According to recent media releases, Thailandโs Revenue Department is advancing legislative amendments on how foreign income remitted to the country is taxed โ a move with significant implications for Thai residents and global professionals.
๐ฃ๐ฟ๐ฒ๐๐ถ๐ผ๐๐ ๐๐ต๐ฎ๐ป๐ด๐ฒ๐:
- Progressive Taxation (5%-35%): Thai tax residents (individuals residing in Thailand โฅ180 days/year) must now declare โall foreign income remitted to Thailandโ, regardless of the tax year it was earned.
- Grandfathering Provision: Income earned before 2024 remains under prior rulesโif remitted after the year it was earned, it is not taxable.
This change brought out a legion of consultancies trying to convince expatriates that their offshore income was at risk without complex tax services. Thai nationals simply kept income out of Thailand, depriving the country of much-needed investment.
๐ก๐ฒ๐ ๐๐ฟ๐ฎ๐ณ๐ ๐๐ฒ๐ด๐ถ๐๐น๐ฎ๐๐ถ๐ผ๐ป: ๐๐ป๐ฐ๐ฒ๐ป๐๐ถ๐๐ถ๐๐ถ๐ป๐ด ๐ฅ๐ฒ๐ฝ๐ฎ๐๐ฟ๐ถ๐ฎ๐๐ถ๐ผ๐ป:
Deputy Director-General Panuwat Luengwilai shared that the upcoming royal decree, aligned with Finance Minister Pichai Chunhavajiraโs policy, aims to boost domestic investment by easing tax burdens:
- Tax Exemption Window: Foreign income remitted in the same year earned or the following year (e.g., 2025 income brought in by 2026) will not be taxed. Post-deadline remittances face standard progressive rates.
- Policy Goal: Encourage the timely repatriation of overseas funds to stimulate Thailandโs economy.
๐๐น๐ผ๐ฏ๐ฎ๐น ๐๐น๐ถ๐ด๐ป๐บ๐ฒ๐ป๐ & ๐ฅ๐ฒ๐๐ถ๐ฑ๐ฒ๐ป๐ฐ๐ ๐ฅ๐๐น๐ฒ๐:
Thailandโs residency-based taxation (applying to individuals staying โฅ180 days/year) mirrors OECD guidelines, ensuring compliance with international standards. This approach balances taxpayer obligations with efforts to retain competitiveness in cross-border investment.
๐ช๐ต๐ ๐ง๐ต๐ถ๐ ๐ ๐ฎ๐๐๐ฒ๐ฟ๐:
- For expats and Thai professionals abroad: Strategic timing of remittances could optimize tax liability.
- For investors and businesses: Clearer rules may enhance confidence in repatriating capital for local opportunities.
๐๐ถ๐ป๐ฎ๐น ๐ง๐ต๐ผ๐๐ด๐ต๐๐:
These updates reflect Thailandโs push to modernize its tax framework while fostering economic growth.
Professionals and expatriates with cross-border income should review their financial planning to align with the new timelines and exemptions.
The comments here are only for discussion and information purposes only and are not guaranteed to be up to date. Nothing here should be or can be used as legal advice. For any questions, you may contact Formichella & Sritawat at [email protected]
ยฉ 2025 Formichella & Sritawat Attorneys at Law
