Siam International Accounting Management Ltd.

Thailand/US Double Tax Agreement - Teachers' Tax Exemption


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FOR TEACHERS LIVING IN THAILAND AND WORLDWIDE


In the past eighteen years we have obtained tax refunds of ThB 346,653,794 from the Revenue Department of Thailand for 934 teachers of various nationalities including Australian, American, British, and Canadian using the tax exemption granted in many tax treaties. Stephen is the author of this article on the Ajarn.com website for teachers in Thailand:


Teacher Tax in Thailand - Stephen Dann ITPA

Tax Planet logo, click here to access Stephen Dann's membership page

If you lived in the US before teaching in Thailand, your original school contract was for no more than two years (regardless of the subject), and that initial school contract covered any of the years 2022 or 2023 you are probably entitled to claim of all your Thai income tax back by virtue of the Double Taxation Agreement between Thailand and the USA. Many countries have such agreements, but eligibility to claim depends upon where you were resident prior to working at a school in Thailand, not upon your nationality. The US agreement, for example, exempts individuals of any nationality who were resident in the US before commencing their first teaching contract at a school in Thailand. The teacher does not need to be American, but to have been a US resident. The US agreement only exempts Americans if they were resident in the US immediately before visiting Thailand to teach, and any Americans who were living in other countries should refer to the agreements with those other countries.


US RESIDENCY CERTIFICATE APPLICATIONS

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If you are uncertain as to whether you are eligible to claim your tax back please contact us using the email facility on this page for an appraisal.

In order that we may review your situation we simply require a copy of your school contract and answers to some simple questions.

Where tax refunds are possible we can prepare and submit claims on your behalf, and the tax refunds will be wired directly to your bank account overseas once we receive your tax reimbursement from the Revenue Department.

With the consent of all concerned, we are prepared to conduct shared meetings with groups of teachers which saves us repeating the same information to each individual, and which also benefits everyone at the meeting through listening to colleagues' questions and reactions. As a result everyone becomes more knowledgeable about the process.

Determining whether someone is eligible to claim a tax refund is only part of the process, and as with many aspects of life it is not what you do that determines whether a claim is successful, but the way that you do it. Anyone who thinks they are simply going to hand a form in to the Revenue Department and receive a cheque with ease will be very disappointed. There is considerable prejudice directed against these claims and in some instances school administrators will collaborate with Revenue Department officers in order to mislead and confuse teachers so as to prevent them from claiming a tax repayment.

School Directors, often concerned to retain staff, sometimes dissuade teachers from filing a claim by maintaining they will have to pay tax in their home country if they claim a tax refund from Thailand. The teachers' tax exemption is contained within Double Taxation Agreements for a very good reason and by combining the treaty exemption with the residency rules of a teacher's home country it is possible for teachers to have their tax refunded from Thailand and pay no tax in their home country.

For those filing US Returns (form 1040) the teaching salary from Thailand is likely to be exempted from US income tax by virtue of the Foreign Earned Income Exclusion. If a teacher meets one of the residency requirements below that teacher may claim exem