Tax residents of Thailand who earn income abroad and take advantage of a widely-known tax loophole are facing a significant setback from the government. In an announcement made by the Thai Revenue Department on September 15, 2023, it was declared that all earnings by Thai tax residents, regardless of their origin, will be subject to personal income tax starting from January 1, 2024.<\/p>\n
According to the issued statement, as outlined in Section 41 of the Thailand Revenue Code, resident individuals who generate assessable income through overseas work or business activities or from assets located abroad in a previous tax year must calculate and fulfill their tax obligations on this income under Section 48 of the Revenue Code in the tax year they repatriate the income into Thailand. In simpler terms, if residents earn income abroad and bring it back into Thailand, they are required to declare this income to the Thai Revenue Department, even if they earned that foreign income in a previous tax year.<\/p>\n
This new decree is aimed at closing a loophole within the tax system that has enabled residents to circumvent income tax payments on foreign earnings by delaying the repatriation of income until the following tax year. Although Thailand’s existing tax laws already mandate that foreign income should be taxed as personal income, this applies only if the income or asset is brought into Thailand within the same tax year it was acquired abroad<\/u>. This created a loophole that allowed individuals to entirely avoid paying income tax on foreign earnings by simply waiting for the current tax year to conclude before repatriating their funds to Thailand.<\/p>\n
Pursuant to Section 41 of the Thailand Revenue Code, any person staying in Thailand for a period or periods aggregating 180 days or more in any given tax year shall be deemed a resident of Thailand.<\/p>\n
Should you need more information or assistance to understand how this order might impact your tax situation, please do not hesitate to get in touch with us at contact@orbis-alliance.com<\/a> for professional tax counsel.<\/p>\n","protected":false},"excerpt":{"rendered":" Tax residents of Thailand who earn income abroad and take advantage of a widely-known tax loophole are facing a significant setback from the government. In an announcement made by the Thai Revenue Department on September 15, 2023, it was declared that all earnings by Thai tax residents, regardless of their origin, will be subject to […]<\/p>\n","protected":false},"author":8,"featured_media":3560,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[134],"tags":[],"class_list":["post-3505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-thailand"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t