Will my military disability pension be tax exempt in Thailand if I stay over 180 days on a DTV?

@John *********

How many foreign residents are likely to come in under the Thai tax threshold of Bt/£3.2k/US$4.1k p.a., I don't think many? Thai tax thresholds are very low compared with our home countries.

It seems my comments are moderated by the moderator so I'll make no further comment. Thank you nice discussion, thank you.

Well first of all, your question isn't related to the DTV except for the aspect of potentially enabling you to reach 180 days per calendar year in Thailand, if other visas cannot (retirement, marriage etc.).

You'd have to check the tax treaty between Thailand and your home country. However, looking at the nature of your income and recognizing your country has determined it's not taxed, I'd be willing to place a firm bet on the treaty maintaining this. It'll probably state that this income category is solely taxable at the source, which in your case is the US, so their tax exemption would be in effect.

But, check it.

In many cases, as the OP indicated his so-called pension may not be a pension but compensation from his country for disbilities he may have received while serving in the military. If this was the case it is not taxed and usually goes on forever. Australia and many countries are the same...so what happens if he takes his compensation/pension to Thailand?

There is another grey area.. regarding tax deemed to have already been paid in your home country.. in so much that in most countries your income enjoys a tax free allowance.. meaning the first X pounds or dollars are exempt from tax and then you pay tax on any excess income over and above said allowance.. so if the income is 30k and the allowance is 10k only the net sum of 20k is taxable.. however once this liabity is settled the whole 30k is considered to be 'tax-paid' since it has been assessed and agreed by the tax authorities.. but the resultant (or visible) tax credit will be for the actual tax payment you have made.. ie. the monetary sum.. and as currently written.. this is the figure that the Thai tax system will take to offset any tax liability in Thailand.. but this does not recognise that (in my example) the whole 30k is effectively tax-paid.. and by ignoring this they are effectively removing the tax-free allowance in your home country by taxing you on the total income.. which is completely unfair imo.. in fact the whole concept is flawed in its present form and needs to be reviewed.. otherwise they will sink under the weight of their own bureaucracy.. they should be focusing upon 'earned' income that has not been 'assessed' for tax in any jurisdiction whatsoever.. ie. that has not been reported in the home country or any other jurisdiction where an individual may have a home or the right of residence.. i understand there could be economic nomads out there that earn high sums from overseas activities.. but they avoid paying any tax in the overseas jurisdiction by limiting their time in said country.. preferring to spend more time living in Thailand where they have no 'employment' and consequently (past tense) no tax liability on the income they subsequently bring here to fund their lifestyle.. i believe these people are really the target of the new tax regime.. rather than foreign retirees that may have Thai families to support on (comparatively) modest income.. the easiest solution would be to remove all pensions and other retirement payments received by retirees living here from the equation.. irrespective of the overseas jurisdiction where it originates.. and only look at the income 'earned' by this group from gainful employment with overseas employers (or other organisations) that has not already been assessed for tax in the originating country.. and if it has been then the gross income assessed should be exempt rather than just looking at the amount of tax they have paid.. otherwise Thailand risks alienating many retirees.. not to mention penalising many Thai's who depend upon this income, in the process!

Shayne Rochford... I am quite caplable of reading plane English, All we need to work on is to get Thailand to wite what is now facts and not beat around the bush. If there are exceptons we can just read what they say and implement it??

No you won't be tax exempt in Thailand but that doesn't mean you will have to pay thai tax. Any income you bring in to Thailand while a tax resident becomes assessable for Thai tax and will likely have to file a Thai tax return, but if your country has a DTA between it and Thailand there may be exemptions afforded to you in that. You claim these exemptions via the tax return. Reading and understanding the DTA will be key

Talk with

@American *****************************

who can explain what they understand at this time.

@https://www.facebook********************

If you are in Thailand for more than 180 days in calendar year (effective Jan 2024) you are a tax resident, and as such required to file a tax return - Double Tax Treaties exist for many countries incl Australia, US and UK, but this doesn’t mean you can ignore the requirement to file. How this will be enforced remains to be seen, but back taxes and penalties will not be pleasant. Folks on LTR visa are exempt.

To Jeff Schott and others...My Australian Aged Pension (AAP) is $ P/Y if living in Thailand and the extra $15,000 per year is from a retirement fund it is all tax-free in Australia. Will I have to pay tax in Thailand? I've asked this question on a dozen different sites. To date, no one has given me an answer. At 82 y/o I am not even required to put in a tax return. The ATO (tax office) in Australia excuses me for doing so. In Australia, I am below the tax threshold.

From what I have read, under the tax treaty between Thailand and the U.S., government pensions are not taxable in Thailand. I strongly suggest you consult with a Thai expert to guarantee that is true for your situation.

No one knows how it's going to work at the moment