the uk will be taxed in the uk, your pension will be taxed in the uk and you will pay that tax in the uk, even if you are living abroad as a person registered as a non resident.

There is no need to get involved with the thai revenue department and double taxation relief, you willbe opening a can of worms. Those reliefs are more for those working abroad or offshore than for expats on a straightforward uk generated pension.
Pay your tax in the uk. If you open offshore accounts you can receive interest tax free and have access to some high interest rates, although this year the difference between offshore sand onshore rates is not so great.

You will need an address out of the uk and eu area. There are also capital gains tax benefits to be had as a non res. If you are selling a property before you emigrate then see a tax accountant first and you might be able to save a lot of tax, there is a lot of paperwork involvedthese days in opening offshore accounts, proof of address, translations, verifications, proof of identity, where the money has come from, doing your homework first will make it all a lot easier.