Tax Thailand Q&A: Questions about the tax file and general

Dear Erik,

Have a few questions about the file and in general.

At question 6 in the file, the following is stated under Conclusion: The advice is to request all exemptions from the Tax and Customs Administration for all sources of Dutch income. So also for the state pension (or WIA, etc.), although it remains taxed for income tax in NL.

Question 13 states this: AOW is income that is not mentioned in the treaty. And there is no residual article in the treaty.
Does TH already tax the AOW here and there? Only the above from the Thailand blog was found on the Internet.
But the treaty is there to prevent double taxation, so appeal to that. AOW is only taxable in NL.

Isn't that in conflict with each other, on the one hand recommending to request an exemption for the AOW and on the other hand stating that AOW always falls under the income tax law of NL? That exemption will never come, what is the point of advising you to request an exemption for it (if you mean to ask for an exemption in NL)?

Remove protective deposit. I have no experience with that, but in my opinion it is true that the tax authorities will send you a message when the 10 years have passed and that, failing that, you can request it yourself. Anyone experience? No, but clearly anyway. After 10 years of emigration, the protective assessment should lapse. Practice shows that the tax authorities sometimes forget to do this on time. Should you do something about it, write a letter? Anyone experience?

Am I understanding correctly, no more tax credits from 2015? In the past, the SVB advised to apply for the payroll tax credit from the SVB, as a result of which less payroll tax will be withheld and the net AOW will therefore be higher.
If you then file a tax return in NL as a non-resident taxpayer, the AOW will continue to be taxed in NL, so from 2015 you will no longer be entitled to any tax credit in your tax return.
So if you have the payroll tax set as low as possible, i.e. with a payroll tax credit application from the SVB, then an additional assessment will follow as soon as you receive the assessment for that year? Or can we expect that from 2015 the SVB will no longer discount this payroll tax credit in the monthly calculations, because we no longer qualify as resident taxpayers living in Thailand?

Was it you who ever wrote to someone that the NL tax authorities had forgotten you after the year of emigration, so that you no longer received a tax return form? How about that, suppose you no longer receive a letter from the tax authorities to file a return, is it then advisable not to file a return either, so that you can get rid of it?

tax clearance? I put this point as a question, partly to draw extra attention to it for the readers. You wrote: After the publication of this dossier in September 2014, it was suggested in a discussion in the Thailand blog that this legislation probably does not apply to tourists and to 'long-stayers' who do not perform work in Thailand or represent a Thai company.

CONCLUSION
We are open to experiences of others. I am also open to that, for example, do you imagine whether your Thai partner has income in Thailand from Rental of Real Estate, or Interest from a Loan, is that taxed in Thailand and must it be declared? A withholding tax is deducted from interest at the bank, can this be settled?

Looking forward to your answers.

Thanks for all your efforts and best regards,

Nico B

Nico,

Question 1. If you have income from NL, 3 things can be withheld at the source. Wage tax, national insurance premium (PrVV) and healthcare insurance premium (PrZVW). If you want an exemption from this, you must ask. The Tax and Customs Administration assesses (1) whether you have left NL with your residence and (2) whether you really live in TH and (3) whether you are entitled to application of the treaty between the two countries.

When I applied for the AOW 7 months before the start of my AOW, I received a decision and a statement from the SVB 'because you live in TH, we do not deduct PrVV and PrZVW'. At that time I had not yet applied for an exemption.

With all due respect to those people, but that is decided too soon. Only the Tax and Customs Administration decides on this in the first instance and in the objection phase and then the court. Suppose the SVB does not hold back and the tax authorities later decide that my emigration is not acceptable; then I'm hanging on a back payment with interest.

So my advice is simply to ask for the exemption for all 3 resources mentioned and if it concerns AOW you will not get an exemption from payroll tax, but you will get the other 2.

Question 2. You share my vision, that assessment must expire after 10 years. You can ask, I won't do that, I'm not bothered by that attack. I have not heard more experiences in the blog.

Question 3. As stated in the file, TH is not a country in which you receive a tax credit as of 1-1-15 unless the politicians still have to give it a twist. I don't expect that. I think there will be an extra payroll tax table; we have to wait and see, I have no view on it yet. But the law is clear.

Question 4. No, the tax authorities have not forgotten you. The big 'big bro' still has you in the computer. Whether you receive a tax return form depends on the income that is taxed in the Netherlands. Example: in 2015 you have 10 k euros AOW, 10 k euros government pension and 10 k euros annuity taxed in NL. That is 3 x income in bracket 1, but added up you tap the next bracket thick and you have to pay extra. So there will be a declaration form. (And if that income remains, a provisional assessment will follow for next year, etc.)

I have taxed 10 k AOW in NL, and nothing else taxed in NL and haven't received a return for years. Nothing is withheld so asking for a refund is pointless. It is determined individually.

Question 5. Tax clearance. The file has been amended following a discussion in the blog. I haven't read any experiences other than those.

Question 6. Gis about renting out real estate or interest on an outstanding loan or bank interest. I assume: in TH. I suggest you take this up with a local accountant in your area of ​​residence in TH. Withholding tax plays a role here and you need a Thai specialist for that.

I think that withholding tax is not deductible if you do not file a tax return in TH; in that case, the withholding tax is the final tax.

Eric Kuypers