What Changed (The Tax Trap)
On September 15, 2023, the Thai Revenue Department issued Departmental Instruction No. Por.161/2566, fundamentally changing how foreign income is taxed in Thailand. This change took effect on January 1, 2024, and represents one of the most significant tax changes affecting expats in decades.
The Core Change
Previously, Thailand only taxed foreign-sourced income if it was remitted to Thailand in the same calendar year it was earned. This created a simple tax planning strategy: wait until the following year to bring money into Thailand, and it would be tax-free.
As of 2024, this loophole is closed. All foreign-sourced income remitted to Thailand is now taxable, regardless of when it was earned. If you're a Thai tax resident (180+ days in Thailand), the year you bring money in is the year it's taxed.
Important Clarification
The tax is triggered by remittance, not by earning the income. You're taxed in the year you bring money into Thailand, not when you earned it abroad. However, income earned before January 1, 2024 remains protected under the old rules.
Before vs. After Comparison
Pre-2024 Rules
- Foreign income taxable only if remitted in same year earned
- Wait until January 1st to transfer = tax-free
- Easy to avoid Thai tax on foreign income
- No documentation of income source needed
- Simple strategy: earn abroad, bring in next year
From January 1, 2024
- All remitted foreign income taxable
- Timing of earning no longer matters
- Year of remittance triggers tax
- Must document income source and date earned
- Pre-2024 funds can still be remitted tax-free
Official Source Documents
- Por.161/2566 (September 15, 2023): Original instruction announcing the change
- Por.162/2566 (November 20, 2023): Clarification that pre-2024 income is protected
What Counts as "Remittance"
Understanding what constitutes a "remittance" is crucial for managing your tax exposure. The definition is broader than many expats realize.
Definitely Counts as Remittance
| Method | Example | Taxable? |
|---|---|---|
| Bank Transfers | Wire from US account to Thai account | Yes, taxable |
| ATM Withdrawals | Using foreign debit card at Thai ATM | Yes, taxable |
| Credit Card Payments | Using foreign card for purchases in Thailand | Yes, taxable |
| Physical Cash | Bringing USD/EUR cash across border | Yes, taxable |
| Crypto Transfers | Moving crypto to Thai exchange, converting to THB | Yes, taxable |
| Online Payments | PayPal to Thai bank account | Yes, taxable |
What Does NOT Count
- Money kept abroad: Foreign income not remitted remains untaxed
- Pre-2024 funds: Income earned before January 1, 2024 (with documentation)
- Non-resident periods: Remittances during years you're NOT a tax resident
- Capital (not income): Original principal that was never income (complex, consult advisor)
Example: ATM Withdrawal Surprise
Sarah uses her US debit card to withdraw 50,000 THB (~$1,400) from a Thai ATM each month. She's been a tax resident since 2020 and never thought about tax implications.
Under new rules: That 600,000 THB/year (~$17,000) is now taxable remittance of foreign income.
Pre-2024 Income Protection
The clarification instruction Por.162/2566 established an important protection: income earned before January 1, 2024 is NOT subject to the new rules, even if remitted after 2024.
How to Protect Pre-2024 Funds
- Maintain separate accounts: Keep pre-2024 funds in identifiable accounts
- Document the cutoff: Save bank statements from December 31, 2023 showing balances
- Label transfers: When moving pre-2024 funds, note the source
- FIFO method: Revenue Department applies First-In, First-Out - spend oldest money first
Key Protection Strategy
If you had savings abroad on December 31, 2023, get bank statements showing those balances. When you transfer from those accounts, you can demonstrate the funds pre-date the new rules. This is your proof that those remittances should not be taxed.
Documentation Requirements
To claim pre-2024 protection, maintain:
- Bank statements from December 2023
- Investment account statements showing pre-2024 holdings
- Records of when income was earned (pay stubs, invoices, etc.)
- Clear records separating old vs. new funds
Who is Most Affected
The 2024 change impacts different groups in different ways:
Most Affected
- Retirees on foreign pensions: Regular pension remittances now taxable
- Remote workers: Foreign salary brought to Thailand each month
- Investors: Dividend and interest income remitted for living expenses
- Digital nomads: Those spending 180+ days in Thailand with foreign clients
- Expats with foreign rental income: Rental proceeds brought to Thailand
Less Affected
- Non-residents: Those under 180 days/year are not tax residents
- LTR visa holders: Many categories exempt from foreign income tax
- Those with Thai-only income: No change if all income is Thai-sourced
- Those who don't remit: Keeping money abroad avoids Thai tax
Exemptions and Special Cases
LTR Visa Exemptions
The Long-Term Resident visa offers significant tax benefits that effectively exempt holders from the 2024 changes:
| LTR Category | Foreign Income Tax | Notes |
|---|---|---|
| Wealthy Global Citizens | Exempt | Requires $1M assets, $500K Thai investment |
| Wealthy Pensioners | Exempt | Requires $80K/year passive income |
| Work-from-Thailand | Exempt | Requires $80K/year, established employer |
| Highly-Skilled | 17% flat rate (Thai income) | Works for Thai targeted industries |
Certain Pension Income
Some foreign pensions are protected under Double Tax Agreements:
- US Social Security: Only taxable in the US, not Thailand
- Canadian state pensions (CPP, OAS): Only taxable in Canada
- Australian government pensions: Generally only taxable in Australia
Private pensions and employer pensions typically ARE taxable in Thailand if remitted.
Double Tax Treaty Benefits
Thailand has Double Taxation Agreements (DTAs) with 61 countries. These treaties can help avoid being taxed twice on the same income.
How DTAs Help
- Tax credits: Tax paid in your home country can often be credited against Thai tax
- Exemptions: Some income types may be exempt under treaty provisions
- Reduced rates: Lower withholding rates may apply
Key Countries with Thailand DTAs
United States, United Kingdom, Canada, Australia, Germany, France, Japan, South Korea, Singapore, and 50+ others.
Foreign Tax Credit
If you pay tax on income in your home country and then remit it to Thailand, you can typically claim a credit for the foreign tax paid. The credit is limited to the lesser of: (a) tax actually paid abroad, or (b) the Thai tax that would apply to that income.
2026 Tax Brackets + Calculator
Thailand uses a progressive tax system. Your first 150,000 THB of net taxable income is exempt. After that, rates increase with income:
| Net Taxable Income (THB) | Tax Rate | Max Tax at This Bracket |
|---|---|---|
| 0 - 150,000 | Exempt | 0 |
| 150,001 - 300,000 | 5% | 7,500 |
| 300,001 - 500,000 | 10% | 20,000 |
| 500,001 - 750,000 | 15% | 37,500 |
| 750,001 - 1,000,000 | 20% | 50,000 |
| 1,000,001 - 2,000,000 | 25% | 250,000 |
| 2,000,001 - 5,000,000 | 30% | 900,000 |
| Over 5,000,000 | 35% | No cap |
Estimate Your Thai Tax
* This is a simplified estimate. Actual tax may vary based on additional deductions (spouse, children, insurance, etc.) and foreign tax credits. Consult a tax professional for precise calculations.
Common Expat Mistakes
Based on Revenue Department guidance and tax advisor reports, these are the most common errors expats make:
Mistake #1: Mixed Transfers Without Documentation
Transferring funds that mix pre-2024 income with post-2024 income in a single account. Without clear documentation of when income was earned, the Revenue Department may treat the entire transfer as taxable. FIFO (First-In, First-Out) analysis may apply, but records must prove it.
Mistake #2: Overlooking ATM and Card Transactions
Many expats don't realize that ATM withdrawals using foreign cards and credit/debit card payments in Thailand using foreign-sourced funds are both considered remittances. These transactions can add up to significant taxable amounts over a year.
Mistake #3: Assuming Proposed Changes Are Law
The proposed two-year grace period has NOT been enacted. Some expats are making tax decisions based on pending proposals. Until officially published in the Royal Gazette, the current rules apply. Do not assume relief measures will pass.
Mistake #4: Failing to File Tax Returns
Even if your income is below the taxable threshold, you should still file a return to create a paper trail. Late filing penalties can reach 2,000 THB per month, and late payment incurs a 1.5% monthly surcharge on unpaid taxes.
Mistake #5: Thinking Thailand Privilege (Elite) = Tax Exempt
The Thailand Privilege (Elite) visa does NOT provide any tax exemptions. It is a tourist visa with VIP services. If you stay 180+ days, you are a tax resident subject to standard rules. Only the LTR visa provides tax benefits.
Tax Planning Strategies
Use Pre-2024 Funds First
Remit from accounts holding pre-2024 savings. Document these carefully. Under FIFO, older funds are assumed spent first.
Maintain Non-Resident Status
Stay under 180 days in Thailand per calendar year. Non-residents are not taxed on foreign income remittances.
Consider LTR Visa
If you qualify, the LTR visa exempts foreign income from Thai tax for Wealthy, Pensioner, and WFT categories.
Maximize DTA Benefits
Understand which income types are exempt under your country's treaty. Claim foreign tax credits where available.
Time Remittances Strategically
In years with lower Thai income, remittances may fall into lower tax brackets. Plan larger transfers for lower-income years.
Maximize Thai Deductions
Use available deductions: personal allowances (60K THB), spouse (60K), children (30K each), insurance premiums, and more.
Proposed 2026 Relief (Pending)
As of late 2025, the Thai Revenue Department proposed potential relief measures:
Two-Year Grace Period Proposal
- Foreign income earned from 2025 onward could be remitted within two tax years without Thai tax
- Example: Income earned in 2026 brought to Thailand in 2026 or 2027 would not be taxed
- This would effectively give expats more time to plan
Status: Pending Approval
This proposal requires Cabinet and Council of State approval. As of January 2026, it has NOT been enacted. Do not rely on this relief until officially passed. If approved, it may only apply from 2026 onwards.
2026 Filing Deadlines
For the 2025 tax year, you must file your Personal Income Tax return (PND 90 or PND 91) by these deadlines:
2025 Tax Year Filing Deadlines (for income in 2026)
Penalties for Late Filing/Payment
| Violation | Penalty |
|---|---|
| Late filing | Up to 2,000 THB per month |
| Late payment | 1.5% monthly surcharge on unpaid tax |
| Inaccurate reporting | Up to 100% of tax owed |
| Record retention failure | Must keep records for at least 5 years |
Where to File
File online at the Revenue Department's e-filing system: efiling.rd.go.th. You'll need a Thai ID or foreign tax ID number. Alternatively, file in person at your local Revenue Department office.
Action Steps for Expats
Immediate Actions
- Document pre-2024 funds: Get December 2023 bank statements NOW if you haven't
- Track your days: Know exactly how many days you spend in Thailand
- Separate accounts: Keep pre-2024 and post-2024 funds identifiable
- Review your remittance methods: Remember ATM/credit card use counts
- Check your DTA: Understand what protections your home country's treaty offers
Annual Planning
- Calculate residency early: By mid-year, know if you'll exceed 180 days
- Plan remittance timing: Consider which year is most tax-efficient
- Gather documentation: Keep records of income sources and when earned
- Consider visa options: Evaluate whether LTR visa makes sense for your situation
- File on time: March 31 (paper) or April 8 (online) for prior year
Record Keeping Requirements
Maintain for at least 5 years:
- Passport pages with all entry/exit stamps
- Foreign bank statements (especially Dec 2023 for pre-2024 proof)
- Records of income sources and dates earned
- Evidence of taxes paid in other countries
- Thai bank statements showing inbound transfers