Concerns about the Thai Revenue’s intention to tax foreign income from January 2024 has created a new market for Thailand’s Long Term Resident visa. That’s because those who obtain the 10 year LTR are exempted from paying personal income tax on foreign assets or earnings. The new rules apply to all native and foreign residents of Thailand who spend six months or more here in a year.
The Board of Investment, which controls the LTR, says about 3,000 such visas were issued since the launch in 2022, but the publicity surrounding the new tax regulation has seen a 14 percent rise in applications. LTR has several categories of application including wealthy pensioners, rich global citizens, businessmen and entrepreneurs. The onetime application fee is 50,000 baht (US$1,400) but it is also necessary to invest substantially in Thailand, or in the case of retirees, to have annual income of at least US$80,000.
LTR regulations are complex. There is compulsory medical insurance to be bought although businessmen are entitled to have a work permit without the usual stipulation of needing to have Thai workers. David Myers, a tax consultant in Bangkok, said, “LTR is beyond the financial reach of most expats, but is proving popular with the rich who want to avoid the usual visa and income tax hurdles when investing abroad in foreign stock markets, bonds or property.”
The new tax regulations are still vague on many details, especially position of foreign income such as pensions already taxed before being sent to Thailand. With only two weeks to go before implementation, most specialists are assuming that registration with the Thai tax authority will be initially voluntary. “The intention is to haul in major tax fiddlers who have benefitted from official laxity in the past and not, I think, typical expats who are retired here or supporting Thai spouses or families.” He added that he expected more details to percolate slowly over the next few months. “There is no hurry as any tax for the year 2024 won’t be due until 2025 in any case.”
