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THAILANDS NEW TAX RULES AND THE REPORTING OF FOREIGN INCOME BY RESIDENTS

Thailands new tax rules 2024

Revenue Department Order No. 16/2023: A Summary by Isaan Lawyers about Thailands new tax rules 2024

Revenue Department Order No. 16/2023 (the Order) is a significant development in Thai tax law, with far-reaching implications for residents of Thailand who earn income abroad or possess overseas assets. The Order mandates that specific criteria must be met by individuals living in Thailand who must now report and pay income tax on their foreign earnings.

Applicability

The Order applies to individuals who fall under Section 41, paragraph 3, of the Revenue Code, who have assessable income due to work duties, business activities, or assets located abroad, as defined in Section 41, paragraph 2, in the tax year and bring this assessable income into Thailand in any tax year.

Key Provisions

The Order introduces the following key provisions for Thailand’s new tax rules 2024

Individuals falling within the scope of the Order are required to report their foreign earnings and include them in their income tax calculations under Section 48 of the Revenue Code.
The tax assessment should coincide with the tax year in which the income was brought into Thailand.
All existing rules, regulations, orders, responses to inquiries, or any practices that contradict or oppose the provisions laid out in Order No. 16/2023 shall be void.
The order will be effective for assessable income imported into Thailand from January 1, 2024, onwards.

Individuals and Residents

Those expats who live here for 180 days plus per year will be subject to Thailands new tax rules 2024 and will be required to disclose income and assets. To do that you will require a TIN a tax identification number and the assistance of an accountant. Isaan lawyers can assist with both your TIN and accounting with regards to your personal tax submissions. Plan ahead early in order to be compliant in 2024.

Conclusion

The Order is a significant development in Thai tax law with far-reaching implications for residents of Thailand who earn income abroad or possess overseas assets. The information from Thai authorities is not yet clear and has yet to be codified or published. We will keep our clients updated as to updates and what it means for them when we know.

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