Hardly relevant when registering online.

@Andie **********

under section 40 (1) of the Thai Revenue Code pensions are taxable upon remittance to Thailand. Thailand doesn’t care if the source country has taxed it already, they only care about what is under their jurisdiction. If you’re a Thai tax resident Thailand will tax you.

In your scenario you are remitting £1000 per month, assuming that’s your only income and you are a basic rate taxpayer in the UK that is below the £ tax threshold so will be paid free from UK tax. As you have paid no UK tax there is no claim for a tax credit under the Thai UK DTA.

You remit the £1000 into Thailand for living expenses. As you are a Thai tax resident Thailand will assess that £1000 for Thai tax. Let’s call that £1000 430,000 baht. As a Thai tax payer you have Thai allowances and deductions.

60k as a taxpayer

100k as income from employment

190k as being over 65

60k for being married

150k 0% tax rate

Your total Thai allowance and deductions could amount to 560k. In this case you have more tax free allowances and deductions than you have remitted income therefore your Thai tax bill would be zero. In order to claim the allowances and deductions you would need to register for a TIN and file a Thai tax return.

@Andie **********

that’s fine but please do more reading and research.

@Andie **********

you couldn’t be more wrong, everything you just stated is demonstrably factually incorrect. There is a reason why tax credits exist in DTA’s. You need to do much more reading and research on the subject, suggest you join “Thailand tax for expats” group for some Thai tax insights.

@Tony *********

try asking your questions in the group “Thailand tax rules for expats”

@John *********

the calculation is as follows for a married taxpayer:

Uk Income £39,364

1257L basic rate tax 20%

Taxable Income: £26,794

Uk Tax: £5359

FX: 42.39

Thai Tax Credit 227,160 baht

Remitted: 1,668,640 baht

Allowance/Deductions

Taxpayer 60k

Spouse 60k

Income 100k

Nett Taxable: 1,448,640

1 million applied to tax rates 0-20% =115k tax

448,640 at 25% =112,160k

Total tax liability 227,160

Apply UK tax credit: 227,160

Nett Thai tax liability = zero

@John *********

it is certainly addressed. £32,287 income on a 1257L tax code provides £19,717 taxable income at 20% generating a UK tax payment of £3,943 resulting in a Thai tax credit of 167,160 baht at a FX rate of 42.39.

@John *********

apples and oranges, different scenarios different results. I did mix the single and married rates though:

Single taxpayer payer £32,287

Married taxpayer £39,364

Basic UK rate taxpayer claiming the UK tax credit on their Thai tax return. Remitting more than the above amounts starts to actually raise a Thai tax bill.

@Andie **********

it has an English setting….

@John *********

using only the minimum Thai allowances of a single rate taxpayer of 60k, add on an income deduction of 100k for income from employment then add the first 150k zero rate gives you a net total of 310k before any Thai tax is due (approx £7200). Every penny over will start to attract a Thai tax bill. However by utilizing the UK DTA tax credit you can further reduce your Thai taxation. A basic rate UK tax payer (1275L) will have tax withheld at 20%. So you cancel out the Thai tax bands of 5%,10%,15% and 20% by claiming on your tax return the UK tax credit. You then get to the figure of approx £39k where all of your 20% tax credit is exhausted and you start dipping into the Thai 25% tax rate. This is just the minimum figures if you’re married or over 65 the figure will change. However you must register for a TIN and file a tax return to be able to claim your UK tax credit and it also assumes that all the remitted foreign sourced income has been taxed in the UK at the basic rate e.g. company or private pension payments.