The Thai Department of Revenue has issued Departmental Instruction No. Paw 161/2566, bringing significant changes to the collection of personal income tax on foreign-sourced income.
Key Takeaways
- Effective January 1, 2024, Thai taxpayers must declare and pay tax on foreign-sourced income brought into Thailand in the year it is earned, eliminating the previous loophole.
- Thai citizens and foreign residents must pay income tax based on a progressive tax rate, with exemptions for annual income up to 150,000 baht and a maximum tax rate of 35 percent for income over 5,000,000 baht.
- The changes in the income tax system in Thailand, as per Instruction No. P 161/2566, aim to create a fairer tax system for individuals with income from both foreign and domestic sources.
Under the new tax treatment, Thai taxpayers must pay tax on income earned from employment, business, or property abroad after…
