An anonymous post on Facebook’s Elite/Privilege Group has suggested that holders of the 5-20 years visa would be exempt from the Thai Revenue Department’s (TRD) controversial tax ruling. That stated that assessable income sent by Thais or foreigners from overseas, starting on January 1 2024, would be liable to personal income tax, provided the individuals were resident in Thailand at least 180 days in the calendar year.
A member of the group had suggested, based on a webinar, that Elite members had been excused from obtaining a tax number or filling in a tax form under the TRD interpretation. Initially, it appeared as if Elite members had been offered the same bonus as the tax-friendly Long Term Residence visa holders: no personal taxation on overseas income transmitted to Thailand. The story was widely reported in Thai media.
However, a group moderator quickly discounted what turned out to be a misunderstanding. The moderator wrote that the attachment provided at the webinar was a prepared powerpoint presentation and not an authoritative document from TRD. “We’re not going to take comments on its accuracy or validity.” There has not been any comment from either TRD or the official Thai Privilege website.
The TRD ruling for all tax residents (leaving aside the 10-years Long Term Residence) excuses overseas income brought into Thailand up to December 31 2023. Separately, many countries have a double taxation agreement with Thailand, intended to prevent individuals from being charged twice on specified income and earnings. However, Thailand’s personal income tax structure is unique and tax paid overseas could be seen as a credit rather than a total exemption.
The TRD is expected to issue new tax forms before Christmas to cover the calendar year 2024. Some tax accountants expect to see clarification in the accompanying notes, others are not so sure. Much of the discussion in Thailand has concentrated on the plight of retirees who live in Thailand on overseas pensions already taxed in the home country. The main intention of TRD is to raise revenue from untaxed income from crypto currency, offshore bank accounts and overseas businesses or properties. Keep calm and carry on.
