What are the tax implications for UK pensions in Thailand?

Jun 1, 2024
6 months ago
Bill **********
ORIGINAL POSTER
What's the latest news about UK pensions being liable for tax in Thailand .
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TLDR : Answer Summary
Recent discussions indicate that UK pensions may be subject to Thai taxation once remitted to Thailand, especially if the individual stays in the country for over 180 days, thus becoming a tax resident. The UK and Thailand have a double taxation agreement, allowing individuals to receive a tax credit for taxes paid in the UK, though not all pensions might qualify for tax exemption in Thailand. It's advised to consult a tax professional regarding compliance with the tax regulations and potential liabilities.
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Frank-Steven ***********
If your pension (+ passive income) is high enough, get the LTR visa in the pensioner category - comes weith a guaranteed tax exemption for foreign income.
John ******
@John *********
not true at all.
Frank-Steven ***********
@John *****
How so? The King signed the tax exemption on the LTR.
John ******
@Frank-Steven **********
because it is absolute wrong. I have ltr visa so did a lot of reading. I am not going to reply again just have a look at the official website.
Bob ******
You will not be taxed on your retirement pensions.
Pete *******
@Bob *****
source?
Michael *******
the start date of the 60 day visa exemption 🙂
Michael *******
That’s ok then, maybe you can check with the tax office on h
Bob ******
@Pete ******
the word from an Immigration official.
Pete *******
Gregory ********
UK has a double taxation agreement with Thailand—tax paid in the UK serves as a credit against your assessment in Thailand—many deductions allowed in Thailand as well
Michael *******
A tax return is still required to be submitted even though , with the UK DTA it’s unlikely any tax will be payable, provided you have evidence that tax is paid in UK - some will choose to ignore the requirement , which could lead to serious problems down the line , as we know tax authorities can go back years and impose penalties. Seek professional advise and get a tax number , the worry is if immig ask in the future for tax clearance cert before renewing a retirement visa. Could result in a rise in overstayers who can’t normalise their affairs.
Gregory ********
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Peter *********
If you pay tax on your pension in uk.and can prove it shouldn't be a problem as Thailand had a tax treaty with uk.so you won't ne taxed twice.
Pete *******
@Peter ********
it depends. Yes true you receive a tax credit for tax paid in the UK, but, Thailand has tapered tax bands. If after deductions and allowances the remittance took you into a higher tax band then your tax credit then you would indeed be taxed again.
Michael *******
Where did you hear nothing has been decided ? my accountant confirmed that I will be tax resident this year (180 day rule) and as such, am now obliged to submit a tax return in January 2025 under the new rules. I can of course ignore it but as we know potential tax liabilities dont go away ( two certainties in life death and taxes) one should treat it no differently to our home country or other countries where we may have been a tax resident
Peter *********
@Pete ******
nothing been decided yet let's just hope they leave retired people alone on non o visas retirement
Robert *******
That’s the end of
Pete *******
All pensions (except civil service and military) have always been deemed as assessable income and as such are liable for tax once remitted into Thailand.
John **********
@Pete ******
the exception is for pensions received as a result of working for the government so a bit broader than that. The attached link shows what is defined as a government pension

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Pete *******
@John *********
thanks for the additional information, very useful. Glad to see my Forestry Commission pension will not be taxed in Thailand.
Stuart ***********
@Pete ******
so if you have a military or civil service pension and you have it paid directly into your Thai bank account you are not taxed in Thailand?

Sorry if that's an obvious question.

Also, if this is the case, is there any chance it will change with the new rules?
Dave **********
@Stuart **********
it's taxed at source
Pete *******
@Stuart **********
according to the UK DTA a UK civil service or military pension is not to be deemed as assessable income therefore no need to declare those remittances. This is a long standing arrangement and is not affected by any recent changes.
Stuart ***********
@Pete ******
thank you and John Stanners 🙂
John **********
@Pete ******
that's not quite correct. They are assessable income and you can then claim relief via the DTA in your thai tax return
Todd *********
nobody knows for sure yet.... but if you stay 180 days in thailand, you technically become a tax resident and need to file a Thai tax return. If you are bringing your pension into the country, it would theoritically subject to income tax. How and when those rules get enforced remains entirely dubious
John **********
@Todd ********
the rules are there and in effect. It's up to the individual to follow the rules and face any consequences of not doing so. The question will be whether the thai tax man wants to audit you, at which point the penalties can be pretty severe
Todd *********
@John *********
for rules to be ‘in effect’ there needs to be both clarity and enforcement. At present there is neither.

If the Thai tax man audits you, who cares? If you are bringing in 100k/month you might owe tax on that. But the tax you have paid on that money on your country of residence you will get a credit for that tax under the tax treaty.
John **********
@Todd ********
there is clarity if you care to look. Evading tax by failing to file a tax return is punishable with up to a year in jail and a fine
Todd *********
@John *********
can’t wait to see all the convictions…
Chris *********
@Todd ********
you can’t be taxed twice they have a tax treaty with the uk
John **********
@Chris ********
in reality you end up paying the higher of the two. You get a "credit" against Thai tax for tax already paid
Todd *********
@Chris ********
so what? There are dozens of nations with tax treaties with Thailand. But what you will learn is that the treaty may prevent dual taxation in most cases, but that you will still have to file a Thai tax return as a tax resident of Thailand, be taxed by them and then prove to them that you have paid tax in the UK to claim that money back
Chris *********
@Todd ********
just do what Thai nationals do.
Todd *********
@Chris ********
try to avoid paying tax? I like that plan lol. Not wise though. The challenge you will discover is that your passport and visa are the key to them tracking you. Once at 180 days, we will be compelled at some point to get a Thai tax number. And once you go to renew your visa without tax paid, you will run into an unpleasant surprise. Coming soon to a country near you. Best get LTR visa ASAP to avoid tax here completely
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