Question 1

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 2

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 3

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 4

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 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 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 8

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.

Double Taxation Agreement (DTA)

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