Is Thailand planning to tax overseas pensions for foreigners, and what are the implications?

Your country's treaty or lack of may have an effect. For example the tax treaty between Thailand and the United States is designed to prevent double taxation and fiscal evasion concerning taxes on income. Here are some key points about the treaty:

1. **Residency**: The treaty provides guidelines to determine residency, which affects the taxation of individuals and entities. Generally, residents of one country are taxed only in that country for certain types of income.

2. **Types of Income**: The treaty specifies how different types of income are taxed. Common categories include:

- **Dividends**: Typically, dividends paid from a company in one country to a resident of the other are subject to reduced withholding tax rates.

- **Interest**: Interest income may also be taxed at a reduced rate or exempt from taxation, depending on specific conditions.

- **Royalties**: Similar provisions apply to royalties, allowing for reduced withholding taxes.

3. **Employment Income**: Income from employment is generally taxed in the country where the work is performed. However, there are exceptions for short-term assignments or specific conditions that allow for taxation only in the employee's home country.

4. **Pensions and Annuities**: The treaty outlines how pensions and annuities are treated, often allowing taxation in the country of residence of the recipient.

5. **Elimination of Double Taxation**: Both countries provide methods to eliminate double taxation. The United States allows for a foreign tax credit for taxes paid to Thailand, while Thailand may provide exemptions or deductions for taxes paid to the U.S.

6. **Exchange of Information**: The treaty includes provisions for cooperation between the two countries in terms of tax information exchange, aimed at preventing tax evasion.

7. **Non-Discrimination**: The treaty includes clauses that prevent discrimination against residents of one country by the other, ensuring equal treatment under the law.

It's advisable for individuals or businesses with tax implications in both countries to consult with tax professionals who are knowledgeable about the specific provisions of the treaty and how they apply to their circumstances.

@lawrie Smith well you did say foreigner when you wrote farang since that is what it means. So hating the word is kind of ridiculous

There's loads of videos on you tube if you simply search "Paying Tax in Thailand" becomes in play January 1 2025.No need for panic although there is an existing law it may well be "reviewed" due to backlash from Expats and unsurprisingly many Thais who benefit from our existence,paying rent etc.Take note of available deductibles,Age,married to a Thai,quite a list

In truth Farang is not all inclusive as a translation to Foreigner. There’s a bit of racism at its core. 😉

If you are here more than 180 days in a calendar year you become tax resident, and remittances during that tax year are subject to Thai income tax effective 2024 so our first returns are due by end Mar 2025 - allowances are generous and if you from a country that has a DTA unlikely you will pay any tax here. If you can prove income is pre 2024 then large amounts for property or car purchase are also exempt. An accountant will handle tax return from B8k upwards.

It is a law already yet not enforced; Remittance based only but only a matter of time to move to the worldwide income and assets principle.

You make it sound like this is a secret. This has been known for a long time and is official but it’s not as black and white as you say.

Personally I have no problem being referred to as a Farang. Up to them.

It’s always been the case that once tax resident you are subject to Thai tax law. Pensions are assessable income unless exempted by a DTA and subject to Thai tax law. Nothing new.

Probably best asking a Thai accountant

You become a tax resident in Thailand if you are in Thailand for 180 days. Starting in 2024, money brought into Thailand is taxable. It is hard to say what this means until Jan-Mar when we can see the Thai tax forms. Thailand has dual tax treaties with many countries. For US citizens federal pensions such as Social Security are not taxable in Thailand. You would have to check the tax treaty details for your country.

If you have a pensioner LTR visa then money you bring into Thailand is not taxable.

its not a rumour, its now law and active

Certainly everything is now possible as Thailand has signed up to CRS , meaning they have access to your bank accounts, income and tax returns elsewhere in the world. They don’t need to have new rules they are only enforcing existing ones.

Have a look at this site and also they do a free 15 call for free to talk about your tax

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