Thailand wants to tax foreign income from 2024. New information has now been published by the Ministry of Finance:
The basic idea is that money transferred to Thailand should be taxed in Thailand if it is income. If the income was earned in another country and is transferred to the taxpayer's account in Thailand later in the same tax year, it will be taxable in Thailand. If Thailand has a double tax treaty with the country from which the money comes, the tax paid abroad can be deducted in Thailand according to the rules of the double tax treaty.
According to Mr. Winit Wisetsuvarnabhumi, deputy director general and spokesman for the Ministry of Finance, the new regime essentially follows the numerous international tax treaties that Thailand has signed.
The Ministry of Finance's regulation will soon be followed by administrative instructions to local tax offices across the country explaining how the new regulation must be administered, what type of documentation is required, etc.
For example, the transfer of savings from another country is an area that still needs clarification: savings are not classified as income - although some of them could be Interest income identified that must be taxed in Thailand, regardless of the year in which it was generated when the transfer to Thailand was made.
Sources:
Revenue Department Order No. P.363/2017 regarding payment of income tax according to Section 47, paragraph two of the Revenue Code, 15.9.2023
