Expat Tax: Frequently Asked Questions

It is best to keep as many records as possible. It is very important to keep a record of every transaction that is sent across and where the funds are from initially. (what is the source of the funds) It is advisable to set up accounts for different types of assets, as it will be easier for you to keep track and file properly once remitted into Thailand if non-taxable and taxable assets are kept separately.

Read our article on the best practices for keeping tax records for more information.

You must check the DTA for assets being remitted from. Canada. If there are no special rules to say that the assets being remitted are not taxable, then they are potentially taxable in Thailand. If the tax you paid in Canada is considerably higher than the tax rate in Thailand, you may not need to pay anymore, as the DTA is there to protect you against paying more than the tax rate alreay paid. Even if there is noextra tax to pay, it is likely you will still have to file a tax return.

Learn more about Double Tax Agreements for expats in Thailand by watching our video here. 

For Thai tax residents, capital gains are calculated based on the gains realised when selling assets. This applies regardless of whether the investments were held before 2024. It does not follow the “cash in the bank” rule.

Yes, in 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 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 tax treaties with many 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.

You can learn more about Thailand’s new rules on foreign-sourced income 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.

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.

Learn more about gift tax for expats in Thailand here. 

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

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.

Yes, these are taxable if remitted to Thailand. You are taxed on the capital gains.

In Thailand, the tax implications of selling a house can vary based on several factors, including the duration of ownership and the type of property. Generally, sellers are subject to several potential taxes: Transfer Fee (2% of the registered value), Stamp Duty (0.5% unless exempt, in which case a Specific Business Tax of 3.3% applies), Withholding Tax (calculated at a flat rate of 15% of the assessed or actual selling price for corporations, or under a progressive income tax rate for individuals), and Capital Gains Tax, which is often considered under the Withholding Tax for individuals. The exact tax liability can depend on whether the seller is a company or an individual, the length of property ownership, and any applicable exemptions or deductions. It’s advisable for sellers to consult with a tax professional to understand their specific tax obligations and potential exemptions that may apply to their situation.

Foreign equities, like capital gains on overseas investments, are taxed on the capital gains on the structure since you have held it, not since you have become a Thai tax resident.

Learn more about tax assessable foreign-sources income here

It is up to you to go through these funds and calculate what are the capital gains, dividends and interests on those assets. You need to keep clear records for each asset type. Remember it is up to the tax payer to prove what the source of remittance is from and how they are to be taxed.

Read our A Guide to Understanding Assessable Foreign-Sourced Income in Thailand to learn more. 

Stocks and shares, are taxed on the capital gains if they are remitted to Thailand. It is calculated since the date you have held the shares, not 31st December 2023.nn

This is a general overseas investment account. You will be potentially taxed on funds that are remitted to Thailand. You are taxed on the capital gains. If you do not remit the funds to Thailand, they are not liable for tax in Thailand and do not need to be declared. If you do remit the funds to Thailand,and there have been capital gains, this needs to be declared on your tax return.

Yes, dividends are taxed in Thailand. The rate of taxation can vary depending on whether the recipient is a resident or non-resident individual or a corporation, as well as other factors such as the source of the dividend income. Generally, for individual shareholders, dividends received from Thai companies are subject to a withholding tax, which may be credited against their personal income tax liability. Dividends from overseas are taxable if remitted to Thailand.

In Thailand, capital gains are subject to taxation, but the specifics depend on the nature of the gain and the taxpayer. Generally, capital gains earned by individuals from the sale of shares and property are subject to personal income tax, with rates varying from 0% to 35% based on the individual’s total annual income. However, for residents, capital gains from securities traded on the Stock Exchange of Thailand are exempt from tax. Capital gains from overseas investments are taxed if remitted into Thailand.

This is dependent on where and how the gold is held. It is potentially taxable if it’s overseas in an investment account and you have a gold ETF. If it makes a profit and you sell that asset and remit into Thailand, you will be taxed on capital gains. You cannot use losses to offset future gains or for other assets or asset classes. There maybe tax credits available if tax has been paid in the other jurisdiction, depending on the DTA between that country and Thailand.

Learn more about tax assessable foreign-sources income here

If you are a Thai tax resident, it is only remittance that becomes assessable. If funds are left overseas, they are not taxed in Thailand. However, if funds are remitted into Thailand, it is potentially taxable. There are no exemptions for pensions for pre-2024 values. You can find detailed guidance on what constitutes assessable income here. 

Fixed deposits are taxed on the capital gains that have been made and what percentage of the gains are remitted into Thailand. You will have to declare this on your tax return. There maybe tax credits available if tax has been paid in the other jurisdiction, depending on the DTA between that country and Thailand.

If you have investments and have not made a profit, so there is only capital and no gain, you can potentially remit that into Thailand without any tax implication or obligation. It is best to check this with a tax advisor before remitting the funds if you are unsure.

Learn more about assessable foreign-sources income here

Inheritance from someone living outside Thailand is not subject to Thai income tax. However, it’s important to keep detailed records of the transaction. I also recommend keeping this inheritance separate from any taxable assets in the bank account where it is deposited.