Expat Tax: Frequently Asked Questions
Thank you for visiting our Thailand Expat Tax FAQ page. We answer questions received from expats, anonymised for privacy, to help others navigate the new tax rules.
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Not everything that is transferred into Thailand is taxed. Only assets that are classed as foreign-sourced income are liable to tax.
No, as long as you can prove the money originated from income earned in Thailand and was not treated as taxable income after being sent overseas. Only the gains or interest earned on the money while overseas would be taxable.
UK state pensions are taxable in Thailand if remitted. However, the exact tax treatment depends on the amount remitted due to Thailand’s allowances and deductions, which could mean you have to file but not have tax to pay. If you have less than THB220,000 remitted in a calendar year and are married, or less than THB120,000 if you are single, you do not need to file a Thai tax return for your UK state pension. If it is above these limits then you do, regardless if you have tax to pay or not.
Yes this is correct, Canadian pensions are not taxable in Thailand and do not need to be filed on a tax return. You still keep your 120k limit
Thailand only recognises married couples for tax allowances and deductions.
In Thailand, if you earn money by renting out property, you have to pay income tax on that rental income. This tax is progressive, meaning it can range from 0% to 35%, based on your total yearly income, including what you make from renting out property. For renting out non-residential properties, you might also need to pay a business tax called the House and Land Tax, which is 12.5% of the property’s annual rent or its assessed value, whichever is more. Property owners must report their rental earnings each year and pay the necessary taxes to the Thai Revenue Department. Keeping precise records of rental income and related costs is crucial to comply with Thai tax regulations.
Funds are potentially taxable when they are remitted into Thailand depending on the source of the money and your tax residency status. It does not matter what currency it is held in in Thailand.
The income tax structure in Thailand is progressive, meaning that the rate of taxation increases as income increases. Individuals earning income in Thailand, including foreigners residing in Thailand for more than 180 days a year, are subject to this tax. The rates start at 0% for annual incomes up to 150,000 baht, and increase through several brackets to a maximum of 35% for incomes over 5 million baht. Other than the standard deductions and allowances for personal, spousal, and child care, there are also deductions for expenses such as health insurance, education, and donations to charity. This system aims to balance the tax burden across different income levels while providing incentives for social and personal investments.
You can find out more about Thailand’s tax rates, allowances and deductions here or if you prefer to listen to a short podcast here
It depends on the source of the savings. Cash In the bank from pre-2024 can be remitted to Thailand and isnt assessable income.
My interpretation is that you do not remit any pension funds from Switzerland. If you do not remit or transfer foreign-sourced income into Thailand, then you do not need to file a tax return.
If you do benefit from the gift, it is a gift with reservation of benefit. This means that while you’ve gifted the asset away, you’ve continued to benefit from it in some form. This can potentially be classed as remittance of the income, and the gift can be looked at and reassessed in the future. This means that it is very important that gifts are real gifts that are not going to be benefitted from. It is recommended that if you are to gift assets, you seek advice as it is more complicated than simply sending money to a third party. You need to ideally have evidence on file that this is a formal gift.
If you are the only one with income, then file jointly, and use your wifes allowance. This will give you an extra 60,000 THB of allowances.
In Thailand, your personal income tax is calculated based on a progressive tax rate system, where the amount of tax you owe increases as your income rises. This system is divided into several tax bands, each with its own rate ranging from 0% to 35%. Your annual income is assessed and placed into these bands, with each portion of your income within a specific band being taxed at that band’s rate. Deductions and allowances, such as those for personal and dependent allowances, are subtracted from your gross income to determine your taxable income. This taxable income is then used to calculate the total amount of tax you owe by applying the corresponding tax rate for each portion of your income that falls within the different tax bands.
You can find out more about Thailand’s tax rates, allowances and deductions here or if you prefer to listen to a short podcast here
U.S. expatriates in Thailand might have to pay taxes in Thailand. This depends on their income sources, residency status, and how long they stay. Thailand taxes people based on their residency and where their income comes from. Expats who stay in Thailand for 180 days or more in a year are considered tax residents and must pay taxes on their foreign sourced income remitted to Thailand. Those who don’t meet this residency requirement only pay taxes on the income they make in Thailand. The US/Thai DTA sets out how certain assets are taxed for residents in Thailand and certain exclusions, like US social security.
I’m afraid it is only cash in the bank in your personal bank account
In Thailand, foreigners are subject to taxation based on their residency status and the source of their income. Expatriates who reside in Thailand for a period of 180 days or more within a calendar year are considered tax residents and are obligated to pay tax on overseas income they bring into Thailand. Conversely, expatriates who stay in Thailand for 179 days or less within a calendar year are only required to pay tax on the income that is sourced within Thailand. The applicable income tax rates are progressive, ranging from 0% to 35%, depending on the amount of taxable income. It is imperative for expatriates to ensure compliance with Thai tax laws to avoid legal complications and penalties.
Learn more about the Thailand Revenue Department’s announcements on foreign sourced income here
The date of remittance (transfer to Thailand) is when the funds were sent to Bangkok Bank. As this was before January 2024 then this is the date you use, if you convert the currency afterwards then that does not affect or impact this.
In Thailand, the income tax rate for expatriates, much like for local residents, is based on a progressive scale, starting at 0% for those earning up to 150,000 baht and can rise up to 35% for incomes exceeding 5 million baht. Expatriates are considered tax residents if they spend 180 days or more in Thailand within a tax year, which runs from 1 January to 31 December, and are then taxed on their income derived from Thai sources and foreign sourced income remitted to Thailand.
You can find out more about Thailand’s tax rates, allowances and deductions here or if you prefer to listen to a short podcast here
In Thailand, expatriates are subject to taxation based on their residency status and the source of their income. Expatriates who reside in Thailand for a period of 180 days or more within a calendar year are considered tax residents and are obligated to pay tax on overseas income they bring into Thailand. Conversely, expatriates who stay in Thailand for 179 days or less within a calendar year are only required to pay tax on the income that is sourced within Thailand. The applicable income tax rates are progressive, ranging from 0% to 35%, depending on the amount of taxable income. It is imperative for expatriates to ensure compliance with Thai tax laws to avoid legal complications and penalties.
Learn more about the Thailand Revenue Department’s announcements on foreign sourced income here
This may potentially be classed as a gift. If this was a gift and it will not be returned, you need written evidence of this. It is advisable that you get a gift document drawn up to prove that it is a gift that does not need to be returned.
In Thailand, the personal tax allowance system incorporates a range of deductions and allowances aimed at reducing taxable income for individuals, including both residents and foreign residents. Standard allowances include personal and spouse allowances of 60,000 Baht each, provided the spouse does not file their own return. Additionally, there is a 30,000 Baht allowance for each child, with an extra 30,000 Baht for the second child born in or after 2018. Deductions for the care of dependent parents or a disabled or incapacitated person offer 30,000 Baht and 60,000 Baht respectively. For employment income, a standard deduction of 50% up to 100,000 Baht is permitted. Other specific deductions cover life and health insurance premiums, contributions to retirement and savings funds, mortgage interest, and charitable contributions, among others. Notably, the system also allows for tax deductions related to health insurance premiums, including premiums for the taxpayer and their parents, with varying limits. The detailed structuring of these allowances and deductions is designed to offer tax relief based on personal circumstances and financial commitments.
Yes. Gift tax rules are different to income tax rules. Gift tax rules states you may gift 20 million Thai Baht to family members (ascendants and descendants) and 10 million Thai Baht to anyone else wihtout gift tax. The gift tax rate starts at 5% over this. It is recommended that if you are to gift assets, you seek advice as it is more complicated than simply sending money to a third party. You need to ideally have evidence on file that this is a formal gift.
Learn more about Gifts and Taxation in Thailand
Stocks, investments and pensions are not mentioned in the notable amendment in Order No. P.162/2023. This means they do not follow the pre-2024 rule. For stocks in particular, it does not matter if they were held before 2024 or not. Rather, it depends on the capital gains on the stock since you have owned it.
No. Only Thai registered medical insurance plans, can be used as a tax deductible.
Gifting means you’ll never benefit from the gift or receive the gift back at any time in the future. You can gift up to 20 million Thai Baht to ascendants or descendants in any tax year before gift tax. It is recommended that if you are to gift assets, you seek advice as it is more complicated than simply sending money to a third party. You need to ideally have evidence on file that this is a formal gift.
You get the child allowances already in your tax return. If you remit foreign sourced income to the school for school fees or any other purpose to anyone in Thailand, it is assessable income and potentially taxable, even if you send to a third party.
In response to evolving economic conditions, Thailand has introduced a significant tax regulation, effective from 1 January 2024. As announced by the Revenue Department of Thailand, Order No. 16/2023 mandates that Thai tax residents must report and pay income tax on foreign-earned income that is remitted to Thailand. This includes salaries from overseas employment, pensions, investment income such as dividends and capital gains, and rental income from abroad. It is important to note that this change marks a departure from previous tax practices, wherein expatriates were not required to pay Thai income tax on foreign-earned income brought into the country. This rule change affects foreigners and Thai nationals alike and is not a ‘new tax on foreigners’
Learn more about the Thailand Revenue Department’s announcements on foreign sourced income here
If you have an overseas salary or fees for work conducted in Thailand, they must be declared, and tax paid on this overseas income.
If money has been in a bank account since before 1 January 2024 it can be remitted to Thailand at any time in the future without being liable to tax. The notable amendment in Order No. P.162/2023 is the clarification added to the first item of Order No. P.161/2023, which stipulates that the new taxation rule does not affect income earned before 2024. This specific exemption provides a transitional period for taxpayers, allowing them to adapt to the new system without the worry of retrospective taxation.
Wihtholding tax is not deducted by receiving banks for personal funds remitted to Thailand. Any tax which is due on foreign sourced income remitted to Thailand for Thai tax resident needs to be declared on the tax return.
Based on your information here are the answers:nIf less than 220k of foreign sourced income you don’t need to file.nIf the money is from savings from before 1st January 24 then this is not a foreign sourced income but savings, so doesn’t need to be filed. Foreign sourced income are assets like pension income, capital gains, property rental income etc.. Make sure you keep good records that prove that this money is not a taxable income source.
In Thailand, the 2024 tax exemption threshold is ฿150,000 for both residents and non-residents. Tax rates range from 5% to 35% for income above this level. A standard personal allowance of THB60,000 also applies. Thai tax residency is generally determined by physical presence, with those staying in Thailand for 180 days or more in a tax year typically qualifying as residents.
You can find out more about Thailand’s tax rates, allowances and deductions here or if you prefer to listen to a short podcast here
Thailand is considered a moderately taxed country, especially in comparison to Western standards. The country operates a progressive income tax system for individuals, with rates ranging from 0% to 35%. For corporations, the standard corporate income tax rate stands at 20%. Additionally, Thailand imposes a Value-Added Tax (VAT) at a rate of 7% on most goods and services. While there are certain taxes and duties that businesses and individuals must navigate, including stamp duties and specific business taxes, the overall tax burden is generally perceived to be reasonable, making Thailand an attractive destination for both investors and expatriates looking for tax-efficient jurisdictions.
If the money is in the bank from previous tax years, this can be remitted (transferred) to Thailand anytime In the future without a tax liability.
If it is a legitimate gift that you do not benefit from and you can prove that, then this could be interpreted as a gift under the gift tax rules.nBest practice on gifting should include gifting the assets overseas (not directly into Thailand) and having a gift document drawn up and notarised overseas where the gift is made. This should be translated into Thai and filed in case of an audit in the future.nIf you are not filing a tax return, then the Thai revenue auditors can ask for information going back 10 years. It is recommended that if you are to gift assets, you seek advice as it is more complicated than simply sending money to a third party.
This depends on what you remit into Thailand and the frequency. If it is one source of income then this will be essential tax filing. If it is multiple sources, then this is THB12,000.
Please feel free to book a call using the link at the top of the page to book a call and discuss your requirements further.
If you have no income, then you do not need to file a tax return, even if you are in Thailand more than 180 days. If you spend less than 180 days in Thailand, then even if you do have foreign sourced income paid into Thailand, you do not need to file a tax return.
If the work was not conducted In Thailand then as a non-Thai tax resident you can transfer to Thailand without any tax liability
If you remain in Thailand for 180 days or more in a calendar year, retired expats are classes as Thai tax residents. Depending on the source of income for anything remitted to Thailand, they could be liable for taxes in Thailand.
You can find out more about tax residency rules in Thailand by listening to a short podcast here.
If the source of the funds is your personal pension, then by remitting the funds to your wifes Thai account, it doesn’t cause a tax implication for your wife, but still for you who remitted the funds.
Your tax return would need to include both the transfers to your Thai account and to your wife’s Thai account. You cannot simply pass the 300k on to your wife’s personal income tax.
Starting in 2024, Thailand requires foreign retirees who are tax residents (those staying more than 179 days in a year) to pay taxes on foreign-earned income remitted to Thailand, with rates ranging from 0% to 35% based on the progressive personal income tax scale. This change, which includes pensions, may see taxes levied on these incomes, although Double Taxation Agreements (DTAs) between Thailand and many countries can mitigate this, potentially meaning any tax already paid can be credited against any income tax due. Notably, income accumulated in savings in the bank before moving to Thailand won’t be taxed if it was before the individual became a tax resident. Given the complexity of these new regulations, it’s advisable for foreign retirees to consult with tax professionals to navigate these changes efficiently and ensure compliance with Thai tax laws.
You can find out more about Thailand’s tax rates, allowances and deductions here or if you prefer to listen to a short podcast here
Please obtain a bank statement showing the account balances at 31st December 2023. This cash can then be potentially remitted to Thailand without any tax implications if it was pre-2024. Always put on the remittances ‘pre2024 savings.
Keep good records as you can be audited for up to 10 years.
It depends on where the money is from. If it is income, for example, from investments, a pension or property rental, it is potentially taxable. If it is from savings from pre2024, it is not classified as a taxable asset and is not taxable. Depending on they jurisdiction for where your assets are based, there may be relief under a Double Tax Agreement using tax credits.
I recommend you keep the bank statement as you mentioned on your file and don’t transfer any other potentially taxable assets into this account (keep it clean with non-taxable assets) this was it makes reporting and transferring to Thailand simpel and easy to trace.
This will depend on the double taxation agreement between Switzerland and Thailand. You must check for these specific pensions. If it likely if the money is remitted to Thailand then it must be declared and taxed in Thailand, as you are a Thai tax resident.
The 190k is on top of the 60k personal allowance.
The spouse allowance is if they are not working and you want to file jointly.
So if you and your wife are over 65
190k
60k
60k
THB310k of assessable income can be remitted before the tax brackets.
Plus any other deductions or allowances (like Thai medical insurance)
Then the first 150k is tax exempt. So you can in effect bring in 460k THB of foreign sourced income or assessable income and not pay tax.
You do have to file if the income is greater than 220k jointly.
This is classed as foreign sourced income and the capital gains needs to be filed in Thailand. Thailand tax residents must pay taxes on their foreign-sourced income remitted to Thailand. This means if you’re considered a tax resident in Thailand—defined as someone who spends 180 days or more in the country in a calendar year—you must include your income remitted from abroad in your annual tax return and pay Thai taxes on it. However, to avoid double taxation (paying taxes on the same income in both Thailand and the country where the income was earned), Thailand has double tax treaties with 61 countries that allow for tax credits or exemptions. It’s important to consult a tax professional to understand how these treaties may apply to your situation and to ensure compliance with Thai tax laws while maximising available benefits.nn
It is prudent to make sure that you aqcuire bank statements as of the 31st December 2023. You can then show in the future that this account is from before the rule changes. It is also important that you do not add new money into this account which is taxable, as it is then difficult to distinguish between non-taxable and taxable assets.
The amount of money you can transfer to Thailand typically depends on the regulations of the sending and receiving banks, as well as any applicable laws in both the sending country and Thailand. Generally, for personal transfers, most banks and financial institutions allow significant sums to be sent; however, for very large transfers, you might need to provide additional documentation to comply with anti-money laundering regulations. The Thai government does not impose a limit on the amount of money that can be received from overseas, but transactions over a certain threshold may need to be reported to the Bank of Thailand. It’s advisable to check with your bank or financial institution for specific limits and requirements, as well as any fees or exchange rate considerations that might affect the transfer. n
If I bring money into Thailand from income earned before 1 January 2024, is taxable on that money?
The notable amendment in Order No. P.162/2023 is the clarification added to the first item of Order No. P.161/2023, which stipulates that the new taxation rule does not affect income earned before 2024. This specific exemption provides a transitional period for taxpayers, allowing them to adapt to the new system without the worry of retrospective taxation. Money that is in the bank from 2023 or before can be transferred in the future without any tax liability.
Savings in the bank from pre2024 are not a taxable source of income in Thailand. Also you do not have to declare a pension if it is not remitted into Thailand. However, if you do remit that pension, then it becomes a potentially taxable source.
Loans are not taxable in Thailand, so if there is a loan agreement drawn up and it is a real loan that is being remitted, then it’s not a taxable asset. It is best to check with a tax advisor or accountant that the loan meets the criteria first before remitting to Thailand. It is very important that you keep the documents on file because there could be serious tax implications if not.
If the money is remitted from pre-2024 savings, it doesn’t need to be declared or filed because it is not a taxable income source. The notable amendment in Order No. P.162/2023 is the clarification added to the first item of Order No. P.161/2023, which stipulates that the new taxation rule does not affect income earned before 2024. This specific exemption provides a transitional period for taxpayers, allowing them to adapt to the new system without the worry of retrospective taxation.
You can learn more about pre-2024 savings in relation to Thailand’s foreign-source income tax by listening to a short podcast here.
You will have to file a tax return, as this is over the single filing limit of THB120k and the married filing limit of THB220k.
This doesn’t mean you have to pay tax. It depends on your other allowances and deductions.
You can find out more about Thailand’s tax rates, allowances and deductions here or if you prefer to listen to a short podcast here
If you are a Thai tax resident (180 days or more) And transfer in or spend on an ATM any funds from overseas that are classed as foreign sourced income, then this is potentially taxable. It doesn’t matter what the money is used for. I recommend you watch our videos on this subject or podcasts which explain what is classed as taxable transfers
In Thailand, if you reside in the country for 180 days or more in a year, you are considered a tax resident. This means you have to pay tax on income you earn both inside and outside Thailand. However, income earned outside Thailand is taxed only if remitted to Thailand. If you do not reside in Thailand for 180 days or more, you only pay tax on the income you earn in Thailand.n
Not everything that is transferred into Thailand is taxed. Only assets that are classed as foreign-sourced income are liable to tax.