Tax residency in Thailand and taxing overseas income

[Big Boy]

The Thai Embassy are taking the word of a Gov.UK approved solicitor that the documents are genuine. I honestly can't see why any of it is necessary. However, I am very confident the document will be accepted.

If it isn't accepted, I will simply walk out of the tax office, and wait for them to sue me along with the rest of the Farang population who are sitting on the fence. I've done as much as I can. I've tried to do the right thing, but there is no more that I think I can do.

There are plenty who say do this, or do that. Don't do this, etc. When you ask them for their personal experience, they've done nothing.

[Dannie Boy]

Maybe that’s the best policy?


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[joelle]

The Thai Embassy are taking the word of a Gov.UK approved solicitor that the documents are genuine. I honestly can't see why any of it is necessary. However, I am very confident the document will be accepted.

If it isn't accepted, I will simply walk out of the tax office, and wait for them to sue me along with the rest of the Farang population who are sitting on the fence. I've done as much as I can. I've tried to do the right thing, but there is no more that I think I can do.

There are plenty who say do this, or do that. Don't do this, etc. When you ask them for their personal experience, they've done nothing.

After all your efforts to get it right I am sure it will be accepted

[Big Boy]

I sincerely hope so. I've not jumped through so many Thai hoops since getting my Yellow Book quite a few years back.

Personally, by going through the 'approved' solicitor, I believe I've gone above and beyond. If they say no this time, I give in - they've beaten me.

[caller]

I hope it works BB, I really do. It would be a helpful option for many of us.

I am just curious in what way the UK embassy in Thailand 'approved' this company. It's a big committment for an Embassy to make, especially if they are not involved in the process in any way whatsover. You would expect an Embassy to have a list of service providers, but with a disclaimer absolving themselves of any responsibility if you choose to use any on the list should anything go wrong.

[caller]

Meanwhile, I have just heard elsewhere from a Brit expat over on the other side of the Gulf, who has a pension income from the UK paid directly into his Thai account, who has already filed his tax return, taking his 2024 bank statement, passport and a copy of his wifes ID (signed). The only difference being he already had a TIN, and the tax officer calculated this and that, just as BB experienced, without the requirement of pension documents or Embassy involvement.

I know that doesn't really help us in HH, but it shows that different offices seem to be applying other rules.

[sateeb]

As I stated many posts ago, there is NOTHING in the guidelines issued that any tax documents produced need to be verified by an embassy. HH office lady making up her own interpretation!

[Big Boy]

Is that from experience i.e. have you reported to the tax office this year, and told them so, and they accepted what you said; or just your interpretation of what you've read? Was what you've read a translation? Could something have been lost in that translation, as often happens in Thailand - we've all done it?

All that I know is as I worked my way up the chain of command at the tax office, they were all insisting on the verification. A precaution I reluctantly understand because any muppet with a laptop and printer could easily forge the document.

[sateeb]

Income tax paid abroad can be credited against Thai taxes
if permitted under Double Tax Agreement (DTA).
So, there will be no double taxation for residents of Thailand.
Remarks: Documents and evidence may be required in order to prove sources of income
and to claim foreign tax credit under Double Taxation Agreement.
Documents must be in English or Thai.
For the evidence to claim foreign tax credit, Tax Payment Certificate issued by foreign
tax authority is recommended.
When a foreigner who is a resident of Thailand pays tax on income
abroad, tax paid can be taken as a credit against the tax payable in
Thailand.
Credit amount cannot exceed the amount of Thailand’s tax liable to
the foreign-sourced income.
P

Go back a few pages Where does it say certified? Sounds like the usual jobsworth Civil Servant making up the rules!!

[Stevepiraq1]

Income tax paid abroad can be credited against Thai taxes
if permitted under Double Tax Agreement (DTA).
So, there will be no double taxation for residents of Thailand.
Remarks: Documents and evidence may be required in order to prove sources of income
and to claim foreign tax credit under Double Taxation Agreement.
Documents must be in English or Thai.
For the evidence to claim foreign tax credit, Tax Payment Certificate issued by foreign
tax authority is recommended.
When a foreigner who is a resident of Thailand pays tax on income
abroad, tax paid can be taken as a credit against the tax payable in
Thailand.
Credit amount cannot exceed the amount of Thailand’s tax liable to
the foreign-sourced income.
P

Go back a few pages Where does it say certified? Sounds like the usual jobsworth Civil Servant making up the rules!!

Not quite correct, the Taxation Treaty covers certain aspects not all, so whilst you pension may be not subject to tax other items may still be subject to tax.

[Big Boy]

Yes, but have you physically tried to present the information without validation and had it accepted since 1st Jan? I am simply saying it as per my personal experience, and I've questioned it at every level.

I am quite capable of reading the post, but is it a bad translation? You seem to be suggesting that I am being told lies from the basic desk clerk to the Head Honcho. Bad translations are not unheard of in LOS. Just look at your average menu.

[Stevepiraq1]

The tax office in Hua Hin are fully aware of all of this - its their job, and what they do. They are not trying to rob anybody (even discounted my wife's expensive operation without seeing receipts). The only problem is proving that I've paid tax. Now that I have certified documentation on its way, that hurdle will be overcome on Friday. They have rules to work to, and although I don't necessarily like those rules, I too as a Civil Servant had to upset a few people.

The cost of certification varies according your personal needs. You need to read the link that I provided and apply it to your own circumstances.

It would be interesting to know whether Stevepiraq1's accountant is allowed to by-pass the "If you can prove you have already paid tax" requirement. The Hua Hin tax office are very insistent on this, and I discussed my difficulties getting the necessary proof with several staff members, up to the local Head Honcho. There was no give on that one.

Providing proof of paying tax is impossible for me as I have not paid tax anywhere for in excess of 20 years, as such once I explained my situation proof of tax paid was not discussed. Sorry I cannot help on that one.

[Big Boy]

That is fair comment Stevepiraq1. Thank you.

[kwajdiver]

As I have expressed before, it will be navigating the Thai bureaucracy that will be the problem. On other forums, people are saying that their regular home country financial documents - showing how much tax they have already paid - are being accepted by their local tax office without any special stamp or seal. Further, others are saying that their local tax office has told them that they do not have to file a return if the income that they brought into Thailand is exempted from Thai tax by a tax treaty.

So, if those reports are accurate, it looks like where a person lives will make a big difference…..

[Big Boy]

Nothing unusual there for Thailand then.