According to the latest information and a letter from the Thai Ministry of Finance, foreign income are subject to new taxation rules in Thailand since January 1st, 2024.
The new rules state that all income from abroad will be taxed as personal income, regardless of whether it is earned income or savings.
The document states: "[...] anyone who has income from employment or business abroad or assets located abroad [...] and has brought these assets to Thailand [...] must take this into account in their personal income tax for the year."
The new guidelines apply to tax residents in Thailand since January 1st, 2024, i.e. tourists and short-term employees are exempt.
Also exempt are those who were taxed in a country, that has an existing double taxation agreement with Thailand.
This new regulation therefore replace and tighten the old, very tax-friendly regulation.
Until the end of 2023, taxpayers only had to pay tax on their foreign income if it was imported to Thailand in the same tax year in which it was earned.
This allows foreigners to live tax-free in Thailand from their savings or foreign income.
Thailand no longer a tax haven?
The new regulation is certainly not pleasant, but even if it is applied strictly, you could still live in Thailand in a tax-optimized way.
Only the amount of money you really need for a living could be transfered to Thailand. You will have to pay tax on that. The rest abroad would remain tax-free.
You become liable to pay tax in Thailand if you spend a total of 180 days or more in Thailand in a given tax year.
Income tax rates in Thailand range from 0% to 35%, depending on the amount of taxable income.
This would provide additional documents such as tax declarations, which can be used for compliance for location-independent entrepreneurs and perpetual travelers (e.g. opening a bank account, brokerage account, etc.).
So far, it is unclear how this will affect foreigners living in Thailand on a retirement visa or using the Thai Elite Visa.
We will report on any further updates in this regard as soon as we have more detailed information.