Thailand has historically been an attractive destination for expats with substantial foreign-sourced wealth, largely due to its favourable tax regime. However, as of January 2024, amendments to the country’s Revenue Code have significantly altered the tax treatment of foreign income for Thai residents.
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 You Will Learn
- What are the new tax rules for expats in Thailand?
- Do expats pay tax in Thailand?
- Which types of income are affected by the new tax rules?
- How are expats impacted by the changes in Thailand’s taxation laws?
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:
| Taxable Annual Income | Personal Income Tax Rate |
|---|---|
| Up to THB 150,000 (approximately 4,450 USD) | 0% |
| THB 150,001–300,000 (4,450–8,900 USD) | 5% |
| THB 300,001–500,000 (8,900–14,830 USD) | 10% |
| THB 500,001–750,000 (14,830–22,250 USD) | 15% |
| THB 750,001–1,000,000 (22,250–29,670 USD) | 20% |
| THB 1,000,001–2,000,000 (29,670–59,340 USD) | 25% |
| THB 2,000,001–5,000,000 (59,340–148,350 USD) | 30% |
| Over THB 5,000,001 (148,350 USD) | 35% |
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:
| Strategy | Description |
|---|---|
| Keeping detailed documentation | By retaining bank statements and transfer confirmations for an extended period, expats can prove that their foreign income was earned before Thailand’s new tax law for expats took effect or during the year in which they weren’t considered tax residents. |
| Utilising available tax deductions | Thailand offers multiple options for taxpayers to reduce their assessable income through tax-deductible allowances and payments, such as personal and child allowances, deductions for charitable donations, interest paid on a mortgage, contributions to approved pension funds and insurance policies, etc. |
| Taking advantage of Thailand’s double taxation agreements (DTAs) | Under a DTA—a bilateral treaty preventing double taxation—taxes paid in another jurisdiction may be offset by tax credits in Thailand, thereby reducing the overall tax burden. |
| Remit income within the new exemption window | Foreign-sourced income earned in 2024 or later may be remitted tax-free within the same calendar year or the next, under the proposed Revenue Department decree. |
Note: Additional Context for Business Owners:
From 1 January 2025, Thailand will implement a 15% global minimum corporate tax for multinational firms, aligning with OECD standards. While this measure is distinct from personal income tax rules, it may affect international business owners and digital nomads operating Thai-registered entities. If this applies to you or your structure, speak to our team for tailored advice.
Book Your Free Thailand Expat Tax Planning Call
Thailand’s evolving tax rules make foreign income management more complex for expats. At Titan Wealth International, our advisers help internationally mobile individuals stay compliant and tax-efficient. Book a complimentary call today to receive bespoke guidance on:
- Navigating Thailand’s two-year foreign income exemption window.
- Understanding your tax residency status and reporting obligations.
- Leveraging double taxation agreements to avoid overpayment.
Key Takeaway
Thailand’s tax reforms now include a proposed two-year exemption for remitting foreign-sourced income, offering much-needed relief to expats.
While traditional deferral tactics used prior to 2024 are no longer viable, the updated rules introduce more flexibility in managing foreign income – particularly for those who plan remittances within the permitted window.
This shift underscores the importance of understanding your tax residency status, maintaining accurate income records, and staying informed on evolving tax legislation.
Expats who fail to meet filing obligations or miss strategic planning opportunities may face significant financial penalties. Engaging with a qualified tax adviser is essential to minimise exposure and ensure full compliance under the new regime.
At Titan Wealth International, our tax planning experts can help you determine your tax residency, prepare your tax returns, and leverage double taxation agreements to minimise your tax liability and secure your financial future as an expat.
