Double Taxation Agreement (DTA)
Tax Advisory Disclaimer
The information on this website is for informational purposes only and is not professional tax advice. For full details, please consult our complete Tax Advisory Disclaimer.
If tax is paid in overseas jurisdiction and then funds are transferred into Thailand, it does not mean that Thailand does not have the right to tax this asset. If the country’s Double Taxation Agreement states that there is no right for Thailand to tax the asset, then it may not be taxable. If that is not the case, and the Double Taxation Agreement says they ‘may’ or ‘potentially’ taxed in that jurisdiction, Thailand can tax you according to Thai foreign-sourced income tax rules. You may be able to use any tax paid as a credit against some of the tax that is owed. Therefore, this does not mean that you do not have to file, and you may potentially still be liable to be taxed in Thailand.
Learn more about Double Tax Agreements for expats in Thailand by watching our video here.
Yes, digital nomads can utilise Double Taxation Agreements (DTAs) to minimise their tax liability in Thailand. Thailand has DTAs with over 60 countries.
DTAs prevent double taxation. If you are a tax resident, you can claim credits for taxes paid abroad on the same income. This lowers your Thai tax bill. For example, the US-Thailand DTA allows US expats to offset US taxes against Thai taxes. This can mean that you have no tax to pay in Thailand, but you still have an obligation to file.
We have lots of resources on Double Tax Agreements or, if you prefer, book a call with our team to discuss.
If you are classified as a Thai tax resident (spending 180+ days in Thailand), the income you remit to Thailand may be taxable. However, under the Germany–Thailand Double Taxation Agreement (DTA), certain income types such as pensions, employment income, and business profits are covered to prevent double taxation. The rules depend on the income type: German state pensions usually remain taxable in Germany, while private pensions and savings may become taxable in Thailand if remitted.
Capital gains from the sale of property or shares in Germany are usually taxable in Germany. If you remit the gains to Thailand, you may also face Thai taxation under the remittance rule, but you can typically offset this with a tax credit for German tax already paid.
