Thai Revenue Department to tax foreign income starting next year

The Revenue Department in Thailand has announced a new policy that will subject residents who earn overseas income to personal income tax if they reside in the country for up to 180 days a year.

Key Takeaways

• The Revenue Department in Thailand has implemented a new policy that subjects residents earning overseas income to personal income tax, aiming to close loopholes and generate more revenue.
• The policy specifically targets residents trading in foreign stock markets, cryptocurrency traders, and those exploiting a loophole allowing tax-free transfer of foreign earnings.
• While the policy aims to increase revenue, there are concerns about its impact on private bankers, financial institutions, income inequality, and the overall economic and social fabric of Thailand.

The policy aims to close loopholes that allowed individuals to bring foreign earnings into Thailand tax-free. It specifically targets residents trading in foreign stock markets, cryptocurrency traders, and those exploiting the offshore account loophole.

Enforcing transparency on offshore income poses challenges, especially with cryptocurrency transactions, and many taxpayers may be unwilling to fully disclose their foreign earnings, and the broad scope of the new rule also raises questions about its possible negative impact on foreign investment.

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