# Thailand begins taxing foreign sourced income

- Link: https://www.thailand-business-news.com/law/126230-thailand-begins-taxing-foreign-sourced-income
- Published: 2024-02-13T11:10:40+07:00
- Author: Daniel Lorenzzo

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](https://www.thailand-business-news.com/law/117154-new-tax-regulation-closes-loophole-in-foreign-income-brought-into-thailand).
 * 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 bringing it to Thailand, regardless of when it
enters the country. This rule applies to all taxpayers in Thailand.

ADVERTISEMENT

The provision also outlines the income tax rates for Thai citizens and foreigners
who are permanent residents. The changes aim to create a fairer tax system and impact
foreign investors.

Thai citizens and foreigners who are permanent residents will be subject to income
tax, if they earn annual income at the following rates:

### Related**Posts**

###  󠀁[Thailand to Tighten Oversight of App-Based Ride-Hailing Services](https://www.thailand-business-news.com/law/330996-thailand-to-tighten-oversight-of-app-based-ride-hailing-services)󠁿

###  󠀁[Thailand teams up with South Korean agencies to work on AI and protect copyrights](https://www.thailand-business-news.com/korea/327881-thailand-teams-up-with-south-korean-agencies-to-work-on-ai-and-protect-copyrights)󠁿

###  󠀁[Thailand is rolling out a new EV tax structure linked to local manufacturing](https://www.thailand-business-news.com/asean/329565-thailand-is-rolling-out-a-new-ev-tax-structure-linked-to-local-manufacturing)󠁿

###  󠀁[How Location Affects Tax Incentives for Investments in the Philippines](https://www.thailand-business-news.com/asean/324017-how-location-affects-tax-incentives-for-investments-in-the-philippines)󠁿

| **Taxable income (Baht)** | **Tax rate %** | 
| 1-150,000 | Exempt | 
| 150,001-300,000 | 5% | 
| 300,001-500,000 | 10% | 
| 500,001-750,000 | 15% | 
| 750,001-1,000,000 | 20% | 
| 1,000,001-2,000,000 | 25% | 
| 2,000,001-5,000,000 | 30% | 
| 5,000,001 and over | 35% |

Taxpayers are classified into “resident” and “non-resident”. “Resident” means any
person residing in Thailand for a period or periods aggregating more than 180 days
in any tax (calendar) year. A resident of Thailand is liable to pay tax on income
from sources in Thailand as well as on the portion of income from foreign sources
that is brought into Thailand. A non-resident is, however, subject to tax only on
income from sources in Thailand.

If a person lives in Thailand for 180 days or more in a tax year, they will be taxed
on their income for that year. Starting from January 1, 2024, this income will be
subject to tax. Individuals need to report and pay income tax for the 2024 tax year
and submit income tax forms by March 2025.