Question 1

I have the government pension from the UK, a private pension, and income from property. At the moment I put these directly into my HSBC bank account and transfer randomly. Going forward, should I get these paid directly into my Thai bank account? This may avoid me having to put them through the UK tax system. However, by putting them through the UK tax system, I get a better personal allowance.

Chas Begley · Accepted Answer

You cannot avoid or change the jurisdiction you want to be taxed if you are a Thai tax resident, and you have overseas assets. For example, a UK pensioner cannot easily get an NT tax code while being a Thai tax resident, meaning tax will usually be deducted at the source in the UK. If you then transfer funds into Thailand, it’s taxable, but you can potentially use any tax paid as a credit against taxes owed in Thailand.

Question 2

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.

Foreign-Sourced Income

Categories