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New Thai Tax Rules on Foreign Income

Foreign-Sourced Income Remitted to Thailand & Practical Planning Insights

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Guest Speaker

Miss Patcha Ingkudanonda (“Chacha”)

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Disclaimer : This Revenue Department Order is provided for translation purposes and has been translated into English by Patcha Ingkudanonda, Thai tax consultant.

The new tax regulations were announced in Thai Royal Gazette

Revenue Department Order Por No. 161/2566

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Disclaimer : This Revenue Department Order is provided for translation purposes and has been translated into English by Patcha Ingkudanonda, Thai tax consultant.

The new tax regulations were announced in Thai Royal Gazette

Revenue Department Order Por No. 162/2566

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Revenue Department Order Por No. 161/2566

Regarding the Payment of the Assessable Income under Section 41 Paragraph 2 of the Revenue Code

Disclaimer : This Revenue Department Order is provided for translation purposes and has been translated into English by Patcha Ingkudanonda, Thai tax consultant

Clause 1: Any persons residing in Thailand under Section 41 Paragraph 3 of the Revenue Code having assessable income from an employment or from business carried on abroad or from a property situated abroad under Section 41 paragraph 2 of the Revenue Code in The aforesaid tax year, and bring such assessable income into Thailand in any tax year, must include that assessable income in the calculation for income tax under Section 48 of the Revenue Code in the tax year when the assessable income is brought into Thailand.

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Clause 2: All rules, regulations, instructions, rulings or practices which are in conflict or inconsistent with this Instruction shall be repealed.

Clause 3: This provision shall apply with respect to assessable income remitted into Thailand on or after January 1, 2024.

Instruction dated September 15, 2023

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Revenue Department Order Por No. 162/2566

Disclaimer : This Revenue Department Order is provided for translation purposes and has been translated into English by Patcha Ingkudanonda, Thai tax consultant

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In order to provide guidance for tax officers in examining and advising individuals residing in Thailand who have assessable income under Section 40 of the Revenue Code from previous tax years due to duties or activities conducted abroad or from assets located overseas, under Section 41, Paragraph 2 of the Revenue Code, the Revenue Department hereby issues the following order:

The following shall be added as the second paragraph of Section 1 of the Revenue Department Order Por No. 161/2566, regarding income tax payment under Section 41, Paragraph 2 of the Revenue Code, dated September 15, B.E. 2566:

The provisions of the first paragraph shall not apply to assessable income arising before January 1, 2024.

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Instruction dated November 20, 2023

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New Thai Tax Rules on Foreign Income

To determine whether you have a legal obligation to file a Thai tax return in the year you remit foreign income into Thailand.

There are 3 conditions to meet

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Condition 1

Condition 2

Condition 3

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• The foreign income you remit into Thailand must be earned during the year in which you stayed in Thailand for at least 180 days.

• In the year that you remit the foreign income into Thailand, In that year, you must stay in Thailand for at least 180 days.

• Such remitted income must be the income earned since 1 January 2024

the year you bring the income into Thailand is the year you are a Thai tax resident

the year the income is earned is the year you are a Thai tax resident

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what can we take away from this new tax rules?

“Not all money brought into Thailand is taxable”

Example: Foreign Inheritance

At first glance → may seem taxable

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But in many cases → not taxable because of Double Tax Agreements

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Why?

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what can we take away from this new tax rules?

Inheritance received in Thailand is tax-exempt

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What about foreign inheritance?

= Non - discrimination clause in Double Tax Agreements

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what can we take away from this new tax rules?

the same type of income must be treated equally between Thai nationals and foreigners.

UK-Thailand DTA

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what can we take away from this new tax rules?

The Regulations use a very specific word:

“assessable income”

Only assessable income is subject to tax

Important Question: What about Loans?

• Are loan proceeds considered “assessable income”?
• If not → are they still subject to the new rules?

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what can we take away from this new tax rules?

Think Further…

• What if you use a foreign credit card in Thailand?
• Is that taxable income or not?

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Summary

Thank You

Thomas M. Carden

094-681-9734

Admin@aitaxadvisers.com

aitaxadvisers.com

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