PATTAYA, Thailand – A packed meeting of Pattaya City Expat Club heard updates about the controversial Thai Revenue Department policy as regards overseas income transmitted to Thailand. The two invited representatives of American International Tax Advisers Co. were director Thomas Carden and tax attorney Patcha Inkudanonda who was in regular touch with local revenue authorities.
Patcha explained that some expats were not required to obtain a Thai tax identification number or fill in a tax return. These were foreigners present in Thailand for less than 180 days in the calendar year 2024, those who had not transmitted cash from abroad, those who had transferred only income they had earned up to 31 December 2023 and holders of the 10-year Long Term Residence (LTR) Visa.
For other expats the general advice was to obtain a tax number and submit a tax return by the end of March 2025. There was no need to attach documentation, but she reminded the meeting that all foreign income should be totalled, though declaration did not automatically mean liability to pay tax. In breaking news, the Thai Revenue Department had very recently clarified that use of a foreign credit card to obtain Thai baht was now included in the definition of income.
Answering questions, Mr Carden said that the Thai government had promised to honor double taxation treaties with 61 countries. However, these were all unique and could not be used as some kind of blanket immunity. He suggested that an expat should refer to the applicable terms in the submitted tax form by way of a caveat or alert. Mr Carden several times stressed that the government was deliberately widening the income tax base, but accepted that small fish were being caught in the net designed for bigger ones, especially rich Thais.
Other questioners asked for clarification about investment transfers. For example, was an overseas transfer to purchase a Thai condominium necessarily taxable? Mr Carden said the matter had not yet been fully clarified. He also admitted that use of foreign credit cards to purchase goods in Thailand was another awkward subject and one difficult to monitor by tax authorities. It was obvious, said Mr Carden, that the Thai Revenue Department was making some rulings as the policy moved along.
Some members wondered how the Revenue would track the finances of so many individuals. Patcha pointed to the Global Forum on Transparency and Exchange of Information for Tax Purposes which basically meant that international banking details would be available if the Thai authorities made the request. Both she and Mr Carden were concerned that expats choosing to ignore the entire issue now could be subject to audit later. At that point, they would need to justify non-filing. The key takeaway point from the meeting was to retain records of all financial transactions involving foreign cash.
