Thailand May Ease Overseas Income Tax Rules Amid Global Changes

[webfact]

Photo courtesy of Expatica

 

In a move that could significantly impact expatriates and Thai nationals alike, Thailand's government is contemplating adjustments to the taxation of overseas income. Finance Minister Pichai Chunhavajira has indicated that the global economic landscape necessitates a re-evaluation of current tax regulations, though specific details were not provided.

 

Presently, the Thai Revenue Department (TRD) stipulates that, effective January 1, 2024, any assessable income transferred into Thailand from abroad by either Thai citizens or foreigners residing in Thailand for at least 180 days within a calendar year will be subject to personal income tax.

 

This regulation applies regardless of whether the funds were sent in the same year they were earned or in a subsequent year, write Barry Kenyon for Pattaya Mail.

 

This adjustment differs from the previous interpretation by the TRD, which only imposed tax liability on overseas income that was transferred within the same year it was earned.

 

The new guidelines have sparked significant debate on social media platforms, particularly among expatriates, who are seeking clarity on how these changes will affect them, especially within the retiree segment of the expat community.

While Minister Pichai's recent comments did not specifically address expatriates, he underscored a key objective: to incentivise Thai nationals to remit more of their overseas funds back into Thailand. However, this leaves questions regarding the broader implications for foreign residents.

 

Thai tax consultants advise caution in interpreting these developments, stressing that conclusions about the government's intentions and their eventual impact remain premature. With the financial landscape continuing to evolve, stakeholders are keenly awaiting further official comments expected within the coming weeks.

 

-- 2025-02-15

 

 

[Artisi]

Just more confusion to an already confusing debacle. 

[NoDisplayName]

1 hour ago, webfact said:

though specific details were not provided.

 

Hub of specific details not provided.

 

 

 

But he also said "He said he is reviewing this law to encourage more Thais to repatriate their earnings."

 

Did someone realize that if the loophole to bring funds into Thailand the year after earning simply shut the pipeline of remitted funds?  And now all the free cash that could be flowing into the Thai economy will be sloshing around other countries earning more than 0.5% interest?

 

What are the odds this latest change in interpretation will be re-interpreted?

 

[NoDisplayName]

So, back to the old ways?

That didn't last long.

 

...the global economic landscape has shifted, with some countries no longer adhering to the original OECD rules. This necessitates an adjustment...

 

“Currently, investment within Thailand is declining,” Pichai stated. “While those with income to spare are investing overseas, the amount they’re bringing back is less than the amount they’re investing. We want to rectify this and incentivise them to bring their money back home.”

https://www.nationthailand.com/business/banking-finance/40046276

[daveAustin]

1 hour ago, webfact said:

Thai tax consultants advise caution in interpreting these developments, stressing that conclusions about the government's intentions and their eventual impact remain premature.

I wish they would just come out with it and tell us what they want; tax returns are due in a couple weeks aren’t they? 😳

[hotsun]

Nobody will invest in you Thailand. Youre greedy and everyone knows it

[safarimike11]

1 hour ago, webfact said:

Photo courtesy of Expatica

 

In a move that could significantly impact expatriates and Thai nationals alike, Thailand's government is contemplating adjustments to the taxation of overseas income. Finance Minister Pichai Chunhavajira has indicated that the global economic landscape necessitates a re-evaluation of current tax regulations, though specific details were not provided.

 

Presently, the Thai Revenue Department (TRD) stipulates that, effective January 1, 2024, any assessable income transferred into Thailand from abroad by either Thai citizens or foreigners residing in Thailand for at least 180 days within a calendar year will be subject to personal income tax.

 

This regulation applies regardless of whether the funds were sent in the same year they were earned or in a subsequent year, write Barry Kenyon for Pattaya Mail.

 

This adjustment differs from the previous interpretation by the TRD, which only imposed tax liability on overseas income that was transferred within the same year it was earned.

 

The new guidelines have sparked significant debate on social media platforms, particularly among expatriates, who are seeking clarity on how these changes will affect them, especially within the retiree segment of the expat community.

While Minister Pichai's recent comments did not specifically address expatriates, he underscored a key objective: to incentivise Thai nationals to remit more of their overseas funds back into Thailand. However, this leaves questions regarding the broader implications for foreign residents.

 

Thai tax consultants advise caution in interpreting these developments, stressing that conclusions about the government's intentions and their eventual impact remain premature. With the financial landscape continuing to evolve, stakeholders are keenly awaiting further official comments expected within the coming weeks.

 

-- 2025-02-15

 

 

 

[safarimike11]

Give me a mo. and I'll get back to you.

[digger70]

Thailand May Ease Overseas Income Tax Rules Amid Global Changes

 

When they get their Act together (if ever) Than they can Maybe expect me to Apply for a TFN  If they Don't have that Online , Bad Luck for them.

They want Us Expats to Pay Tax On Our Money that's  got nothing to do with LOS  and is most times Already Taxed in the home country.

Pensioners Shouldn't be Taxed at all in Any  country on their Meager pension,

Pensions Paid by the Govment   are  Moneys that one paid as income tax  when working .

So Why Pay Tax Again & Again & Again on the same Moneys.

Tax Is the Biggest Scam in the World  And they Say that that is Legal.  NO NO

Us Expats and Tourists Bring Millions off THB into the country Every Day and spend it here and Pay Tax on Everything WE Buy.

Still Not Enough for the Greedy B@stards .  Lets Rip them of for some more .

[RSD1]

So they're gonna basically scrap the whole thing now and we're gonna go back to pre-2024. Done. 

[Gknrd]

You guys are in for a very stressful year, or years ahead. Buckle up.

[jerrymahoney]

[NoDisplayName]

11 minutes ago, RSD1 said:

So they're gonna basically scrap the whole thing now and we're gonna go back to pre-2024. Done. 

 

I'm'assume somebody important with important friends in important positions did not agree.

 

I'm'assume also that global taxation is dead in the water, for the same reasons.

[Jim Blue]

Who would have ever imagined this would happen......

[jerrymahoney]

I was at a US Embassy meet-and-greet the Ambassador last August. The Amb. said that his staff was fully engaged with the TRD on the remittance tax issue. He also said he has met with Thai officials who want to know how they can better attract the well-heeled US citizens.

I mumbled while sitting close enough to the Amb. for him to hear: Taxes?

[hotchilli]

2 hours ago, daveAustin said:

I wish they would just come out with it and tell us what they want; tax returns are due in a couple weeks aren’t they? 😳

It seems that income earned overseas is taxable if it is transferred into Thailand within the same year.

Money earned ie from pensions not earned in the tax year is exempt?

My local office said they knew nothing about this and had no firm directives...

 

[Jingthing]

Clear as mud is getting even clear as muddier.

[ryandb]

30 minutes ago, hotchilli said:

It seems that income earned overseas is taxable if it is transferred into Thailand within the same year.

Money earned ie from pensions not earned in the tax year is exempt?

My local office said they knew nothing about this and had no firm directives...

 

When I transfer from my bank how do they know what is from 1 year to another? if I had 30k in my UK account in 2023 then in 2024 I add 20k over the year into that account then transfer 20k from the account to Thailand, what money am I transferring?

[quake]

13 minutes ago, ryandb said:

When I transfer from my bank how do they know what is from 1 year to another? if I had 30k in my UK account in 2023 then in 2024 I add 20k over the year into that account then transfer 20k from the account to Thailand, what money am I transferring?

 

No disrespect.

But you have had over a year to keep funds separate.

 

[Kerryd]

I'm guessing a certain nation to the north doesn't want it's citizens to have to worry about paying taxes in Thailand while working on Chinese projects Thailand has contracted Chinese companies to do with money borrowed from Chinese "investment banks" who will own/operate/collect revenue from those projects for decades.

Guaranteed this sudden "re-evaluation" has absolutely nothing to do with a couple thousand white-hairs squeaking by on their meagre pensions being worried that their non-taxable pensions might be taxed because they have no clue about the tax treaties or the actual Thai tax scheme itself.

When "Big Red" whispers these days, Thailand is quick to jump. Hence the recent announcements about changes in condo ownership rules (in "certain designated areas only), changes in Visas, proposed casino legislation, submarine deals.

Many expats have the ludicrious notion that the Thai economy hinges on what they spend in the country every year.
A lot of them actuall think that a few thousand "Farangs" - most of them barely skimping by on their pensions as it is - has such a huge impact on the economy that Thailand makes all those changes with them in mind.

And not the 10s of millions of Chinese coming here every year. And the multi-billion dollar projects like the high speed troop transport - er, I mean "rail link" between China and Thailand. Or the condo projects. The weapons deals (i.e. submarines). The proposed "southern bridge" entirely meant to allow Chinese shipping to get to Europe without having to pass through the Straits of Malacca - which China has no influence or control over.

One just has to look at how Big Red has it's hooks deep into Myanmar, Laos and Cambodia to see that Thailand is a priority for them to gain control over.

[jollyhangmon]

.... oops, are numbers in for '24, yes?

 

Did total of remittances dip last year by any chance ...??

 

If so why in heaven could that have happened, 555 ...

 

[Expat68]

3 hours ago, daveAustin said:

I wish they would just come out with it and tell us what they want; tax returns are due in a couple weeks aren’t they? 😳

End of March

[paahlman]

1 hour ago, digger70 said:

Thailand May Ease Overseas Income Tax Rules Amid Global Changes

 

When they get their Act together (if ever) Than they can Maybe expect me to Apply for a TFN  If they Don't have that Online , Bad Luck for them.

They want Us Expats to Pay Tax On Our Money that's  got nothing to do with LOS  and is most times Already Taxed in the home country.

Pensioners Shouldn't be Taxed at all in Any  country on their Meager pension,

Pensions Paid by the Govment   are  Moneys that one paid as income tax  when working .

So Why Pay Tax Again & Again & Again on the same Moneys.

Tax Is the Biggest Scam in the World  And they Say that that is Legal.  NO NO

Us Expats and Tourists Bring Millions off THB into the country Every Day and spend it here and Pay Tax on Everything WE Buy.

Still Not Enough for the Greedy B@stards .  Lets Rip them of for some more .

What most people dont understand though is that is mostly beneficial to tax to Thailand since according to the specific Tax Treaty between the different countries mostly it is deducted in home country and on average the total tax will therefore be lower than just be taxed in home country. However. Its a paper mill of course.

[quake]

3 minutes ago, Expat68 said:

End of March

 That's for paper copy

It's 8th of  April for on line.

 

 

[CFCol]

2 hours ago, jerrymahoney said:

Gosh Jerry, Myra looks different.

[spidermike007]

1 hour ago, jerrymahoney said:

I was at a US Embassy meet-and-greet the Ambassador last August. The Amb. said that his staff was fully engaged with the TRD on the remittance tax issue. He also said he has met with Thai officials who want to know how they can better attract the well-heeled US citizens.

I mumbled while sitting close enough to the Amb. for him to hear: Taxes?

They still think they are the Monte Carlo of SE Asia. Such delusion. A dozen reforms are needed to attract wealthy expats and tourists. 

[NoDisplayName]

29 minutes ago, Kerryd said:

I'm guessing a certain nation to the north doesn't want it's citizens to have to worry about paying taxes in Thailand while working on Chinese projects Thailand has contracted Chinese companies to do

 

Not sure what that has to do with remittances IN to Thailand......

 

Tax man said "...the global economic landscape has shifted, with some countries no longer adhering to the original OECD rules. This necessitates an adjustment..."

 

More likely has to do with

 

President Donald Trump on Monday declared that a global corporate minimum tax deal "has no force or effect" in the U.S., effectively pulling America out of the landmark 2021 arrangement negotiated by the Biden administration with nearly 140 countries.

[EVENKEEL]

It's odd or very telling  that the 3 proponents of taxation on foreigners have slipped back into the shadows. A  shame that some foreigners were duped into demanding Tins and tried to file taxes. 

[zepplin]

2 hours ago, RSD1 said:

So they're gonna basically scrap the whole thing now and we're gonna go back to pre-2024. Done. 

It’s such typical piss poor planning, Thais are absolutely the best at this, land of the flip flop!

f muppets couldn’t organize a pissup in a brewery 

[Gsxrnz]

Imagine what carnage Elon could unleash if he was let loose on the Thai government feudal system.