Tax residency in Thailand and taxing overseas income

[Big Boy]

On other forums, people are saying that their regular home country financial documents - showing how much tax they have already paid - are being accepted by their local tax office without any special stamp or seal. Further, others are saying that their local tax office has told them that they do not have to file a return if the income that they brought into Thailand is exempted from Thai tax by a tax treaty.

Do any of these people say where these unvalidated documents are being accepted. If I can quote a few tax offices, it may be investigated, hopefully to make things better for Hua Hin residents. Without examples, it is little more than a fairy tale.

[kwajdiver]

On other forums, people are saying that their regular home country financial documents - showing how much tax they have already paid - are being accepted by their local tax office without any special stamp or seal. Further, others are saying that their local tax office has told them that they do not have to file a return if the income that they brought into Thailand is exempted from Thai tax by a tax treaty.

Do any of these people say where these unvalidated documents are being accepted. If I can quote a few tax offices, it may be investigated, hopefully to make things better for Hua Hin residents. Without examples, it is little more than a fairy tale.

Below are some of the threads that I am aware of – there are more. I have not read every post. From the posts I have read, some people name the tax office but many do not. I have included a couple of examples of what you will find.
If you are going to use anonymous quotes from a farang forum, I suggest you read through these posts and find the strongest evidence that you can.
As you are probably aware, confusion, lack of direction, different requirements from different offices/officials is not something new here.

From what I have read if a person has a TIN they can file online like my Thai wife does for her income. I wonder if the online form requires documents that have embassy seals?

Maybe a new business will spring up with agents shopping for farang friendly tax offices.

Visit to tax office, Koh Samui,(today) – 62 Posts

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Visit to tax office, Koh Samui,(today) - Jobs, Economy, Banking, Business, Investments - Thailand News, Travel & Forum - ASEAN NOW

Posted February 11
I visited the Nathon branch office today and although they were very friendly and eager to help, they had no English so conversations were held through Google translate. Eventually, after 1 hour they told me I didn't have to fill in a return. Being cautious of this, I asked for the decision in writing. They escorted me to the headquarters of the Revenue Department on Samui and into the office of the director himself.
He was very friendly and helpful,(even offered coffee). His English was perfect.
Results as follows,(this applies to UK pensions)
1. UK old age pensions ARE TAXABLE in Thailand , if remitted, and are part of your total assessable income.
2. Government service pensions are not assessable and do not have to be declared, even if remitted, but proof of source may be required if audited.
3. Allowable deductions for the year:
a) B60k personal allowance.
b) B100k for expenses,(this is a blanket allowance and does not require any proof of expenditure).
c) B190k if you are over 65yrs. of age
Once you have deducted these from your assessable income you then get the 1st B150k at zero rate of tax. If after that you still have a positive balance you MUST file a return. If there is no balance left, you do not have to file a return but can if you wish.
If. You wish to offset UK tax already paid, this should be filed along with your return, enclosing proof from the relevant authority. There is no space on the tax forms specific to this.
Hope that makes things clearer.

what money is taxed 2024 ? – 258 posts

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what money is taxed 2024 ? - Jobs, Economy, Banking, Business, Investments - Thailand News, Travel & Forum - ASEAN NOW

Posted January 14
HI Talked to Lamphun Revenue Dept. and also Chiang Mai Revenue Dept. When I asked about taxation of foreign income I was told that retirees don't pay tax only people that work in Thailand or have income from Thailand have to pay income tax . Has anyone else received a similar response from the revenue dept. ?

Posted January 14
Your comment, in a round about way, confirms somewhat my post Tuesday about my experience lodging my 2024 Thai tax return. It is relevant to the Australia/Thai DTA.

My provincial TRD (CM) confirmed verbally with my District TRD that Govt pensions, and in the case of aussies receiving the aged pension, that they are not assessable. Only private pensions are assessable. The TRD deems the aussie aged pension to be a social security payment, which it actually is, and their advice was that under Thai tax law social security payments are not assessable and therefore they are tax free.
TRD's in other provinces may interpret this differently, but even though I produced the figures for my aged pension, on the off chance I had to declare them, I was advised that it wasn't a requirement.

Posted January 14
Due to the DTA between Germany and Thailand my Pension is taxable in Thailand.
Udon Thani Revenue Office !!!

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Thailand May Ease Overseas Income Tax Rules Amid Global Changes – 243 Posts

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Thailand May Ease Overseas Income Tax Rules Amid Global Changes

[Big Boy]

Thank you for that kwajdiver.

On first reading, a couple of points jumped right out at me:

1. UK old age pensions ARE TAXABLE in Thailand , if remitted, and are part of your total assessable income.

That is disappointing, but will stop my quest regarding how to prove my OAP.

proof of source may be required if audited

This is most likely the hoop I'm being forced to jump through.

Without reading through all of the links, I see nothing that says unverified UK documentation is being accepted as evidence.

My document from my solicitor/Thai Embassy is currently out for delivery, so that should clear the way for this year, and hopefully the tax offices will see sense before next year. It was only when I started saying there will be thousands with the same documentation as me that I was pushed up the chain of command. OK, I think I've cracked it for this year, but I don't expect thousands of others to go down the same costly route.

I still wonder if they have thought of the impact on house and car sales. A 5 million Baht house will cost in excess of 6 million after tax has been applied; a 1 million Baht car will cost 1.2 million Baht after tax has been applied.

[tito miako]

Has anyone renewed there retirement visa this year and if so were they asked for any documentation by Immigration from the tax office. My Visa is due for renewal in June and would prefer to avoid going to the Tax office to register unless I really have to.

[Dannie Boy]

I posted this on a separate section of the Forum a couple of weeks ago - the visa extension process was exactly the same as in previous years!!
viewtopic.php?p=608489#p608489

[Big Boy]

This article seems to confirm everything I've been saying, with the exception of having to prove tax already paid. However, it does talk about the Hua Hin Tax office, and proof is what they are insisting on for me.

Revenue officials provide info on Thailand's new tax rules for expats in Hua Hin
A seminar held in Hua Hin on Monday sought to clarify Thailand's new tax regulations on foreign-sourced income and their implications for expatriates.
Organised by the Prachuap Khiri Khan Area Revenue Office, the event, titled "Know Tax, No Worry by The Revenue Regional 6 & Prachuap Khiri Khan Area Revenue Office," took place on 17 February 2025 at Rajamangala University of Technology Rattanakosin, Wang Klai Kangwon Campus.

The seminar aimed to provide clarity on personal income tax requirements for individuals earning income from overseas sources, particularly in light of the new tax regulations that came into effect on 1 January 2024. The changes mandate that all foreign-sourced income brought into Thailand is taxable in the year it is remitted, regardless of when it was earned.
The seminar was one of the first occasions where expats had actually heard from tax officials on the matter, rather than relying on information and speculation presented by so-called experts on YouTube or other social media platforms.

Key clarifications provided at the seminar
The seminar was primarily targeted at accounting firms in the region and was conducted in English. Officials confirmed that expatriates residing in Thailand for at least 180 days within a tax year are classified as tax residents, meaning that any foreign income they transfer into Thailand is subject to taxation in that same year. The declaration period for such income runs from 1 January to 31 March.

Authorities also confirmed that Long-Term Resident (LTR) visa holders are exempt from these tax changes. Additionally, pensions are classified as taxable income, while savings accumulated before 2024 and inheritances remain untaxed.

Another major point of discussion was whether taxation would be linked to visa renewals. While no direct link was established between tax payments and the renewal of visas (or rather extensions of stay based on either retirement or marriage), an immigration representative attended the seminar, raising questions about potential future policy changes.
At present, only business visa holders are required to present tax clearance certificates when renewing their permission to remain in the country.

Property purchases and large transfers
Expatriates looking to purchase property in Thailand were advised that taxation on transferred funds depends on the source of income.
If the funds originate from savings accumulated before an individual became a tax resident, they are not subject to taxation. However, if the funds come from income earned while being a tax resident, they are taxable.

Furthermore, the Revenue Department confirmed that withdrawals or payments made using foreign bank cards are also declarable under the self-assessment principle.

Double Tax Agreements
A significant portion of the seminar was dedicated to Double Tax Agreements (DTAs) and how they affect expatriates.
Revenue Department officials clarified that:

If a DTA states that income "may be taxed" in both countries, double taxation is possible.
If a DTA states that income "shall be taxable only" in one country, it is taxed exclusively in that jurisdiction.

However, it should be noted that discussions with partner countries regarding tax credit mechanisms are ongoing, but no further details were provided. Two possible systems for claiming tax credits were outlined:

Paying the full tax amount in Thailand and subsequently requesting a refund with supporting documentation.
Deducting the tax credit directly at the time of declaration.

It was noted that the implementation of these mechanisms may vary between tax offices.
Expatriates in Thailand are advised to wait for further clarification regarding Double Tax Agreements.

Addressing concerns and misconceptions
Over the past year, Thailand's new tax policies have been a major talking point within the expatriate community. The lack of clear official communication on the matter has led to widespread speculation, misinformation, and concerns about potential retroactive taxation.
One of the key clarifications made at the seminar was that the law was not specifically designed to target foreigners.
Instead, it aims to address the practice of Thai nationals transferring large sums from overseas without paying tax. The Revenue Department emphasised the principle of non-discrimination, stating that expatriates and Thai citizens are subject to the same tax regulations.

English language barrier at revenue offices
Meanwhile, the Hua Hin Revenue Department has acknowledged the language barrier faced by expatriates.
Foreigners who intend to visit the Hua Hin Revenue Department at their office located next to Baan Khun Por on Soi 88 are advised to take a Thai speaker with them who can act as an interpreter.

Signage advising as such is now being displayed at the office, stating:
"The official language is Thai. Foreigners are requested to bring an interpreter who can speak Thai."
This move highlights the importance of bringing a Thai-speaking interpreter when seeking assistance with tax-related matters at government offices.

Looking ahead
Despite the clarifications provided at the seminar, several questions remain, particularly concerning the implementation of Double Tax Agreements, tax credits, and the potential enforcement of tax compliance during visa renewal processes.
Further proposed amendments, currently under legislative review, could introduce a "worldwide income" tax model, meaning all foreign income earned by Thai tax residents would be taxable, regardless of whether it is transferred to Thailand.
Expatriates in Thailand are advised to stay informed, keep detailed financial records, and consult professional tax advisers to ensure compliance with the new regulations.
The Revenue Department has indicated that discussions with international tax authorities are ongoing and that further updates may be provided in due course.


Source: https://www.huahintoday.com/local-news/ ... n-hua-hin/

[musungu]

This article seems to confirm everything I've been saying, with the exception of having to prove tax already paid. However, it does talk about the Hua Hin Tax office, and proof is what they are insisting on for me.

I have paid my UK tax for years and after completing my annual Tax return I then receive a Self Assessment Tax Calculation which clearly details how HMRC have arrived at the total. The Thai tax Allowances are also quite generous as detailed in a post above.
SO I am doing nothing more until see proof. I have completed my annual retirement visa and thats that as far as I am concerned!!!

[buksida]

Furthermore, the Revenue Department confirmed that withdrawals or payments made using foreign bank cards are also declarable under the self-assessment principle.

Wow, that's quite a big one ... they expect people to document and report every time they go to an ATM or buy something with a foreign bank card and potentially pay tax on it.

[kwajdiver]

The seminar was primarily targeted at accounting firms in the region and was conducted in English. Officials confirmed that expatriates residing in Thailand for at least 180 days within a tax year are classified as tax residents, meaning that any foreign income they transfer into Thailand is subject to taxation in that same year. The declaration period for such income runs from 1 January to 31 March.

Paying the full tax amount in Thailand and subsequently requesting a refund with supporting documentation.
Deducting the tax credit directly at the time of declaration.

It was noted that the implementation of these mechanisms may vary between tax offices.

Expatriates in Thailand are advised to wait for further clarification regarding Double Tax Agreements.

So, they want you to file by 31 March but then say that they themselves do not understand how the tax treaties work. Therefore, expats should wait before filing. Well, there are many, many different tax treaties and many of these read differently, so will the DR be putting out a guide for each treaty, and if so, when?

Interesting that the seminar was targeted at accounting firms and not for individuals trying to understand the new tax rules.... Maybe we will all have to hire an accounting firm.....

Also, interesting that they admit that implementation may vary between tax offices…

[Big Boy]

I think you need to remember, this is an article from a publication that says Hua Hin Airport will become a thriving International Airport everytime there's a slow news day.

[caller]

That seminar provided zilch clarity. How can it, when the Thais heven't got their own act together. They should delay the whole process until they have.

[Big Boy]

Hua Hin Today often confuses things.

The tax office knows exactly what it is doing. A visit there would see everybody else understanding the system as well (I'm not saying everybody would agree with the system - I most certainly don't, but I understand the system a lot better). AFAIK the only people saying, "The Thais heven't got their own act together," are those believing everything they are reading on Forums, Social Media, etc.

I will admit, I went there because I thought I'd be squeaky clean and had nothing to hide. The only doubt in the process was obtaining the proof of validity of the UK issed documents. Outside of that, I think they know exactly what they are doing/what their process is. I have discussed with several levels of tax office heirarchy, and they are all singing of the same hymnsheet.

[caller]

Hua Hin Today often confuses things.

The tax office knows exactly what it is doing.

So all other tax offices that aren't asking for verification of documents produced, are all wrong? That's really key to UK expats (at least) and our relationship with the tax office. If that requirment isn't actually a requirement and it's evident it isn't in use elsewhere, then everything would be easy.

[STEVE G]

^Many years ago I was having some dealings with the UK Revenue and tried to establish what the rules were in my situation.
I was told that what I thought were rules were only guidlines and that they would decide what the answer was.
I suspect that the Thai tax office will work in a similar way.

[Big Boy]

Hua Hin Today often confuses things.

The tax office knows exactly what it is doing.

So all other tax offices that aren't asking for verification of documents produced, are all wrong? That's really key to UK expats (at least) and our relationship with the tax office. If that requirment isn't actually a requirement and it's evident it isn't in use elsewhere, then everything would be easy.

Yes, I think until more people actually present them with the same problem, I'm going to be a winging old Brit with a one-off problem. It was when I promised them hundreds of others in a similar situation that they started listening, and the problem was pushed up the chain. They actually lessened the requirement, and would have accepted something a bit more official (signature and official stamp), but Civil Service Pensions are proving to be as useful as a chocolate fireguard. Faced with a >฿118K tax bill, I did not want to take any chances whilst waiting for Civil Service Pensions, and took the additional 'expensive' route that I did. For today's meeting, apart from the original Civil Service Pensions document that was not acceptable, the only proof I had was the Gov.UK approved solicitor/Thai Embassy, London document. I still don't know if my document is acceptable i.e. because of an administrative error, my appointment was deferred until Monday.