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.

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.