The Thai Department of Revenue issued Departmental Instruction No. Paw 161/2566 which provides significant changes to the collection of personal income tax on foreign-sourced income. The new tax treatment has been in effect since January 1, 2024.
The new tax treatment states that Thai taxpayers who derive assessable income from employment or business overseas, or from property located abroad, must pay tax on that income after bringing such assessable income to Thailand.
Previously, Thai residents paid tax on foreign-source income only if the income was brought to Thailand in the same calendar year. Instruction No. P 161/2566 effectively eliminates this loophole. Now, any income earned overseas from employment, business, or property, regardless of when it enters Thailand, must be declared, and taxed in the year the income is earned.
This new…
