TRD Personal Tax Compliant on New Rules

TRD Personal Tax Compliant on New Rules

June 12, 2024

Updated Tax Guidelines for Foreign-Sourced Income for Thais and Foreign Residents in Thailand

Ensure compliance with Thailand’s tax regulations on foreign income. Understand your obligations, avoid double taxation, and manage your tax filings accurately and timely.

Here is a summary of the key points

Income Subject to Tax

  • Foreigners must pay tax on income earned from sources within Thailand, regardless of whether the income is paid within or outside Thailand.
  • Foreign-sourced income is taxable if the income is earned starting from January 1, 2024, by a foreigner who stays in Thailand for 180 days or more in a tax year and if this income is remitted to Thailand.

Tax on Foreign-Sourced Income

  • Before January 1, 2024, foreign-sourced income brought into Thailand is not subject to Thai tax.
  • From January 1, 2024, onward, foreign-sourced income earned by a foreigner who is a Thai tax resident and stays in Thailand for at least 180 days is subject to tax when remitted into Thailand.

Tax Return Filing

  • Foreigners must include both Thai-sourced and foreign-sourced income in their Personal Income Tax Return (P.N.D.90 or P.N.D.91).
  • The taxable income will be the aggregate of Thai-sourced income and foreign-sourced income remitted to Thailand within the tax year.

Foreign Tax Relief

  • Income tax paid abroad can be credited against Thai taxes if permitted under a Double Tax Agreement (DTA), preventing double taxation for residents of Thailand.
  • To claim this credit, proper documentation, such as a Tax Payment Certificate from the foreign tax authority, must be provided.

For more detailed information, you can refer to the full document TRD Personal Tax on Foreign Income.pdf.