Thai Government Proposes New Rules for Taxing Overseas Income

June 5, 2024

The Revenue Department of Thailand plans to amend a law to tax individuals on their foreign income, even if it is not brought into Thailand.

Kulaya Tantitemit, Director-General of the Revenue Department, stated that under the current law, individuals residing in Thailand for over 180 days per year must pay taxes on foreign income only if it is brought into the country.

This foreign income is currently subject to personal income tax. The department aims to amend the law to follow the principle of worldwide income, which taxes individuals based on their residency in Thailand, regardless of whether their income is earned domestically or internationally.

Kulaya mentioned that there are plans to expand the tax base by requiring platforms with an income of 1 billion baht or more to report their income sources. This information will be used to verify tax compliance.

Previously, the criteria for tax residency mandated that individuals residing in Thailand for at least 180 days per year and earning foreign income must pay personal income tax if that income is brought into the country within the same year it was earned.

Starting in 2024, this rule will be revised to require tax payments on foreign income, regardless of when it is brought into the country, according to the Bangkok Post.