The Revenue Department has introduced new criteria regarding the taxation of income for ordinary individuals with income from abroad brought into Thailand. According to the new regulation, income brought into Thailand from abroad will be subject to taxation for the respective year it enters Thailand. This new criteria has been effective since January 1, 2024
In this regard, we emphasize the significance of the latest directive from the Revenue Department, Notification No. 161/2566. This directive applies to individual taxpayers residing in Thailand for a total of 180 days within the same calendar year* (tax year). If they have income from abroad and bring that income into Thailand.
- The taxation in Thailand for income earned from abroad is based on the criteria for taxing the income of ordinary individuals residing in Thailand for 180 days within the same calendar year (tax year) and who have sources of income from abroad, which they bring into Thailand.
- Income from abroad’ refers to income derived from duties performed abroad, businesses conducted abroad, or assets located abroad. Examples include wages from work performed abroad, profits from the sale of assets abroad, dividends from foreign stocks, foreign interest, and royalties from abroad.
- The key information from the new directive states that if you are a person residing in Thailand for 180 days within the same calendar year (tax year) and bring income from abroad into Thailand, regardless of whether the foreign income is earned in the same tax year or a different tax year, that income must be declared for taxation. It should be categorized as income subject to taxation in the year in which the money is brought into Thailand. This new criterion supersedes the previous directive from the Revenue Department, No. 0802/696, dated May 1, 1987, which had exempted the requirement for re-declaration of foreign income brought in during different tax years, considering them as separate taxable imports.
- This directive will be effective from January 1, 2024, and applies to taxpayers who have income from abroad brought into Thailand from that date onwards. However, if you do not have any income from abroad brought into Thailand, this directive will not have any effect.
- Exemptions apply if the taxpayer is in Thailand for less than 180 days during the tax year in which the income from abroad is brought into Thailand. In such cases, the taxpayer is still exempt from declaring the mentioned income in Thailand, even if they bring foreign income into the country during that tax year. Furthermore, the taxpayer may be protected under a tax treaty if Thailand has an agreement with another country. This allows the taxpayer to bring in income from abroad into Thailand without the need for further tax declaration, even if they are in Thailand for up to 180 days during that tax year.
Note: *The calendar year is counted from January 1st to December 31st of that year.
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