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Answered4 years ago

What are the tax obligations for expats moving to Thailand under a retirement visa?

Steve *******
asked Apr 8, 2023
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Does anyone know my tax obligations if I were to move to Thailand under a retirement visa?
Answer summary
The tax obligations for expats moving to Thailand under a retirement visa depend on various factors, including the individual's income source and country of origin. Generally, if not earning income in Thailand, retirees may not owe Thai taxes, but they still might be liable for taxes in their home country, especially if they receive pensions or other income sourced from abroad. It's crucial to consult both the taxation department of your home country and Thai authorities to ensure compliance, as different countries have treaties that can affect tax liabilities.
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Colin *********
Colin *********
What is your country that you are a citizen or permanent resident of? Countries may have Treaties that govern to where taxes should or should not be paid. Australia has a Treaty with Thailand preventing Australian citizens paying double tax while residing in Thailand. That's something I'll need to look into if I continue with my plans to retire in Thailand in a couple of years, when I'll be entitled to an Australian pension, which, on it's own, for me, wouldn't be taxable in Australia even with my Superannuation added (personal circumstances, others may be different).
Colin *********
Colin *********
A little more research online: according to ThaiEmbassy.com if you are a retiree, only income earned inside Thailand is subject to being taxed by the Thai government.
Bob **********
Bob **********
If you ain’t earning in Thailand what are you going to pay tax on ??
Keith ********
Keith ********
@Bob *********
which is exactly what I was trying to explain! And why this statement on the aforementioned website is misleading, unless clarified as I did above.

"Only income earned inside Thailand shall be subjected to tax during retirement. Therefore, you will not be obliged to pay any taxes for any income you have earned from overseas. Also, personal income taxes are not required for retirees in Thailand. Note that you can’t work in Thailand while on a retirement visa".
Bob **********
Bob **********
@Keith *******
if you earn in the UK you’ll pay in the UK same with the US I invest in my country not Thailand so no tax here
Keith ********
Keith ********
@Colin ********
well I better tell my accountants and HMRC in the UK in that case, because they owe me a humungous refund after 10 years of paying UK income tax while living in Thailand.

Firstly to mention that ThaiEmbassy.com is not a government website. Secondly the following paragraph needs clarification to reflect the actual situation.

“Only income earned inside Thailand shall be subjected to tax during retirement. Therefore, you will not be obliged to pay any THAI taxes IN THAILAND for any income you have earned from overseas. Also, personal income taxes are not required for retirees in Thailand. Note that you can’t work in Thailand while on a retirement visa.” My additions in capitals. That is the true meaning of this paragraph.
Colin *********
Colin *********
@Keith *******
according to ThaiEmbassy.com a retiree doesn't have to pay tax, unless the income is earned in Thailand.
Keith ********
Keith ********
@Bob *********
any overseas income above the tax allowances. You will also pay withholding tax on any interest earned in a Thai bank.
Keith ********
Keith ********
For the UK I am classed as a non-resident for tax purposes, but because the Thailand tax treaty with the UK does not cover pensions, I am taxed in the UK on both my company and state pensions.
Steve *******
Steve *******
OP
@Ke***
do you know if there is any similar advice on capital gains?
Steve *******
Steve *******
OP
Really helpful, thanks
@Ke***
Keith ********
Keith ********
@Bob *********
Dear Sir or Madam,

Thank you for your query regarding Double taxation with Thailand for your UK State Pension.

Double Taxation Agreement (DTA)

A Double Taxation Agreement (DTA) is a set of rules and conditions between the UK and another country about the way you pay tax. If you live in a country that the UK has a DTA with you may be able to make a claim to stop paying all or some UK tax on certain types of income you get from the UK.

I’m afraid that under the UK/Thailand double taxation convention. There is no relief on UK State pension. You will continue to pay any tax due on the UK State Pension to the UK.

You can find more information about the Tax treaties online at:
******************************************************


Regards

Certificate of Residence Team

HMRC Personal Tax Operations
Bob **********
Bob **********
@Keith *******
why are you taxed on a state pension??
Paul ********
Paul ********
@Keith *******
correct 👍🏻
Russell *******
Russell *******
Do you mean tax on pension?
Paul ********
Paul ********
Tax obligations to who dude? 🕶
Frank **********
Frank **********
Yeah you will pay tax to some government.
Steve ********
Steve ********
You have to speak to the taxation department of the country you are currently living in, and also the Thai tax department, for an accurate answer.
Colin *********
Colin *********
@Steve *******
as far as I know, but by no means an expert, I would think that if all your income is coming from your country of origin and none from Thailand, any taxes would be payable to the country you're from. If income is derived from Thailand then maybe Thailand or both countries could expect to receive taxes.
Phil ******
Phil ******
@Steve ******
a lot of more financial information is required by you for someone on Facebook to advisr you. I suggest you talk to a thai financial planning company
Andy *******
Andy *******
Yes, somebody does.
Steve *******
Steve *******
It will all depend on your income, status and country of origin.
Darren *******
Darren *******
Depends on your personal circumstances

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