Thailand to Amend Tax on Foreign Income Remittance
New legislation aims to encourage repatriation of foreign income for domestic investment
The Revenue Department is preparing to draft legislation to amend the collection of tax on foreign income remitted to Thailand.
Thais with income earned abroad who remit it to Thailand must include that income in their personal income tax filing, with a progressive tax rate ranging from 5% to 35%.
The current regulations have been in effect since January 1, 2024, and were amended during the previous government.
For foreign income earned before January 1, 2024, and remitted to Thailand after that period, the previous rules still apply, meaning the remittance is not subject to tax if it was earned before 2024 and remitted after the year it was earned.
The new guidelines aim to encourage Thai nationals with foreign income to repatriate funds for domestic investment by exempting them from tax if they remit the income in the year it was earned or the following year.
If the income is remitted after that period, normal tax obligations apply.
This condition is intended to support domestic investment and aligns with government policy.
The taxation of foreign income follows the residency-based principle, whereby Thailand taxes the income of individuals who reside in the country, defined as persons who stay in Thailand for 180 days or more and have foreign income.
Thais with income earned abroad who remit it to Thailand must include that income in their personal income tax filing, with a progressive tax rate ranging from 5% to 35%.
The current regulations have been in effect since January 1, 2024, and were amended during the previous government.
For foreign income earned before January 1, 2024, and remitted to Thailand after that period, the previous rules still apply, meaning the remittance is not subject to tax if it was earned before 2024 and remitted after the year it was earned.
The new guidelines aim to encourage Thai nationals with foreign income to repatriate funds for domestic investment by exempting them from tax if they remit the income in the year it was earned or the following year.
If the income is remitted after that period, normal tax obligations apply.
This condition is intended to support domestic investment and aligns with government policy.
The taxation of foreign income follows the residency-based principle, whereby Thailand taxes the income of individuals who reside in the country, defined as persons who stay in Thailand for 180 days or more and have foreign income.
