Following our latest legal update on Thai Tax Law on 25th of September 2023, H&P’s lawyers in Bangkok want to share this tax news dated December 2023 regarding the effective application of Order no Por 161/2023.
According to Order no Por 161/2023 of the Thai Revenue Department, it is noted that “even if such income is transferred to Thailand in different years, it must still be calculated for personal income tax as taxable income.”
However, we want to mention the recent new Thai Revenue Department Order No. Por 162/2023 modifies instruction No. Por 161/2023, to alleviate the tax burden on taxpayers (Thais or foreigners tax residents in Thailand). who need to remit funds or money to Thailand from abroad, which had already been obtained before the issuance of No. Por 161/2023
The Revenue Department Order No. Por 162/2023 agreed that “tax residents in Thailand will not be required to include their foreign source income earned before 1st of January 2024 in their personal income tax returns, even if that income will be brought to Thailand from 1st of January 2024 onwards.”
In other words, the order does not apply to foreign income earned before 1st of January 2024 even if it is transferred to Thailand after 1st of January 2024, unless the foreign income is earned after 1st of January 2024, then they will be subject to tax when remitted to Thailand from 1st of January 2024 onwards.
For example: Mr. David, who is a tax resident in Thailand (spends more than 180 days per year in Thailand), obtained income abroad in 2023 or before 2023. In 2024, Mr. David will transfer the income to Thailand. Mr. David will not be subject to tax in Thailand, according to Department of Revenue Order No. Por 162/2023.
Finally, our lawyers who are experts in Tax Law in Thailand advise analyzing the taxation of each client considering the Thai Revenue Code, the agreements to avoid double taxation in force (DTAs) and jurisprudence.
If you need to consult with a tax professional about your obligations as a tax resident in Thailand and avoid international tax exposure, contact our Bangkok Tax Lawyers and Accountants at [email protected]
