For many expats – and retirees in particular – the festivities this year are marred by ongoing concerns about personal income tax arising from cash transfers to Thailand. The notion that the Thai Revenue Department intends to hand down the stone tablets, Moses style, to deal with thousands of individual queries is naïve to say the least. TRD has published the policy and it’s up to you to interpret it in the light of your own finances – provided you clock up in Thailand 180 days or more in a calendar year. It is irrelevant how many times, if any, you entered the country during the 12 months.
Some things are clear. There has not been a change in the law, but rather a reinterpretation of past TRD practice which was to tax some income (known as assessable) from overseas only if it was transferred in the same year it was earned. Now such income starting January 2024 is taxable whether sent in the same year or a later one. This applies to Thais or foreigners. Moreover, any savings you had in an overseas bank account up to December 31 2023 is not a taxable asset and you can transfer those monies anytime in the future without a problem. There are some other categories of non-assessable income in Thailand such as some (but not all) gifts.
A common misunderstanding is that Thai income tax on overseas cash transfers is somehow linked to your visa. It matters not one jot whether you are here on successive exempt-visa entries, or one year extensions based on marriage or family, or Elite or Long Term Residence or Destination Thailand Visa. The only question of significance is the whether you have resided here in the kingdom for half the year or more (in a calendar year) with or without extensions or reentry permits. If so, the best advice is to keep all your financial records such as bank statements or first-country Revenue correspondence in a safe place.
There is no doubt that some “news” sources have exaggerated the consequences either to create mischief or to persuade expats to enrol with some potentially-expensive “experts” who wrongly claim this is a new “law” designed to make your life miserable in Thailand unless, of course, you sign up here and now. Some pessimists suggest that backsliders will be instantly prosecuted, even deported, or that they will need to prove they have submitted a tax return to TRD in order to qualify for their next visa or extension. This is fantasy island.
On the other hand, foreigners cannot ignore the TRD. If you have earned income within Thailand, say from employment or rentals, those are certainly taxable even if you are in the country for fewer than 180 days. As regards tax residents transferring overseas cash, there may be a double taxation treaty to consult (never an easy read) as well as the system of Thai tax allowances and exemptions which reduce any potential liability on assessable income. If you are concerned, by all means consult a Thai professional lawyer or accountant, preferably without committing yourself to a long-term contract. The reality in this subject is that one size does not fit all. All our finances are unique to the individual.
