Changes in Thailand’s tax laws for foreigners and competition from new visa types are jeopardizing the Elite program.
The Thailand Privilege Card (TPC) program, which provides long-term “Elite” visas to foreign nationals, faces new challenges. Changes to Thailand’s tax laws, which have sparked much discussion on social media, could negatively affect the program’s appeal. TPC President Manatse Anawat admitted that ambiguity in interpreting the new rules on taxation of overseas income is deterring potential applicants.
As a reminder, the Thailand Revenue Department (TRD) announced that income earned abroad and transferred to Thailand after December 31, 2023, is potentially taxable if the recipient resides in the country for 180 days or more in a calendar year.
This news has sparked a wave of discussion among expats. Some experts are urging foreign nationals living in Thailand to register with a Thai tax professional to avoid potential penalties or more serious consequences in the event of a tax audit by the TRD.
Other critics believe the fears are exaggerated, especially for retirees, as there have been no changes to the law itself. They advise expats to be wary of foreign tax consultants not qualified to provide tax advice in Thailand.
Issues related to double tax treaties, the use of foreign credit cards, and the interpretation of “assessable” income complicate the situation, making it impossible to generalize unambiguously.
Manatee Anawat also recognized that the Destination Thailand visa (DTV) is a serious competitor for “Elite” visas. DTV has gained considerable popularity in the six months since its introduction. However, unlike “Elite,” it requires registration as a tourist engaged in a specific activity, such as working remotely for foreign companies or teaching boxing or cooking to adults.
Immigration lawyer Jessataporn Bunnag said that alternatives to the “Elite” program for long-term stay in Thailand are now playing a significant role. Another program is the 10-year long-term residence visa under the auspices of the Board of Investment.
Nevertheless, TPC expects growth of about 10% in 2025, helped in part by an influx of long-term visitors and interested parties from India and the Middle East. Mr. Anawat confirmed that Elite program bonuses are being reviewed, especially regarding medical benefits.
The company recently signed a memorandum of understanding with BDMS Wellness Clinic, which has many foreign clients and offers value-added packages. He concluded that medical tourism is a key factor in promoting the program in countries with many potential customers interested in staying in Thailand long-term.
Thus, Thailand is adapting its strategy to attract wealthy foreigners to the new realities and competitive environment in the long-term visa market. The authorities are looking for new ways to increase the attractiveness of their programs by focusing on medical tourism and a diversity of services to attract wealthy clients from different parts of the world, including India and the Middle East.
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