Thailand Proposes Tax on Worldwide Income: Key Update for Expats

The Thai Revenue Department has proposed a draft law that would expand taxation on worldwide income for individuals residing in Thailand, a significant potential change for expats. As reported by the Bangkok Post, the proposed amendment would require individuals residing in Thailand for 180 days or more to pay personal income tax on all income earned overseas, even if it is not remitted into Thailand. This marks a continuation of Thailand’s shift towards taxing worldwide income, as discussed in our previous article published on June 5th, Potential Tax Extension to Worldwide Income.

Details of the Proposed Law

The draft amendment to Section 41 of the Revenue Code would mean that foreign income could become taxable, irrespective of whether it is brought into Thailand or not. Currently, tax is due only on assessable income remitted into Thailand. The current rules only took effect on January 1st, 2024, bringing many expats into the tax net for the first time. The announcement of a draft worldwide income rule suggests that further tax legislation changes impacting expats are likely in the coming years.

What This Means for Expats

Expats in Thailand, especially those with foreign pensions or income from abroad, should take note of these proposed changes. While double tax agreements (DTAs) with Thailand may provide relief for some, the interpretation and application of the law are still under review. Therefore, it is crucial for expats to remain informed and seek professional advice regarding their potential tax obligations.

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