Expat Tax: Frequently Asked Questions

Yes. If you have the account balances as of December 31st, 2023, then this is not taxable income in Thailand as per the November announcement. (Order No. P.162/2023)

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

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.

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.

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.

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

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. 

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

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.

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. 

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. 

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. 

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.

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. 

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

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.

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

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.

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. 

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. 

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

If you transfer your investments to Thailand, you may be subject to capital gains tax. Any tax already paid can potentially be used as a credit against the tax owed in Thailand. Remitting funds to Thailand from investments would classify as an assessable income source.

UK rental property income is a assessable income source in Thailand. You can use tax paid as a credit against some or all of the potential tax owed.

You can learn more about tax assessable foreign-sources income here

Thai tax residents are liable for tax on foreign sourced income if remitted to Thailand. From January 1, 2024, new tax rules apply to income from outside Thailand. If you’re a Thai tax resident and you bring in more than 120,000 THB (or 220,000 THB for married couples) from foreign retirement income to Thailand, you will need to file a Thai tax return. You do get Thai allowances and deductions, and can potentially use tax paid on that retirement income as a tax credit against tax owed in Thailand, but this depends on the specific DTA between the jurisdication where your retirement pension is based and Thailand.

Learn more about tax filing requirements for expats in Thailand by listening to this short podcast. 

If you living in Thailand for 180 days or more in a calendar year and you transfer (remit) in more than THB120,000 (or THB220,000 for married couples) per year of foreign-sourced income from outside Thailand, you’ll need to file a tax return for 2024.

This includes UK pensions. You can use any tax you have paid as credit against tax owed in Thailand, but it doesn’t mean you don’t have to file and you may have further tax to pay.

Yes, UK pensions are subject to taxation in Thailand if you are a Thai Tax resident, which is defined as someone living in Thailand for 180 days or more in a calendar year. Thailand taxes residents on foreign sourced income remitted to Thailand. This includes UK pensions. If you transfer the UK pension to Thailand it is taxable. However, there is a double taxation agreement (DTA) between the UK and Thailand, which aims to prevent the same income from being taxed in both countries. This agreement may allow for some relief or exemptions, depending on the nature of the pension and other individual circumstances. It is advisable to consult with a tax professional to understand how the DTA applies to your specific situation and to ensure compliance with both UK and Thai tax laws. If it is a State pension or private pension, these are both taxable in Thailand. You can use any tax paid already as a credit against any tax owed in Thailand.

Learn more about Double Tax Agreements for expats in Thailand by watching our video here. 

We need more context around this to give a definitive answer, but in principle you could sell the asset while you are a non-Thai tax resident. You need to check the DTA in place between the country where the house is situated and Thailand.