Thailand’s government is considering easing the tax rules on individuals’ overseas income to encourage the remittance of those funds back into the country. Finance minister Pichai Chunhavajira said a change in the global economic situation was relevant but did not elaborate.
The Thai Revenue Department (TRD) had determined that from January 1 2024, assessable funds transferred from abroad by Thais or foreigners – resident here for at least 180 days in a calendar year – would be subject to personal income tax no matter if sent in the same or any subsequent year.
A previous TRD interpretation had restricted tax liability to overseas funds transferred in the same year as earned. The move has created much controversial debate in social media as expats – the retiree segment in particular – tried to work out how the new interpretation affected them.
The finance minister did not refer to foreigners in his statement to the press. He briefly stated that he wanted Thais to remit more of their funds from overseas locations. Thai tax consultants warn it is far too early to guess the intentions of the government and its consequences for Thai citizens or expats or both. Further official clarification is expected within a few weeks.
