Expat Tax: Frequently Asked Questions

Thailand signed up to the automatic exchange of information – Common Reporting Standards (CRS) – in 2020. They receive data from over 130 countries that are signed up to CRS. Thailand’s Revenue Department have links with other revenue department software, and they share information automatically every quarter for bank accounts, pensions, credit cards, as well as the account balances and transactions within that quarter for Thai tax residents. Therefore, the information is already being remitted and sent to the Thai Revenue Department. While it’s up to the individual to file a tax return, the Thai Revenue Department can check to see on individual’s accounts what is being remitted.

You can learn more about Common Reporting Standards and how Thailand’s tax authorities track your finances here. 

Thailand signed up to the automatic exchange of information – Common Reporting Standards (CRS) – in 2020. They receive data from over 130 countries that are signed up to CRS. Thailand’s Revenue Department have links with other revenue department software, and they share information automatically every quarter for bank accounts, pensions, credit cards, as well as the account balances and transactions within that quarter for Thai tax residents. Therefore, the information is already being remitted and sent to the Thai Revenue Department.

You can find out more about how Common Reporting Standards and how Thailand’s tax authorities to track your finances here. 

If you are a Thai tax resident and the bank account you have registered as a Thai tax resident, then every quarter the revenue department where of the card remit every single transaction on that account, regardless of whether it was overseas or in Thailand. Thailand signed up to the automatic exchange of information – Common Reporting Standards (CRS) – in 2020. They receive data from over 130 countries that are signed up to CRS. Thailand’s Revenue Department have links with other revenue department software, and they share information automatically every quarter for bank accounts, pensions, credit cards, as well as the account balances and transactions within that quarter for Thai tax residents. Therefore, the information is already being remitted and sent to the Thai Revenue Department.

You can find out more about how Common Reporting Standards and how Thailand’s tax authorities to track your finances here. 

You must keep records for up to five years. Ensure all documentation is in Thai or English for compliance purposes.

The department accepts documents in Thai or English. Certification depends on the nature of the claim, but clear records, including bank statements, are essential for audits (up to five years).

In Thailand, the Revenue Department within the Ministry of Finance is responsible for collecting taxes. This includes overseeing the collection of taxes such as personal and corporate income tax, value-added tax (VAT), and other specific taxes and duties. The department ensures that tax laws are followed and helps taxpayers understand and meet their tax obligations.

Thailand’s tax system operates primarily on a territorial basis, taxing individuals and entities on income derived from within the country, whilst foreign-sourced income is taxed only if remitted into Thailand in the same year it is earned. The system encompasses a range of taxes including personal income tax, which is progressive and ranges from 0% to 35% based on income levels; corporate income tax at a standard rate of 20% for companies; value-added tax (VAT) at a standard rate of 7% applied to most goods and services; specific business taxes on certain industries like banking, insurance, and real estate; and customs duties on imported goods. Other taxes include property tax, stamp duties, and withholding taxes on certain types of payments to non-residents. Tax incentives and exemptions are available for investments in specific sectors or regions, as guided by the Board of Investment. Compliance with Thailand’s tax laws requires careful navigation of its rules and regulations, including the filing of annual tax returns.

Learn more about the Thailand Revenue Department’s announcements on foreign sourced income here

Thailand is not a tax-free country; it operates a comprehensive taxation system encompassing both direct and indirect taxes. Direct taxes include personal income tax, which is progressive and ranges from 0% to 35% depending on the income level, and corporate income tax, generally set at 20% for most companies. Indirect taxes involve Value-Added Tax (VAT), currently at 7%, and specific business taxes on certain transactions. Non-residents are subject to tax on income derived from Thai sources, while residents are taxed on their worldwide income, subject to certain conditions and exemptions. Thailand also implements double taxation agreements with numerous countries to prevent double taxation of income earned in one country by a resident of another.

Learn more about the Thailand Revenue Department’s announcements on foreign sourced income here

It is not a law change, but a departmental order, which overules the previous tax ruling from 1987.

Here is a page of all the official announcements and information. The Thai Revenue Department have provided a lot of useful information and guidance on this change.

Yes, to file a tax return, you will need a TIN number. You can get this from your local revenue office. If people would like help with this we have a paid service to obtain on their behalf.

You can find out more about applying for a Tax Identification Number (TIN) in Thailand here. 

To obtain a tax ID in Thailand, an individual or company must first register with the Thai Revenue Department, a process which can be initiated online through the Revenue Department’s website or in person at a local tax office. If people would like help with this we have a paid service to obtain on their behalf.

Learn more about applying for a Tax Identification Number (TIN) in Thailand here. 

It is the responsibility of the individual tax payer to prove that their assets are not taxable.

US Social Security is not taxable in Thailand due to the DTA between USA & Thailand.

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.

This article just means that Thailand is a remittance tax basis.. which means you’re only taxed on assets transferred to Thailand. If they are earned outside and not remitted (transferred in) then they are potentially not taxable, depending on the type of income.

If you were a Thai tax resident when the income was paid into the account, then if you remit this into Thailand at any time in the future, this is liable for income tax in the year it is remitted. This started from 1st January 2024 onwards.

Generally, no. If you are not a Thai tax resident (fewer than 180 days), you are not subject to Thai tax obligations unless you have Thai-sourced income, such as Thai rental property income or a local salary.

Income from years when one is not a tax resident can be remitted into Thailand anytime in the future. Individuals are only liable for tax on assets that are remitted to Thailand when you are a tax resident. It is advised to keep very good records to prove this if asked in the future.