News and developments
New Regulations and Potential Laws on Foreign Income Tax in Thailand
These changes, driven by international tax standards and Thailand’s participation in global tax transparency initiatives, impact both current and potential foreign residents. Below is an overview of the new regulations and potential laws regarding foreign income tax:
Authors: Tanadee Pantumkomon and Wacginorot Siladet
- Changes to Foreign Income Taxation (Effective 2024)
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- Remittance-Based Taxation: Previously, individuals residing in Thailand for 180 days or more were only subject to tax on foreign income if it was remitted to Thailand within the same calendar year in which it was earned. Many leveraged this by deferring remittance to avoid taxation.
- New Rule: From January 1, 2024 onwards, foreign income brought into Thailand will be taxed in the year it is brought into Thailand, regardless of when the income was earned. This eliminates the previous tax deferral strategy, marking a shift from "Same Calendar Year Remittance" to "Remittance" basis taxation.
- Potential New Law on Foreign Income Arising Abroad
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- Arising Income Concept: The proposed amendments, still in early stages, could require individuals residing in Thailand for more than 180 days to pay tax on foreign income, even if that income is not brought into Thailand. This represents a shift from taxing remitted income to taxing "The Arising Income" (income earned abroad), regardless of its movement into Thailand.
- International Transparency: These changes are driven by Thailand’s commitment to the Global Forum on Transparency and Exchange of Information for Tax Purposes. Through automatic exchanges of financial information between member countries, Thailand’s tax authorities will have access to detailed data about financial accounts and income held abroad by its residents.
- Exemptions for Long-Term Foreign Residents
- Planning for the Future
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- Expert Tax Legal Advice
- International Tax Planning Strategies
- Compliance with Foreign Income Tax Regulations
Authors: Tanadee Pantumkomon and Wacginorot Siladet