Thailand’s tax department is preparing to amend a law to tax those with overseas income, even if the income is not brought into the country.
According to the department’s director-general, Kulai Tantitemit, under the current tax law, people living in Thailand for more than 180 days a year must pay taxes in Thailand if they have income from abroad. If the income is brought into the country, it is subject to personal income tax paid to the department.
Mr. Kulaya emphasized that the Revenue Department is amending the law with the principle of worldwide income, a move that promotes fairness in taxation. This principle states that taxation is based on a person’s residence in a given country, regardless of whether the income is from domestic or foreign sources, as reported by the Bangkok Post.
As part of the department’s efforts to enhance transparency, Mrs. Kulaya announced that platforms with 1 billion baht or more will be required to report their sources of income. This information will be used to ensure tax compliance, further strengthening the accountability of the tax system.
Previously, the department revised the tax residency criteria, requiring those who reside in Thailand for at least 180 days a year and have foreign income to pay personal income tax if the income is brought into the country within a year of receipt.
However, the rule has been revised since 2024, and tax must now be paid on foreign income regardless of when it is brought into the country.
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