Finance Tax Break Bonanza: Thais to Benefit from New Foreign Income Rule

[oldcpu]

7 hours ago, hotchilli said:

The UK does not have a DTA with Thailand.

 

 

Nonsense. Pure nonsense.   Perhaps intended as humour? 

 

https://www.gov.uk/government/publications/thailand-tax-treaties

 

[Prakhon Chai PD]

I read "tax" (take), but nothing about something in return for being taxed. Free healthcare, or a reduction in the cost, would be nice. There are streets like this tax: One Way.

[Dogmatix]

On 8/5/2025 at 8:48 PM, ronnie50 said:

Exactly. The other curious thing about this same news story re-appearing now, again with just the bureaucrat talking and again somewhat vague, is the timing. If the government fears a coup is coming closer (if not imminent), getting this published again (yet still without a firm timeline for passage of a legal amendment), could be tactical. While many will likely agree these guys aren't great at tactics, there is a self-preservation angle to this. Namely, that getting the wealthy Thais who tend NOT to be the government's supporters, to try and stall a putsch in order to get this law changed which would be hugely financially beneficial to many of them. A coup could upend that.

 

It would make life easier for wealthy and middle income Thais who invest abroad but I tend to think the most wealthy don't care because they can secret their offshore wealth in corporate and trust structures.  If they need money in Thailand, they can structure it as a loan or something.  Not a big enough incentive to them.

[FritsSikkink]

19 hours ago, Prakhon Chai PD said:

I read "tax" (take), but nothing about something in return for being taxed. 

If you live here, you use infrastructure amongst other things.

[Dogmatix]

On 8/5/2025 at 4:25 PM, Presnock said:

well, they did spell out that come Sept of this year when the revenue collected is counted, they will be short at least 25 billion baht I believe they said and that was the reasoning in fixing the taxes on folks which also caught up remitted changing to worldwide income taxes so by now everyone is so confused, no one has any idea what is being discussed.  Even the tax "advisers" indicate they are getting nothing new from their contacts.  Shortly, we might have a whole new govt that will begin the process all over possibly IMHO.  This particular article just seems to be re-write of the original newspaper articles to sell additional copies.

 

 

You are right.  The Revenue Department has been making noises about introducing global taxation since September 2023 when they introduced the bizarre reinterpretation that was obviously and unsurprisingly a total failure.   It is not clear whether this latest plan is intended to be another stop gap before global taxation is introduced or not.  The RD always says nonsensical things like whatever they are suggesting is required by OECD which Thailand aspires at some point in the distant future to become a member of.  But this time, no mention of OECD because they are backtracking.

 

I guess the RD will always push for global taxation and one day might get it, especially if PP is ever in power which could also result in a wealth tax to fund welfare.  Such a major change ought to be done through parliament which they don't have the authority to do right now, although they could try to wing it with a ministerial decree, which can of course be challenged in parliament later and potentially rescinded but this rarely ever happens.  I guess the current government won't want to touch this hot potato while they fighting for survival.  

[Presnock]

1 hour ago, Dogmatix said:

 

 

You are right.  The Revenue Department has been making noises about introducing global taxation since September 2023 when they introduced the bizarre reinterpretation that was obviously and unsurprisingly a total failure.   It is not clear whether this latest plan is intended to be another stop gap before global taxation is introduced or not.  The RD always says nonsensical things like whatever they are suggesting is required by OECD which Thailand aspires at some point in the distant future to become a member of.  But this time, no mention of OECD because they are backtracking.

 

I guess the RD will always push for global taxation and one day might get it, especially if PP is ever in power which could also result in a wealth tax to fund welfare.  Such a major change ought to be done through parliament which they don't have the authority to do right now, although they could try to wing it with a ministerial decree, which can of course be challenged in parliament later and potentially rescinded but this rarely ever happens.  I guess the current government won't want to touch this hot potato while they fighting for survival.  

agree on this issue.  I think that their goal had been to go to worldwide taxation for all eventually, and by allowing free flow of foreign monies for a year or two, they would know where folks are living and earning monies and they if they did go to the worldwide taxation and the money stopped - then audits with penalties would result.  But, not having a secure government sustained for a longer period, it also IMHO makes it difficult to change policies without a tremendous amount of wrangling.  I also think that the longer all are in limbo on this issue, new retirees will wait before taking the plunge here while many here will either leave entirely or only stay less than 6 months to avoid becoming tax residents.

[redwood1]

On 8/7/2025 at 5:46 PM, Prakhon Chai PD said:

I read "tax" (take), but nothing about something in return for being taxed. Free healthcare, or a reduction in the cost, would be nice. There are streets like this tax: One Way.

 

The benefit of paying taxes is you get to do 90 day reports..

You get to pay farang prices in hospitals and you get your health care policies canceled when you turn 75 or 80.....

 

And you can buy alcohol between 11-2  and 5-12..... What more benefits do you want.....  

[NoDisplayName]

4 hours ago, Presnock said:

they would know where folks are living and earning monies and they if they did go to the worldwide taxation and the money stopped - then audits with penalties would result. 

 

How exactly would this work?

 

If incoming foreign source funds are not taxed, are exempt, are non-assessable, then even more tax residents will be NON-filing, meaning less initial tax revenue, meaning less documentation, meaning no baseline of information to plan all-encompassing audits.

 

No point in overtinkin' too mutt.  There is no grand conspiracy.  The coffers are scraping bottom, Thailand needs valuta to slosh around and simulate the economy, and this is an easy way to let their citizens bring it in quickly.

 

Someone with half a brain realized they'll raise more tax revenues by bringing in money tax-free which will be spent or invested HERE, than with untaxed money kept safely THERE.

 

Congratulations are in order for getting it right for once! 🏆

[ronnie50]

6 hours ago, Presnock said:

I also think that the longer all are in limbo on this issue, new retirees will wait before taking the plunge here while many here will either leave entirely or only stay less than 6 months to avoid becoming tax residents.

..or those already here will just wait and do nothing. Head down. That's my strategy for now, anyway. May the limbo continue.

[Celsius]

Unless it's published in ROYAL GAZETTE blah blah blah

[Presnock]

9 hours ago, NoDisplayName said:

 

How exactly would this work?

 

If incoming foreign source funds are not taxed, are exempt, are non-assessable, then even more tax residents will be NON-filing, meaning less initial tax revenue, meaning less documentation, meaning no baseline of information to plan all-encompassing audits.

 

No point in overtinkin' too mutt.  There is no grand conspiracy.  The coffers are scraping bottom, Thailand needs valuta to slosh around and simulate the economy, and this is an easy way to let their citizens bring it in quickly.

 

Someone with half a brain realized they'll raise more tax revenues by bringing in money tax-free which will be spent or invested HERE, than with untaxed money kept safely THERE.

 

Congratulations are in order for getting it right for once! 🏆

well govt need revenue in order to run the govt and programs for the country to move forward...if no taxes on earned income then they will probably raise sales taxes considerably.  Banks too will probably be required to provide money coming into the country.  I am no financial wizard as I am about as far from one as it can possibly be but I also am a realist who is watching the worldwide situation right now.  People seem to be fleeing even the developed countries as nature seems to be doing its worse at the same time; thus, no one seems happy except for some of us here in SEA.  I do wish the best for all of us.

[StayinThailand2much]

On 8/5/2025 at 7:33 AM, JoePai said:

Thais are set to enjoy a tax-free advantage on foreign income

 

Why only say 'Thai' - does that mean the rest of us do have to pay ?

 

I think, because they care a rat's a** about all the expats who choose to live, spend money, and invest here...

[josephbloggs]

4 hours ago, StayinThailand2much said:

 

I think, because they care a rat's a** about all the expats who choose to live, spend money, and invest here...

Yawn. 

It is for everybody, RTFA!

[KhunLA]

From all of us, that simply take the 'wait & see' of anything announced in TH, or at the barstool, a few of y'all might want to learn from us.  Makes life so less stressful.

 

Hint on when to be concerned, if ever ...

... "Once the ministerial regulation is published in the Royal Gazette, the law will be enforced" ...

[cowellandrew]

Ah I will just use my wifes account then, I can trust her she is different to all your bar girls@

😂😂😂😂🚀☻

[boloaf]

On 8/5/2025 at 8:46 AM, jayboy said:

Thailand’s personal income tax system is based on residency, not nationality, as outlined in Section 41 of the Revenue Code. A tax resident—defined as anyone, Thai or foreign, residing in Thailand for 180 days or more in a tax year—is subject to the same tax rules on assessable income.

Unless you're an ex UK Government Worker ie civil servant, as covered by the Thailand/UK DTA, Section 19 with reference to government pension NOT state pension.

[Hardcastle P]

Regarding pensions invome, the uk has a resipticol agreement with Thailand where pension income it taxed in the uk dose this mean that agreement is no longer valid  that we will be taxed by both countries 

[chilli42]

Wealthy Thai’s win again!

 

Presumably this means anyone who is considered a tax resident of Thailand. That said, it could be any definition that suits them.

[Sydebolle]

Goes in line with their idea of taxing foreigners on their pensions - or am I getting all wrong again? 

[trainman34014]

On 8/5/2025 at 8:08 AM, smedly said:

the excuse for introducing these new tax rules last year was primarily to tax foreign income earned by Thais - now they are exempt!!!, are they having a laugh

The Rich Elite will have got this changed as it affected them the most; can't have the Elite paying Taxes !!

[ronnie50]

On 8/5/2025 at 8:13 PM, oldcpu said:

If the DTA states only the foreign source country (say Canada for example) can tax one's Canadian pension (or similar retirement remunerations) then not only can Thailand not tax that income, but it is not considered assessable for the Thai tax calculation. Which means it is not taken into account in assessing if the threshold is met for filing a Thai tax return.

What if it's not taxed at source (e.g. occupational pension source is from another country) and not taxed in your home country (because it wasn't earned there)? Then is it taxable in Thailand (if they move to global income instead of - or in addition to - remittances)? I guess so?

[ronnie50]

4 hours ago, chilli42 said:

That said, it could be any definition that suits them.

That's their standard operating procedure, isn't it.

[SOTIRIOS]

...Is This A Law That Will Especially Benefit 'A Certain Individual'...(?)

...Just Coincidentally, Of Course...(?) 

[ronnie50]

7 hours ago, Hardcastle P said:

Regarding pensions invome, the uk has a resipticol agreement with Thailand where pension income it taxed in the uk dose this mean that agreement is no longer valid  that we will be taxed by both countries 

Just pointing out - you probably know - that the UK pension income not taxed in Thailand relates to State Pension and civil service pension 'only'. Not some other income one might be getting from an occupational non-governmental pension, or other income that wasn't taxed in the UK (if not a resident for tax purposes). The latter would be taxed in Thailand - if you brought it in. But the bureaucrat in the article suggests a tax holiday being planned for foreign remittances. Still no Minister commenting on this. The big concern many have is if Thailand tries to tax non-Thai residents on their 'global income' regardless of whether it's remitted to Thailand.

[mrwebb8825]

On 8/4/2025 at 7:58 PM, webfact said:

File photo courtesy of Expatica

 

Thais are set to enjoy a tax-free advantage on foreign income. The Revenue Department is fast-tracking new legislation that will exempt Thai individuals from income tax on foreign-sourced earnings, which is expected to take effect this year. Once introduced, the law will allow Thai individuals to import foreign-earned income into Thailand tax-free within a two-year period.

 

Pinsai Suraswadi, the director-general of the Revenue Department, emphasised that this move could provide a significant economic boost. Thai individuals collectively hold approximately 2 trillion baht in foreign income. By repatriating these funds, the economy could see a significant lift. The measure aims to reduce the reluctance of Thai investors to move their profits back home due to current tax concerns.

 

Investments made abroad often promise higher returns, which prompts many Thai investors to seek opportunities outside of the domestic market. However, the current tax system discourages Thai investors from repatriating their earnings back to Thailand. Currently, personal income tax rates in Thailand range from 5% to 35%, depending on the level of income.

 

In related developments, the cabinet recently supported the Finance Ministry's proposal to exempt personal income tax on capital gains from digital assets. This includes cryptocurrencies from January 2025 until December 2029. This move aims to attract foreign funds into the Thai crypto market and provide another channel for economic stimulation.

 

The proposed foreign income tax law is expected to have a retrospective effect. This means that even income earned and brought into the country before the law is enacted might benefit from the exemption. The final details, however, await discussion within the Finance Ministry, reported the Bangkok Post.

 

Under current legislation effective from 2024, foreign income is taxed regardless of when it is brought to Thailand. This shifts from earlier rules where only income brought in the same year it was earned would face taxation. The forthcoming regulation will reverse this, encouraging Thais to bring their money back without fearing steep taxes.

 

For those residing in Thailand for 180 days or more in a tax year, the Resident Rule applies, making them liable for income tax on international earnings. ThThis upcoming legislation aims to refine these rules, providing much-needed tax relief for many.

 

Once the ministerial regulation is published in the Royal Gazette, the law will be enforced, potentially invigorating Thailand's financial landscape through increased foreign income flows.

 

  Adapted by ASEAN Now from Bangkok Post 2025-08-05

 

And in other news, Thaksin launches exclusive rights to those investors to purchase his new TRT (Thai Rak Thai) crypto coin. 

[SamSpade]

8 hours ago, Hardcastle P said:

Regarding pensions invome, the uk has a resipticol agreement with Thailand where pension income it taxed in the uk dose this mean that agreement is no longer valid  that we will be taxed by both countries 

No, the DTA means you can get relief/credit for taxes paid in the UK but if the tax due in Thailand is higher, you need to pay the difference. 
 

If you’ve paid more Tax in the UK than is due in Thailand, you cannot get any credit for the amount over what you would pay in Thailand. 
 

 

[SamSpade]

1 hour ago, ronnie50 said:

Just pointing out - you probably know - that the UK pension income not taxed in Thailand relates to State Pension and civil service pension 'only'. Not some other income one might be getting from an occupational non-governmental pension, or other income that wasn't taxed in the UK (if not a resident for tax purposes). The latter would be taxed in Thailand - if you brought it in. But the bureaucrat in the article suggests a tax holiday being planned for foreign remittances. Still no Minister commenting on this. The big concern many have is if Thailand tries to tax non-Thai residents on their 'global income' regardless of whether it's remitted to Thailand.

UK State Pension is taxable in Thailand.
 

E.G if you were to get approx £12,500 / 545,000 THB  in State Pension, you wouldn’t pay any tax on this in the UK (below Personal Allowance) BUT you’d pay tax in Thailand on the difference between 545K & your allowances (obviously assuming you remitted the whole amount). 

[Satcommlee]

Unconstitutional

[Presnock]

On 8/5/2025 at 8:21 AM, redwood1 said:

But But But........ We have spent years arguing in circles on all the countless and pointless tax threads......Now what are we going to argue about? I feel Cheated...

Since we have yet to see any published change in tax laws/rules no one on this forum has any idea of what might come out when whatever government is in place in the coming months.  Their hopes of having a published edition this year seems to be getting more and more remote with the possible new govt.  Even when something "new" comes out, the "experts" here will definitley be advising all of their interpretation of any change.

[ronnie50]

27 minutes ago, Presnock said:

Their hopes of having a published edition this year seems to be getting more and more remote

I think so too. This government are so behind the eight ball now, this is probably way down their political list of things to table, never mind try to pass all readings of a new bill or even pass an amendment. Unfortunately, it means (legally) all inward remittances to ourselves would be taxable in 2025. I just plan to stay quiet - no tax number no actions on my part.