Pensions and benefits directly to a Thai bank account or can it be transferred to a Dutch/Belgian bank?

Eric, only after the year of receipt. So save up for a year and book to TH at the beginning of January.

Hi Tooske,

It is not my habit to respond to every incorrect response, but your response contains too many inaccuracies to leave it undiscussed.

Your response begins with, “You pay tax on your income, not on what comes into your bank account.”

You write this from a situation of living in Thailand.
By doing so, you rewrite Article 41 of the Thailand Revenue Code while you have no legislative authority regarding Thai tax law.
Please read carefully the following information which can be found on the website of the Revenue Department:

“1.Taxable Person
Taxpayers are classified into “resident” and “non-resident”. “Resident” means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. A resident of Thailand is liable to pay tax on income from sources in Thailand as well as on the portion of income from foreign sources THAT IS BROUGHT INTO THAILAND. A non-resident is, however, subject to tax only on income from sources in Thailand.”

You can check this again with the following web link:
https://www.rd.go.th/english/6045.html

There is a small error in this text. “More than 180 days” should be “180 days or more”. But otherwise this text reflects in simple words what is stipulated in Article 41 of the Thailand Revenue Code.

Then you write:
“Since your pension and state pension are already taxed in the Netherlands, you do not pay any tax in Thailand.”

This is also a pertinent error. The Netherlands has concluded a treaty with Thailand to avoid double taxation. This Convention specifies which country is authorized to levy taxes on a particular source of income, whereby the other country must grant an exemption or a reduction in tax. In the absence of a treaty provision and what is the case with regard to social security benefits (AOW, WAO or WIA benefits), both countries are entitled to tax on the basis of national legislation. However, Thailand must then grant a reduction on the basis of Article 23, paragraph 6, of the Treaty.

It appears from your response that you pay wage tax on your pension in the Netherlands. You are shooting yourself in the foot with this, assuming that it concerns a company pension (i.e. under private law).
Such a pension falls under Article 18, paragraph 1, of the Treaty, which entails an (object) exemption from Dutch income tax and a taxing right accruing to Thailand. In addition, the Thai tax official does not care about the fact that wage tax has already been withheld from this pension in the Netherlands.

Although the tax burden for the income tax is lower than that of the Personal Income Tax, this kite does not apply to living in Thailand, due to the lack of tax credits.
In other words: requesting a refund of the withheld wage tax on your pension on a tax return and then paying PIT is very rewarding.

Incidentally, every year I run into between 10 to 15 Dutch people living in Thailand who leave the withholding of wage tax (and sometimes also the national insurance contributions) on their company pension and / or annuity payment for what it is. Soon I will pay attention to this phenomenon in Thailandblog.

Then you write about your experience with the Thai tax authorities, dating from 2008 (!) and where you were refused a TIN. Keep in mind that the tax climate in Thailand has changed considerably. The Revenue Department has been instructed by the Thai government to ensure that the number of registered taxpayers increases by 200.000 annually. And where is the easiest place to find this extension? With the foreigners living in Thailand.

Incidentally, you run little or no danger. You write that you contribute THB 65.000 monthly from your AOW benefit and pension in Thailand. This means that, taking into account the applicable exemptions, reductions, the tax-free rate of 0% on the first THB 150.000 and the reduction provision for your AOW benefit, you are not due to pay PIT. But that is a completely different story than that Thailand should not be allowed to levy because the Netherlands already does.

However, if it concerns a pension obtained from government employment, this pension is also not exempt in Thailand because you already pay tax on it in the Netherlands, but because that is regulated in Article 19, paragraph 1, of the Treaty.

Lammert de Haan, tax specialist (specialized in international tax law and social insurance).

Sorry, that was in 2017. Typo.