{"id":16998,"date":"2024-02-29T03:38:14","date_gmt":"2024-02-28T20:38:14","guid":{"rendered":"https:\/\/btisolutions.co\/?p=16998"},"modified":"2024-09-13T14:30:34","modified_gmt":"2024-09-13T07:30:34","slug":"will-you-be-impacted-by-thailands-revised-tax-code","status":"publish","type":"post","link":"https:\/\/btisolutions.co\/th\/will-you-be-impacted-by-thailands-revised-tax-code\/","title":{"rendered":"Will You Be Impacted by Thailand\u2019s Revised Tax Code?"},"content":{"rendered":"
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\n\t\t\t\t\t\t\n\t\t\t\t\t\t\tDisclaimer: <\/b>This post was not written by a tax professional and none of the following content is legal advice. Thailand\u2019s revised tax code is an evolving\/developing situation, and new information is still coming forward, so details in this article are liable to change. Please contact a tax professional when making financial decisions.\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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The mere thought of paying more tax is enough to quicken your breath. That\u2019s why when Thailand announced its revised tax code late last year, expats voiced their concerns. If you\u2019ve heard of the change, you likely have many questions. Will you be impacted by the tax? How much will you have to pay? Are there any ways you can be exempt?\u00a0<\/span><\/p>

I\u2019m here to tell you that the revised code isn\u2019t as bad as it seems. You have options to reduce your tax burden or eliminate it altogether\u2014regardless of whether you\u2019re a retiree, digital nomad, or working professional. We\u2019ll cover those options in this article. But first, let\u2019s get clear on some of the basics: <\/span>what\u2019s changed, who will be taxed, and how much you may pay.<\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Thailand\u2019s revised tax code: What has changed?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The change to Thailand\u2019s tax code is simpler than most expats realize. Only one thing has changed: a law that was established close to 40 years ago in 1987. This law stipulated that you were exempt from paying tax on foreign-sourced income if it was remitted to Thailand a different year than it was earned. That means if you earned $30,000 in rental income from a New York property in 2018 and transferred it to your Thai bank account in 2019, that income was tax-exempt.<\/span><\/p>

The revised rule says that any foreign-sourced income (savings or earnings) remitted to Thailand after Jan 1, 2024 is taxable\u2014subject to some considerations outlined in this article. It\u2019s important to note that the law only applies to money brought into Thailand. Money earned abroad and kept outside of the Kingdom isn\u2019t taxed here. What\u2019s more, any of your savings or earnings from 2023 or earlier is exempt.\u00a0<\/span><\/p>

What this means is, if in 2023 you made $80,000 in consulting work from clients abroad and had $20,000 in savings, you can remit that money to Thailand today tax-free. But if you earn any amount from those same clients this year, that income could be subject to tax upon remittance to Thailand, depending on some factors mentioned later in this article.<\/span><\/p>

Thailand now has more access to your financial activity abroad<\/span><\/h3>

Though technically not a law, there\u2019s been one other notable change involving the Thai Revenue Department and taxes. In 2023, Thailand adopted the Common Reporting Standard (CRS). If you\u2019re unfamiliar with the CRS, it allows your financial information from abroad to be reported to the Thai Revenue Department. Shared information includes financial account details, bank balances, deposit details, proceeds from the sale of financial assets, dividends and interest earned, etc.\u00a0<\/span><\/p>

You can probably guess the purpose of the CRS. It\u2019s to improve transparency and cut down on tax evasion. The CRS is not something Thailand invented. It\u2019s commonly implemented by western nations, including the UK, Canada, and all EU countries.<\/span><\/p>

Is the revised tax law targeted at expats?\u00a0<\/span><\/h3>

There are many expats upset about the revised tax code, believing the Thai government is searching for another way to take their money. However, this is highly unlikely. It\u2019s been widely reported that the law is intended for wealthy Thais who\u2019ve earned money abroad\u2014in stock markets, bonds, property, and other assets\u2014and used the loophole of remitting it in a different year to avoid paying tax. Though expats will be affected by this law, its enactment isn\u2019t personal.\u00a0<\/span><\/p>

What\u2019s more, most developed countries have similar tax laws, so it\u2019s not an unheard of policy shift. Depending on your situation in Thailand, how it impacts you could vary dramatically. Let\u2019s examine that, starting with the very basics of who is taxed.\u00a0\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Criteria for being taxed<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Whether or not you pay Thailand\u2019s tax generally comes down to three factors:\u00a0<\/span><\/p>