Uk DTA and and Government Pensions Question.
Firstly reading the dual taxation agreement I find no mention of now to treat pensions. Reading the HMRC briefing notes I find that Government pensions have full relief (subject to N and R) and all other pensions have no relief. In principle all Uk Government pensions are taxed in the Uk. However if your a national of and resident in another contracting state then you can apply to HMRC to pay no tax in the UK and instead pay tax where you live. So in our case you would have to be a Thai national living in Thailand to gain tax relief for your UK government pension and instead declare it to the Thai Revenue Dept and pay the appropriate Thai tax rate. Please correct me if this understanding is wrong. Now my question. Are UK government pensions assessable income in Thailand? If so then it would be on a tax credit basis for already paid UK tax? Which could mean after deductions and allowances that you fall into a higher tax band in Thailand and so would be subject to additional tax on remittance. So whichever way you look at it the UK DTA just means you either pay all the tax in Thailand in example 1 or you pay tax in the UK and then a bit more tax in Thailand in example 2. And to choose example 1 it is only an option if your a Thai national. Looking for someone to either confirm my understanding or correct me. Many thanks.
TLDR : Answer Summary
The user seeks confirmation on their understanding of how UK government pensions are treated under the UK-Thailand Dual Taxation Agreement (DTA). Specifically, they inquire if these pensions are assessable income in Thailand, whether the already paid UK tax can be credited, and how this affects overall tax obligations in Thailand. Several comments provide input on the topic, indicating that UK government pensions are taxed in the UK and typically not countable as assessable income when remitted to Thailand. However, state pensions and private pensions brought into Thailand may be assessable, but allowances and tax credits can alleviate the tax burden.
