Update on taxation of foreign-sourced income based on the Revenue Department's announcement

On November 20, 2023, the Revenue Department issued an order No. Por.162/2023, exempting individuals residing in Thailand from paying personal income tax on foreign-sourced income, as indicated by the Revenue Department’s Order No. Por 161/2023. The provisions of the order No. Por 161/2023 will apply to income generated from January 1, 2024, onwards.

Therefore, income from foreign countries that occurred before 2024 and is brought into Thailand in different years will not be taxable.

For investing abroad

The principal amount is not subject to taxes. However, 'income' will be taxable, referring to realised profits or gains, including those from the sale of assets, dividends, and interest. (Unrealised gains will not be considered as income until the assets are sold.)

Examples of scenarios involving repatriation of income to Thailand

If an income earner stays in Thailand for less than 180 days in the tax year when the income arises, they are not required to pay taxes on their foreign income.

Example from the Revenue Department

In tax years 2023 and 2024, Mr. A. was a resident of Thailand and had income (Realised Gain) abroad in both tax years. 

Later, in tax year 2025, Mr. A. brought both incomes back into Thailand. Therefore, Mr. A. is not liable to pay tax on the income from tax year 2023 because it occurred before January 1, 2024. 

However, Mr. A. is obligated to include the income from the tax year 2024 when calculating income tax for the tax year 2025, as it constitutes assessable income arising from January 1, 2024, onwards.

[Tax paid abroad can be utilised as a tax credit in Thailand in accordance with the provisions of the Double Taxation Convention to which Thailand is a contracting party with that specific country. The Revenue Department will issue guidelines outlining the methods and evidence required for utilising tax credits once more.]

For investment from 2024 onwards StashAway will provide information on foreign investment income with details of Capital Gain, Interest, and Dividends for the convenience of investors filing taxes, if requested.

reference: 

• Por.162/2023 regarding payment of income tax according to Section 41, paragraph two of the Revenue Code.
• Questions and answers document regarding the Revenue Department's order No. Por.162/2023

The content is for informational purposes only and shall not constitute financial advice; Stashaway Asset Management (Thailand) Co., Ltd. does not provide legal and/or tax advice. Investors should therefore seek advice from their own legal and/or tax advisors.