Blumenthal Richter & Sumet Ltd. | View firm profile
Sumet Mingmongkolmitr (Senior Partner) and Sataporn Samanyaporn (Associate)
Thailand’s Revenue Department is in the process of drafting legislation to amend tax rules for foreign income remitted to Thailand. The proposed amendment aims to reduce the tax burden on Thai tax residents who bring foreign income into Thailand, with the broader objective of encouraging the repatriation of overseas earnings and stimulating the domestic economy.
Panuwat Luengwilai, Deputy Director-General of the Revenue Department, recently outlined the upcoming amendment to Thailand’s tax laws, which could provide significant relief to Thai tax residents. Under the proposed changes, Thai tax residents who remit foreign income into Thailand within the same calendar year in which it is earned, or in the following year, would be exempt from personal income tax on those earnings.
For example, if a Thai tax resident earns foreign income in 2025 and brings it into Thailand in either 2025 or 2026, that income would not be subject to Thai personal income tax.
If enacted, the amendment would overturn the current Thai tax rule that took effect on 1 January 2024. Under the current rule, any foreign income earned from that date onwards is subject to Thai personal income tax if it is brought into Thailand, regardless of the year it is remitted.
Although the proposed tax exemption remains in draft form and has not yet been officially enacted, Thai tax residents with foreign income should stay informed of any future developments from the Revenue Department to ensure proper tax planning for their overseas earnings.
Blumenthal Richter & Sumet’s tax team will continue to monitor developments on this issue and provide updates on any changes to Thai tax laws. For additional advice or questions regarding foreign income taxation, please feel free to contact our team for tailored guidance.