Living in Thailand most of the year and transferring money from overseas brings important tax considerations under Thailand income tax law. These rules influence everyday activities like ATM withdrawals, banking app transactions, and your annual tax reporting. From January 1, 2024, Thai residents who remit foreign income must keep accurate records and follow a straightforward compliance system.
This guide explains essential topics to help you navigate your tax responsibilities: how residency is defined, the difference between Thai-source and foreign-source income, the practical meaning of “remittance,” and important details and pitfalls to avoid in 2025.
Understanding Residency: The Foundation of Thailand’s Tax Rules
If you spend 180 days or more in Thailand within a calendar year, you are considered a Thai tax resident. As a resident, you are taxed on all Thai-source income, plus foreign-source income when it is brought into Thailand. If you stay fewer than 180 days, you are a non-resident and taxed only on income earned within Thailand.
A critical but often overlooked point is how employment income is treated. If you work while in Thailand, that income is generally Thai-source. But if it’s paid to a foreign account and not brought or used in Thailand, it isn’t taxed here; it becomes taxable when remitted. In short, where you earn the income matters and whether it enters Thailand.
This policy, while firm, simplifies tracking your taxable income: you just need to record where you were working when the income was generated and then monitor when and how those earnings enter Thailand.
What Qualifies as Foreign-Source Income?
Thailand categorizes income by type, then origin. Income types include salary, business profits, rental income, dividends, interest, and capital gains. Income is foreign-source if it originates outside Thailand; such as rent earned from a property in London, dividends from U.S. stocks, or consulting fees earned entirely while working abroad, for example, in Singapore.
Why does this classification matter? Thai residents are taxed on foreign-source income only upon remittance, the act of bringing that income into Thailand. This means the year you earn the income and the year you transfer it to Thailand may differ, making it crucial to keep accurate details for each income stream.
Understanding Remittance Risks
Ask two key questions: Was foreign income used to fund something in Thailand, and can you provide evidence of what the income was and when it was earned? If the answer is yes, consider it within scope unless you have strong proof otherwise. Consider how money enters Thailand and how you use it locally:
- Bank transfers from an overseas account into your Thai account are remittances.
- Payroll paid abroad that you later move to a Thai account is a remittance at that point.
- Card spending/ATM withdrawals sourced from foreign funds can be fact-specific; don’t rely on gimmicks. Treat any method that brings foreign income into Thai use as in scope, and keep documentation proving what the income was and when it arose.
As a general rule, for every inflow to Thailand, keep the bank records and pair them with proof of the income’s type, country of origin, and tax year.
Visa Options and Tax Benefits for Foreign Residents
Thailand offers some visas with tax advantages for eligible foreign residents under Thai tax law. The most relevant is the Long-Term Resident (LTR) visa, which provides category-specific tax benefits with defined conditions.
Documentation matters: any tax benefit you claim must match your LTR sub-category. Keep proof of the income’s type, source country, and year.
Long-Term Resident (LTR) Visa: Key Tax features
- Highly-Skilled Professional category: a 17% flat rate on qualifying Thai-source employment income in targeted industries.
- Other LTR categories (e.g., Wealthy Global Citizen, Wealthy Pensioner, Work-from-Thailand): some relief on certain foreign-source income you bring into Thailand. This is category-specific and evidence-based. Confirm the exact terms and keep proof of your category and the income’s nature and year.
Takeaway: If your LTR category includes foreign-income relief, remitting that income may be exempt within those terms. If you’re HSP, use the 17% rate on Thai-source salary and handle other income under the standard rules.
Tax Exemptions and Relief Opportunities
Despite tighter rules, taxpayers can still reduce liability through other visa categories like Non-Immigrant visas may also offer tax relief via:
- DTAs and foreign tax credits: if a double tax agreement applies and you paid tax abroad on the same income, you can often credit it against Thai tax when that income is taxable here. Keep certificates, withholding slips, and assessments.
- Not remitting income: foreign income left offshore is generally not taxed in Thailand that year. Plan cash flow so you aren’t forced into a poorly documented transfer later.
Stay Compliant in Thailand with SVBL
Navigating Thailand’s evolving foreign income tax regulations requires careful planning and trusted support. If you want less admin and fewer surprises, we can help. SVBL handles the legal and immigration side LTR/DTV/Business visas, company setup, BOI alignment, licenses, and relocation. When it’s time to file, we coordinate with our partner licensed Thai tax advisers so your day-count, income ledger, and remittances line up with a return you can stand behind.