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Thailand prepares reversal on taxation of repatriated foreign income

【Translated by HW Group】

Thailand''s government is planning a partial reversal of the change made to the foreign income tax rules in late 2023, which it now believes contributed to a sharp fall in revenues remitted from abroad.

In September 2023, the Thai revenue department announced that all foreign-sourced income repatriated by a Thai tax resident would be subject to taxation in year it was remitted, irrespective of the year in which it was initially earned. From January 2024, anyone classified as tax-resident in Thailand would thus be taxed on global income like other Thai citizens. This significantly altered the previous position that only foreign-sourced income brought into the country in the same year it was earned was subject to Thai personal income tax, with all other remittances exempt. The revenue department subsequently clarified that the order did not apply to income earned before January 2024 and that such historical income could be brought into Thailand in any subsequent year without being subject to Thai personal income tax.

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