@John *********

It's ok. I have income from both which is taxed, so I move on to Section 3, as Section 2 has determined I'm a dual tax resident. I then call on Section 3 to provide the tie-breaker which determines my sole tax residency as Australia.

@John *********

Exactly. And I am a tax resident of both countries so I move to section 3, which is where I can confirm sole Australian Tax Residency. I have never said any different

@Rob ********

Not necessarily. It's individual circumstances. There's no blanket rule which covers everybody! 👍

@John *********

Read the opening sentence of part 3.

"Where by reason of the preceding provisions, an individual is a resident of both Contracting States...."

I'm not denying I'm a resident of both states. That goes without saying. Section 2 determines if someone is a tax resident of only one country. I'm not. So to determine my tax residency I use the provisions of section 3.

And even though you're interpreting it wrong I do have a source of income in Thailand on which I pay tax, so that box is ticked anyway!

@John *********

I do meet the necessary criteria. I stop at "permanent home" which is only available to me in Australia, therefore I am solely an Australian Tax Resident

Anonymous participant It depends on the criteria of your home country. You need to look up what constitutes a "permanent home", it's not just an airy-fairy statement. It actually has to be a tangible home.

@John *********

You're misinterpreting that clause. That means you cannot claim tax residency solely on having income from a source in that country. You must meet other criteria. In other words if I choose to remain outside of Australia for the entire year, but still receive income from say a rental property in Australia and pay taxes in Australia, that is insufficient for tax residency. However, in my case I have a permanent home in Australia and spend 12-16 weeks there each year, which is more than enough to retain tax residency

Anonymous participant If you've cut ties with your home country you will lose tax residency. However, many people (I'm one of them) have family and financial ties with their home country, so actually they can "choose" by way of behaviour. I visit my home country twice a year for generally a total of 12-16 weeks for the year. I have a permanent home there, so under the DTA, my home country has the sole taxation rights. I don't have to be concerned with "tax credits" which are more for people who still get income from their home country (and hence it's taxed there) whilst not having tax residency. The tax paid by these people can then be applied to taxation in Thailand.

Anonymous participant DTAs provide the formula to use for those with dual tax residency. If you retain tax residency in your home country and meet the DTA criteria, you will not be assessed for taxation in Thailand

@John *********

Nope. I just reference the DTA. They speak for themselves. Very clear when it comes to residency