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As of 23 April last, the State Secretary for Finance informed the House of Representatives about the negotiations on 2026 tax treaties. See attachment.
Thailand is mentioned multiple times in this document.
First of all, reference to page 4 at the bottom, where the various steps in the formation of a tax treaty are listed.
The treaty with Thailand has now been signed and submitted to the Council of State in the Netherlands for advice. Normally, this procedure takes 4 to even 6 months, but this time the Council of State needed less than two months to reach the recommendation to submit the signed treaty to parliament for approval.
Date of referral to the Council of State 6 February 2026 and date of Council of State opinion 1 April 2026.
On page 5, it is stated at the top under 3: Finally, the tax treaty with Thailand was signed on 21 November 2025.
On page 6, the table at the top states:
Thailand Signed Signed November 21, 2025, aiming for approval in the first half of 2026 see also 4.1
On page 7 at the top
Thailand
The tax treaty with Thailand was signed on 21 November 2025. Advice has been sought from the Council of State, and the aim is to submit the treaty to your House for approval in the first half of 2026.
ZAs mentioned above, the Council of State already issued this advice on 1 April 2026. This is 22 days before the letter (see attachment) from the State Secretary regarding the negotiations on 2026 tax treaties.
As far as is known, as of today, April 30, the treaty has not yet been submitted to Parliament for approval.
What to expect.
The State Secretary is apparently in a hurry to have the provisions of the new tax treaty with Thailand take effect on January 1, 2027.
Unless "miracles" happen, the expectation is that approval in the Netherlands (ratification) will take place well before November 30, 2026, so that Thailand is also informed before November 30 that ratification has taken place in the Netherlands.
It is unclear what the status of the ratification process in Thailand is.
However, given Thailand's eagerness to meet the OECD accession requirements, it is not inconceivable that also in TIn Thailand, just as in the Netherlands, haste will be made with the ratification.
Both the Netherlands and Thailand must have mutually informed each other of ratification by no later than 30 November 2026.
their parliaments etc.
As mentioned, it is expected that the Netherlands will do this to Thailand before 30 November 2026, and it remains a likely vain hope that Thailand will only notify ratification after November 2026.
What are the "rules of the game" after mutual notification of ratification?
Article 30 paragraph 1 of the new treaty:
This Treaty shall enter into force on the last day of the month following the month in which the last of the notifications is received in which the respective Contracting States have informed each other in writing that their constitutionally required formalities have been fulfilled.
In other words: If Thailand and the Netherlands have notified each other by 30 November 2026 at the latest that their constitutional requirements have been met (read: notification from the NL of ratification to Thailand and notification from Thailand to the NL that the constitutional formalities have been met) The treaty enters into force on 31 December 2026.
Article 30 paragraph 3a of the new treaty:
The provisions of this treaty apply with with regard to taxes withheld at source on income amounts derived on or after 1 January of the calendar year following the year in which the treaty enters into force.
In other words: The provisions of this treaty apply with respect to income from, among others, pensions, annuities and social benefits on which taxes (wage taxes - income tax) are withheld at source, on 1 January following the year in which the treaty enters into force.
Recap:
1. Following mutual notification of ratification no later than 1 December 2026, the Treaty shall enter into force on 31 December 2026 and the provisions shall take effect on 1 January 2027 or
2 Following mutual notification of ratification after 30 November 2026, the Treaty shall enter into force on 31 January 2027 at the earliest, and its provisions shall take effect on 1 January 2028.
It appears that ratification in the Netherlands will take place before 1 December 2026.
It is currently unclear whether ratification will also take place in Thailand before December 1, 2026.
If ratification takes place in both countries before 1 December 2026, the provisions of the new treaty will enter into force on 1 January 2027.
Effective from 2027, income tax will be due in the Netherlands on retirement provisions, annuities, etc., and starting in January 2027, payroll tax will be withheld by the SVB, Pension Fund, and Insurance Companies.
Currently, many Dutch nationals in Thailand hold an exemption certificate for wage tax and/or social insurance contributions.
The wage tax exemption will then expire effective January 1, 2027, and it is to be hoped that withholding agents will still apply the granted exemptions for national insurance contributions. On AOW and separate pension up to EUR 38,883 on an annual basis 8.1%, rising above that to even 37,56%-49,50%
The question is therefore whether all granted exemptions for payroll tax and/or national insurance contributions will be withdrawn and whether there will then
a new application must be submitted for exemption from national insurance contributions.
When asked, the Ministry of Finance appeared to have not yet considered this.
Assuming that the social insurance exemption also lapses, employers subject to withholding tax will continue to withhold social insurance contributions as long as no new exemption for social insurance has been obtained, and pensioners in Thailand must take into account regarding their liquidity that, in addition to the wage tax withholding of at least 8.11 TP3T on their old-age benefits, 9.71 TP3T in Wlz-ANW premiums will also be withheld on a maximum of EUR 3,240 per month, as well as the 4.851 TP3T income-related contribution under the Health Insurance Act on a maximum of EUR 6,617 per month.
If new applications for exemption from national insurance schemes need to be submitted, they must be applied for with
retroactive effect to 1 January 2027, so that after the date of the new granted exemption from national insurance contributions, the deductions made prior to that date are reversed and will be paid out by withholding agents.
Should ratification take place in either the Netherlands or Thailand after 30 November 2026, the provisions shall therefore enter into force as of 1 January 2028.
What are the effects of the new treaty for Dutch nationals living in Thailand who receive pensions, annuities, and social security benefits from the Netherlands?.
Article 18: Pensions, Annuities and Social Security Benefits
Paragraph 1 Pensions, annuities, etc. paid to a resident of the other contracting entity shall be taxable only in the other contracting entity.
In other words: Pensions, annuities, etc. paid from the Netherlands to a Dutch national residing in Thailand are taxable only in Thailand.
It is noted that under the current tax legislation and regulations in Thailand, all funds transferred in a fiscal year (=calendar year) are subject to Thai income tax, unless the transferred savings date from before January 1, 2024. The latter must be substantiated with supporting documents upon request.
Paragraph 2 Notwithstanding the provisions of the first paragraph, pensions etc. arising in a Contracting State and paid to a resident of the other Contracting State may also be taxed in the first-mentioned Contracting State.
In other words: Pensions etc. originating from the Netherlands and paid to a Dutch national residing in Thailand may also be taxed in the Netherlands.
It is a treaty for the avoidance of double taxation, among other things, but effective January 2027 or possibly and hopefully January 1, 2028, the Netherlands will levy wage tax/income tax on pensions, annuities, etc. paid out to Dutch nationals residing in Thailand.
In addition, Dutch nationals residing in Thailand must declare their income transferred to Thailand (excluding savings from before January 1, 2024) no later than April 1 of the year following 2027 or possibly following 2028, and Thailand will levy taxes on the declared income.n.
In the first instance, therefore, tax is due in both the Netherlands and Thailand.
What are the consequences for taxes due in the Netherlands and Thailand after the effective date of the new treaty?
The 2026 income tax rates in the Netherlands for Dutch nationals born after 1945 residing in Thailand are:
First installment: 8.1% over Eur 38.883
Second tranche: 37,56% over Eur 38,883 to Eur 78,426
Third disk : 49,50% above Eur 78.426
In Thailand, the exemptions for the Personal Income Tax (PIT) for unmarried Dutch nationals over the age of 65 amount to
-THB 190,000 for 65+- THB 100,000 general exemption- THB 60,000 exemption for costs-. Total tax-free amount THB 350,000
The PIT rates for 2026 in Thailand are as follows:
disk 1 : THB 0 to THB 150,000 0%
disk 2 : THB 150,001 to THB 300,000 5%
disk 3 : THB 300,001 to THB 500,000 10%
disk 4: : THB 501,000 to THB 750,000 15%
disk 5 : THB 750,001 to THB 1,000,000 20%
disk 6: : THB 1,000,001 to THB 2,000,000 25%
disk 7 : THB 2,000,001 to THB 3,000,000 30%
disk 8 above THB 3,000,000 35%
As an example, the effects for a Dutch national residing in Thailand born after 1945 with income from AOW, pension and annuity and/or other social benefits equal to the level of tax bracket 1 in the Netherlands of EUR 38,883.
Maintained an EUR-THB exchange rate of 38 THB per EURO
On the income of EUR 38,883 (THB 1,478,000), EUR 3,150 (THB 119,700) is due in tax in the Netherlands, so that the net amount
Eur 35,773 (THB 1,360,000) is being transferred to Thailand
In Thailand, an amount of PIT (Personal Income Tax) is then due on THB 1,360.00 (Eur 35,773).
THB 117,500 (Euro 3,090 )
Does this amount of THB 117,500 (EUR 3,090) need to be paid upon declaration in Thailand?. The answer is no. .
IIn Article 22 of the Double Taxation Avoidance Convention, it is agreed under paragraph 2 that in Thailand, the tax due in the Netherlands on income derived from the Netherlands may be set off against the tax due in Thailand on that income.
In In the aforementioned example, the tax due in the Netherlands amounts to EUR 3,150 (THB 119,750) and the PIT due in Thailand amounts to THB 117,500 (EUR 3,090). In this case, the tax due in the Netherlands is higher than the tax due in Thailand, so the tax credit is equal to the PIT due in Thailand and nothing needs to be paid on the Thai tax return.
Incidentally, no tax is ever payable in Thailand on income from retirement provisions, annuities, etc., above EUR 38,883 (THB 1,478,000). The top rate in Thailand in the highest bracket (above THB 3,000,000, being EUR 78,950) is 351 THB 3T, whereas in the Netherlands, the rate amounts to 37,561 THB 3T starting from EUR 38,883 (THB 1,478,000) up to EUR 78,426 (THB 2,980,000).
Above that, even 49,5%
Even for income to be declared in Thailand from retirement provisions, annuities, etc., exceeding EUR 38,883 (THB 1,478,000), no Thai PIT will be due on balance, as the tax credit will always be equal to the PIT due.
Only time will tell whether the tax credits will eventually be granted without a fight. In fact, the Dutch negotiators were asleep at the wheel during the conclusion of the treaty, and it could save both the Dutch nationals living in the Netherlands and the Thai Tax Authorities a great deal of trouble, time, and above all, frustration if it had been agreed in a protocol that Dutch nationals living in Thailand with income solely from retirement provisions and annuities (the vast majority of Dutch nationals in Thailand) would be exempt from filing a PIT return in Thailand.
Since rates in the Netherlands are higher than in Thailand, there will always be a tax credit in these situations equal to the Thai income tax due.
The current practice regarding tax credits in Thailand is unworkable, partly due to instructions to regional and local tax offices that legalized income documents must be submitted to grant tax credits. This can initially be circumvented by filing a PIT online, but legalized documents may still be requested afterwards via a tax audit.
Furthermore, if a tax return is filed online, the exemption of THB 190,000 (EUR 5,000) for those over 65 cannot be utilized. To claim this exemption, a return must be filed at a tax office, as the Thai tax authorities require personal verification to ensure that a taxpayer is 65 years of age or older and is entitled to this exemption of THB 190,000 (EUR 5,000).
What needs to be legalized according to Instruction 2026 to regional and local tax offices in Thailand
Annual statements from the SVB, Pension Bodies, Insurance Companies, etc., showing gross income amounts and withheld payroll tax, which have been dated and signed by an authorized official of the SVB, etc., must be legalized by the Embassy in Bangkok in accordance with instructions.
However, the Dutch embassy in Bangkok does not legalize documents originating from the Netherlands because they claim not to be authorized to do so.
The income documents must now be legalized by the Consular Service Centre (CDC) of the Ministry of Foreign Affairs, Rijnstraat 8 in The Hague, and, after translation into English, also by the Thai Embassy in The Hague. If a person receives state pension (AOW) and multiple private pensions, all signed income statements must be legalized separately by both the CDC and the Thai Embassy in The Hague.
Incidentally, Thailand ratified the Hague Apostille Convention in late 2025, allowing income statements to be legalized by a court in the Netherlands through the application of a stamp or sticker. An apostille can be applied for personally, but someone else can also do so. No authorization is required for this. However, this remains a cumbersome procedure, as the annual statements with an apostille must be translated into English. It remains unclear whether and when an apostille will suffice in Thailand.
Recently, several publications have appeared on Thailandblog mentioning objections filed against the treaty with the Standing Committee on Finance of the House of Representatives. In the coming months, it will become clear to what extent the joint First and Second Chambers will respond to the objections and whether there may be a delay in the ratification procedure by the States General, meaning that the provisions of the treaty will take effect on January 1, 2028, instead of January 1, 2027.
Stichting Goed, whose objective is broad support for the general interest of Dutch nationals abroad, has also lodged/will lodge an objection with the States General.
And now we just have to wait and see what developments there are in the coming months regarding data ratifications by the Netherlands and Thailand respectively, and whether these will be realized before December 1st.
Upon realization, the provisions of the Treaty will enter into force on 1 January 2027, and if not, on 1 January 2028 at the earliest.
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