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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. Max says

    There is no tax havens, but if you have to pay taxes at the same levels of a western countries, without to benefit any service in return (Health system, pension) it will be better to go back and live in any country where you get something in return….
    Reply

    • TheThailandLife says

      No one will, though. DTAs prevent you paying tax twice. People will be credited for tax paid elsewhere, and there are a bunch of deductions. The deeper I look into this I see that the only people who will be hit hard by this are those who have been treating Thailand as a tax haven, that is not declaring income back home or anywhere else. I'm no tax expert, but I'm quite sure that with a good advisor the average person will not be paying much.
      Reply

  2. SIDNEY LEONARD says

    Regarding the new income tax law: After watching two webinars, one featured on this site and perusing a comprehensive tax guide for expats, questions remain.

    So, please allow me to ask a few questions of you, Peter, and other knowledgeable expats.

    Has the new law been finalized, or is it still in a state of flux?

    Will my Bank of America Visa credit card transactions be tax assessable? Some expats, and tax professionals, have opined that the Thai government has no way of tracing such transactions.

    Will my State Teachers of Ohio (STRS) public school retirement benefits are assessable? The DTA between the U.S. and Thailand stipulates in Article 21, pp 2 (b) “... such pension shall be taxable only in the other Contracting State [Thailand] if the individual is a resident of, and a national of, that other State; I would be a resident of Thailand, but not a national of Thailand.

    Would funds for the purchase of a condo/villa or used for the ฿400K deposit in a Thai bank account required for the purpose of renewing a marriage visa, earned prior to 12/31/23, be assessable? If so, what documentation is required to prove the source of such funds?

    What is the “Tax Certificate”, referred to, I think, as part of the Thai income tax return that is needed to claim a credit for income taxes paid in the U.S.?

    When will all the documents needed to file a return be available in English (application for a TIN, tax return form, etc.)?

    Thanks to anyone who can shed some light on this new expat complication of living in Thailand.
    Reply

    • Preston says

      The new tax law is in effect for 2024 and if one is a tax resident more than 180 days of this calendar year, and one has assessable income then one must obtain a Thai tax ID number and file taxes prior to 31 March 2025. The new tax forms we are being told will be out probably in November or December. As for what you will be responsible for, I am not even close to being an expert on taxes here. I only have a US gvt pension so according to the DTA not assessable and I have an LTR so don't have to pay on remitted funds. As to your particular cases, someone else must help you. Sorry and wish you good luck in getting assistance on your taxes. you might check out the ASEANnow forum where individuals have mentioned some filings.
      Reply

    • Richard says

      Hi Sidney...as I understand it, the revision on Remittance is in full effect. The decision on taxing the global income of Thai Tax residents is still under discussion. According to the seminar that Peter arranged, Thailand has or will have the ability to track all remittance, ATMs, Wise, Wire Transfers, Credit Card purchases et.al. As far as I know any money remitted to Thailand in 2024 that was earned in 2023 is not assessable income for tax purposes. As far as pensions other then Social security which is not assessable income I'm not really sure.
      Reply

    • TheThailandLife says

      Hi Sidney,1. Yes it has been finalized. 2. Credit card transactions are assessable. 3. Probably something your will be credited for on your return, but I would need a tax professional to confirm this. 4. Not sure. Again, would require a tax professional to confirm. 5. This refers to a tax certificate from the country in which tax was paid, so whatever document shows what tax you paid in your home country. 6. Already available here: https://www.rd.go.th/english/62892.html Though I'd hand this headache off to a tax professional.
      Reply

          • Preston says

            Those that have visited their revenue Department indicate "new tax forms" should be out in either Nov or Dec. That is what forum users have reported. I never have assessable remitted funds so I haven't been concerned with those. Whatever changes come about I hope will still not affect me but TIT and one never knows. As for the filing of taxes both here and in the US, I have always had fairly simple tax situations so I know nothing except for what I read about credits from either the US IRS or from the Thai revenue department. Suggest a tax agent locally might be needed though some on the ASEANnow forum seem to have ideas too but are not registered tax agents so cannot guarantee whatever they claim. Good luck and thanks to ThailandLife for this comms service.
            Reply

          • sidney leonard says

            Neither of us will be working in Thailand. My wife, who is a Thai national, worked in the U.S., but will not work in Thailand. The income we will remit to our Bangkok Bank account will be from my state of Ohio (teachers) public retirement system benefits, my IRA, our Social Security and our U.S. Treasury bond investment. So, can I assume we can file a joint income tax return in Thailand, as we do in the U.S.?

            Thank you.
            Reply

            • Preston says

              Sidney,
              I retired here in Thailand 20 years ago and have done my US tax return every year since coming here. My Thai wife is on the joint return although she does work. I file online as soon as my 1099R comes from the OPM in mid to late Januray and the past two years have received my check fm the IRS within 2 weeks since the return is filed as soon as the IRS starts taking the returns. I know nothing about TAX CREDITS if you have assessable income that is remitted and taxed by Thailand. While the Revenue Department head indicates they are talking about implementing the world wide income taxes on Thai tax residents (180+ days in a calendar year here) we know nothing so far about when or how. Good luck on a move to paradise.
              Reply

          • Preston says

            Max, as mentioned below, I file a joint return every year with my non-working Thai wife with no problems but I have a really basic income tax situation so I am no help with anything dealing with other tax situations. Good luck.
            Reply

  3. Richard says

    Fortunately or unfortunately I just arrived in Thailand on my Non-O in April. If I owe tax based on the current remittance revision for 2024 I will pay it. But if the global tax law becomes a reality I am absolutely out of here. I will spend 3 months a year in Okinawa and 3 months in Auckland and return to Thailand for 5 months and 20 days each year. I came here to get away from the insanity (bureaucratic and otherwise) not to be further immersed in it.
    Reply

        • Preston says

          Max,
          you most likely will be correct if they do go to the worldwide tgaxation plan which many countries have done already or will be doing based on recent agreements among over a 100 countries worldwide. This was brought about due to many people not paying their fair share, and illegal
          money launderiyng etc. Once Thailand does go to that and depending on DTA's and if govt pensions not taxed some people will still be okay. Until the Thais do go to that extreme, we just have to relax and enjoy what there is still here that we love Thailand so much. Some of us anyway and some for just certain reasons. good luck hope you do okay
          Reply

        • steve says

          Max myself, my Thai wife, my brother, his wife and several of our friends won't even visit Thailand anymore. This tax fever is bordering on ridiculous and not worth the time of day. Our life became a lot simple with just one thought.
          Reply

            • steve says

              Yes but our whole plan was to retire in Thailand not bounce around as we are getting older. Like I said before, if one didn't have assets, Thailand would still be great but based on what's going on, taxing worldwide income as soon as Jan 1, 2025 is a very big possibility and wouldn't work for Canadians who sell there personal residence as there is no capital gains in Canada on personal residence, so to think Thailand would still want 35% of our profit on our own house is something I guarantee you nobody is going to do.

              I speak to so many people in our area who also speak to everyone else and the network is huge and everyone changed their plans away from Thailand. Many have said this is going to have a huge impact on Thailand and I personally feel it won't make any difference at all overall as so many people from other countries will still go and retire there. It's just unfortunate for Canadians selling their own homes really that is all.
              Reply

              • TheThailandLife says

                I hear you. But where else will people go? Where are there tax havens that have the same to offer in terms of affordability, vibe, culture, weather, domestic travel, and women, of course (which is why many come) etc. With a good advisor and "tax efficient" planning, I'm sure you won't pay much more than you pay now.
                Reply

                • Preston says

                  Steve, and Thai life
                  Yes, Thailand changing the interpretation of the old tax law I think will affect very few of the current expats except some who have never paid taxes anywhere, including many Thais too but that was one of the reasons for the OECD agreement to share data. But for those that want to not pay due to different interpretaitons of taxable/assessable income in different countries COULD possibly affect in a large financial way by being a tax resident in Thailand or in most other countries too so the way folks want to avoid having to pay if they do not remain in their own country, it going to be more difficult. But like I said if one has always paid their taxes due then there might not be a lot of difference in the end. Since I don't know all the tax laws of other countries I can't provide any assistance in their tax filings. Good luck.
                  Reply

              • Mike says

                Steve, don't dismiss Thailand too soon.

                Firstly taxation of world wide income is not a done deal.

                Secondly, ex pats have technically been subject to taxation for decades under the remittance based system, but I know of no one who has been required to submit a return and get involved in the system. I am merely saying that the authorities likely see ex pats as not cost effective to concern themselves with, both in terms of tax revenue and potential loss on a wider scale, of "free" foreign currency injections to the economy. IMHO this is very likely to continue.

                Thirdly, one obvious way (as far as I can see) to retire and bring the sale proceeds of your house here, or invest the proceeds in Canada, without being subject to "capital gains" tax, is to plan to be in Cananda for at least 6 months in the year the house is sold, so you are not a tax resident of Thailand when the sale occurs.

                Ultimately the easiest way to avoid any tax is to not stay in Thailand more than 179 days. Then there is going to be no question about any type of income or taxation, DTAs are irrelevant and no worries about legalities.

                I am starting to think that renting a condo in another Asian country or countries for 6 months of the year may be quite an interesting lifestyle whilst I am fit enough. And whilst away, repleneshing my Thai bank balances would become free of tax worries. I can see a point in my life where most of my capital is in cash, in the place I need it and I am no longer concerned with it growing, so things like capital gains and dividends become irrelevant.
                Reply

                • Preston says

                  Mike,
                  yes many folks on the local forums talk about that very plan, to visit and stay in other countries in SEA or even EU to avoid being a tax resident in either country thus not having to pay taxes to them. As an American of course that doesn't wrok as the IRS by law gets their share every year. I do not know tax laws of other countries and I do not believe in tax evasion - after all that is one of the stated reasons for the OECD agreement though I have heard that Thailand might not agree with tax laws of some countries and then expats from those countries might be penalized just by being in Thailand. Good luck with whatever...
                  Reply

              • Richard says

                Hi Steve... I just got here in April on a Non-O and one month later get hit with the Remittance tax which is already law and the threat of the Global Tax. And the thing about the global tax is that the higher and highest Thai Tax brackets kick in at such extremely low levels it makes their potential impact on foreigners even worse. On top of that, if the global tax does become law there is this somewhat naive belief that it can be ignored because Thailand does not have the ability to track people's flow of money and foreign income. And that might be true initially...but by year 2 or 3 once audits start it could get very ugly for those who think the law can just be ignored. There are strict penalties here for tax evasion.....no one in the the US would think of not filing and becoming a target for the IRS or CRA in Canada. My advice would be to wait and see what actually emerges on this issue, assume you will have a tax liability just based on the remittance tax and look for alternatives.. which may be more available to Canadians then Americans
                Reply

                • Preston says

                  Richard, I fullyunderstand where you are coming from. I am an American and at first too, I was really concerned about this taxation especially in that expats get nothing out of that other than being able to stay in Thailand. I have the LTR visa so no taxes on remitted monies. Also my only income is a US govt pension so only taxed in the US. I think that all expats must be aware of their country's DTA to see what is exempt. But once once checks all that and understands tax credits etc, I feel most of us will not be affected heavily by this new interpretation by the Revenue Department. If they go to a worldwide income taxation then yes, being a tax-resident here 180+ days in a CALENDAR YEAR could obviously affect many. The main reasons of course for all this is that too many people have not been paying taxes to any country and those will definitely be affected. There are still a few countries that will not be sharing banking data so many are already moving or considering a move to those countries - some in SEA too. I don't plan on leaving and your suggestion is correct, we need to wait and see what will be the final decisions by this or the next government in the way of worldwide income taxation. I welcome you to this paradise and good luck on your tax situation.
                  Reply

                • steve says

                  Thanks Richard and I think exactly the same way. I pay my taxes and right now it is very simple in Canada even if one sells their own house as no Capital Gains on that here but this whole talk about worldwide income tax is concerning because no details on how that would work. I have read some info but who knows what is true at the moment but lets say I sell my house today and the worldwide tax is implemented jan 01 2025. Thailand could easily say if I decide to retire in Thailand next year that I would still have to pay 35% on my house sale profit if they decide to make it retroactive. Kind of a nightmare scenario really that leaves everyone hanging, so have to just wait it out and go to plan B which is avoid Thailand for now for permanent retirement.
                  Reply

                  • Preston says

                    Steve, IF they manage to agree that they want to go to the worldwide earned income taxation, they will have to pass a law first, publish it in the Gazette, etc and that takes time so we should know by the end of 2024 if they have progressed that far. If you get a DTV visa you could easily just leave after 180 days and wait elsewhere while any debate continues or whether or not it becomes clear. In any case, relax now, wait it out. Good luck.
                    Reply

                    • steve says

                      Preston, I'm relaxed! I agree, going to have to wait this out as the possible 35% capital gains scenario would pretty much ruin any chances of retiring there unless they make it very clear if they go ahead that it wouldn't be retroactive. Hoping for the best especially for my Thai relatives as they are really disappointed when we told them we are not moving over there permanently. They've been really helpful the last few months and informed us initially about the possible worldwide tax and implications for us all. The confusing thing is still that article in the Thai Examiner stating that the Prime Minister has given the go ahead to implement it for Jan-2025

                  • Richard says

                    Hi Steve...As I noted in an earlier post if the global tax passes I will split my time between Okinawa (3 months visa exempt) and probably Auckland NZ (3 months Visa exempt) and spend 5 months and 25 days back in Thailand.
                    The alternative to all this is to apply for the one LTR Visa that is tax exempt, assuming that doesn't change in the future either.
                    Truth be told, I'd rather just be living in Victoria BC but I'm too old and Canada doesn't want me.
                    But seriously, you'll read a lot of different opinions here, nobody really knows where this Global Tax thing is heading, but I'd clearly not move forward with any commitment to Thailand at this point. It's very very difficult to unwind and recover from financial mistakes at any age but especially as one is entering retirement.
                    Reply

                    • steve says

                      Richard, fully agree. Took risky right now to make any permanent move to Thailand and yes, very hard to financially recover if they really do this starting Jan 2025.
                      Sorry to here Canada doesn't want you as normally Canada makes it so easy to immigrate here for most.

                    • Preston says

                      Richard and Steve - both have got it right. Just listening to all the different stories on the local forum shows that NONONE, not even tax agencies or the Thai Revenue Department know what is going to be the final picture. lots of different guesses and dreams and scares so yes we all must wait to find out what the govt is going to do. This is still paradise and there are legal ways to stay here financially. Don't listen to those who wish to avoid taxes by any means. Hopefully one morning we will wake up, the final picture is totally clear and then we can actually relax and decide on our futures. Good luck to you and your dear ones.

          • Preston says

            Max et. al, actually, the newest visa the DTA is one of the cleanest of visas after the LTR of course especially if one wants to just stay 180 days (thus if in one calendar year) the visitor would not be a tax resident and thus no taxes other than on sales. But I do understand where you are coming from, we await the current government next decision on the worldwide taxation of expats. But this Prime Minister and current govt may not even be around after next month and then who knows what the next govt will decide to do. But since many other countries too are going that world wide taxation, Thailand seeking necessary tax revenues may go that way too. Unless someting really affects my finances I will never leave as I still love the Thailand that I have decided to make my home. Good luck to you and yours and I hope you can find what you want.
            Reply

            • Max says

              Hi Preston, I agree and you do not have to pay tax and fill any tax paper, but you are not resident with this type of visa, it means you have to make the tax declaration in the country were you are fiscal resident, Thailand has been for years a paradise related to free tax life and now it seems to have been an era that is at the end….
              Reply

              • Preston says

                Max, The Thai goverment ids a tax resident by definition on one residing in Thailand more than 180 days in ONE CALENDAR YEAR. Those that get the DTV might easily based on what we have heard the immigration folks saying stay longer than 180 days every calendar year of that 5-year visa. Again, nothing has been said about any exemption of the money the DTV holders remit or earn here in Thailand. I sure have no idea what the revenue department will do nor do I think most people know either. All are guessing but unlike the LTR, the benefits of no taxes on remitted assessable income are claimed by the revenue department in Thailand. Good Luck
                Reply

            • Preston says

              Max, yes as a result of the July 2023 OECD agreement sigend by 138 countries, CSR and FACTA mean that information is shared between US banks and Thai banks. Previously many expats did not pay taxes in Thailand nor any other country - that will change. But it also changes for Thai folks too that didn't have to pay taxes every year. Any yeah the Revenue Dept has been told to find some more money so other changes may come. Also, the American citizens Abroad org. has been lobbying the US congress to change US laws on overseas Americans too. Even if that happens, if one is on a US govt pension only the US can tax him but then the US may not tax money earned overseas if taxes are being paid to that country. It is best to wait unless one wants to join the good parts of Thailand now and the DTV is a good start - and looking better all the time for many folks. Good luck!
              Reply

              • Richard says

                Hi Preston.... I may have gotten this wrong....but I believe the folks who put on Peter's seminar specifically said that because of FACTA the US will NOT share any banking or credit card information with Thailand. They didn't explain why... I assumed it was some privacy issue that prevented them from doing it. More generally speaking other foreigners did not have that same protection.
                Reply

                • Preston says

                  Richard,
                  Might have a lot to do with the US governemnt restrictions on credit card numbers - fm what I have read, no receipt can have more than the last 5 digits for any credit card use for payment. So, for sharing any info on a US bank credit card might run into some difficulties there. I am not sure, and I also believe that right now many tax agents are looking for future customers and while they are "experts" no one really knows what the Thai Revenue Department will or can do with expat situations. Good luck
                  Reply

            • Max says

              Hi Preston,

              About the DTA and LTR, if you are not resident in Thailand you still will have to pay taxes on your own country, the deal in the past was that you could be resident in Thailand without to pay taxes and free to pay taxes in your own country, so entirely tax free, it seems so far being scrapped….
              Reply

              • Preston says

                Max, one of the stated reasons for the OECD agreement in 2023 on which 138 countries signed, was to get others that had not been paying tax on earned income in any country. I do not have any idea on those numbers here or other countries but I do know that as an American, I have filed regularly. It is never a pleasure but as soon as I get my 1099R from the govt, I file and get a return within a really short period of time. The LTR right now is the only reported by the Thai Revenue Department does not have to pay on foreign earned income remitted into Thailand. If the new DTV visa is exempt, then it will have to be reported by the govt as such but I think that is why they used 180 day stay as that would mean not a tax resident so if one stays longer than 180 days in one calendar year I think that they will become a tax resident too and the Thais will want their baht. They are being told by the PM and co. that they need to increase revenue collected and yes, the Thais that have been able to not pay some taxes are a main target of this policy. Legally we must abide by these rules, leave, or pay any penalty. Best to wait a see what is going to happen. Good luck
                Reply

                • Mike says

                  Preston, you keep stating that a tax resident is one who stays over 180 days.

                  I believe that is incorrect. The period is over 179 days, (180 days or more).

                  So the DTV has not been designed to sort of avoid becoming a tax resident, as used to its full extent, one would fall into the tax trap.

                  It is more likely to just reflect the normal day multiples for visas and residence reporting of 30/60/90.
                  Reply

                  • TheThailandLife says

                    That is one point I'd like clarification on. If a person stays over 180 days on the DTV they, by definition, would need to file a return. However, this has not been communicated in any way. Surely it should be stated in the terms of the visa?
                    Reply

                    • Mike says

                      Why would a visa mention tax? Any visa stay could trigger tax residency but just getting a visa isnt a trigger in itself.

                      Immigration are nothing to do with the Revenue Dept, so I wouldn't expect them to mention taxation unless the visa has been designed to be "tax free" and that is a selling point.

                      And you mean "...stays over 179 days...."?

                    • Preston says

                      I agree, Just like the LTR specifically states that there will be no taxes on remitted foreign income - that I believe will remain for at least the remainder of this year 2024 but also will be validated for all current holders of that visa. If they plan to exempt the DTV folks who become tax residents, I do believe that the Thai revenue department will not agree as that has not been been provided via a royal decree (yet anyway). Good Luck to all

                    • Mike says

                      Preston, you are right, they do say that. But every other web shite from advisors, legals, banks says 180 days or more.

                      So, maybe the translation and transcription is not right and everyone else is correct because they have actual experience of dealing with it and have translated it themselves, correctly?

                    • Preston says

                      Mike,
                      yes any visa could trigger a tax residency if one remains over 180 days according to the folks who set that tax policy - the revenue department. It was the head of that department that announced earlier that they were talking about the world wide income taxation. They set the policy - if one remains in country 180 days they are a tax resident but any foreign income remitted if one is an LTR visa holder then there is no tax per royal exemption which is spelled out by the revenue department.

    • Preston says

      Max,
      that is a June note and mentined that the Thais might go to a world wide income tax on foreigners here. That is possible but it would take a new law
      to be written and that would take several months or longer. Not sure if that will come to pass in the near future or if ever. The govt already will have problems in my opinion with the current interpretation of the taxes on foreigner in their implementation of that program. The Revenue Dept in most cases has not even talked with their local offices about that tax collection. We await the final paper ....
      Reply

        • Preston says

          Yes once they do that, as many other countries have or are changing too after the agreements have been signed, taxes here may become a big hassle for many expats. However, until we do see how they plan to implement it and its effect on the expats, we will realize before becoming a tax resident the year it becomes law, and can then decide what we will be doing to save us from the tax man by leaving if it is too much since some of us have to pay our own country too, and just how it will roll out in the implementation. In any case enjoy life here and be safe.
          Reply

  5. Jeff W says

    In USA, I have a Roth IRA, which requires tax to be paid the year it is deposited in the IRA. So no withdrawels from it in my retirement are taxable again. Is this considered assessable income in Thailand, if I remit it to Thailand? I have a retirement visa.
    Reply

    • JamesE says

      Technically, yes, kind of. Since the DTA only addresses double taxation - so you don't pay tax on the same - exact same - income in both places, you may be liable for tax if the tax rate for your Roth's dividends, interest, and capital gains will be higher in Thailand than in the US where it's 0%. Plus, you may have to prove that your Roth's principal contributions were already taxed and what that rate was. Also keep in mind that Thailand is planning to join the group of countries that tax income globally (as the US does) so the whole "remit" loophole might be shutting pretty soon.
      Reply

    • Preston says

      Jeff
      As for what the Thai Revenue Department will decide, we don't really know at this time. We await the final paper to be published and then it might be even
      less clear. That is why agents who do attend some of the meetings with the
      members of the Revenue Dept make some comments about what will be taxable and what will not. Some of hte ASEAN countries are ignoring many pensions totally even if not covered by a DTA. Portugal which originally taxed expats on some things are now rescinding those taxes. We still are in the dark and have heard nothing else about going world wide income taxation. But guess the RD hasn't got anything new either. Just have to wait.
      Reply

  6. Preston says

    This may be true, but I have not clue other than the various politicians talking about the need to increase tax revenues. As to the effect on the expats, until we see the final tax program as published in the gazette, and then how the Thai revenue department will begin their operations next year and how that will affect us, we hear many different stories from all sides and no one knows for sure.
    Reply

  7. Julius says

    Good article!

    One addition: Thailand is not part of CRS (what they could do is not relevant).

    Moreover, CRS does not provide (as of now) details at the level of individual transaction (this level of detail will be required from crypto companies-aka virtual asset service providers).

    Imho, the Thai authorities do not need a foreign exchange of information, since money remitted to Thailand will show up in the Thai banking system.
    Reply

    • Mike Baker says

      I agree.

      CRS is a red herring... said it before.

      CRS gives end of year balances, not transactional info.

      Information is shared on foreign "residents". So this will be one way only.... E.G. as I am not a foreign resident of the UK, the UK will not send info to Thailand.

      And whoever looks at the info will be governed by limits set by their government from a practical point of view. These limits will reflect resources available and likely importance from an income generation point of view. I would suggest this will exclude 99.9% of all retired ex pats.
      Reply

      • Preston says

        Mike, well, based on comments in the local forums, videos, etc no one has a clue about the 2024 tax filings. No one has any idea what the Thai Revenue Department will tell their local offices how to handle the tax forms next year nor how we the expats are to respond to this new interpretation. Will those of us with no assessable pensions/income need to get a tax id number anyway by a change in the tax law or will the RD just accept those forms that are sent in and not require all of the expats here as tax residents require even a negative tax form to be filed or what. No clues yet as the RD hasn't informed us of the final status of this program
        Reply

        • TheThailandLife says

          Most people will use an accountant/tax advisor to avoid the headache, as you would for a tax return back home. It's pretty straight forward; the tax system here has been collecting tax from expats for years, and tax treaties have been around for decades. Your tax advisor will tell you exactly what you need to do and handle the paperwork for you. Get an ID, do the return, get your statement, proceed as advised.
          Reply

          • Preston says

            The ThailandLife - I only have a US Govt Pension, and also have the BOI LTR - with the DTA between the US and Thailand, I will never have
            assessable income in Thailand unless those two thinks are wiped off the books. In that case which I don't think would happen in my lifetime, I would look at the alternative. I speak Thai and believe that with the assistance of my wife could work our way through the Thai tax forms if necessary and if it became too much of a hassle in getting refunds or whatever actually happens, I might just leave too but I truly don't believe that these tax programs will affect me.
            Reply

    • Preston says

      Yes, all this new (all new to me as I have lived overseas more or less for the last 50 year. Just like everything and I mean everything for sure that things are changing tax wise in Thailand. How it will or will not affect anyone of us expats remains to be seen. From what I read, even the local Thai revenue departments have no clues about this 2024 change, let alone any details possible on any future changes. Once the Revenue Department finalizes all the details then we will begin to see the picture, whether we have to wait until the tax filing dates arrive or hopefully before. Good luck.
      Reply

      • Preston says

        I am financially/taxes ignorant for the most part. But there is quite a bit about Thailand and the CSR. Google it if you want any extra information about this story. I did see where in one story they indicate that there is a difference between US and Thailand perspective in relations to the CSR. I have not really concerned myself to any of this OECD, CSR, FACTA, et al as my taxes are simple, I only have a US govt pension so not taxable by Thailand IAW DTA and also by my LTR visa. I fill out my tax forms every year, do my FBAR in Jan. every year and have no problems with exchanges by banks on my finances. Good luck if you are not affected by the tax changes.
        Reply

      • Richard says

        I read the same thing. But I've also been told that they do not track individual transactions of ordinary consumers and that they do not track credit card purchases. I wish there was some definitive, reliable information on this.
        Reply

        • Preston says

          Yeah some of the tax experts said that cc and ATM would not be counted as remittances into Thailand. However, we have not gotten the final program from the Thai Revenue Dept yet so we are just guessing about this issue. It may or may not be true. We must wait...probably until the new year, one can see all the different ideas on the forum daily so I can only imagine that the revenue Department probably has a lot of different ideas every day too. Anyway, I sure hope very few expats are affected by the 2024 changes. Then maybe by 2025 we might get further word on the world wide income taxation by the Thais....
          Reply

  8. Preston says

    Richard: you are right and as the tax agent says, currently no one really knows exactly what the Thai Revenue Department along with the possibly changing government will do. Yeah probably though in the coming years no one has any idea what may transpire here. I love it here, have no plans whatsoever about leaving. We own a home in CM - yeah now planning on travelling during burning season but as a whole, Thailand and its people I find great! I get along with all that I meet and chat with where ever we happen to be. The local food here is pretty hard to beat in any close regional countries. When/if BRICS happens, again we are in the dark. Enjoy while you can and just be aware of possible changes. take care and good luck
    Reply

  9. Edward Taussig says

    Under the DTA with the US, both Social Security and State Pensions are treated the same and are only assessable by the US, so I'm not sure why you state that only Social Security isn't assessable by Thailand?
    (see article 20 and 21 of the DTA).
    Reply

    • Preston says

      Under articles 20/21 of the DTA with Thailand, US social security and a US government pension are taxable only by the US government and not the Thais. State or other private pensions could possibly be taxed but until the final bill is published we are unsure if they will be going after other pensions as some ASEAN countries are ignoring all foreign pensions. BTW did you read today's Bangkok Post on the proposed amendment for the taxation of all income? Is more of just a rehash of the original but shows they are moving forward for an amendment to the tax laws. Good luck.
      Reply

      • Richard says

        It's so contradictory. On the one hand they want to increase foreign investment and at the same time they are discouraging anyone from investing or bringing money here.
        I'm preparing for the worst scenario and will be visiting Okinawa and the Philippines in the fall. I will not be a Resident of Thailand for tax purposes in tax year 2025. My rough estimate is that my tax liability in Thailand would be four times what my taxes are in US based on what I know today.
        Reply

      • Edward Taussig says

        Article 20 mentions "Government Pensions", no mention of Federal Pensions. And it refers to Article 21, which specifically mentions political subdivisions (which includes States) or local authorities. So in addition to Social Security, any government pension, whether Federal, State or local, is also exempted.

        Although obviously in the US at least, taxes are levied on the total income, not on each income source individually, so if you're still taxed in Thailand on dividends, wages, capital gains, etc., then they would still have to credit you with the entire amount of US tax paid, so depending on how much you have from assessable/non-assessable sources, may still wind up not being liable for tax in Thailand...

        (from Article 21: )
        "2. a) Any pension paid by, or out of funds created by, a Contracting State or political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
        b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that other State."
        Reply

        • Richard says

          Hi Edward.... I think US Citizens who have " a good amount" of investment income (not pensions) are going to be disproportionately impacted by the second revision if it passes. Because US taxes are generally lower and tax brackets set at levels so different then the UK, the EU, the Scandinavian countries etc, the differential between Thai tax brackets and where they kick in and US tax brackets is huge and that's where the problem is. Even with a Thai tax credit for what I pay in the US, my Thai taxes at least according to my calculation will still be four times what I pay in the US. Actually, I'm talking to a Thai Tax Consultant today using my 2023 US tax return as a model and see what the real number potentially is.
          Reply

            • Preston says

              Yes, right now the only visa tax free is the LTR, all others still have to pay on the money remitted - the next phase if there is one, they might drop that from the LTR too but then again maybe not. WE can only wait and read....good luck
              Reply

          • Preston says

            Yes I have heard the same from many...until the do the final version we would only be guessing but if it impacts one too much, then moving to a more tax friendly country or back to your home country. I guess some may have left today to avoid being a tax resident here this year. Good luck with your taxes.
            Reply

        • Preston says

          I know about my status for sure under the GOvt pension exemption, and also have an LTR so unless they change that too, but I feel pretty confident that I won't be taxed in Thailand. However once the Thai amend the current tax laws, review how they see the DTA for each individual - guess they would have to chat with each or if one deals with a tax agent then maybe all will be clear. Hopefully under this first change (2024) very few expats will be affected but if they do amend the tax law to include ALL income if one is a tax-resident, who knows? not me! good luck
          Reply

    • Richard says

      Hi Edward...since I don't have a pension of any kind in the US it's not something I looked into. My bigger concern is that all my investment income, dividends
      interest and capital gains are considered taxable at least as far as anyone understands the current situation.
      Reply

  10. Richard says

    Question about DTAs. If for instance your tax bracket in the US is 10% but your blended tax rate in Thailand is 25%, don't you still have a potential tax liability in Thailand for the difference?
    My other confusion is that many of the posts suggest that the deductions directly reduce taxes owed. I don't think that is correct. The deductions reduce the amount of income that is taxable and that even at 1 million baht of remittance and with the 190K baht +60K Baht deductions there is a sizeable tax liability.
    Reply

    • Preston says

      When the final bell rings on exactly what the Thai Revenue Department will do looks like they will most likely leave it up to each expat to get a tax ID (if one has assessable income) and file a tax form if one does have assessable income. Unless of course they (internally) set an amount remitted that they want to investigate and they may ask for additional info if one does not file but has over that amount remitted. I am not sure how they could possibly query every expat in country and unless you remit a lot of money they may not even worry about you YET. But like we keep saying - we have to wait until the final copy comes out to see what they plan on. Good luck anyway
      Reply

      • Mike Baker says

        Preston... There won't be a final bell. I say this because you have hit the nail firmly on the head.

        IMHO there will be an investigation limit for transactions. This will be due to resource issues.

        The system is based on individuals submitting returns. They do not have the joined up systems or the resources to identify everyone who may, and I stress may, be a tax resident AND that remits a potentially taxable amount, or, has worldwide income (if income theft part 2 takes effect) that may produce a tax input for Thailand.

        As time goes on, the limits will reduce as once a person is in the "system" they cannot escape.

        Anyone voluntarily submitting a tax return is simply comittimg financial suicide in my opinion. Lets call them Kamikaze Ex Pats.

        99% of us are (relatively) low income, no tax-take foreigners who prop up up the Thai economy and Thai banking liquidity. They won't come after us for decades. If at all.
        Reply

        • Preston says

          absolutely possible scenario as like you say, they don't have the resources so at least a first they may just wait the first year to see how many actually file and what money they got...then the nex phase will probably start or they might just drop the whole thing and try to figure a better way to do it.
          I sure don't know how...good luck
          Reply

        • Richard says

          Mike....I just spoke with a Thai Tax accountant today. And here's the thing: for the first year or two if the second revision on a global tax passes you may be right and the tools and systems necessary to track compliance may not be in place. But after that initial period Audits will begin and the penalties for tax evasion run into the millions of Baht and possible jail time. Who wants to take that risk? Having just recently arrived and enjoying myself here I'm sad at the thought of possibly having to leave so soon, but that is exactly what I will do.
          Reply

          • Mike Baker says

            I don't blame you for leaving if it comes to that, along with many others no doubt.

            Your message will be felt by Thailand if they pursue us.

            BUT..... TIT and no laws are applied fully. They are ENACTED to elivate Thailand's international status IMHO.
            Reply

            • Preston says

              Thailand is broke - coffers are empty as the new government begins their turn. They also have approved war machines for big $ and have still got to come through on the pre election promises for votes - that is the system in most countries. Anyway, on these new changes to the interpretation of Thai tax laws - this 2024 one on remittances should be almost a no brainer - taxes must be paid at home or here if one is a tax resident - that was one of the purposes of the OECD, CRS FACTA, FBAR et al. Unfortunately for lower pension receivers this might impact greatly on them or not at all. We still have no real clue as to the final picture on "earned" income and pensions of all types. I do not plan to leave nor do I even want to at all. I love it here. Life is great. I though have a simple pension and LTR so I have no worries about either tax program. BUT TIT and who really knows - no one on this forum for sure. Even the Thai revenue Dept folks have no clue yet. We just have to be patient - if you are at risk, yes you can make plans but who knows what will be published? None here.
              Reply

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