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Answered3 years ago

How does the US-Thailand Tax Treaty affect taxation of social security income for expats living in Thailand?

Mark ********
asked Mar 15, 2024
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After reading the Tax Treaty between the US and Thailand, it specifically states that social security income and govt pensions can only be taxed by the US unless you become a resident AND a Thai national. A tax resident who lives in Thailand greater than 180 days is not a Thai National. See Article 20 and 21.
Answer summary
The US-Thailand Tax Treaty stipulates that social security income and government pensions are only taxable by the US unless an individual becomes a resident and a Thai national. Residents living in Thailand more than 180 days are considered tax residents but are not Thai nationals. There are discussions on implications of double taxation agreements and residents paying taxes based on income earned both in Thailand and the US, highlighting the need for professional assistance in tax reporting and exemptions.
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John *******
John *******
Ken ******
Ken ******
some one interpret as below:

those people

from countries which have

a double tax agreement

with Thailand could still need to pay new

tax in Thailand,

double tax means that you

will receive tax credit for

taxes paid outside of

Thailand. So, if you are

assed as having to pay

usd200 in USA and usd300

in Thailand, In Thailand you

would pay 300-200=100

dollars in Thailand.

anyway the risk is that one still likely to fill a tax report form with income and asset and let authority decide which is taxable and which be exempt. Filling the form could be a tedious process, depending on how it is designed, and whether there is english translation, or chinese? if not, hopefully no.need to seek professional help. And how can one prove whether the remitted income already taxed in other jurisdiction?(for example you have multiple income sources, and some sources already taxed but some exempted due to different tax law in another country )

does double tax exemption imply blanket tax exemption without need for exemption on an item by item basis (income source item/category) or need comparison of individual category, eg investment income, rental collected or simply pensions
Steve *******
Steve *******
@Ken *****
agreed and Thailand has the right to impose more tax. Ie. You pay 10, 20% tax in home country Thailand can claim additional tax to make a gross tax of 35%
Dave ****************
Dave ****************
But under thai law ...over 180 days you are considered a resident, for tax purposes
Mark ********
Mark ********
OP
@Dave ***************
read what I posted and the treaty.
Wylie *******
Wylie *******
@Mark *******
I may be wrong, but being a tax resident and actually owing taxes are two different things. Being a tax resident just means you need to file taxes. I live in Thailand and am still a tax resident of the US so I need to file taxes. Even though in the end I pay zero in federal taxes.
Bart **************
Bart **************
@Wylie ******
you're not wrong.
Jorge ****
Jorge ****
Thanks for posting. Good news!
Phil ******
Phil ******
@Mark *******
its same with double treaty countries all over the world...ie UK and Aussies so nothings new
John **********
John **********
@Phil *****
not so. The UK one does not exempt the state pension. It only exempts pensions received for working for the government, nothing else.
Phil ******
Phil ******
@John *********
im talking about double tax treaties not specifically pensions
John **********
John **********
@Phil *****
its in sections so you don't need to read it all if you don't want to. Basically he might be right but that depend on whether his pension is from working for the government including local government (maybe). There's another document that defines what qualifies as a government pension and what doesn't. The state pension doesn't and so is liable for tax if brought into Thailand. The state pension is "National Insurance Retirement Pension" in this document

************************************************************************
*****
0
Phil ******
Phil ******
@John *********
mate no time to look at 85 pages. Heading out now but I will google it. My English friend is getting a pension and verbally said to me he won't be taxed here
John **********
John **********
@Phil *****
see above and look for yourself
Phil ******
Phil ******
@John *********
please give me an excerpt
John **********
John **********
@Phil *****
****************************************************************
Phil ******
Phil ******
@John *********
love to read about it. Send your source please
John **********
John **********
@Phil *****
so am I. The double tax treaty is different for every country and my comment was specific to the one between the UK and Thailand.

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