Answereda year ago
Can I work remotely in Thailand while paying UK taxes without facing double taxation issues?
I have been told by my employer that I am OK to work remotely in Thailand on a pert time basis 25 hours per week.
This suits me fine as I was going to retire/semi-retire.
Is anyone else doing this from the UK as I would like to know about the double tax arrangements and whether this forms any part of the DTV application.
This suits me fine as I was going to retire/semi-retire.
Is anyone else doing this from the UK as I would like to know about the double tax arrangements and whether this forms any part of the DTV application.
Answer summary
An expat planning to work remotely in Thailand on a part-time basis seeks advice on tax implications, particularly regarding the Double Taxation Agreement (DTA) with the UK. Comments clarify that tax implications are only relevant if one resides in Thailand for 180 days or more, making them a Thai tax resident. If income is taxed in the UK, it may not be subject to double taxation due to the DTA. Participants emphasize consulting with a qualified tax specialist for comprehensive guidance.
35 repliesnewest first
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Lee ***********
Join the tax forum John for good advice on att maters tax related.
Kool *******
As long as you pay your correct income taxes in the UK you have no tax liability in Thailand at this point in time, even after 180 days in the year.
John **********
@Kool ******
that is not trueAnonymous ******************
@John *********
for most people it is. UK and Thailand has a DTA. Do your research before posting nonsenseJohn **********
Anonymous participant 647 FFS
Anonymous ******************
@John *********
that's a better answer than just writing it not true. DO BETTER in the futureJohn **********
Anonymous participant 647 it's not nonsense. You may or may not have tax to pay in Thailand but you can only ascertain that after completing a Thai tax return and claiming a credit for tax already paid in the UK
Greg ********
Tax has nothing to do with the DTV and no part of any application.
John *********
OP@Greg *******
maybe I didn’t write this correctly. My DTV will be processed based on a letter from my employer stating that I can work remotely.My tax will be deducted from my salary exactly as it is now.
But I don’t want to be taxed twice otherwise I will not work and retire completely.
Rok ********
@John ********
even if you regularise your tax status in Thailand there is a double taxation agreement between the UK and Thailand. You will never pay tax twice. Additionally the Thai taxable income is based on remittance and not worldwide earned income. But even when both principles are cleared there is currently a lot of loopholes and ambiguity and for the time being i would not worry too much. Search for some developments of last week on this matter (try TNT - Tim Newton).John *********
OP@Rok *******
i will be working and spending 9 months per year in thailand so definitely tax resident.But im still considering complete retirement as originally planned and get the Type O visa followed by extension based on marriage.
Rok ********
Drawing money from ATM, even spending it on credit card is technically a Remittance to Thailand however can you possibly see how this moves from "technically" to "practically"? Yet another loophole. Please remember all above only applies if you spend physically more than 180 days in Thailand in any (calendar = tax) year at which point you become a resident for tax purposes. Personally i stick to max 179 days per year and do not wory about the rest, The world is a big place.
John *********
OP@Rok *******
thanks Rok. I was a bit unsure about the word ‘remittance’My money is paid after tax into my UK bank account. It wont be transferred into a thai bank account. As I am working in Thailand i will have to get the DTV VISA. And that means I dont open a thai bank account.
I just draw money from an ATM.
Greg ********
@John ********
So you salary will be taxed in UK? If so if it is then remitted to Thailand it will be subjects to the Thai-UK Double Taxation Agreement. You will nkt be taxed twice. In some cases there can be a slight differential in rates but then you are really getting into the reeds. I would not be worrying about it to be honest. In fact Thailand already talking about rescinding the overseas earning rule brought in for 2014Greg ********
@John ********
Ahh OK. I do not think I have ever done a tax return in the UK. Always PAYE. Been non tax resident since 2002.John *********
OP@Greg *******
i have to state on my self assessment tax form each year: ‘How many days were spent working outside of the uk’Greg ********
@John ********
So you are paying UK tax at source. If you do not tell HMRC you are NOT tax resident then will anything change? As for Thailand unless you remit vast amounts into a Thai account I doubt they will notice. There is a Thai-UK DTA. Have a read. It is quite short. You will not be double taxed.John *********
OP@Greg *******
no all my payments will be to my uk bank account exactly as now.I wont be returning to to UK. Just a couple of trips to Greece in september and italy in May.
Greg ********
@John ********
Yeah. Check with a tax advisor. When I worked outside UK I signed out with HMRC that I was no longer tax resident. Pal working offshore fell foul one year as spent too many nights in UK and ended up owing. I do not think you will have any issue at all with Thailand unless company is paying you direct into account here with no tax withheld anywhere.John *********
OP@Greg *******
hence Im hoping to chat with someone also doing the same thing…It might be that I have to pay the tax in thailand and then claim it back from the UK at a later date. I know there is a question on my tax form that I submit each year which asks, how many weeks per year did I work outside of the UK.
John **********
There's no tax implications as far as the DTV is concerned. Tax implications only become relevant if you become a Thai tax resident (180 days or more inside Thailand in a calendar year). Any income you then bring into Thailand is potentially liable to thai tax, and if you have already paid tax on that income in a country with a Dual Tax Agreement with Thailand you can claim a credit for tax already paid on the income
John *********
OPI have a consultation with tax advisor on Thursday but it doesn’t appear to be too onerous what additional taxes I need to pay.
John **********
@John ********
usually not, thanks to the dual tax agreementJohn *********
OPCertainly is a tricky one.
Would hate to work for a year and find im hit with a big bill to pay.
Would hate to work for a year and find im hit with a big bill to pay.
John *********
OP@John *********
thanks John. So i pay my tax as normal in the UK then tell thailand tax department that Ive already paid my tax as it is taken out of my salary automatically?I will be in Thailand most of the year with a couple of trips back to Europe
John *********
OPPerfect thanks John
John **********
@John ********
pro rata to the relative income you bring in to Thailand. All in the DTA between UK and ThailandJohn **********
@John ********
not quite. It's a once a year thing. The Thai tax year is the same as a calendar year, and you file your thai tax return between 1st January and 31st March for the year just gone. So you work out your thai tax liability for that year, then you work out the allowances and credits you can claim for that year. Then you pay Thai tax (if any) according to the requirementsJohn *********
OP@John *********
ok so I pay tax on my money in UK, but as I draw it out from an ATM, i claim credit against it from the tax ive already paid on it in the UK?John **********
@John ********
it doesn't matter how you bring it in. If you withdraw from your UK account using an ATM in Thailand that's bringing it in. If you transfer to a friend's account in Thailand that's bringing it in. Whether you have a bank account in Thailand or not is immaterialJohn *********
OP@John *********
when you say bring in to thailand, my money is aid into my uk bank. And as I cant open a thai bank account on a DTV, there is no other optionJohn **********
@John ********
pro rata just means if you have income in the UK and you bring 100% if that income into Thailand you can claim 100% taxy credit but if you only bring 50% of that income into Thailand you can only claim 50%John *********
OP@John *********
i will check the DTA.Its not a necessity I work. Just considering whether its worth it.
John *********
OP
Anonymous ******************
Taxes and DTV are separate matters. You automatically become a fiscal resident when you spend 180 days or more in Thailand within a calendar year. You could be taxed on money remitted to Thailand (via transfers, cash, or cards), and the amount depends on various factors, including tax treaties with your home country. I would advise settling here first, then consulting a qualified Thai tax specialist.
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