Nordic expats living in Thailand for more than 180 days in a year must from 1 January 2024 include their foreign income in their tax calculation to the Thai Revenue Department. The same rule goes for other expats and Thai people with overseas income.
Thailand’s Revenue Department are closing the tax loophole to prevent tax evasion, and to align themselves with international tax standards to ensure fair taxation.
Previously expats didn’t have to document income besides what they received within Thailand. This loophole meant that employers could pay part of their employees’ salary to a foreign account, so the employee didn’t have to declare that excluded income – unless they transferred it to Thailand within the same income year.
But in order to strengthen Thailand’s taxation system, the loophole is now covered.
Mahanakorn Partners Group says that ‘individuals affected by this order should seek professional guidance to ensure compliance with the new tax regulations.’ All law firms and accounting companies will be able to evaluate individual circumstances.
Source: MPG
