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Thailand’s New Expat Income Tax Policy [Fact Checked by Experts]

You've probably seen the panic online regarding the changes to tax policy on foreign income remittance to Thailand. Many expats are scaring themselves and others with speculation over how the changes will impact life in Thailand.

To help separate the truth from the speculation and keep you all properly informed, I have enlisted the help of tax professionals to provide accurate information on this subject.

At the end of this article, should you need further advice, there is an exclusive link for TTL readers to speak with a Thailand tax expert on these matters. And if you just want to be kept updated by email, there is an option for that too.

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Contents

    1. Tax Residency Rule
    2. Previous Tax Rule
    3. New Tax Rule
      1. Income Received Before 2024
      2. Income Earned Prior to Living in Thailand
    4. Why the Change in Law for Expats?
    5. Who Has to File?
    6. What Is Taxable (Assessable) Income?
      1. Pension Taxation
      2. Social Security
    7. What Is Not Taxable (Assessable) Income?
    8. Eligible Tax Deductions
    9. Tax Credits
    10. Double Taxation Agreements (DTA)
      1. Common Misconceptions
      2. General DTA Principles
    11. The Filing System
      1. Documents
      2. Filing Deadlines
    12. Enforcement
      1. Penalties
    13. Webinar with Expat Thailand (professional advice)

The Thai Tax Residency Rule

To understand whether or not this change affects you, let's first define a resident, or rather, a tax resident in Thailand. In Thai law, a tax resident is defined as an individual who stays in Thailand for a period or periods aggregating 180 days or more in any tax year.

If you fall outside of this rule, you need not worry about this subject matter, as the change won't affect you. If you do fall into this bracket, please read on.

The Previous Tax Rule

As it stands, the assessable income received by a Thai tax resident through employment, an overseas business, or property located abroad would be subject to Thai personal income tax only if the earnings were remitted to Thailand within the same tax year.

For example:

Sarah lives in Thailand for 180+ days per year, and works as a consultant for an international company based in the United States.

Under the previous tax regulations, if Sarah earned $50,000 from her overseas job in January 2022 but choose not to transfer the funds to Thailand until February 2023 , she was not required to pay Thai personal income tax on that income for the year 2022.

Under the new law, Sarah would now be required to pay personal income tax on that income.

The New Tax Rule as of 2024

Under the rule, which started January 1, 2024, foreign-sourced income over 120,000 THB (or 220,000 THB for married couples) repatriated to Thailand will be eligible for Thai income tax, regardless of the tax year in which the income was earned.

Here are some further examples provided by the revenue department:

  • Mr. A is in Thailand every day from January to December 2024 for a total of 366 days. Mr. A is deemed a resident of Thailand in tax year 2024.
  • Miss K is in Thailand during odd months in 2024 for a total of 184 days. Ms. K is deemed a resident of Thailand in tax year 2024.
  • Mr. C was in Thailand from January to December 2024 for a total of 179 days. Mr. C is not deemed a resident of Thailand in tax year 2024.
  • Mrs. D has been in Thailand continuously for a total of 250 days with the first 100 days being in 2024 and the last 150 days being in 2025. Therefore, Mrs. D is not deemed a resident of Thailand in both tax year 2024 and tax year 2025 because Mrs. D was in Thailand for less than 180 days in both tax years.

When the wallet is turned on, you can use the V buttons to navigate through the menu. Pressing simultaneously confirms the selection. It's a fairly clunky system, and would have been more convenient with at least three buttons or a touchscreen. But you also need to use Ledger Live.

Income Earned Before 2024

What about income earned before 2024 but brought into Thailand in 2024, will it be subjected to taxation?

The revenue department says:

Foreign-sourced income earned before January 1, 2024, won't need to be declared in Thai tax returns, irrespective of when it’s brought into the country.

Income Earned Prior to Living/Retiring in Thailand

There has been much speculation on how accumulated income prior to living in Thailand will be assessed. For example, a person lives and works in a foreign country and later retires to Thailand with his/her overseas earned income. Will such a person have to pay taxes on these earnings?

The revenue department says:

No. This is because the said accumulated earnings came from assessable income that occurred in the tax year in which the person stayed in Thailand for less than 180 days. Example: Mrs. D. is of Thai nationality and has been living in China since 2007. But in 2024, Mrs. D. wants to travel back to live in Thailand permanently, so she brings back her accumulated earnings from working in China. As such, Mrs. D. is not obliged to pay any personal income tax on money brought into Thailand in 2024 because the said accumulated money comes from assessable income that occurred in the tax year in which Mrs. D. was not a resident of Thailand.

Why Is Thailand Changing the Law for Expats?

It is all about raising money, not about targeting expats.

One assumes the legislative changes are aimed at wealthy Thai citizens with foreign income sources. Unfortunately, foreigners with residence permits or long-stay visas have been caught in the cross-fire, so to speak.

As Prime Minister Srettha Thavisin explained quite bluntly:

You should pay tax on income you earn, no matter how you earn it.

Who Has to File a Tax Return in Thailand?

  1. Anyone who remits (transfers) assets into Thailand that are ‘assessable income': pension income, investment gains, property rental income, property sale gains, dividends, etc.
  2. If the amount is greater than THB220,000 as a joint married couple or THB120,000 as an individual.
  3. Regardless if tax is paid in another jurisdiction, if you have assessable income over the above threshold you have to file a Thai tax return. It doesn't mean you will have tax to pay, though, as you may receive tax credits.
  4. If you are remitting non-taxable assets (like cash from previous tax years, or inheritance in cash) then you don't have to add this to your tax return and don't have to file if that is your only source.
  5. It isn't a requirement for Visa renewal to have a tax ID and file a tax return, as some people don't have to file or get a Tax ID.

What Is Taxable (Assessable) Income?

  1. Direct and indirect financial transfers, ATM withdrawals and credit card spending, if sourced from overseas, are considered remitted and therefore assessable income for tax purposes.
  2. Cash or assets physically carried across the border, or through the airport are also classed as remittance and should be declared on the tax return.

Pension Taxation

State pensions are assessable income. That doesn't mean you will have to pay tax, it means that you will need to declare payments if the amount goes over the tax allowance. It may be the case that, due to deductions, or tax already paid under a DTA, that you receive a credit and do not pay tax.

US Social Security

US social security is not considered assessable income.

What Is Not Taxable (Assessable) Income?

  1. Any asset or income that isn't transferred or spent in Thailand if left overseas. Tax is only on remittance, not global taxation on worldwide assets.
  2. Remittance of income from previous tax years when not a Thai-tax resident.
  3. Remittance of any cash in the bank as of 31st December 2023 (as per the November announcement).
  4. Remittance of original capital (from investments, property, etc).
  5. Inheritance.
  6. Gifts (potentially taxable under gift tax rules).
  7. Loans.

Eligible Tax Deductions

Thailand offers personal and family allowances which can significantly reduce taxable income. These allowances are available for the taxpayer, spouse (if not filing jointly), and children (subject to specific conditions).

  • Deductions can be claimed for medical expenses, including health insurance premiums. There are caps on the amount that can be claimed, and specific criteria must be met.
  • Interest paid on a mortgage in your name for a Thai property can be claimed as a deduction.
  • Expenses for your own or your dependents’ education in Thailand are deductible.
  • Donations to approved charities and religious institutions in Thailand are tax-deductible.
  • Contributions to approved retirement funds are eligible for tax deductions. There are annual limits on the amount that can be deducted.

Tax Credits

The tax credit system means you can potentially offset some of all of your Thailand personal income tax with tax already paid. You will need to consider the following:

  1. If a DTA allows you to be taxed in Thailand on remittance, then you need to calculate the tax already paid.
  2. You will need a tax certificate showing the taxed paid in the other jurisdiction.
  3. The credit is submitted with the tax return.
  4. In most cases, a tax credit calculation and assessment is needed due to differing tax years.

Double Taxation Agreements (DTA)

A double tax treaty, also known as a tax treaty or a bilateral tax treaty, is an international agreement between two countries designed to address and mitigate the issue of double taxation for individuals and businesses with economic activities or income sources in both countries. The main purposes of double tax treaties are:

  1. Avoidance of Double Taxation: Double taxation occurs when a taxpayer is liable to pay taxes on the same income or capital in both their home country (where they are a resident) and in a foreign country (where the income or capital is generated). Double tax treaties provide mechanisms to prevent or reduce this double taxation.
  2. Prevention of Tax Evasion: These treaties also aim to prevent tax evasion by requiring the exchange of information between the two countries, which helps tax authorities in each country verify income and enforce tax laws.

Thailand has double-tax treaties with 61 countries.

The revenue department has stated:

If you are deemed a a tax resident of Thailand (staying in Thailand for 180 days or more), the tax paid abroad can be credited against the tax paid in Thailand in the tax year that assessable income was brought into Thailand according to the provisions of the Double Tax Treaty to which Thailand is a contracting party.

The double tax position depends on each country's DTA agreement with Thailand and how specific assets are treated. Each DTA is a separate International Treaty, with different provisions, so it is advisable to check the precise terms that apply in your situation.

Note: Regardless of the tax treaty, you may still have to declare the income in Thailand as part of your tax return, and, as stated by the revenue department, you will be credited for the tax already paid.

Common Misconceptions of DTAs

  • A DTA in place means that individuals are protected from being taxed in Thailand (false).
  • Being taxed in another country on assets already exempts the from taxation in Thailand (false).
  • A DTA in place means that nothing needs to be filed or reported as tax was paid in the other country (false).

General DTA Principles

  1. Check each DTA for the jurisdiction in which your assets are based.
  2. Look for exclusions or exemptions or special rules pertaining to that country.
  3. In principle, the majority of articles show that if assets are remitted to Thailand, you can use tax paid as a credit. Not in all cases though, as some assets are only taxable in Thailand and you'd have to claim back the tax in the other country.
  4.  Use Thai personal allowances not overseas allowances when considering tax credit calculations.

How Will The Filing System Work?

If you do remit foreign sourced income to Thailand, you will need to obtain a Tax Identification Number (TIN) to file a tax return.

An online portal for tax filing exists, but it is currently available only in Thai. Efforts to include English support are being considered. However, it is best to file through a tax professional.

Essential Documents

A complete set of documents is needed for a hassle-free tax filing experience. This includes identification documents, income statements, and documentation of deductions and allowances claimed.

Specific Documents

Typically, you will need your passport, work permit (if applicable), annual income statements, receipts for allowable deductions, bank statements, and documents for any tax exemptions claimed.

Filing Deadlines

The deadlines for filing tax returns in Thailand are critical to meet to avoid penalties. The Thai tax year runs from 1 January to 31 December.

End of Year: PND90/91 personal tax returns need to be submitted within 3 months of the year-end date for paper filings and 3 months and 8 days of the year end for eFilings

Half year: PND94 personal tax return (within 3 months of the half year-end date): Individuals who have received income under section 40 (5) – (8) of the Revenue Code, with non-salary income like as income from rent, commissions, royalties, professional fees, dividends etc, have to report income earned from January to June and pay taxes with the a half-year personal income tax return (PND 94 form).

Ensure you know the exact filing deadline for the relevant tax year and mark it in your calendar.

Enforcement (Penalties for Not Filing)

One of the most common questions/comments I've seen is “How will they enforce this?” “They can't track every transaction!”

Well, they can, if they want to.

They can do this via the The OECD Common Reporting Standard (CRS).

The CRS is an internationally agreed standard for the automatic exchange of financial account information between tax authorities of different countries. Developed by the Organisation for Economic Co-operation and Development (OECD), the CRS aims to combat tax evasion and enhance tax transparency on a global scale.

Under the CRS, financial institutions, such as banks, investment funds, and insurance companies, are required to collect and report information on financial accounts held by foreign tax residents to their respective tax authorities. This information includes details such as the account holder's name, address, tax identification number, account balance, and income earned.

Tax authorities then exchange this information with the tax authorities of other participating countries on an annual basis, allowing for greater transparency and cooperation in tackling cross-border tax evasion. The CRS is based on the principle of automatic exchange of information (AEOI), which ensures that tax authorities have access to comprehensive and up-to-date information on the financial activities of their residents held abroad.

Since its introduction, the CRS has been adopted by over 120 jurisdictions worldwide, including major financial centers and tax havens.

Penalties:

  1. Penalties for failing to file tax returns up to 200% of the assessed amount of tax that is payable.
  2. Surcharge of 1.5% for each month since the tax was owed.
  3. Penalties intentionally avoiding / evading payment of tax by failing to file a tax return can be punished by imprisonment for a term of up to 1 year and / or fine up to 200,000 THB.

Get Further Information on Tax Policy Changes

If you're unsure how these tax changes will affect you, and want clarification on areas such as Double Taxation Agreements (DTAs), available deductions and credits, and how to file in Thailand, Expat Tax Thailand is offering TTL readers a free 15-minute consultation and tax calculation call, which you can book at a convenient time here.

Or, you can simply stay informed on expat tax policy by registering here for updates.

Disclaimer:

Please note that I am not a tax advisor, and none of the information in this article constitutes financial advice. The information detailed on this page is based on information provided by the Thai Revenue Department and Expat Tax Thailand.

If you have any questions or comments, please feel free to drop them below.



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  1. Richard says

    First, thanks for setting up that tax seminar it was nice getting some facts rather than naive hopes and uninformed opinions.
    If the first revision on "remittance" wasn't bad enough the second revision being discussed on taxing worldwide incomes is a true disaster and I for one am out of here.
    It would appear that the only way to circumvent the entire thing is to have one of the four LTR Visas. I'm wondering if its possible to convert a Non-Immigrant O into a "wealthy global citizen" LTR without having to leave Thailand? I was also wondering, best guess of course, if the second revision related to taxing global income regardless of whether its remitted to Thailand or not is approved, if you think it will come into effect tax year 2024 or 2025?
    Reply

    • Preston says

      Yes, I converted from Retirement O to LTR - 3 weeks total timel from start of application to stamped Passport. BOI is extremely helpful. You do everything online, and don't have to leave the country. Once approvals are in, you make your appointment at the BOI office, and ask to have your retirement O closed out. There is an immigration office within the BOI so all done right there. If there are problems with some documentation - you can call and talk to one of the BOI reps or if you are USA I might be able to steer you to exactly what they want for their bosses to approve it.
      Reply

      • Richard says

        Preston...thanks for the reply...I've only been here two months...and am going for my 12 month extension this week....and am now confronted with this tax nightmare. I am from the US and there is a DTA. But my sense is that the DTA provides little protection because of the dramatic differences in tax brackets. In the US my tax bracket is 10% or less whereas in Thailand I'd have a blended tax rate of 25% or more.
        I'd welcome any advice you can offer on how to maximize my chances of getting the Wealthy Pensioner LTR. And perhaps just as important, any comments you have on a number of the posts here suggesting that they could change the tax exempt status of the LTR.
        Reply

        • Preston says

          Richard,
          If you meet the qualifications of the LTR, it should be easy. The BOI will be asking for copies of your 1040's, your hospitializaton health insurance coverage of at least 50K USD or as specified in the requirements if self insured, the requirements. The BOI are very helpful and one can calll them and they speak English very well. It took me 3 weeks from applying until stamped. They have an immigration office too at the BOI to cancel your retirement visa when you get your LTR stamps. Easy access from the train station there. I don't think they will cancel the LTR but if they did, the DTA with the US most likely will not be cancelled as it is done through a treaty and if they cancelled it then they would have problems getting treaties re-established. We still do not know if the other tax change might occur or not. Have to wait until the final paper on that. Breaking down taxes is way beyond me so am waiting for the final to see how I am affected or not. Good Luck - if you go for the LTR contact me and I will provide any assistance within my experience.
          Reply

    • Mike Baker says

      John, your question doesn't make sense.

      Everyone's assessable income is different.

      Are you, perhaps, asking about tax bands, minimum income requiring a tax return, tax allowances or something else?
      Reply

  3. steve jensen says

    Well, they did it! Here is the headline from todays Thaiexaminer. "Thai taxman now plans to tax foreigners on all income whether it is remitted to the kingdom or not under global tax rule".

    This will be law January 1, 2025.
    Reply

        • TheThailandLife says

          I've heard that many times over the years. People won't leave. They will end up filing a return and the majority won't pay more tax than they would have otherwise due to DTAs and deductions and savvy accountants. It will just be something that a percentage of residents (180+ days) per year will have to do. Annoying, yes, but not different from many other countries. It's worth considering that when the revenue department stared down this road the driving factor wasn't taxing expats but rather wealthy Thais with overseas assets/income. Thailand knows that as long as the beaches, weather, bars, low cost of living and Thai women exist people will keep coming.
          Reply

          • Steve says

            I think it's too complicated honestly. Just discussing this with family members and friends and all have decided to never retire in Thailand. I believe it will have an impact as older people will be too stressed out with this worldwide income thing and all the reporting .

            For example, you sell your house in Canada and there is no tax on principle residence, but if you live in Thailand more than 180 days and sold your house in Canada after living 6 months in Thailand in one year, then Thailand may want 35% tax from you house sale.

            Not saying this is so, but there could be so much confusion that most people won't bother retiring there anymore.
            Reply

            • TheThailandLife says

              I don't know anything about Canadian tax law but I assume you'd pay capital gains tax on the sale of a property. So if you have paid it in Canada then I'm quite sure that under a DTA you wouldn't pay again, you'd just have to declare it (if remitted, currently, and even if not remitted under this new proposal). No one is going to accept being taxed twice.
              Reply

            • Preston says

              totally depends on if taxing the total sale cost or just the capital gains on the sale. Then it comes down to how and what the Thais may or may not do. We just have to wait. But I am sure that those retired or soon-to retire will wait before they decide that Thailand is the place to be versus some other country maybe in this region that is not coming after all incomes.
              Reply

              • steve says

                I read somewhere before that the Thai Government will tax 35% of you're home sale on the capital gains even if your home country does not do this like Canada. Like I said, ones own personal residence when sold is not taxed in Canada at all, but from my understanding, Thai Gov doesn't care and wants 35%. With this worldwide tax it's going to be interesting but so far, no a country I would want to retire too when ever 5 minutes they change the laws.
                Reply

          • Preston says

            Absolutely correct. Other forums talk about this same result of the OECD meeting in July 2023 and factually, complaints from expats in other countries almost word for word as here. I strongly feel I will not be affected unless they cancel the LTR benefits and even then, I am protected by the DTA of the US as I only have a govt pension. But I do feel for those that are below the tax rate of their pension in their home country that will however possibly have to pay Thai tax as the assessable amount it different and I agree it is unfair for those expats.
            Reply

          • Robert says

            unfortunately DTA can be different for a lot of countries. UK has one but it doesn't seem to include state pension or private pension only civil service pension. typical of the UK to not do the right thing .
            as you say will people leave ?
            I really don't see how this will benefit Thailand. for one any body who moves here may want to purchase a condo or car .
            dose that mean that money remitted to Thailand will now be taxed , so it is only going to affect the Thai economy going forward.
            As we all know there are ways of remitting money here without declaring it on a tax return.
            Also the question on Thailand taxing you income in the UK.
            I believe you don't pay tax in both countries on your income either one or the other .
            the best option I see it is prove to Thailand your UK income and opt to pay your tax here . then no tax to pay in the UK on any income.
            then only send upto your allowance here before you have to pay tax here . you are now in a situation that you don't pay tax in either country. as mentioned any money brought into the kingdom as IE a gift or debit card would make it almost impossible for Thailand's tax authorities to be able to know what you are bringing in , there are means and ways if Thailand wishes to go this way just be smart enough to play the system. in any case it will probably change later this year .
            Reply

            • Richard says

              Robert, you mention a point concerning the DTAs between Thailand and other countries. I actually read the US DTA and found almost nothing relevant in it aside from how businesses and business transactions are managed.
              But my ongoing question, Pensions and US Social Social Security aside is this: If your tax bracket is much lower in your home country verses the steep tax brackets in Thailand, do you have to pay tax on the incremental difference to Thailand whether you've paid tax on the money in your home country? My sense is yes, but I'm not sure. Bottom line, I think the DTAs provide little in the way of protection for ordinary citizens and retirees.
              Reply

              • Preston says

                Richard,
                I am totally unsure about the lower tax bracket in one country meaning that no tax is applied to that fund yet in Thailand if the bracket is lower then tax might be applied. Also if in one country, any tax is applied to an income yet in Thailand the tax bracket is higher, then more tax may be applied or they might not. I am unsure at this point exactly what the Thai Revenue Dept might do. We will wait until they provide full guidance (if ever) on this program. Good luck.
                Reply

        • David says

          I’m just preparing to make the move to Thailand as a retiree. Brilliant timing from me as usual! 😊

          A lot of retirees are just completely ignoring this and are insistent nothing will apply to them.

          One friend plays golf and all of the group he plays with are just saying DTA will take care of it and they’ll do nothing.

          Another friend insists a retiree can’t get a Tax Number so we won’t have to do anything.

          Whilst I hope they’re right, I’ve got a feeling they might all be in for a nasty shock.
          Reply

            • David says

              I’m not sure about that because of how the U.K. tax system works.

              eg if you get a Government Pension (Teacher, Nurse, Civil Servant etc) a private pension (SIPP) and a State (old age) pension then all the tax will actually be deducted from the Government pension.

              The Government pension is not assessable income in Thailand so I can’t see how tax paid can be credited against the Thai tax due on the other pensions if remitted as there’s no proof they were taxed in the U.K.

              Obviously, I’d need to speak to a Thai tax lawyer or similar to be sure.
              Reply

              • Robert says

                I believe if you get a civil service person, IE police, teacher because of the DTA you should not be taxed, however state pension and private pension is taxable here as not covered by the DTA , it is also logged with HMRC the amount of tax you pay on a private pension. you should not have to pay tax in both countries, but I am not sure how they decide which country you should pay your tax in . I would wait and see what will happen as no one really knows what the Thai tax office is thinking and you can be sure it will change. I think we are worrying to much at this stage until we know 100%
                Reply

          • Preston says

            I am not so sure about the tax number nor if their DTA will protect their money. None of us know yet exactly what and how the Thai revenue department will strike at us or not. A retiree CAN get a Thai tax id number...their law says within 60 days of remitting assessable funds into Thailand one should get a tax ID number and then file a tax form ... key word is "ASSESSABLE" income.
            Reply

          • Robert says

            it really depends on your nationality with DTA .
            as for a tax number yes you can get one . I believe you have to go to the local tax office with your passport and possibly your yellow tabian ban they will issue you with a tax id number. you then fill in a tax return something like a pn 91 or 92 .
            biggest problem is knowing how much tax relief you can claim for
            now it's more money as you with have to go to a tax accountant to help you fill it in ..
            Reply

  4. David says

    A lot of useful info here. Thanks to all that posted.

    If I can ask one more thing, if you don’t have any assessable income are you still supposed to file a Tax Return? Presumably, if they do actually enforce all of this they’ll query anyone who doesn’t??
    Reply

    • Seb says

      No they will not question this as such. You are not required to apply for a TIN if you do not remit any monies to Thailand. Even if you do and it comes under the threshold, you still do not have to file. They will know through the system that you are not required to file.
      Reply

      • Mike Baker says

        Seb, you are very confident in "the system".

        I have to laugh.... because "the system" does not tell them enough to be certain you have assessable income at a level requiring a tax return submission.

        There are certain items of "income", not necessarily earned, that are exempt from inclusion in a tax return. See Thai Tax Code s.42. This means that one can have substantial remittances but still be outside the scope of a tax return.

        If Thailand really has a system that can analyse all forms of remittance and multiple transactions that do not touch domestic banks, along with the definitive type of the transaction, it has a better system than any country and must have mastered AI and mind reading to do so IMHO.

        One way to get them to make a policy decision to ignore ex pats without a business interest actually in Thailand, is for them to start by demanding we all submit a return. After processing a few hundred thousand with supporting documents in various foreign languages and realising they are all pretty much a zero tax take due to DTAs and the tax free and zero rate allowances, they will learn.
        Reply

  5. TheThailandLife says

    Hi everyone,

    Urgent attention required: There's a significant development reported in the Bangkok Post today about potential changes to the Thai Revenue Department's tax law. Kulaya Tantitemit, the Director-General of the Revenue Department, mentioned that taxes might be extended to include worldwide income, not just remittances to Thailand. If implemented, this would significantly expand the changes regarding the taxation of foreign-sourced income in Thailand.

    https://www.bangkokpost.com/business/general/2805305/new-overseas-income-rules

    My sources within the Revenue Department have confirmed that high-level discussions are ongoing, and approval seems likely. However, there is no information yet on when these changes might be implemented.
    Reply

    • Seb says

      That is an interesting read but cannot see how that would be implemented. For instance my pensions which are taxed in UK stay in the UK for when I visit. That is taxed and has nothing to do with Thailand. Methinks they are going to be biting off more than they can chew with this one.
      They have not yet got to grips with Part 1 of this new tax regime so goodness knows how they will cope with Part 2!!
      Reply

      • TheThailandLife says

        As with most announcements, visas, tax, or otherwise, I don't think this has been thought through properly. Income not remitted will be subject to the tax rules of the territory in which it is earned. Having to declare it in Thailand and prove it has been taxed elsewhere is an additional major headache. Most would surely just ignore this and only file a return based on what is remitted. I await an update.
        Reply

            • Preston says

              yeah especially if they decide to make changes in the LTR too as that might affect me. My income is a US govt pension and if they tried to wipe out the DTA's at the same time and were going to tax that too, then yeah since it would drastically affect my way of life, I would join the hordes planning to leave while at the same time trying to get a refund from my LTR cost if that fades away. This depending on what it might be if at worst, cost them a lot more than they hope to gain from expats. I spend well over 4 million baht a year here - that would cease from just one person.
              Reply

        • Mike Baker says

          Peter, thanks for the update and the additional worry......555.

          There will be several ways for Thailand to approach this, so let's not panic.

          They could do nothing.
          They could tax only citizens, so excluding foreign passport holders.
          They could tax everyone.

          If they want to tax foreigners, how will they audit any returns? Impossible.

          And most likely covered by a DTA anyway, the same as remittances.

          Again, this sounds like it is aimed squarely at the rich "establishment" Thais who pay little towards the Thai economy and the rewards could be substantial. They are already known and easily audited because of foreign accounts and tax returns submitted in foreign jurisdictions.

          We will be collateral damage but unimportant and I suggest, ignored. Because, if we aren't ignored, they will lose tens of thousands of ex pats who contribute to the economy (paying vat in the process!) but take nothing out. And Thailand will be struck off any Retirement Destination lists.
          Reply

  8. Dan says

    Your article referencing 120000k for single and 240k pa for couples is misleading.

    Why did you not include a table that includes the allowances before income tax is assessed?

    First 150k pa non taxable
    60k for husband
    60k for wife
    190k pa for over 65s
    50% of pension income,up to 100k

    Total 560000 baht pa.

    Govt pensions (military,nurses,police etc in Uk are non taxeable in Thailand.

    UK state pensions are not exempt from taxation in Thailand. But as the current ceiling falls below 560000 baht per annum, this too fits inside the current allowances ( for those married and obviously over 65)

    And then you very kindly provide a free 15 minute consultation. Sounds like your post is a marketing strategy.
    Reply

    • TheThailandLife says

      Hi Dan,All my information is based on that given to me by tax advisors and the revenue department. I'm aware that there may be other deductions, as I have pointed out in my general income tax article here. I am yet to update that article to reflect the new tax changes, as it was written prior to this all being announced.I didn't say UK state pensions are exempt. They are assessable.I'm guessing you're new to the community. Firstly, welcome, great to have your input. Secondly, please note that I am not a tax advisor and have no skin in the game. I try to answer questions as best I can. I collaborated with a tax advisor that I trust on a webinar. They agreed to provide my readers with information and to answer reader questions free of charge in exchange for offering my readers their consultation. The consultation is free, and people are free to use which ever firm they want. It doesn't matter to me either way. I have done similar on other matters with a legal firm in the past. It is a great way to get the proper information to my readers. Indeed, I have been greatly disappointed with the so-called "big Thai expat news outlets" and their misleading coverage on this matter. It is almost as if they want to keep the speculation going for views, clicks and advertising, instead of just picking up the phone to the revenue department or a tax advisor and getting the correct information.I apologize that I am unable to answer every single query. Tax affairs can be complicated and specific to personal circumstances. However, the article does provide the fundamentals and answers most questions.
      Reply

      • Seb says

        0 to 150,000 Exempt
        150,001 to 300,000 5%
        300,001 to 500,000 10%
        500,001 to 750,000 15%
        750,001 to 1,000,000 20%
        1,000,001 to 2,000,000 25%
        2,000,001 to 5,000,000 30%
        Over 5,000,000 35%

        Personal allowances 60,000 or 120,000 for married couple. There are others as well but basically after the allowances, the rest is applicable for tax. So in essence you could have, as a married couple, 270,000 before the first tax bracket.
        Reply

    • robert says

      I am 64 and married to a Thai and live here permanently .
      I have tried to make sense of all of this new law ,
      I receive a private pension in the UK of £12540 for obvious reasons
      [your personal allowance in the UK].
      my confusion is what my allowance is I know I wont qualify for the 190,000 untill next year but what can I claim for for ?
      as a married couple?
      with a UK born child ?
      I also think you can claim for your in-laws if over 60 which they are .
      both me and my wife have wise accounts and have a card each gives you 9000bt a month each with free transfer .
      its really difficult to understand what you are entitled to
      Reply

      • TheThailandLife says

        Hi Robert,You will be assessed on the money you remit to Thailand. There are a number of deductions you may be eligible for, including healthcare and child education (in Thailand). I believe there to be a deduction of 30,000 Baht for the taxpayer and spouse’s parents, if the parents are over 60 years old and whose income for the tax year is below 30,000 Baht. I am not a tax advisor so I can't confirm what deductions you would be eligible for.
        Reply

  9. David says

    Under Non-Taxable Income it says: Remittance of original capital (from investments, property, etc).So, if I sell a house in the UK any funds brought over are not taxable and don’t have to be declared?Also, if U.K. pensions are paid into U.K. accounts and invested, any money brought over from the investments are also not taxable and don’t need to be declared?
    Reply

    • Mike Baker says

      David, I am not a tax expert, so this is my opinion only.

      There is no simple answer to your questions. There is the question of capital gains tax. You cannot claim to send only the original capital invested (purchase price) to Thailand and leave the gains in the UK. The gains will be apportioned.

      As to the pension question.... it may depend on how much evidence is required to prove the investment has been held long enough so as to not simply be seen as a tax avoidance ploy. You will need to take professional advice. Also bear in mind that remitting dividends will be assessable income and the same problem exists with capital gains. Even if capital gains or dividend income is exempt in the UK from tax, it may still be assessable in Thailand!

      However, I have submitted numerous questions here, on other forums and direct to Carl concerning the UK/THAI DTA and the exemption of UK pension income. I have had no answers. It is still my opinion that UK pension income is exempt under section 16 of the DTA and s.40 of the Thai Tax Code.
      Reply

      • Preston says

        until the final decree on the new tax interpretation, everyone including tax agents are guessing as none of knows what the revenue department will consider as assessable or non-assessable and whether that depends on how any DTA with Thailand and one's native country. we all must wait otherwise it is just a guess and could or not be correct.
        Reply

          • Preston says

            if even then. They may wait until next year tax time to see how many actually file...then again they also have to advise all the various rd offices at to what is assessable income, pension exempt or not ...could be all that we have seen or nothing at all. I feel that it will definitely be too complicated for them to have all the RD's up to date and how to deal with all the foreign languages. My opinion anyway.
            Reply

      • David says

        Thanks for the reply.
        I’ve had difficulty getting clarification of the U.K. DTA as well.

        I am pretty confident that government pensions are not taxable (teacher, nurse, police etc) but am still expecting the state old-age pension to be taxable, until proved otherwise.

        I won’t be tax resident in Thailand until 2025 so have leeway to remit funds this year if I choose.

        It’s just trying to put in place the best strategy going forward. I’m still not sure that this will be enforced rigorously on retirees and the allowances etc probably mean I wouldn’t pay tax anyway (or very little) but it would be better if I didn’t even have to file a tax return at all.
        Reply

        • Seb says

          You are correct in saying Government pensions are not taxable in Thailand. State pensions could be liable for taxation in Thailand but you would have to work out all the allowances you are allowed here to offset this.
          Reply

    • TheThailandLife says

      I checked on this.1. Capital gains are taxable and have to be declared. You are taxed on the gain. If the property wasn't sold for a profit then there would be no tax due.2. It doesn't matter where you invest the pension money, if you remit the funds to Thailand it is taxable. Any gains on those investments would also be taxable.
      Reply

      • David says

        Yes, but the property will be sold when I am not Tax Resident in Thailand. If I was already resident then, yes, it could be a problem.
        Any funds I subsequently send to Thailand will be from the savings accounts I’d already put the money in, so would be from investments. Interest on those won’t be very high so not really a concern.
        There is no Capital Gains tax on primary residence in the U.K. so none will have been paid.
        Reply

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