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!