Bring income from abroad In which year do you enter Thailand and pay tax for that year? Starting on 1 January 2024.

“Revenue Department” opens new criteria for 2024, Revenue Department Order No. P.161/2023, income from abroad What year was it imported? Pay taxes for that year starting 1 January 2024 onwards.

September 17, 2023 – As published Revenue Department Order No. P.161/2023 regarding payment of income tax under Section 41, paragraph two, of the Revenue Code. which is related to lossPersonal income taxof income from foreign countries imported into Thailand The new criteria have been changed in essence since they were previously announced. Revenue Department Order No. KK. 0802/696 Since 1994 with the following details:

Thai tax rules for income from abroad

In general, Thai tax laws (The Revenue Code) lays down 2 principles for collecting personal income tax:

1. Source of Income – Thailand collects taxes when an individual has a source of income in Thailand.
2. Residence Principle – Thailand is taxed when an individual is present in Thailand for up to 180 days in the same calendar year (tax year).Source of income from abroad and bring income from that foreign country into Thailand as well

Therefore, in the case of natural persons having income from abroad, they will have to pay income tax in Thailand only if they meet the criteria as specified.residence principlethere

What is the Revenue Department Order No. P.161/2023 about? Who is involved?

In fact, the Revenue Department orders are internal orders within the Revenue Department. To provide guidelines for the performance of duties by revenue officers in the same direction. This order relates to guidelines for inspecting and recommending taxpayers who areIndividualResidence in Thailand for more than 180 daysin the same calendar year (tax year) with foreign income andBring income from abroad into Thailand

Therefore, if you have no foreign income brought into Thailand at all. This order will certainly not affect you in any way.

When will this order come into effect?

Starting from 1 January 2024 onwards, it will be effective for taxpayers who have income from abroad and then import it into Thailand from 1 January 2024.

What is the significance of this order?

If you are in Thailand for more than 180 days in the same calendar year (tax year) and bring foreign income into Thailand. Regardless of whether the foreign income occurs in the same tax year or in different tax years. Such income must also be filed with taxes. It must be classified as taxable income in the year the money is brought into Thailand.

This new criterion will be canceled.Revenue Department Order No. Kor. 0802/696 dated 1 May 1987 In the past, the criteria had been laid down that if it was income from abroad that was imported in a different tax year than the year in which the income was earned, for example, income from abroad in 2022 but imported into the country in 2023 would not be exempt. Must submit the same tax return because imported in different tax years, etc.

Therefore, the new criteria repeals the previous standards for foreign income that have been in place for nearly 37 years, and instead establishes a new residency-based tax regime.

Since 1 January 2024, income from abroad Are things imported into Thailand subject to tax in all cases?

However, according to this new criterion If the taxpayer is in Thailand for less than 180 days in the tax year in which the income is brought from abroad. You will still be exempt from having to bring the said money to file taxes in Thailand. Even though that year money was brought from abroad into Thailand.

Taxpayers may also be protected by double tax treaties if Thailand has agreements with the governments of certain countries. This allows taxpayers to bring income from abroad into Thailand without having to file it again for taxes, even if they have been in Thailand for 180 days in that tax year. These are details that must be studied on a case-by-case basis. And you should consult a tax expert to plan your taxes correctly and appropriately.

Summary of the original criteria Compare new criteria

Taxation on income from abroad According to the principle of residence (original)

residence principle It will be used when the income earner has a source of income from abroad. Which may be subject to personal income tax in Thailand if the following elements are included:

1. Remain in Thailand for at least 180 days (being resident in Thailand) in that tax year (calendar year from 1 Jan. – 31 Dec. of that year) and
2. Bring that foreign income into the same tax year (calendar year).

Therefore, in contrast If any of the above elements is missing Such foreign income will not be subject to tax in Thailand at all.

Taxation on income from abroad According to the principles of residence (new, starting 1 Jan. 2024)

For income from abroad imported into Thailand from 1 January 2024 onwards. Principles of residence, new criteria for 2024 It will be used when the income earner has a source of income from abroad. Which may be subject to personal income tax in Thailand if the following elements are included:

1. Remain in Thailand for at least 180 days (being resident in Thailand) in that tax year (calendar year from 1 Jan. – 31 Dec. of that year) and
2. Bring income from that foreign country into Thailand. Regardless of whether the income was taken in the same tax year as the year in which the income was earned or not.

However, if income from foreign countries is brought into Thailand Bring it to submit taxes for that year.