reader Posted February 18 Posted February 18 From Pattaya News The Change: Previously, only income earned within Thailand was subject to income tax. Now, under Departmental Instruction No. Paw 161/2566, any foreign-sourced income brought into Thailand becomes taxable. This includes: • Salaries from overseas employment • Pensions and retirement income • Investment income like dividends and capital gains • Rental income from abroad Key Requirements: • If you’re a Thai citizen or expat resident (180 days or more per year), you must report your foreign income on your tax return if you bring it into Thailand. • The tax now applies to income brought in in any tax year, regardless of when it was earned. • You’ll be taxed based on the progressive tax rates used for domestic income, ranging from 0% to 35%. • However, you may be eligible for foreign tax credits to avoid double taxation. Impact on Expats and Transferees: This new policy raises several questions for expats and those transferring money: • Planning is crucial: Understanding your tax obligations for foreign income is essential. Consult a tax advisor familiar with the new regulations. • Impact on investment strategies: Expats may need to reconsider how they invest overseas and manage their finances, potentially minimizing income repatriation to Thailand. • Potential administrative burden: Reporting and compliance requirements may increase, especially for complex financial situations. • Clarity is still needed: The implementation is ongoing, and some aspects remain unclear. Stay updated on official pronouncements and seek professional guidance. The new tax law on foreign income in Thailand introduces significant changes for expats and individuals transferring funds. While uncertainties remain, proactive planning and seeking professional advice are crucial to navigating this new landscape. Remember, consulting a tax advisor can help you understand your specific situation and ensure compliance with the evolving regulations. Continues at https://thepattayanews.com/2024/02/18/thailands-new-tax-on-foreign-income-what-expats-and-transferees-need-to-know/ vinapu and TMax 2 Quote
TMax Posted February 18 Posted February 18 49 minutes ago, reader said: Pensions and retirement income Wow now that alone may well screw with some retired expats, I think this could well get ugly reader 1 Quote
