Thai Times

Covering the Thai Renaissance
Saturday, Jul 12, 2025

Thailand Introduces New Tax Incentives to Attract Overseas Income

The Revenue Department aims to boost domestic investment by exempting foreign-sourced income from taxation for a limited period.
The Revenue Department of Thailand is reforming its approach to taxing income sourced from abroad, seeking to stimulate the domestic economy by encouraging individuals with foreign income to repatriate their funds.

This initiative involves granting tax exemptions for income that is promptly remitted to Thailand, a strategy aimed at increasing liquidity and bolstering domestic investment.

According to Pinsai Suraswadi, the Director-General of the Revenue Department, preparations are underway to draft legislation that would amend existing income tax collections.

This amendment will exempt taxes on foreign-sourced income when brought back into Thailand, thereby incentivizing the return of investment funds.

It is estimated that roughly 2 trillion baht is currently invested by Thais abroad, in various forms such as land purchases, insurance, or foreign funds.

The proposed amendments will include a two-year personal income tax exemption for individuals who reside in Thailand for at least 180 days within a calendar year.

This exemption applies to all income earned—both within Thailand and from foreign sources.

If the foreign income is brought back to Thailand within two years of its earnings, it will not be subject to taxation.

However, if the income is repatriated after the two-year period, it will fall under the normal tax regulations.

The regulatory changes will take effect following their formal enactment by the Finance Ministry, which will produce a ministerial regulation that clarifies these tax exemptions.

Currently, individuals are liable for personal income tax on foreign income as soon as it is brought into Thailand, regardless of whether it was earned in the current year or a preceding one.

However, prior to January 1, 2024, income brought into Thailand after the year it was earned was not subject to personal income tax.

The two-year exemption is designed to allow adequate time for taxpayers to prepare for repatriation, especially in cases where income is earned at the end of the year.

This approach aims to ensure that individuals can effectively manage the logistics of transferring their foreign income back to Thailand within the specified timeframe.

The Revenue Department emphasizes that this new regulation does not retroactively apply to income earned before the regulation's enactment.

The taxation rules will remain distinct from investment funds that flow in or out of the country; taxation will only apply to the benefits derived from those investments, such as interest income, dividends, capital gains, and other types of income.

Thailand's taxation framework is built upon international tax principles, particularly the residency rule, which requires that individuals residing in Thailand for at least 180 days are subject to Thai income tax regardless of their income's origin.

The prerequisite for foreign income to be taxed includes residency in Thailand and the repatriation of that income.

In cases where foreign income has been taxed in the source country, taxpayers may qualify for a foreign tax credit provided that a double tax agreement (DTA) exists between Thailand and the foreign country.

The complexity of tax calculations increases when taxpayers have both domestic and foreign sources of income, as the credits claimed cannot exceed the domestic tax liabilities.

Tax incentives may include deductions related to employment income, with allowances for expenses and personal deductions also specified.

For example, taxpayers can deduct a portion of their salary expenses while adhering to specific caps on allowable deductions.

This approach reflects a significant shift in Thailand’s fiscal policy, aiming to attract capital inflows and enhance the liquidity of its domestic economy.
Newsletter

Related Articles

Muay Thai Secures Place in 2027 Military World Games
0:00
0:00
Open
Muay Thai Secures Place in 2027 Military World Games
0:00
0:00
Close
Muay Thai Secures Place in 2027 Military World Games
Trump Administration Targets Chinese Influence in Agriculture
Thai Massage Therapists in UAE Set to Obtain Global Certification
Cambodia crime ring: Thailand Records Over 175,000 Online Crime Cases in First Half of 2025
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Thai Military Rejects False Reports of Troop Withdrawal Along Border
China Offers Mediation in Thailand-Cambodia Border Dispute
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Foreign Investment Drives Land Price Surge in Thailand's Eastern Economic Corridor
Thai Court Denies Nestlé's Request to Appoint Asset Manager in Joint Venture Dispute
Ubon Ratchathani Candle Festival 2025 Illuminates Northeastern Thailand
Thousands Gather to Celebrate Viral Hippo Moo Deng's First Birthday in Thailand
Thailand's Motorcycle Industry Faces Challenges in Second Half of 2025
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
Thai Industry Faces Economic Challenges Amidst Policy Negotiations
Thai-Chinese Chamber of Commerce Projects GDP Growth Between 1.5% and 1.8% for 2025
Thai Airways Confirms No Plans to Resume Direct US Flights Amid Ongoing Tariff Discussions
Thailand’s Anti-Online Scam Operation Centre Receives WSIS Prizes 2025
U.S. Implements Comprehensive Travel Ban on Citizens from 12 Countries
United States Expands Visa Waiver Program to Select Asian Nations in 2025
Thailand's Central Bank Initiates Support Plan for Vulnerable Businesses Amid Economic Challenges
Thailand Submits Revised Tariff Proposal to U.S., Open to Further Negotiations
Asian AI Boom: Goldman Sachs Repositions Asian Equity Strategy Amid AI Growth
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Hong Kong Denies Entry to Over 12,000 Visitors in Early 2025
Thailand Positioning for Economic Growth from Aging Population
Thai Finance Minister Refutes US Tariff Rumors and Prepares New Proposal
Thai Leaders to Showcase Soft Power Initiatives at 2025 Forum
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
Bangkok Launches New Initiative for HIV and STI Prevention
US Administration Plans to Restrict AI Chip Shipments to Malaysia and Thailand
Tiffany’s Show Pattaya Celebrates 50 Years of Brilliance with a Dazzling New Era
Starbucks Faces New Competition as China’s Top Coffee Chain Enters U.S. Market
Lisa BLACKPINK Recognized Among World's Most Stylish People of 2025
China’s Central Bank Consults European Peers on Low-Rate Strategies
Trump Announces New Trade Agreement Between U.S. and Vietnam
Toyota Industries Faces Backlash Over $33 Billion Buyout Plan
South Korea Signals It May Miss Trump Trade Deal Deadline
Shein Fined €40 Million in France Over Misleading Discounts
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
Thailand's TAT Announces Seven Economic Stimulus Projects Worth 200.50 Billion Baht
Thailand Transfers 'Half-Half Thai Travel' Registration to Thang Rath App Amid Technical Challenges
BRICS to Establish Guarantee Fund Aimed at Boosting Investments
×