The Revenue Department issued its Order No. Por. 161/2023 re: Payment of Income Tax under Section 41, Paragraph 2, of the Revenue Code dated 15th September 2023 to set up a new rule on payment of the personal income tax from overseas income. The order will come into force from 1st January 2024.
Under this new rule, each Thai tax resident (a person who resides in Thailand at least 180 days in any tax year of 1 January to 31 December) who receives income from employment abroad or a business carried out abroad or a property located abroad (“Overseas Income”) will be liable to payment of the personal income tax in Thailand on such Overseas Income in the tax year when it is brought into Thailand.
This rule applies to both Thai citizens and non-Thai citizens who are Thai tax residents. However, it does not apply to a Thai or non-Thai legal entity.
Prior to this order, a Thai tax resident who had Overseas Income was subject to the personal income tax in Thailand only if the Overseas Income was brought into Thailand in the same tax year in which the income was received. In other words, if the Overseas Income was brought into Thailand in any following tax year, it would not be taxable in Thailand.
To see the archive of our past newsletters and articles please click here.
- Senior Partner | bangkok
- Associate | bangkok
The information provided in this document is general in nature and may not apply to any specific situation. Specific advice should be sought before taking any action based on the information provided. Under no circumstances shall LawPlus Ltd. and LawPlus Myanmar Ltd. or any of their directors, partners and lawyers be liable for any direct or indirect, incidental or consequential loss or damage that results from the use of or the reliance upon the information contained in this document. Copyright © 2016 to 2020 LawPlus Ltd.