How do personal tax rates vary between the U.K. and Thailand, would going Non Tax in the U.K. be more economical by paying tax in Thailand. My taxable income in the U.K. is around £18000 with pensions and interest payments. I will be having a consultation with a tax expert in the U.K. but he has no knowledge of the Thai tax system.
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TLDR : Answer Summary
The discussion revolves around the comparison of personal tax rates between the U.K. and Thailand, particularly for an individual with a taxable income of £18,000 derived from pensions and interest payments. Key points made include the impossibility of completely opting out of U.K. tax obligations, the implications of becoming a tax resident in Thailand after 180 days, and how the U.K. and Thailand's double taxation agreement can influence where tax is owed. Several commenters emphasize that U.K. sourced income remains taxable in the U.K., regardless of residency, but may qualify for credits against Thai taxes if already taxed. The debate also touches on the various allowances available in Thailand that can affect tax liability.
What you are thinking of doing I am also thinking of doing.
My situation is I have lived in Thailand for 10 years and I will die in Thailand. I may never step foot on British soil again.
My thoughts are is it morally right that I pay tax to a country that I get zero benefit from and don't pay tax to a country that I get many benefits from. So mine is a moral dilemma and doing rough calculations on my income the tax is largely the same so should I be paying it to Thailand and not the UK.
After 180 days you are automatically a 'tax resident' in Thailand. However, you only have to register for tax purposes if you remit into Thailand an 'assessable sum'. What is assessable is determined by the double tax agreement. A UK State pension is assessable.
UK and Thailand have a double taxation agreement. Talking to a professional is the right move, but in laymans terms - you are only ever a tax resident of one country (unless you are American... they practice citizenship based taxation, no matter where your are resident).
I can't speak for the Thai side, but the UK side...
Once you are UK non-resident, you only pay tax on UK source income.
Any tax you do pay in the UK can be claimed as a foreign tax credit on your Thai return. That's an offset. If you aren't liable for any tax in Thailand, you don't get that back as refund.
The UK paperwork is actually pretty easy - can be done online with HMRC self-assessment.
The issue would be if i to oh only receive the state pension and not an additional private pension.The personal allowance would mean that you don’t pay any tax in uk so would not get any tax credit
Ian Carman True... but if you aren't paying any UK tax, then the entire original question is a non issue. Jump on line once a year, submit the self assessment, job done.
James you still have to pay uk income tax at 20% if you relocate to Thailand uk tax allowance is reduced. In Thailand income tax is 5 or 7 % hope that helps
If you are more than 180 days in any country you are liable to pay tax... if you are not in a country for 180 days, you pay zero tax in that country.... you actually, legally dont have a choice in this, however any country will just take your tax if they can.
Scott Hutchison well that blatantly isn't true. In most, it not all countries, sourced income is taxable in the country of source regardless of residency status.
You can also be a tax resident with fewer than 180 days in a country...I suggest you look up the UK's tax residency rules (Statutory Residence Test) as one such example of this.
Sebastian Barrow UK don't know who's in the country not paying taxes so don't understand how they going to know who's outside the country not paying taxes.. it's just scare mongering
Your U.K. pension is U.K. sourced income so will always be subject to U.K. tax whether or not you are resident there. So if you become tax resident in Thailand you will be taxed in the U.K. on your U.K. sourced income then claim treaty benefits so that it isn’t taxed in Thailand as well. Any other income might be subject to Thai taxes.
Mark Didcott WRONG! UK state and workplace pensions are generally not taxable in the UK if you are a not UK resident. (There are some exceptions, eg., civil service & military workplace pensions are taxable in Uk)
Mark Didcott You may not have to pay twice if the country you’re resident in has a ‘double-taxation agreement’ with the UK. Your country’s tax treaty will tell you where to pay tax.
Have to pay tax in uk if over 12,500 pounds per year , I do , then send money to my thai wife account for living no pay tax I ok to 2029 , money come from savings
Anything you pay tax on in the UK in non taxable in Thailand as you have already paid tax on it. If you have any income that hasn't been taxed on in the UK including savings you pay tax in Thailand if you have been in the country for more than 180 days
I think the confusion is that technically the uk didn’t include pension income in its DTA with Thailand .So in theory all pension money remitted,less allowances,would be taxable in Thailand and one would have to provide tax returns to get a credit back .I just send less then
It should always balance out but the issue would be if someone only received the state pension and because of the personal allowance they would technically show no tax credit in uk
Galenus Gold not if its been taxed already. Show proof of tax . Get a Thai TIN registration then proof of tax if any of the income you have sent ie from pension or savings. If you send savings or any other form of money that hasn't been taxed already then yes
not quite how it works. If you have already paid tax in the UK on the income you bring into Thailand in any year you are a Thai tax resident you still have to declare it on a Thai tax return and work out the tax you owe. Then you claim a credit against Thai tax for any tax already paid on that income
Caroline Jones The best I ever met. Most posts here are totally wrong without any knowledge. Carl organized a lot of Webinars already. His website explains a lot about taxable income
You can't just opt out of UK tax. Even if you are not resident for tax purposes you will still have to pay tax on most of your UK derived income. If you transfer income to Thailand in a year you are a Thai tax resident you will also have to complete a Thai tax return, although not necessarily pay tax particularly as there's a Dual Tax Agreement between the UK and Thailand. If you are over 65 and single you can claim at least 250k baht in allowances, then the 1st 150k is exempt. There are other allowances you may or may not be able to claim for health insurance etc. That gets you to 400k baht plus before you claim a credit for tax already paid on the money you bring in. Make sure whoever you speak to understands dual tax agreements
150,000thb tax free brought in annually January to January.
Additional 150,000thb if married to Thai.
Additional 30,000thb if have a child here with you.
Wife can also bring in150,000thb so if you can live off then amount then all good and no taxes to pay but if you need more to come over here then the next 150,000thb is taxable starting at 5%. If you have no rent to pay then this is possible with no taxes to pay here
this is all over the place. You get a 60k baht personal allowance, if your wife isn't working you can claim 60k baht for her and 30k baht for a child, you can get an allowance for health insurance and various other things including 190k baht if over 65. Once all the various allowances are added up and together form a tax free amount then you move into the tax brackets and the next 150k baht is zero rated
I wasn’t taking age into account as I’m in my 40,s and been to the tax office and was told this as a basic start which should cover enough out here if not renting and married with a child like me. I pay no taxes atm globally
Bob D'Andrea how is it scaremongering 😂 I’ve stated a good allowance tax free to help bring that amount in on which as a family here is enough for me. Why bring more than you need only to be taxed on
James Reid Patrick only bring in what you need but there is a dual taxation agreement you can claim back but doing that isn’t so simple. Hmrc are hard to deal with and still like to send letters rather than answer the phone or send emails. Also aim at moving after the UK tax year april5th so you get your rise in pension increase as it will be frozen off at the tax year you leave
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