The Revenue Department has issued a new document titled, “How Do Foreigners Living in Thailand Pay Tax?”
You can download the document here.
The document does not contain new information; it reconfirms what we already know and underlines the Revenue Department’s intention to apply the new rules on foreign-sourced income for this tax year.
Summary of the Information
Income Subject to Tax
- Thai-Sourced Income: Any income derived from sources within Thailand is subject to Thai income tax, regardless of where it is paid.
- Foreign-Sourced Income: Income earned from sources outside Thailand is subject to Thai tax if:
- It is earned from 1st January 2024 onwards by a foreigner residing in Thailand for 180 days or more in a tax year.
- It is remitted to Thailand in the same tax year or later.
Exemptions
- Income derived before 1st January 2024 and remitted to Thailand in a later tax year is not subject to Thai tax.
- Even if remitted later, foreign-sourced income of non-residents of Thailand is not subject to Thai tax.
Tax Return Filing
- Foreigners must report Thai-sourced and foreign-sourced income (remitted to Thailand) in their Personal Income Tax Return (PND 90/91).
- The taxable income will be the Thai-sourced income earned, and foreign-sourced income remitted during the tax year.
Foreign Tax Relief
- Under the Double Tax Agreement (DTA), income tax paid abroad can be credited against Thai taxes, preventing double taxation for Thai residents.
- Documentary evidence in Thai or English is required to claim foreign tax credits. A Tax Payment Certificate from the foreign tax authority is recommended.
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