To provide clarity, Expat Tax Thailand interviewed two leading experts in the field: Pattharaphon Penjham, a Senior Legal Officer at the Revenue Department, and Thanadet Boonsantia, Managing Director of Tax Talk Thailand and a lecturer at several Thai universities. Their insights offer valuable guidance for expats navigating these new regulations.
Key Changes to Tax Obligations
The new tax rules, implemented under Section 40 and Por 161, require expats residing in Thailand for more than 180 days who remit foreign income into the country to file a tax return. According to Mr Pattharaphon, this marks a shift in the interpretation of Thailand’s tax laws.
“Expats living in Thailand for over 180 days who bring money from overseas must now file a return,” he explained. “However, sources of funds brought into the country before 2024, such as savings or social security payments, are not taxable.”
This distinction is vital for expats determining what income qualifies as taxable under the new regulations.
Understanding Taxable Income
One of the most pressing concerns for expats is understanding what income is now subject to taxation. The Revenue Department’s guidelines identify the following categories as taxable if remitted to Thailand after January 2024:
- Salaries earned overseas.
- Pension income.
- Capital gains from investments.
- Rental income from overseas properties.
“While these income types are assessable,” Mr Thanadet noted, “expats may be eligible for relief under double taxation agreements (DTAs), which can help mitigate their liabilities.”
What is Non-Taxable?
Not all remittances are subject to tax under the new rules. Mr Pattharaphon highlighted key exceptions, including:
- Savings accumulated before 2024.
- Inheritances.
- Personal assets sold overseas, such as vehicles or jewellery.
To ensure these funds remain tax-exempt, expats must maintain proper documentation, such as bank slips and sales records.
Pensions and Superannuation
For many expatriates living in Thailand, pensions and superannuation funds are vital sources of income. Under Thailand’s tax laws, any pension income remitted into Thailand is considered assessable income and is subject to taxation. This includes government and private sector employment pensions, regardless of whether the funds originate from a home country or elsewhere.
Under Section 40(1) of the Thai Revenue Code, pensions are classified as income and taxed at the same progressive rates as other forms of income. While some countries provide tax relief on pensions, these tax breaks are generally not applicable in Thailand unless explicitly covered under a double taxation agreement (DTA). Therefore, expats receiving pensions should know that transferring these funds into Thailand could significantly impact their tax liabilities (or at least have a filing obligation claiming tax credits).
Planning Your Pension Remittances
Effective financial planning is essential to minimise the tax burden on pension income. Retirees can benefit from consulting tax professionals to strategise their pension remittances and understand the implications of DTAs. For example, some DTAs may provide credits or exemptions for taxes already paid in the pension’s country of origin.
Resources for Expats
Navigating these new tax obligations can be challenging, but resources are available to help expats stay informed. The Revenue Department’s official website offers detailed guidelines, including an English-language document titled ‘How Do Foreigners Living in Thailand Pay Tax?’, released in July 2023. This guide comprehensively explains the new rules and is a valuable resource for non-Thai speakers.
Double Taxation Agreements (DTAs)
For expats worried about being taxed twice on the same income, double taxation agreements (DTAs) offer significant relief. These agreements, established between Thailand and other countries, ensure that income is not taxed twice ‒ once in the country of origin and again in Thailand.
Mr Thanadet explained the importance of understanding DTAs: “DTAs are a key tool for minimising your tax burden. For example, if you’ve already paid tax on your income in another country, you may be eligible for a credit or exemption in Thailand.”
The specifics of these agreements vary depending on the treaty between Thailand and your home country. Expats are encouraged to consult professional tax advisors or refer to the Revenue Department’s resources to understand how DTAs apply to their individual circumstances.
Mr Pattharaphon emphasised that accurate filing is crucial to claiming DTA benefits. “Ensure your documentation is thorough and complete. This includes proof of tax paid overseas and details of the income’s source,” he said.
How to Stay Compliant
With the 2024 filing deadline approaching (Mar 31, 2025; Apr 8 for e-filing, see here and here), expats should take proactive steps to ensure compliance.
Insights from the interview with Mr Pattharaphon and Mr Thanadet underline these critical actions:
- Review Your Income: Determine which income sources are assessable under the new rules. The interview clarified that salaries, pensions, capital gains, and rental income remitted to Thailand after January 2024 are taxable.
- Consult Official Resources: Refer to the Revenue Department’s website and the English-language guide for accurate and detailed information. Both experts highlighted these resources as essential tools.
- Seek Professional Advice: Engage experts like Expat Tax Thailand to navigate the complexities of your obligations. Mr Thanadet emphasised the importance of understanding DTAs and Thailand’s progressive tax structure.
- Maintain Documentation: Keep records of all financial transactions, particularly for non-taxable remittances. Mr Pattharaphon recommended maintaining documentation, such as bank slips and sales records, to prove exemptions.
Risks of Non-Compliance
Failing to comply with Thailand’s updated tax regulations can have far-reaching consequences that extend beyond financial penalties. Like in most countries, the Thai Revenue Department has a broad range of enforcement powers to ensure compliance, and ignoring these obligations can result in severe repercussions.
Financial Penalties
It is better to comply and not face any potential financial penalties. Non-compliance may lead to significant financial penalties, including fines and interest charges on unpaid taxes. Penalties can reach up to 200% of the tax owed, alongside an additional monthly interest of 1.5%. These charges can quickly accumulate, resulting in substantial financial strain for those who fail to act promptly.
Visa and Immigration Implications
For expats, tax compliance is closely linked to visa and residency status. Outstanding tax issues may lead to complications during visa renewals or extensions. Thai authorities often review tax records as part of the immigration process, making it essential for expats to maintain accurate and timely filings to avoid jeopardising their residency.
Although there is currently no requirement to provide tax information for most visas, there is no guarantee that this will not change in the future. Expats are encouraged to stay compliant to avoid potential future complications as immigration policies evolve.
Restrictions on Leaving Thailand
One of the most serious risks for expatriates is the possibility of restrictions on leaving Thailand. The Revenue Department can impose travel bans on individuals with outstanding tax liabilities. This means expats could be unable to leave the country until their tax debts are fully settled, potentially disrupting personal and professional plans.
Global Financial Transparency
Thailand’s participation in the Common Reporting Standard (CRS) means that financial information from foreign accounts held by Thai tax residents is shared with Thai authorities. This increased transparency reduces the likelihood of undisclosed income remaining unnoticed, reinforcing the importance of full compliance.
Mr Pattharaphon, Senior Legal Officer at the Revenue Department, emphasises the critical importance of compliance: “The key message is to remain compliant and understand your obligations. The Revenue Department is available to assist those seeking clarity.”
With its wide-reaching enforcement powers, the Thai Revenue Department is committed to holding non-compliant individuals accountable. Expats are strongly encouraged to consult professional advisors, stay informed of their tax responsibilities, and act proactively to ensure compliance with Thai tax regulations.
Revenue Department Support
Mr Pattharophon reassured expats that the Revenue Department is fully committed to providing clarity and personalised assistance to those navigating the new tax rules. “Our staff are available to answer questions and offer guidance tailored to individual circumstances,” he said.
For expats seeking support, the help centre can be reached by dialling 1161. This service provides direct access to trained professionals who can address specific queries, clarify obligations, and ensure that expats have the information they need to comply with the updated regulations.
By reaching out for assistance, expats can gain a clearer understanding of their responsibilities, avoid potential pitfalls, and ensure that they meet their obligations confidently and accurately.
Tax Deadline Ahead
Thailand’s recent tax changes may seem daunting, but compliance is within reach with the right information and support. However, time is running short to get organised, as the tax filing deadline is fast approaching. Expats should act now to avoid penalties and potential issues with the tax authorities.
The clock is ticking, and it’s critical to understand your obligations, gather the necessary documentation, and take steps to file accurately and on time. Don’t wait until the last minute ‒ watch the interview video for expert insights and practical advice. You can ensure compliance and secure your financial peace of mind by staying proactive.
For more information contact Expat Tax Thailand, or visit their webpage ‘Do you need to File a Thailand Tax Return in 2025?’
The Revenue Department will join a live Q&A webinar on ZOOM startinfting at 4pm on Wednesday (Jan 29). To register, click here.