Q: Is there a tax treaty between Australia and Thailand?

Yes, Australia and Thailand have a tax treaty , formally known as the Agreement between the Government of Australia and the Government of the Kingdom of Thailand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income. This agreement is designed to prevent double taxation and fiscal evasion, making it easier for individuals and businesses to operate between the two countries by clarifying the tax obligations for income earned in either country. This treaty covers various forms of income, including dividends, interest, and royalties, and establishes the taxing rights of each country to ensure taxpayers are not taxed twice on the same income.

Question 1

It is to my understanding that Thailand is forbidden from taxing US Social Security income. Is there any difference on how the money is remitted into Thailand such as a monthly remittance or an annual lump sum transfer?

Chas Begley · Accepted Answer

US Social Security is tax exempt under the USA-Thailand DTA. There are no differences between if you remit monthly or annually. We recommend you watch our webinar on the USA DTA for more information

Question 2

Is there a tax treaty between Australia and Thailand?

Chas Begley · Accepted Answer

Yes, Australia and Thailand have a tax treaty, formally known as the Agreement between the Government of Australia and the Government of the Kingdom of Thailand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income. This agreement is designed to prevent double taxation and fiscal evasion, making it easier for individuals and businesses to operate between the two countries by clarifying the tax obligations for income earned in either country. This treaty covers various forms of income, including dividends, interest, and royalties, and establishes the taxing rights of each country to ensure taxpayers are not taxed twice on the same income.

Question 3

Has there been any clarification or ruling on whether remittances from Australia which have already been taxed or have satisfied the tax requirements of Australia will be taxed again here? Or have they ruled whether we will receive a tax credit for any tax already paid in Australia if there is a double tax treaty with Australia? In my case the money I would be bringing in here would be dividend distribution from Australian shares. I file taxes in Australia each year and declare these dividends and any Australian tax obligations are met. These are privately held shares (not through a superannuation or pension scheme).

Chas Begley · Accepted Answer

Regarding your overseas dividends, as a Thai-tax resident, these are taxable in Thailand if remitted. You can potentially offset taxed owed with tax credits from taxes paid in Australia. Remember, you're taxed only on the amount remitted to Thailand.

Question 4

I am on a retirement visa here in Thailand at 57 years of age; I am a US citizen living on money brought to Thailand many years before 2024. In the future, I will need to access my 401k. Hopefully, I will also access social security around the same time. I believe I will need to pay additional tax in Thailand for my social security in the future, but as far as my 401k and paying any additional tax,

Chas Begley · Accepted Answer

Here is the US-Thai Double Taxation agreement. It sets out how certain assets are taxed and the articles in the DTA take precedent over local domestic Thai tax rules. We will host a webinar specifically on the US DTA next month, which I will invite you to join, as many people have had similar questions. Social Security is mentioned in the DTA and is not taxable in Thailand. Here is the extract from the DTA from article 20 part 2 which mentions that social security shall be taxable only in the USA. Article 20 (2) Notwithstanding the provisions of paragraph 1, social security benefits and other similar public pensions paid by a Contracting State to a resident of the other Contracting State or a citizen of the United States shall be taxable only in the first- mentioned State. For 401k’s there is no such article in the DTA. This means that if you remit your 401k into Thailand, then it is an assessable income in Thailand if you are a Thai tax resident. Learn more about Double Tax Agreements for expats in Thailand by watching our video here. You can find out more about Thailand's tax rates, allowances and deductions here or if you prefer to listen to a short podcast here

Question 5

Given that the UK tax year differs from the Thai tax year, how is this addressed when calculating Thai tax liability for income earned in the UK across the two UK tax periods that fall within one Thai tax year?

Chas Begley · Accepted Answer

We calculate manually the tax paid in the UK over the calendar year, using your tax return/records from April 2024 and then estimate the tax in the UK for the remaining calendar year.

Question 6

My reading of the UK - Thailand Double Taxation Agreement Article 19 (2) & (3) is that a UK Civil Service Pension paid to a UK national resident in Thailand over 180 days a year is not taxable in Thailand.  Is this correct ?

Chas Begley · Accepted Answer

Correct, the UK/Thai DTA shows that government services and government pensions are not taxable in Thailand and only in the UK.

Question 7

I am moving to Thailand later this year in 2024. I have a business in Australia which will provide me a regular passive income weekly for me while I live in Thailand. My income will be automatically taxed and sent to the Australian Tax Office and my tax return will be done in Australia.    As there is a DTA between the two countries will I have pay any tax to the Thai government? I assume not with a DTA as long as I declare with the Thai TAX Office I've paid tax on the money already

Chas Begley · Accepted Answer

If you transfer in the overseas income, this is assessable income. You can use the tax credits for tax paid already on this potentially and you will have to file a tax return. Our Assisted Tax Filing Service is the most suitable for you. For more information on the Australia-Thailand DTA and other tax planning information for Australians watch our webinar here.

Question 8

I understand that American social security can not be taxed in Thailand when transfered to a bank account there, i am wondering if this would include American veteran benefits as not taxable income because they are also 'government payments' like social security. Is this correct?

Chas Begley · Accepted Answer

Veterens pensions are classed as government pensions. Both Social Security and government pensions are excluded from Thai income tax due to the Double Taxation Agreement. You don't need to file a Thai tax return or get a Tax ID number

Question 9

I live in Thailand with my 3 children at the moment. I am divorced. I have my UK old age pension. What tax would I have to pay in Thailand. I'm 67 what allowance would I get before I paid tax?

Chas Begley · Accepted Answer

You will have to file a tax return, but with your allowances and deductions, its likely you won't have a tax obligation. We can file this for you with our essential tax filing. Here is more information.

Question 10

My only income are my pensions from Sweden, there I also pay tax on my pensions. Regarding to the double tax agreement between Sweden and Thailand I am only obligated to pay tax in Sweden. My question is, if I don't need to pay tax in Thailand am I still obligated to declare the money I take in here in Thailand. Yearly I take in more than 1 000 000 THB.

Chas Begley · Accepted Answer

If the assets are classed as assessable income and you are claiming the tax credits, you still have to file a tax return.

Question 11

If my only income is a government pension from my home country and the double tax agreement clearly states it is "only" taxed in my home country, do I still need to file taxes in Thailand?

Chas Begley · Accepted Answer

If the DTA states that it is not assessable income in Thailand, you do not need to file this on a Thai tax return.

Question 12

Israel DTA: Part of my salary is in Israel. I will not be working in Thailand at all and will be travelling often to other countries around Asia. I understand that the DTA between the two countries allows us to do so. In order to travel around Asia, would I need to make a formal document to show that I am paying taxes in Israel?

Chas Begley · Accepted Answer

The salary is taxable if remitted to Thailand, but only if remitted. You can read the Israel Thailand Double Tax Treaty here

Question 13

Are US military or US civil service pensions taxable in Thailand?

Chas Begley · Accepted Answer

No, these pensions are exempt under the Double Taxation Agreement (DTA).

Question 14

Can expats use tax credits for taxes paid in other countries?

Chas Begley · Accepted Answer

Yes, taxes paid in another country can be claimed as a credit according to the terms of the relevant DTA.

Question 15

I am a DTV visa holder based in Thailand all year. I pay tax on my income in the UK. Does the UK DTA exempt me from tax in Thailand?

Chas Begley · Accepted Answer

As a DTV visa holder staying in Thailand for over 180 days (i.e., all year), you are considered a Thai tax resident. You must pay personal income tax on Thai-sourced income and foreign income brought into Thailand, such as UK earnings.

The UK-Thailand DTA does not exempt you from Thai tax but prevents double taxation. You can claim a tax credit in Thailand for taxes paid in the UK on the same income, reducing your Thai tax liability.

Watch this video to find out more about how the UK-Thailand DTA works. DTAs can be complex to manage, so please don’t hesitate to contact our team if you’d like to discuss further.

Question 16

Are digital nomads able to use DTAs to reduce tax liability in Thailand?

Chas Begley · Accepted Answer

Yes, digital nomads can utilise Double Taxation Agreements (DTAs) to minimise their tax liability in Thailand. Thailand has DTAs with over 60 countries.

DTAs prevent double taxation. If you are a tax resident, you can claim credits for taxes paid abroad on the same income. This lowers your Thai tax bill. For example, the US-Thailand DTA allows US expats to offset US taxes against Thai taxes. This can mean that you have no tax to pay in Thailand, but you still have an obligation to file.

We have lots of resources on Double Tax Agreements or, if you prefer, book a call with our team to discuss.

Question 17

Do I still have to pay tax in Germany if I become a Thai tax resident?

Chas Begley · Accepted Answer

If you are classified as a Thai tax resident (spending 180+ days in Thailand), the income you remit to Thailand may be taxable. However, under the Germany–Thailand Double Taxation Agreement (DTA), certain income types such as pensions, employment income, and business profits are covered to prevent double taxation. The rules depend on the income type: German state pensions usually remain taxable in Germany, while private pensions and savings may become taxable in Thailand if remitted. For more information on the Thailand–Germany Double Tax Agreement and practical tax planning for German expats, check out our full webinar recording.

Question 18

How does the Germany–Thailand DTA protect me from double taxation?

Chas Begley · Accepted Answer

The DTA sets out which country has the right to tax different income streams. For example:

Government service pensions are generally taxed in Germany only.
Private pensions, employment income, and investments may be taxed in Thailand if you are a Thai tax resident and remit the income into Thailand.
If both countries tax the same income, Thailand generally grants a foreign tax credit for taxes already paid in Germany

For further details on the Thailand–Germany Double Tax Agreement and tailored strategies for German expats, please view our full webinar recording

Question 19

Are German state pensions taxed in Thailand?

Chas Begley · Accepted Answer

No. German state pensions (statutory pensions, government service pensions) remain taxable only in Germany under the DTA. Thailand does not have taxing rights over this income, even if you remit it. Want to dive deeper into how the Thailand–Germany DTA affects you? Watch our webinar for clear, practical tax planning tips for German expats

Question 20

What about private pensions, savings, and investments from Germany - asr they taxable in Thailand?

Chas Begley · Accepted Answer

Private pensions, dividends, interest, and other investment income may be taxable in Thailand if you are a Thai tax resident and remit the income into Thailand in the same year it is earned (post-2024 rules). If German tax is already paid, you may claim a foreign tax credit in Thailand. Learn more about the Thailand–Germany DTA in our full webinar here.

Question 21

How are capital gains from Germany treated if I live in Thailand?

Chas Begley · Accepted Answer

Capital gains from the sale of property or shares in Germany are usually taxable in Germany. If you remit the gains to Thailand, you may also face Thai taxation under the remittance rule, but you can typically offset this with a tax credit for German tax already paid. Want to dive deeper into how the Thailand–Germany DTA affects you? Watch our webinar for clear, practical tax planning tips for German expats

Question 22

Do I need to declare my Dutch pension in Thailand if it’s already taxed in the Netherlands?

Chas Begley · Accepted Answer

Yes, in most cases you must still declare your Dutch pension in Thailand. Under the Dutch–Thai Double Tax Agreement (DTA), civil service pensions remain taxable only in the Netherlands, but private and occupational pensions can also be taxable in Thailand once remitted into the country. Thailand’s remittance basis means tax is due in the year the money is brought into Thailand, not when it is earned. To avoid double taxation, you may be able to claim a credit for Dutch tax already paid, but this requires proper documentation and timely filing.

Question 23

US specific: Are Social Security, US government and military pensions and 401k or similar accounts potentially liable for tax?

Chas Begley · Accepted Answer

In the US DTA, it specifically states that US government and military pensions are not taxable in Thailand. 401k and similar accounts, however, are taxable in Thailand. You can use any tax paid on them as tax credit if they are remitted to Thailand.

Question 24

Will the Thai Revenue Department allow the home country’s Personal Allowance and other countries exemptions to be part of the tax paid process?

Chas Begley · Accepted Answer

No. You cannot use any other country’s personal allowance in Thailand. Thai tax residents have their own personal allowance, so it is important that you use this. You can find out more about Thailand's tax rates, allowances and deductions here or if you prefer to listen to a short podcast here

Question 25

US DTA question: Is there a detailed guide of the effect of this law for US citizens, as it relates to the tax agreement between the two countries?

Chas Begley · Accepted Answer

You are able to read through the DTA between the US and Thailand for your specific investments, savings or assets. Learn more about Double Tax Agreements for expats in Thailand by watching our video here.

Question 26

Netherlands General DTA question: What about the dual tax agreement? How can the Thai government expect foreigners who have paid taxes on their incomes in their home countries to be happy about being double taxed?

Chas Begley · Accepted Answer

Thai tax residents have a Thai tax filing and Thai tax obligation. All that has changed with the new rules is that you cannot leave funds overseas for one complete tax year and bring it in the next year. This has always been in the law, but there has been a departmental order change to overrule a ruling from 1987. Thailand has the right to tax foreign-sourced income that is remitted to Thailand. You may potentially use tax paid in your home country as a credit. You can read the Netherlands Thailand Double Tax Treaty here Learn more about Double Tax Agreements for expats in Thailand by watching our video here.

Question 27

US social security and DTA: It is to my understanding that Thailand is forbidden from taxing US Social Security income.

Chas Begley · Accepted Answer

Social security is not taxable in Thailand. It is taxed in the US, which takes precedent over Thailand.

Question 28

UK Army pension: I’m a 61-year-old on a retirement visa. Will I be taxed on my Army pension which is already taxed in the UK? I also receive a war disability pension from the UK which is tax free.

Chas Begley · Accepted Answer

Certain types of pensions in different countries, such as government or civil service pensions, are not taxable in Thailand, depending on the DTA. UK Army pensions are not taxable in Thailand.

Question 29

DTA misunderstanding: Is it true that if your pension is taxed at the source, then Thai tax does not apply?

Chas Begley · Accepted Answer

This is untrue. If the pension is transferred or remitted into Thailand, there is potentially a tax obligation depending on the specific DTA. Learn more about Double Tax Agreements for expats in Thailand by watching our video here.

Question 30

UK DTA: I’ve got two pensions and I transfer money to a Thai bank account every 5 months. Do we need to worry about tax as Thailand and the UK have a DTA, plus the money is already being taxed in the UK?

Chas Begley · Accepted Answer

Potentially, yes. This is dependent on the tax rate in the UK and if it was remitted into Thailand. State and private pensions in the UK are taxable in Thailand, but you can use tax already paid as a credit. Even if your tax rate is high in the UK, and even if there is no tax to pay in Thailand for your situation, you will still have to file a tax return. Learn more about Double Tax Agreements for expats in Thailand by watching our video here.

Question 31

Danish pension and DTA: I am retired and come from Denmark, which has a DTA with Thailand. Tax has been paid on all of my income in Denmark. I send my monthly pension from Denmark to Thailand every month. With the new rules, do I have to pay anyone for tax on the pension I transfer to Thailand?

Chas Begley · Accepted Answer

You must check the Danish DTA for that specific type of pension. If there are no special rules to say that it is not taxable, then it is potentially taxable in Thailand. If the tax you paid in Denmark is considerably higher than the tax rate in Thailand, you may not need to pay anymore, as the DTA is there to protect you against paying more than the tax rate of your own country. Even if there is noextra tax to pay, it is likely you will still have to file a tax return. You can read the Thailand-Denmark DTA here

Question 32

Canada DTA: I am in Thailand on a retirement Visa and receiving income to my bank account in Canada from investments and a rental property. This income has already been taxed in Canada. If I send funds to myself here in Thailand, will the funds be taxed in Thailand as well, or will it be charged the difference between the tax rate in Canada and the tax rate in Thailand?

Chas Begley · Accepted Answer

You must check the DTA for assets being remitted from. Canada. If there are no special rules to say that the assets being remitted are not taxable, then they are potentially taxable in Thailand. If the tax you paid in Canada is considerably higher than the tax rate in Thailand, you may not need to pay anymore, as the DTA is there to protect you against paying more than the tax rate alreay paid. Even if there is noextra tax to pay, it is likely you will still have to file a tax return. Learn more about Double Tax Agreements for expats in Thailand by watching our video here.

Question 33

UK tax on pension: My pensions are already taxed at 20% by the UK Inland Revenue, but now Thai tax wants to take an extra 20% on the already taxed funds transferred to Thailand. I am told not to worry because there is a double taxation agreement in place. So who will blink first? A few years ago I asked the UK tax authorities if I could just pay Thai tax, but they said no.

Chas Begley · Accepted Answer

The most important factors are how much tax you have paid, and how much have you received. You must calculate the net and gross and consider how much of that was sent to Thailand. You can then use that tax amount to deduct as a credit. It is not as straightforward as just considering a 20% tax rate: you must work out your net and gross from what was actually taxed. You cannot use your UK allowances, you get a Thai tax allowance. You will likely have to file a tax return in Thailand. There could be tax to pay in Thailand depending on the taxable income amount and your existing tax credits. Learn more about Double Tax Agreements for expats in Thailand by watching our video here.

Question 34

Does the Thai Revenue Department consider remitted funds that have been through the overseas tax process already to be tax free in Thailand?

Chas Begley · Accepted Answer

If tax is paid in overseas jurisdiction and then funds are transferred into Thailand, it does not mean that Thailand does not have the right to tax this asset. If the country’s Double Taxation Agreement states that there is no right for Thailand to tax the asset, then it may not be taxable. If that is not the case, and the Double Taxation Agreement says they ‘may’ or ‘potentially’ taxed in that jurisdiction, Thailand can tax you according to Thai foreign-sourced income tax rules. You may be able to use any tax paid as a credit against some of the tax that is owed. Therefore, this does not mean that you do not have to file, and you may potentially still be liable to be taxed in Thailand. Learn more about Double Tax Agreements for expats in Thailand by watching our video here.

Question 35

I have a specific question related to my QROPS money purchase pension scheme. If, at the end of December 2023, my funds under investment were (say) £100k, this allows me to drawdown (say) £13.5k per annum. If (say) my funds under investment grow by 7.5% by the end of 2024 – so then my pot is £107.5k – and then I drawdown £13.5k and remit to Thailand – is my liability on either £7.5k (the gain since the end of December 2023), the whole amount of my drawdown (£13.5k), or £0k (can I claim to be drawing down from the capital sum at the end of December 2023?

Chas Begley · Accepted Answer

Pensions are taxed on income, not gains on the pension structure. This is subject to how much income has been remitted, if tax has been paid on this elsewhere and if there is a DTA in place. If there is no DTA, Thailand has the full right to tax any remittance as income, and there is no credit to be given due to no DTA in place.

Question 36

Australia DTA: Are Australian government pensions, such as military based pensions, exempt from tax in Thailand due to the DTA in place?

Chas Begley · Accepted Answer

In the Australian-Thai DTA, bothvivil service and military pensions are exempt from tax in Thailand. For more information on the Australia-Thailand DTA and other tax planning information for Australians watch our webinar here.

Question 37

Israel DTA: Part of my salary is in Israel. I will not be working in Thailand at all and will be travelling often to other countries around Asia. I understand that the DTA between the two countries allows us to do so. In order to travel around Asia, would I need to make a formal document to show that I am paying taxes in Israel?

Chas Begley · Accepted Answer

The salary is taxable if remitted to Thailand, but only if remitted.

Question 38

Israel DTA: What would the process be of transferring money from Israel to Thailand according to the new regulations (in order to pay for schools or rent during our stay)? I would need to transfer some money on a monthly basis into Thailand to cover our ongoing expenses. Will this money be taxed?

Chas Begley · Accepted Answer

This is dependent on the source of the income. You may be able to use tax credits on the salary in Israel, but this is dependent on the terms of the DTA and the actual asset.

Question 39

Sweden DTA: What is the agreement between Sweden and Thailand about taxes regarding expats and Thai workers coming to Sweden to work?

Chas Begley · Accepted Answer

There is a DTA in place, but taxes are dependent on the asset you are remitting. These vary and you need to check each asset type in the DTA. You can read the Thailand-Sweden DTA here.

Question 40

Does Thailand have, or will it have, a tax credit system for taxes paid on foreign income?

Chas Begley · Accepted Answer

Yes. This is for the 61 Double Taxation Agreement countries in place. The is a tax credit system with these 61 countries Learn more about Double Tax Agreements for expats in Thailand by watching our video here.

Question 41

Will Social Security from the US be taxed?

Accepted Answer

US Social Security is not taxable in Thailand due to the DTA between USA & Thailand.

Question 42

I’m a UK taxpayer up to date with all my tax returns. Will I be exempt from Thai taxes due to the DTA?

Chas Begley · Accepted Answer

No, you are not exempt. Exemption is dependent on whether you remit funds into Thailand or not and whether the remitted assets are excluded in the Thailand UK- DTA. Even if tax is paid on the assets remitted to Thailand, it doesn’t mean you don't have to file and it doesn't mean you don't have a tax implication. Learn more about Double Tax Agreements for expats in Thailand by watching our video here.

Question 43

If I pay more than 50% taxes within my salary in overseas Israel and the maximum tax in Thailand is 35%, will I be taxed based on the DTA? As I’m a higher rate taxpayer overseas, am I fully credited?

Chas Begley · Accepted Answer

If it can be proven that the work was done overseas, and the salary is not from work conducted in Thailand, then you can justify that it is not liable for tax in Thailand. However, if the work was conducted whilst living and working in Thailand, then it is potentially taxable in Thailand.

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