Report Foreign Earnings Taxed Under New Thai Rules - But With Exceptions

[snoop1130]

File photo for reference only

 

The Revenue Department of Thailand is gearing up to draft new legislation aimed at revising how foreign income remitted to the country is taxed. Deputy Director-General Panuwat Luengwilai stated that Thais who earn income abroad and bring it into Thailand must declare it in their personal income tax filing, irrespective of the tax year in which it was earned. The tax rates are designed to be progressive, ranging from 5% to 35%.

 

These evolved regulations regarding the taxation of foreign income remitted to Thailand came into effect on 1 January 2024, following amendments by the previous government. However, for foreign income earned before this date but remitted after, older rules continue to apply, meaning if a Thai national earned international income before 2024 and brought it back after that year, it's exempt from taxation.

 

Mr. Panuwat revealed that a royal decree is in the works to further refine these criteria to align with Finance Minister Pichai Chunhavajira's policy.

 

The new policy encourages Thai nationals to repatriate foreign income for domestic investment. Under these new rules, foreign income earned and remitted within the same or following year will not incur tax. For instance, income from 2025 brought into Thailand in either 2025 or 2026 would not be taxed. Beyond this timeframe, usual tax rules will apply.

 

The initiative aims to expedite the repatriation of foreign income, thereby potentially boosting domestic investment. The department acknowledges that the current taxation structure has somewhat deterred Thais from bringing foreign-earned capital back home.

 

An anonymous source from the Finance Ministry clarified that Thailand employs a residency-based tax principle, taxing income of individuals who reside in Thailand for 180 days or more within a given tax year.

 

This approach follows OECD guidelines and has been consistently applied by the department.

 

The core intent of the amended tax rules is to support government policy by making it easier for Thai investors abroad to inject their foreign-earned funds into the local economy, fostering growth and investment.

 

  Adapted by ASEAN Now from Bangkok Post 2025-05-19

 

 

[bikestorm]

Hm, I am confused. Reading the article at BangkokPost I read that the new rule applies to Thais - but I can not see that it is stated that it will apply to foreigners too. Am I wrong????

"...According to Panuwat Luengwilai, deputy director-general of the department, Thais with income earned abroad who remit it to Thailand regardless of the tax year must include that income in their personal income tax filing in Thailand. ...."

[Crossy]

I must admit to being totally confused by exactly what the rules are/will be.

 

This does seem to be a reversal of the old, old rule whereby if money was remitted in the year it was earned then it was subject to tax, but money earned earlier was not.

 

I daren't even dream of asking our company accountant, she's as useful as a chocolate fireguard.

[Dust]

16 minutes ago, bikestorm said:

Hm, I am confused. Reading the article at BangkokPost I read that the new rule applies to Thais - but I can not see that it is stated that it will apply to foreigners too. Am I wrong????

"...According to Panuwat Luengwilai, deputy director-general of the department, Thais with income earned abroad who remit it to Thailand regardless of the tax year must include that income in their personal income tax filing in Thailand. ...."

It doesn't say exclusively Thais and later says "This rule applies to persons who stay in Thailand for 180 days or more and have foreign income."     Maybe if you aren't a person then it won't apply.    But I just think this being Thailand the officials will first address how it will affect Thais and the article reflects that priority. I guess we just wait for more details.

[daveAustin]

I won’t be taxed, I am an alien 👽

[Gaccha]

The article appears to be suggesting that non-resident Thais can now repatriate money to Thailand without paying the tax if sent in that year etc.

 

This seems baffling, because I assumed that non-resident Thais would not pay anyway.

 

Can somebody clear this up?

[Lingba]

Well that article was clear as mud

[hotelbri]

Land of ambiguity...😁😁😁

[lordgrinz]

Again with the constantly changing rules, if they are trying to frighten and scare off investment, they are doing a great job!

[ukrules]

9 hours ago, Gaccha said:

The article appears to be suggesting that non-resident Thais can now repatriate money to Thailand without paying the tax if sent in that year etc.

 

This seems baffling, because I assumed that non-resident Thais would not pay anyway.

 

Can somebody clear this up?

 

Sure they could remit whatever they wanted while non resident or in fact forever after they earned the money in a previous year - while non resident.

 

Is this attempting to close the 'can remit forever' part of this? I doubt it as it's savings from a non resident year - but it might be, who knows.

 

Also they seem to have extended it to the year after non residency as well as the year of non residency.

How about people who've been non resident for many years - are they going to tax them if they return?

 

The whole thing as usual is as clear as mud. Whatever they do it's to raise additional revenue - not less.

[NoMoonLogistics]

I am taking the Middle Path.

 

Ie... hoping to slip thru the cracks.

[ukrules]

1 hour ago, NoMoonLogistics said:

I am taking the Middle Path.

 

Ie... hoping to slip thru the cracks.

 

Lol, take action and ensure the outcome you want. No need to hope.

[NoDisplayName]

12 hours ago, Gaccha said:

The article appears to be suggesting that non-resident Thais can now repatriate money to Thailand without paying the tax if sent in that year etc.

 

This seems baffling, because I assumed that non-resident Thais would not pay anyway.

 

Can somebody clear this up?

 

Sure thing.  The ruling applies to tax-residents who bring in foreign income.

 

That would include capital gains and interest and dividends and rental income from outside Thailand.

[quake]

Here we go again. 

Back on the rollercoaster. 

[quake]

2 hours ago, NoMoonLogistics said:

I am taking the Middle Path.

 

Ie... hoping to slip thru the cracks.

 

it's much better to, slip in and out of the cracks .  

[spidermike007]

Since the rules are as clear as mud, I'm willing to offer the tax revenue department 1,000 baht. They just need to let me know where to send the money, that's all they're getting from me. 

[RupertIII]

This article covers it in greater scope and also confirms that this will apply to tax resident foreigners.

https://www.thaiexaminer.com/thai-news-foreigners/2025/05/19/thai-revenue-planning-new-decree-making-remitted-foreign-funds-within-one-year-tax-free-for-residents/

[newbee2022]

15 hours ago, bikestorm said:

Hm, I am confused. Reading the article at BangkokPost I read that the new rule applies to Thais - but I can not see that it is stated that it will apply to foreigners too. Am I wrong????

"...According to Panuwat Luengwilai, deputy director-general of the department, Thais with income earned abroad who remit it to Thailand regardless of the tax year must include that income in their personal income tax filing in Thailand. ...."

Don't worry. Indeed, I can confirm you're able to read. Congrats.

But understanding ???😳

[NoDisplayName]

8 minutes ago, RupertIII said:

This article covers it in greater scope and also confirms that this will apply to tax resident foreigners.

https://www.thaiexaminer.com/thai-news-foreigners/2025/05/19/thai-revenue-planning-new-decree-making-remitted-foreign-funds-within-one-year-tax-free-for-residents/

 

Note this:

 

Of course, if these new provisions come into effect, foreign residents who remit money as it is earned abroad will not incur any tax liability.

 

Keep good records, apply current earnings to remittances, saving pre-2024 income/savings for when the economy improves and Thailand can return to Plan A.

[renaissanc]

Why would Thais want to bring in money to be taxed up to 35%? If a Thai wants to pay for something, they can use an app so that the money doesn't go into their Thai bank account and then get taxed. The same for foreigners. We can leave the money abroad and buy things using apps. The bank interest abroad will be higher than in Thailand, for sure.

[NICKMONDO1]

15 hours ago, Crossy said:

I must admit to being totally confused by exactly what the rules are/will be.

 

This does seem to be a reversal of the old, old rule whereby if money was remitted in the year it was earned then it was subject to tax, but money earned earlier was not.

 

I daren't even dream of asking our company accountant, she's as useful as a chocolate fireguard.

I am sure she will be thrilled when she reads your comments

[worrab]

13 minutes ago, RupertIII said:

This article covers it in greater scope and also confirms that this will apply to tax resident foreigners.

https://www.thaiexaminer.com/thai-news-foreigners/2025/05/19/thai-revenue-planning-new-decree-making-remitted-foreign-funds-within-one-year-tax-free-for-residents/

From this article: This change is expected to benefit both Thai citizens and foreign residents. It could also stimulate more inward capital flow and ease bureaucratic burdens.

[renaissanc]

Another thought. Let's say that a Thai or foreigner wants to use the money earned abroad to buy gold. Thai bank interest is pathetically low while gold's price increases at about 27% annually. They would have to transfer the money into Thailand and pay up to 35% tax. Nobody would do this. What would they do instead? They'd buy solid gold and leave it abroad or buy gold futures or (online) gold through a foreign company. Either way, the Thai government doesn't achieve what it wants to achieve.

[hotchilli]

30 minutes ago, spidermike007 said:

Since the rules are as clear as mud, I'm willing to offer the tax revenue department 1,000 baht. They just need to let me know where to send the money, that's all they're getting from me. 

My local tax office said they didn't know anything about it... 

[thjames007]

13 hours ago, Gaccha said:

The article appears to be suggesting that non-resident Thais can now repatriate money to Thailand without paying the tax if sent in that year etc.

 

This seems baffling, because I assumed that non-resident Thais would not pay anyway.

 

Can somebody clear this up?

It looks like they referring to tax resident.  Not just Thais.   While the rules aren't clear it will apply to all "tax residence" (ie 180 day or more in year) 

[zepplin]

15 hours ago, snoop1130 said:

File photo for reference only

 

The Revenue Department of Thailand is gearing up to draft new legislation aimed at revising how foreign income remitted to the country is taxed. Deputy Director-General Panuwat Luengwilai stated that Thais who earn income abroad and bring it into Thailand must declare it in their personal income tax filing, irrespective of the tax year in which it was earned. The tax rates are designed to be progressive, ranging from 5% to 35%.

 

These evolved regulations regarding the taxation of foreign income remitted to Thailand came into effect on 1 January 2024, following amendments by the previous government. However, for foreign income earned before this date but remitted after, older rules continue to apply, meaning if a Thai national earned international income before 2024 and brought it back after that year, it's exempt from taxation.

 

Mr. Panuwat revealed that a royal decree is in the works to further refine these criteria to align with Finance Minister Pichai Chunhavajira's policy.

 

The new policy encourages Thai nationals to repatriate foreign income for domestic investment. Under these new rules, foreign income earned and remitted within the same or following year will not incur tax. For instance, income from 2025 brought into Thailand in either 2025 or 2026 would not be taxed. Beyond this timeframe, usual tax rules will apply.

 

The initiative aims to expedite the repatriation of foreign income, thereby potentially boosting domestic investment. The department acknowledges that the current taxation structure has somewhat deterred Thais from bringing foreign-earned capital back home.

 

An anonymous source from the Finance Ministry clarified that Thailand employs a residency-based tax principle, taxing income of individuals who reside in Thailand for 180 days or more within a given tax year.

 

This approach follows OECD guidelines and has been consistently applied by the department.

 

The core intent of the amended tax rules is to support government policy by making it easier for Thai investors abroad to inject their foreign-earned funds into the local economy, fostering growth and investment.

 

  Adapted by ASEAN Now from Bangkok Post 2025-05-19

 

 

Clear as mud as usual, talk about piss poor planning, but what did anyone expect???

same goes with leases, and owning pro here as a westerner , law is always changing and could change again in a year or two! 
They couldn’t plan a pissup in a brewery!

[Tarteso]

Reading OP..For a moment I thought they were going to fry the British pensioners … again. 🤔

[Old Croc]

14 hours ago, daveAustin said:

I won’t be taxed, I am an alien 👽

Aliens in the country fot more than180 days a year are considered tax residents. 

[black tabby12345]

Repeating same old stupid article from a year ago.

Nothing concrete is set.

Thai parliament hasn't even tabled it at all while tax chief barks.

 

Accounting/law firms attempt of scare campaign for easy money from their useless "consulting" for hefty fee.

 

[lavender19]

About as clear as mud. As usual