Thailand New Tax Law for Expats—Rules, Tax Rates, and Impact Explained

In June 2025, Thailand’s Revenue Department proposed a further adjustment – introducing a two-year exemption window for remitting foreign income earned in or after 2024 without incurring Thai tax.

Thailand new tax law for expats has raised concerns among foreign Thai residents as well as Thai nationals planning to move back to the country. To address these concerns, this guide provides detailed information on the effects of these legislative changes on expat tax in Thailand.

What Is Thailand’s New Tax Law for Expats?

According to the new tax rules, effective 1 January 2024, Thailand imposes tax on all assessable foreign income brought into the country by its tax residents. Prior to these legislative changes, tax residents were taxed only on income remitted into Thailand in the same year it was earned.

For instance, if a Thai tax resident earned income from a foreign source in 2022 and transferred it to a Thailand-based account in 2023, that income would have been exempt from taxation.

Under the new law, however, any foreign-sourced income earned after the changes took effect is subject to Thai tax unless remitted within the same calendar year or the following one, per the 2025 draft exemption.

Exceptions From Thai Tax for Expats

The new Thai tax law for expats does not affect any foreign income earned before 1 January 2024, meaning the legislative changes will not be retroactively enforced. For instance, if an expat earned foreign income in 2023 and remitted it to Thailand in 2025, that income will not be subject to taxation.

Additionally, the Revenue Department proposed that foreign-sourced income earned from 2024 onward will be exempt from tax if remitted to Thailand within the year earned or the following year. This policy is pending formal enactment and would apply from the 2026 tax year onward.

In addition, any assessable foreign-sourced income earned during a tax year in which the expat was not a Thai tax resident is also exempt from taxation.

Who Is Affected by the Changes in Thai Tax Law?

The recent Thailand expat tax changes primarily affect individuals with foreign-sourced income who wish to remit and use that income in Thailand. This may include Thai nationals employed abroad and planning to repatriate to Thailand, freelancers, foreign nationals retiring in Thailand with foreign pensions, and any Thai tax resident with assessable foreign income.

How Are Expats Taxed in Thailand?

The income tax liability of expats in Thailand is primarily determined by their tax residency status. While both residents and non-residents are subject to taxation on income earned in Thailand, only tax residents may be liable for taxes on their foreign-sourced income brought into the country.

Individuals, including both Thai and foreign nationals, are considered Thai tax residents if they:

• Spend at least 180 days in a tax year in Thailand: A tax year corresponds to a calendar year in Thailand.
• Possess any type of visa permitting long-term stay: This may include a business visa, non-immigrant visa, retirement visa, student visa, marriage visa, or Thai Elite Visa. Only

Note: Thai tax residents who meet the 180-day requirement may utilise the two-year foreign income remittance exemption.

Individuals residing in Thailand for less than 180 days on a short-term visa are not considered residents for tax purposes.

Non-residents are only required to file a tax return for income earned within Thailand and are not subject to taxation on foreign income, meaning the recent legislative changes have no substantial impact on them.

Taxable Foreign Income

According to Thailand’s Revenue Code, income tax applies to all assessable income, which includes the following categories.

If the listed types of income are generated outside of Thailand, they are taxable only if remitted into Thailand outside the permitted exemption window:

• Employment income: Besides salary and wages, employment income includes bonuses, pensions, and any other benefits gained through employment.
• Income originating from work performance: This includes all fees, commissions, bonuses, gratuities, and other gains earned while performing work.
• Income from liberal professions: Liberal professions include law, medicine, fine arts, and engineering.
• Annuities and fees: This includes any payments from copyrights, wills, court decisions, goodwill, and similar.
• Income from financial assets: Earnings from bonds, deposits, loans, debentures, dividends, and shares are subject to income tax, as are decreases and increases of capital holdings and benefits derived from the amalgamation, acquisition, or dissolution of a company.
• Income from contracts and property: Assets acquired through contract breaches and income derived from renting property are taxable in Thailand.
• Business income: Income derived from different types of business or contracts.

If the above income types are transferred to Thailand, they may be considered remitted income through:

• Financial transfers sourced from a foreign jurisdiction.
• ATM withdrawals of foreign-sourced assets.
• Credit card payments completed with foreign-sourced funds.
• Cash carried across the border, either by land or through an airport.

Non-Taxable Foreign Income

In addition to foreign income earned before Thailand’s new tax law for expats came into effect, certain types of foreign-sourced income are generally exempted from taxation in Thailand, including:

• Payments from life insurance policies
• Inheritance
• Specific foreign pensions and social security benefits, such as those from the US or Canada
• Gifts (in most cases)

Thailand Tax Rates for Expats

Thailand’s tax rates for expats are determined by their annual taxable income. The same rates apply to both tax residents and non-residents for tax purposes.

Individuals earning 150,000 Thai baht or less are exempt from income tax. Above this amount, income is taxed at the following progressive rates:

The Impact of Thailand’s New Tax Law for Expats

The 2024 tax reform initially eliminated expats’ ability to delay foreign income remittances for tax purposes.

However, in 2025, Thai authorities proposed a grace period for income earned from 2024 onward, allowing tax-free remittance within two calendar years.

This policy shift has partially alleviated the tax implications for expats in Thailand, particularly for those remitting retirement income or investment earnings within the exemption window.

Prior to 2024, expats had the option to retain their foreign income overseas and transfer it to Thailand in a later tax year without incurring tax liabilities.

While that specific strategy is no longer valid under the revised law, the new exemption period offers an important financial planning window. Foreign-sourced income remitted within the same calendar year it is earned – or the following year – may now be excluded from Thai income tax, subject to formal implementation of the 2025 Revenue Department proposal.

Failing to comply with the tax filing requirements under the new expat tax rules may incur significant penalties. Potential tax penalties for not filing a tax return include:

• A penalty of 200% of the assessed tax payable
• A 1.5% surcharge for each month that the tax remains outstanding
• A fine of THB 200,000 or up to one year of imprisonment if it’s established that the return was intentionally withheld to evade taxes

How To Reduce Tax Liability as an Expat in Thailand?

Expats in Thailand can utilise several strategies to reduce their tax liability in Thailand, as shown in the table below:

Six Costly Thai Tax Traps – and How Strategic Planning Can Resolve Them

1: Your UK SIPP Could Be Taxed Twice

The UK–Thailand Double Taxation Agreement does not include a pensions article. As a result, Thailand treats all remitted UK pension income as newly derived Thai income, taxable under Section 40(2) or 40(4). While Thailand grants credit for UK tax deducted at source, this can still result in a higher effective tax rate.

Structured planning can mitigate this risk—such as staging drawdowns to remain within lower Thai tax bands, or transferring funds into an offshore portfolio bond and remitting after a 12-month qualifying period.

2: ISA & Brokerage Gains Are Not ISA-Free in Thailand

Thailand does not recognise the tax-exempt status of ISAs or UK-based brokerage accounts. Upon remittance, any capital gains are taxable under Section 40(4)(g) of the Thai Revenue Code.

To mitigate this, many expats restructure their UK investments into tax-deferred offshore vehicles—such as portfolio bonds or trusts—before relocating, ensuring gains are crystallised outside Thai tax jurisdiction.

3: Portfolio Bond Withdrawals Depend Entirely on Timing

The timing of withdrawals from offshore portfolio bonds is critical. Current Thai Revenue Department guidance suggests that foreign income held offshore for at least one full calendar year may be exempt from Thai tax upon remittance.

Effective planning may involve withdrawing funds before establishing Thai tax residency, holding them offshore for 12 months, and remitting them thereafter.

4: ‘Tax-Free’ UK Pension Lump Sums Can Trigger High Thai Tax Rates

Thailand does not recognise the UK’s tax-free Pension Commencement Lump Sum (PCLS). As such, a 25% lump sum—though tax-exempt in the UK—may be fully taxable upon remittance to Thailand and can push recipients into higher Thai income tax bands (potentially over 20%).

Timing strategies—such as receiving lump sums while non-resident or spreading remittances over multiple tax years—can help reduce the overall tax liability.

5: Pre-2024 Cash Is Exempt Only If Properly Documented

Foreign income deposited into offshore accounts before 31 December 2023 is exempt from Thai tax under current guidance. However, taxpayers must be able to demonstrate both the source and the timing of those funds.

Best practice includes retaining year-end account statements, maintaining distinct accounts for pre-2024 funds, and labelling remittances clearly to support exemption claims.

6: Common Reporting Standard (CRS) Leaves No Room for Non-Disclosure

Under the Common Reporting Standard (CRS), over 120 jurisdictions automatically report foreign account balances to Thai tax authorities annually. Thai tax audits may examine up to five years of historical records—or ten years in cases of suspected evasion.

Prudent expats now maintain detailed documentation, file accurate tax returns—even if nil—and consider compliant investment structures in anticipation of CRS disclosures.