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Answered2 years ago

Do retirees from the US pay taxes on their income in Thailand?

Chris *********
asked May 14, 2024
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Is this still the case:

As a US citizen, do retirees pay taxes in Thailand?

Income earned inside Thailand during retirement is the only income subject to tax, while personal income from pension, interest, or other income sources in your home country is not subject to income tax in Thailand. This creates a 100% tax-free retirement in Thailand.
Answer summary
Retirees from the US living in Thailand are subject to Thai taxation on income earned within Thailand but may benefit from the dual taxation agreement between the US and Thailand, which can protect certain income types from taxation in Thailand. As of 2023, the policy has changed, and now any income remitted to Thailand could be taxable if the retiree is considered a tax resident (over 180 days in the country). Social Security income is only taxable in the US, not in Thailand.
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Mac *********
Mac *********
This is not a correct statement, and you should consult a USA/THAI tax attorney if you are bringing in a substantial amount of money other than your U.S. paid Social Security/Pension.

If you live in Thailand for over 180 days, you are considered a resident and there is a very good chance you will be challenged at some point to declare all income earned in or after 2024 that you brought into the country (but everything is in the air right now).

You can apply a tax credit for taxes you have already paid in a foreign country. Article 2 of the DTA might help.

Disclaimer: I am a certified Ford Senior Master Technician (car mechanic), so I am qualified to give free tax advice to anyone that will listen.

"Social security benefits and other similar public pensions paid by a Contracting State to a resident of the other Contracting State or a citizen of the United States shall be taxable only in the first-mentioned State."

This means that your U.S. Social Security income, even when brought into Thailand, is only taxable by the United States and not by Thailand. This provides protection to your Social Security income, ensuring it is not subject to double taxation.
John ********
John ********
Consult a Tax Attorney in Thailand. FB is good at some (few) things.

Providing Tax advice, NO!
Stephen ********
Stephen ********
Just curious, if on a retirement visa, how can one earn income in thailand? πŸ€”
John **********
John **********
@Stephen *******
the income doesn't have to be earned in Thailand. Remitting income from elsewhere to Thailand means that income becomes assessable for Thai tax
Brandon ************
Brandon ************
@Stephen *******
You could own condos that you rent out, that's income. You could own a business that you don't work at, that's income. You could have stocks and bonds, and generate income based on sales or dividends etc which is income.
Graham ******
Graham ******
@Stephen *******
You cannot work but you can get "income" from pensions, investments etc..
Stephen ********
Stephen ********
@Graham *****
where would that income be taxed?
Will ************
Will ************
@Stephen *******
at source but if remitted to Thailand you will pay to tax difference between source and the tax due in Thailand
Stephen ********
Stephen ********
@Graham *****
OK, so not taxed in thailand
Graham ******
Graham ******
Pascal ********
Pascal ********
@Stephen *******
interest on money in a Thai bankaccount is an income.
Nick ************
Nick ************
@Pascal *******
paying tax on 1200 baht will surely be the end of me.
Michael *******
Michael *******
You can claim it back
Stephen ********
Stephen ********
@Pascal *******
currently the bank takes that tax, so not needing to be declared.
John **********
John **********
The US taxes your global income whether you are a tax resident of the US or not. Thailand taxes any income you earn inside the country. Also all income you remit to Thailand is assessable for Thai tax, you can claim a credit for any tax already paid on the money you remit and certain income is not subject to Thai tax as defined in the dual tax agreement between the US and Thailand. Dividends, Interest etc can be taxed in Thailand. SS can't be taxed in Thailand but other pensions can be subject to Thai tax. Best you read, or get someone skilled to read, the DTA between the 2 countries
Chris *********
Chris *********
OP
@John *********
Good Stuff -Thank you
Todd *********
Todd *********
Never was the case.
Brandon ************
Brandon ************
That was never the case.

The case was that any income earned in a different year would not have taxes due if it was remitted to Thailand in the following year or later. For retirees that basically meant their income wouldn't be taxed because it was retirement income from earnings long ago.

As of 2023 the policy has changed to tax income regardless of when it was earned once it is remitted to Thailand.

But as long as you already paid taxes on the income and your country has a dual taxation treaty with Thailand, you don't be double taxed.

This only applies if you are a tax resident of Thailand (180 days in the country)

How this will actually work in policy is unknown as 2024 is the first year this goes into effect meaning it won't come up until the beginning of 2025 during tax season.
Dave **********
Dave **********
@Brandon ***********
per BOI LTR Visa Holders are except and with the Double Taxation agreements I'm just not worried.
Ken ***********
Ken ***********
@Brandon ***********
a good summary. But since we are 5 months into 2024 all the tax liabilities should be established and clear yet they are not.
Brandon ************
Brandon ************
@Ken ******
welcome to Thailand 😬
Von ******
Von ******
@Brandon ***********
This

Is

Thailand

😝
Ken ***********
Ken ***********
Pavel ******
Pavel ******
@Brandon ***********
there is specific treaty for Americans making SS exempt from Thai taxes … multiple sources and seen law text. This is what I believe.
Von ******
Von ******
@Brandon ***********
there still seems to be a lot of conjecture whether this tax will come into effect, has it been documented in the King’s Gazette, or what is the LEGAL protocol for this process to take place and the tax becoming due on Foreign Income derivatives?
Brandon ************
Brandon ************
@Von *****
there isn't any new law so there's nothing to publish. The tax office simply changed interpretation of an existing law.
Chris *********
Chris *********
OP
Thanks for the reply - Targeting Q2 2025 for retirement and Thailand is on the list of living abroad as a retiree.
Brandon ************
Brandon ************
@Chris ********
there should be more clarity about the tax situation then

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