Thai Revenue Department Drafts Foreign Income Remittance Tax Relief
HLB Thailand Tax Team
Thai Revenue Department Drafts Foreign Income Remittance Tax Relief
Thailand’s Revenue Department is drafting legislation that would ease the tax burden for Thai tax residents remitting foreign-sourced income back into the country.
According to Mr. Panuwat Luengwilai, Deputy Director-General of the Revenue Department, the proposed legal amendment would provide a tax exemption on foreign income brought into Thailand within the same calendar year it is earned or within the following year.
Under the current law that came into effect on 1 January 2024, Thai tax residents that earn foreign income are liable to include the income in their personal income tax return in the year that the income is remitted into Thailand. The remittance of foreign income earned before January 1, 2024 is not subject to tax.. We explained these changes in detail in our earlier article: Thailand’s foreign income tax changes now in force
We also prepared a comprehensive guide to support individuals and businesses in navigating the new regime: Q&A on the Taxation of Foreign Income (PDF)
What’s Changing?
| Income Remittance Case | Tax Implication |
|---|---|
|
Income earned abroad and remitted into Thailand in the same year |
Exempt from tax |
| Income earned abroad and remitted the following year (e.g. 2025 income brought in during 2026) |
Still exempt from tax |
| Income remitted after the following year (e.g. 2025 income brought in during 2027 or later) |
Subject to tax |
Why This Matters
The proposed change is designed to encourage people to bring their foreign income back into Thailand. This will help boost investment within the country and make Thailand’s tax rules more in line with international standards. Mr. Panuwat also mentioned that the current tax rules have made it less attractive for Thai investors abroad to transfer their money back home.
Stay Informed
This tax exemption is still in draft form and not yet law. Thai tax residents with foreign income should closely monitor future updates from the Revenue Department.
If you’re unsure how these proposed changes may apply to your situation—or wish to review how the current laws impact your tax planning—our tax advisors are here to help.
HLB Thailand continues to provide up-to-date guidance on Thai tax developments. For personalized assistance or questions about foreign income taxation, please contact our team.
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