Dear readers,

I have received a letter from the tax authorities in Heerlen about exemption from tax on my company pension. The following is requested: 'Statement to be completed by fhe authorities in the country of residence'. This should be signed and stamped at the tax office in Nakhon Pathom.

I have been there and it is not understood, so I cannot send this form back to Heerlen. According to the tax authorities, it must first be translated and then they will see further.

Also visited the municipality and she told me that if I have to pay taxes in Thailand, this amounts to about 60.000 Bht per year. If I were not to receive an exemption, this amounts to double taxation.

Please answer appropriately what should I do next?

Sincerely,

Arie

15 responses to “Reader question: Exemption from tax on my company pension”

  1. erik says up

    Which tax authorities want it translated and what is the content of that form? And how does the municipality in Thailand come to the conclusion that you have to pay tax, that is not the responsibility of the municipality?

    Find a Dutch tax advisor and explain the problem. More than the remittance base can't get in the way. They are building more and more chicanes in Heerlen, so seek professional help.

  2. Jack S says up

    I have had something similar from the German tax authorities, because I receive my income from Germany (on which I also have to pay tax there). But they also wanted a document from the Thai tax authorities that I do or do not pay tax in Thailand. Never could get.
    But then I sent the German Embassy an email asking if they could help me and they could confirm that this is not available in Thailand for foreigners who do not work in Thailand.
    Perhaps the Dutch Embassy can do the same for you? Send us an email, you will usually receive an answer within a few days.

    • Marcus says up

      For each standard note, the embassy charges 30 euros per page, or bahts at an unfavorable rate 🙂

  3. Marcus says up

    Well, if your pension is built up from tax-exempt contributions, then you have to get your butt dirty. Heerlen is terrified that you will invent a way not to pay IB 🙂 But because Thailand does not tax pensions that come from outside Thailand, you have no problem as long as the Thais do not change the legislation, and as you know, that is possible and will happen. , very easy here. So a certain risk. But if your pension has been accrued, as with many international expats, outside Holland, "you left home with your home" then that is none of Heerlen's business. If this makes it partially taxable, they apply a (very wrong) fraction, Years in Holland above the line, total below the line and you pay IB on that. If that's not much, you could say, let it go. There is therefore no reason to inform the Thai government

    • john says up

      not entirely correct.

      You can find all information about tax at http://www.rd.go.th/publish/52286.0.html

      If your income, but also if you receive a pension from a previous employment (pension, for example from NL or Belgium) and this is transferred to Thailand (remittance), you must pay tax on this in Thailand if you are "resident" in Thailand. You are a resident if you stay in Thailand for at least 180 days a year

      second point: statement from Thai tax authorities. It is possible as a foreigner to obtain a tax ID. Go to the local tax office and tell them that you want to pay taxes in Thailand and they will provide you with that ID. You will then receive a small card with your number.

      Finally, every year you can get a statement from the Thai tax that you have submitted as declared income.

      Please note: this is an explanation for those who want to play by the rules. The Dutch tax authorities will only refrain from levying taxes if they believe that you have paid tax on that income in Thailand. The tax, especially on what is an ordinary income for us, is much lower than for us. You can easily look up how much you pay. Google it in English and you will come across PWC and MAZAr, among others
      a website where a explains how to calculate it and b. a form to fill in so you don't have to calculate at all!! The maximum rate in Thailand is 35% !!

  4. willem says up

    You say nothing about your personal situation.
    If you are deregistered in the Netherlands, you have a so-called O-visa here and you do not have a state pension, you only pay tax to Thailand on your income in Thailand. You do not owe any tax to the Netherlands, unless you still have income there in one way or another.
    So everything depends on your personal circumstances, and you don't tell anything about that.

  5. willem says up

    ADDITION.
    You are therefore taxable in Thailand and you must obtain proof from the tax office that you are taxable. Send a copy thereof, together with an English translation by a recognized translator (lawyer) to Heerlen. Then you will receive a message from there that you will receive a message from them again in 10 years.

  6. Rob Huai Rat says up

    People just say things without knowledge. Thailand is officially obliged to levy tax on foreign pensions. The fact that it usually does not happen with smaller pensions is because it is a lot of work and yields little. I live in Buriram and foreigners who live here permanently fall under the Nakhon Ratchasima regional office. I reported there and two very knowledgeable ladies explained to me that I could only get the necessary papers for Heerlen if a provisional declaration was drawn up and paid by me. That was possible at the local amphur, because it does have a tax department. Then I didn't have to drive those 280 km back and forth to NK. The amphur has put everything in order with some telephone help from NK. Just like a Thai, you are entitled to all standard deductions and also the premium of a 20-year life insurance. is deductible. The paper in English is to Heerlen and I no longer pay tax on my company pension and I pay in Thailand about 10% of what I paid in the Netherlands. Gr. Rob Huai Rat.

  7. BramSiam says up

    Last week I was told by the tax authorities in Jomtien that the Thai tax authorities do levy income tax on pensions from abroad. With the remittence base that has also become a lot easier for them. Anyone who does not report this is in violation and can eventually expect hefty fines. Two Thai tax advisors had also told me that. I didn't want to believe it and therefore went to the tax office myself. They therefore also regard income from past work as income from a working relationship. I also couldn't get the statement in question. I had to convince the tax authorities in my home country based on the stamps in my passport. More than 180 days in Thailand and therefore a Thai taxpayer. Of course, the tax in Thailand is more favorable than in the Netherlands, but not paying is a risk. I do not know what information the Thai Tax and Customs Administration receives from the Thai banks, but I suspect that this will become increasingly better organized and automated. I assume that if you can prove that you pay in Thailand, then Heerlen will eventually waive the levy, because they are no longer allowed to do so, given the tax treaty between the Netherlands and Thailand. double taxation.

  8. Tarud says up

    I see two opposing reactions: Bram Siam who writes: “More than 180 days in Thailand and therefore a Thai tax resident” and Marcus who writes: “But because Thailand does not tax pensions that come from outside Thailand, you have no problem as long as the Thai has the legislation does not change”. I myself will stay in Thailand for up to 8 months; have a Dutch pension benefit as a civil servant and simply pay my premiums and income tax in the Netherlands. My home address is also in the Netherlands. Who knows exactly what it is or which source I should use?

    • john says up

      This is another refinement. Very simply put: the Thailand/Netherlands treaty states that income from government functions and pensions from government functions will continue to be taxed in the Netherlands. They are therefore excluded from the treaty. NB, for the sake of simplicity, I will say: government functions.” A whole discussion can arise about this. Because is a nurse in hospital government position. ?? I don't want to stir up that discussion. Just want to indicate that government function pensions will continue to be taxed in the Netherlands.

  9. BramSiam says up

    Dear Tarud,
    As long as you are registered in the Netherlands and receive your pension/income there, the Netherlands will levy and Thailand will not. If you receive an ABP pension as a civil servant, you will always be taxed in the Netherlands, with a few exceptions. In that case you cannot get an exemption. You can only become a Thai tax resident if you become a Thai resident if you have a company pension that you have paid out in Thailand. Those who do not pay taxes anywhere run the risk of getting into trouble in Thailand. That chance used to be small, but is now increasing in my estimation.

  10. ruud says up

    If you live in Thailand – actually even if you only stay there for longer than 180 days – you have to pay tax in Thailand on all income on which the Netherlands does not levy.
    Interest from the bank in the Netherlands is not taken into account.

    That practice is more difficult.
    Basically they levy taxes on all the money you bring into Thailand.
    They only do not levy on the amount on which tax has already been paid in the Netherlands.
    You must prove this yourself.

    In practice, of course, the practice is much more complicated.
    You could also withdraw money, or make payments with a credit card, or take cash with you.
    And how should that be viewed?
    Each tax office will probably answer that question differently.

    The fact remains that everyone who lives in Thailand (in the broad sense of that word) is required by law to register with the tax authorities.
    This may prove difficult in practice, but that does not absolve anyone from the obligation to do so.
    It is certainly not impossible, because I think they can do that at every head office.
    You often prefer not to see the small offices.

    Not registering is undoubtedly an option that has been going well for years and may continue to go well for years to come, but one day someone will ring the doorbell to ask why you have not filed a declaration.

  11. erik says up

    You are confusing taxes and paying taxes. Being taxable does not have to lead to paying tax. That is also the case in NL. Thailand has high exemptions and a zero percent bracket. As a result, the charge may be zero.

    Unfortunately, not all tax offices understand the rules and even the provincial headquarters where I reported sent me away. Now I fall into the group described above, I run no risk until I have to think about Heerlen again in 5 years (I have 10 years exemption).

  12. Marcus says up

    Simply have your tax-free pension sent to your Dutch non-resident account. Once every few months , Years , you get a lump sum, savings, interbank exchange rate, and you live on that. ATM is of course throwing money away. Register differently in the Netherlands for a maximum of 120 days per year (or twice 60 per six months) and then the grabs will come at you. In my case Thailand close to 180 days, but the rest and sometimes more, holidays in surrounding countries, work trips and so on. So that all fits neatly, although they have now devised commuter tax for my Dutch house and it is not a small amount.


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