@David *******

hi David, I know super is tax exempt in Aus when over 60, but when you bring the money into Thailand, who says it is tax free in Thailand? And I understand that in Aus the first $35k will not attract any tax, but at that level of income there would be tax to pay in Thailand??

@David *******

the problem is that the current 15%Tax is paid by the fund, not by you as an entity so it never shows up on a tax return. Thus when you transfer into Thailand the revenue may see this as assessable income without any offset in Aus. The proposed additional 15% for amounts over $3m will be personal tax and thus this could be used to offset Thai tax.

@David *******

tax free due to allowances in Thailand? I would have thought that the ING interest and Super would be tax assessable when the funds move into Thailand, assuming you are tax resident?

Sounds like something that may catch you out one day?

ChatGPT 4o

CRS reporting. What exactly is reported

ChatGPT

The Common Reporting Standard (CRS) is a global standard for the automatic exchange of financial account information between jurisdictions for tax purposes. Developed by the Organisation for Economic Co-operation and Development (OECD), CRS is designed to combat tax evasion and ensure that taxpayers report their financial assets and income accurately.

What is Reported Under CRS:

Account Holder Information:

Name, address, jurisdiction(s) of residence.

Tax identification number (TIN).

Date and place of birth (for individuals).

Financial Account Information:

Account number.

Name and identifying number of the reporting financial institution.

Account balance or value as of the end of the relevant calendar year or other appropriate reporting period.

Financial Income Information:

Interest, dividends, and other income generated by the assets held in the account.

Gross proceeds from the sale or redemption of financial assets.

Other income, such as insurance contracts or annuities.

Controlling Person Information:

For entities, if the account is held by a passive non-financial entity (NFE), information on the controlling persons of the entity (e.g., beneficial owners) is also reported, including their name, address, TIN, and date of birth.

Types of Accounts Covered:

Depository Accounts: Accounts that hold cash, such as savings accounts.

Custodial Accounts: Accounts that hold financial assets, such as stocks, bonds, and other securities.

Equity and Debt Interests: In certain entities, including partnerships and trusts.

Cash Value Insurance Contracts: Such as life insurance policies with a savings component.

Annuity Contracts: A financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.

Who Reports:

Financial Institutions: Including banks, custodians, investment entities, insurance companies, and certain investment vehicles.

Who Receives the Information:

The information is reported to the tax authority in the country where the financial institution is located. The tax authority then exchanges this information with the tax authorities in the account holder's country of residence under the CRS framework.

This process is designed to help tax authorities ensure that taxpayers are reporting their offshore assets and income accurately and paying the appropriate amount of tax.

@Frank-Steven **********

oh, I may be mistaken. I read the following - ChatGPT 4o

CRS reporting. What exactly is reported

ChatGPT

The Common Reporting Standard (CRS) is a global standard for the automatic exchange of financial account information between jurisdictions for tax purposes. Developed by the Organisation for Economic Co-operation and Development (OECD), CRS is designed to combat tax evasion and ensure that taxpayers report their financial assets and income accurately.

What is Reported Under CRS:

Account Holder Information:

Name, address, jurisdiction(s) of residence.

Tax identification number (TIN).

Date and place of birth (for individuals).

Financial Account Information:

Account number.

Name and identifying number of the reporting financial institution.

Account balance or value as of the end of the relevant calendar year or other appropriate reporting period.

Financial Income Information:

Interest, dividends, and other income generated by the assets held in the account.

Gross proceeds from the sale or redemption of financial assets.

Other income, such as insurance contracts or annuities.

Superannuation is similar to 401k (USA) or ISA (UK) in as much that at age X, 60 in Aus, one can take the funds out and do as you wish with them. The concept is akin to a private pension, but with no restrictions over a defined age. Most Australians would term this a private pension, as do most Thai tax experts because it sort of sounds like a pension. However the Board of Investment / Immigration do not buy this, and consider more like a bank account. I've yet to have any of the Thai expat tax experts point me to any formal, or even a position paper, from Thai revenue. It is , IMO, open until the Thai revenue issues a position paper (applied for).

@Charles *******

I agree, and if you are tax resident in both states then one assumes the actual residency comes into play. I think that if one spends the majority of the year in Thailand, year in year out the Thai Revenue would have a strong case to classify you as being resident in Thailand, and thus your Aussie age pension, upon transfer into Thailand probably becomes taxable. As you may be aware tax authorities all over the world will make assessments of your tax and it is up to you to prove them wrong. I suspect in a place like Thailand that is very hard work.

@Charles *******

would you also include Aussie Superannuation to be classified under pensions?

@Charles *******

indeed, and how do you claim that everyone in all situations is classified as being resident in Australia and not Thailand?