Tax residency in Thailand

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dundrillin
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Tax residency in Thailand

Post by dundrillin » Thu Jul 05, 2018 5:55 pm

I am intending to rent out my property in the U.K. And move to Thailand on a permanent basis. What are the implications of a tax residency here in Thailand. My only income is U.K. Pensions and share dividends. Any advice would be greatly appreciated.

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Re: Tax residency in Thailand

Post by Dannie Boy » Thu Jul 05, 2018 6:12 pm

dundrillin wrote:I am intending to rent out my property in the U.K. And move to Thailand on a permanent basis. What are the implications of a tax residency here in Thailand. My only income is U.K. Pensions and share dividends. Any advice would be greatly appreciated.
Although I can’t claim to be an expert on tax, my understanding is that you would only be liable to Thai taxation on income earned here. As I’m sure you know, income from UK rental is subject to UK tax along with your pension, although you are allowed your personal allowance to offset the first (approx £11k).


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PeteC
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Re: Tax residency in Thailand

Post by PeteC » Fri Jul 06, 2018 4:35 am

Yes, my understanding is earned here or remitted here. Remitted meaning you're living here legally and payment for a commercial service you performed anywhere in the world is remitted directly into your Thai bank account, or remitted to you here in draft form and you deposit it into your Thai bank account. So, if you're renting out your UK property have them remit the rent to your UK bank account then you move it elsewhere. What I've just said dates back several years but I don't think it has changed, at least I haven't read that it has changed. Pete :cheers:
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Re: Tax residency in Thailand

Post by StevePIraq » Fri Jul 06, 2018 12:07 pm

There is another thread on this, can't remember the name, anyway I went to the Hua Hin Revenue Office on Soi 88 and enquired directly, I was told I only pay tax on income I earn in Thailand, any income overseas is not considered.
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Re: Tax residency in Thailand

Post by PET » Fri Jul 06, 2018 7:55 pm

You will also not be eligible for capital Gains tax once you have declared the residency in Thailand. I am not sure how long this takes but I seem to remember it was quite quick.
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Re: Tax residency in Thailand

Post by dundrillin » Fri Jul 06, 2018 11:49 pm

PET wrote:
Fri Jul 06, 2018 7:55 pm
You will also not be eligible for capital Gains tax once you have declared the residency in Thailand. I am not sure how long this takes but I seem to remember it was quite quick.
Are you sure about that? It seems an untypically generous concession.

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Re: Tax residency in Thailand

Post by Dannie Boy » Sat Jul 07, 2018 8:45 am

dundrillin wrote:
Fri Jul 06, 2018 11:49 pm
PET wrote:
Fri Jul 06, 2018 7:55 pm
You will also not be eligible for capital Gains tax once you have declared the residency in Thailand. I am not sure how long this takes but I seem to remember it was quite quick.
Are you sure about that? It seems an untypically generous concession.
Some of the rules covering CGT changed in 2015 - this may not cover every issue but it makes reference to a lot of scenarios
https://www.expertsforexpats.com/expat- ... sh-expats/
:cheers:

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Re: Tax residency in Thailand

Post by lomuamart » Sat Jul 07, 2018 9:00 am

I remember that law coming into effect and contacted my agents in London who told me that lots of their overseas clients were having their properties valued to hopefully lessen the chance of there being any disagreement with HMRC over the 2015 value if and when the time came to sell.
It's what I did but haven't tried to negotiate with the Revenue yet.
The OP was asking about rental income which as others have said is taxable in the UK as income earned from the country. Personal allowance is 11,800 GBP now, I believe.
Another useful exercise if renting is to get yourself registered as a Non Resident Landlord Living Abroad. I did it years ago and it was an easy process. Once registered, there's a host of deductables you can set off against any tax liability such as agent's fees, maintenance and 10% wear and tear. It's worth looking into.

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Re: Tax residency in Thailand

Post by dundrillin » Sat Jul 07, 2018 2:51 pm

Dannie Boy wrote:
Sat Jul 07, 2018 8:45 am
dundrillin wrote:
Fri Jul 06, 2018 11:49 pm
PET wrote:
Fri Jul 06, 2018 7:55 pm
You will also not be eligible for capital Gains tax once you have declared the residency in Thailand. I am not sure how long this takes but I seem to remember it was quite quick.
Are you sure about that? It seems an untypically generous concession.
Some of the rules covering CGT changed in 2015 - this may not cover every issue but it makes reference to a lot of scenarios
https://www.expertsforexpats.com/expat- ... sh-expats/
:cheers:
Thanks for that link. It was very interesting indeed.

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Re: Tax residency in Thailand

Post by dundrillin » Sat Jul 07, 2018 3:00 pm

lomuamart wrote:
Sat Jul 07, 2018 9:00 am
I remember that law coming into effect and contacted my agents in London who told me that lots of their overseas clients were having their properties valued to hopefully lessen the chance of there being any disagreement with HMRC over the 2015 value if and when the time came to sell.
It's what I did but haven't tried to negotiate with the Revenue yet.
The OP was asking about rental income which as others have said is taxable in the UK as income earned from the country. Personal allowance is 11,800 GBP now, I believe.
Another useful exercise if renting is to get yourself registered as a Non Resident Landlord Living Abroad. I did it years ago and it was an easy process. Once registered, there's a host of deductables you can set off against any tax liability such as agent's fees, maintenance and 10% wear and tear. It's worth looking into.
Most of these deductibles are available for UK residents. However the 10% wear and tear allowance is no longer available.

My understanding is irrespective of your tax residence all your income and capital gains will be taxed the same as if you were a U.K. Resident ie interest in offshore banks etc. Only by becoming a non domicile will you escape the clutches of the UK tax man. This is actually difficult to achieve.

As regards capital gains on your Thai house would this not exempt as it is your primary residence?

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Re: Tax residency in Thailand

Post by moater » Sat Jul 07, 2018 3:14 pm

There's also a hard to enforce stipulation on dividends. They must not be remitted to Thailand in the calendar year they were received. Otherwise they are subject to taxation. I've never heard of this enforced, but I know some extra careful people who keep dividends in a separate account until they have so-called ripened.

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Re: Tax residency in Thailand

Post by dundrillin » Sat Jul 07, 2018 4:02 pm

moater wrote:
Sat Jul 07, 2018 3:14 pm
There's also a hard to enforce stipulation on dividends. They must not be remitted to Thailand in the calendar year they were received. Otherwise they are subject to taxation. I've never heard of this enforced, but I know some extra careful people who keep dividends in a separate account until they have so-called ripened.
Thanks for that, I did not realise that.

I usually re-invest the dividends. However once you become non resident you can't reinvest any dividends you have in an ISA. Or make further contributions to it.

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