The Netherlands and Thailand sign a new tax treaty
What is important for us in Thailand is what has been agreed to prevent double taxation.
After all, the Netherlands is going to levy taxes on pensions and according to the Current Thai law requires that all Dutch pension and AOW payments received and transferred to Thailand in one year beincome must also be declared in Thailand.
Will this remain the case and what has been agreed for the method of settlement to prevent double taxation?
The "damage" for those in Thailand with a combined income from AOW and pensions of up to approximately €39,000 (tax bracket 1) is still manageable. The income tax rate on this first tax bracket is 8.27% this year, 2025.
Those with a joint AOW and Pension income above bracket 1 are really “the losers”.
Joint AOW and Pension Income:
Disks 2025
Disk 1 up to €38,441. 8,27%
Disk 2 the next € 38,376 to € 76,817 37,48%
Disk 3 above € 76,817 49.5%
It will be exciting next year.
The processing time for the necessary procedures leading to final ratification by both countries of the new tax treaties signed in the past five years all exceeded one and a half years.
If all procedures in the Netherlands and Thailand have been completed by November 30, 2026, and both countries have informed each other of this, the treaty will enter into force in December 2026 and will be applied from January 1, 2027.
If final ratifications and mutual notifications take place after 30 November 2026 and before 30 November 2027, then, as has been customary in the past and to date, the treaty would first enter into force on December 2027 and be applied on 1 January 2028. Fingers crossed.
Anyone who wishes to do so can correspond with the author Hans Goudriaan about this, please by email. |
