BANGKOK – Thailand’s approach to foreign income repatriation is still a hot topic for expats, digital nomads, retirees, and Thai nationals who earn money overseas. After the big change in 2024, the Revenue Department started applying tougher rules on taxing foreign-sourced income sent into Thailand. That shift has led to ongoing talk about compliance, exemptions, and the relief ideas raised in 2025.
At the centre of it all is Thailand’s foreign income tax, remittance-based taxation, and what it means for Thai tax residents. In simple terms, if you spend 180 days or more in Thailand in a tax year, you may be treated as a tax resident. That matters if you have overseas income such as wages, pensions, dividends, investment income, rent, or capital gains.
The 2024 Overhaul: The Old Remittance Gap Closed
Before 1 January 2024, Thailand mostly taxed foreign income only when it was brought into the country in the same year it was earned. If someone earned money abroad and waited until a later year to send it to Thailand, it often fell outside Thai personal income tax (PIT). PIT rates run on a sliding scale from 5% up to 35%.
That approach changed after Revenue Department Orders Por.161/2566 and Por.162/2566. Using a revised reading of Section 41 of the Revenue Code, the rule now treats foreign-sourced income earned from 2024 onwards as assessable when it is remitted to Thailand at any time, as long as the person was a tax resident in the year the income was earned.
Funds earned before 2024 can still be brought in later without tax under the grandfathering treatment.
The stated goal was to bring Thailand closer to common global tax practice, reduce tax avoidance, and raise revenue from a growing group of higher-earning expats and remote workers. These groups often come in on long-stay options such as the Long-Term Resident (LTR) scheme.
The flip side is that retirees and investors have raised concerns, especially those living off overseas pensions or passive income. Under the current reading, even a late transfer can create a tax bill.
Expats, Thai Residents, and Foreign Income
For many people living in Thailand, the update has made money management harder. Retirees, remote workers, and others with overseas income now need clearer records and better timing when moving funds. If remitted income is not reported correctly, it can lead to audits, penalties, or extra tax later.
There are also targeted exemptions. Some LTR categories, such as Wealthy Global Citizens, Wealthy Pensioners, and Work-from-Thailand Professionals, may qualify for 0% tax on certain foreign income, depending on the conditions and the income type.
The change may also affect money flowing into Thailand. Some residents choose to delay transfers or keep funds offshore to limit exposure. That can reduce cash entering local banks and investments.
2025 Proposals, Possible Relief Without Scrapping the 2024 Rules
After feedback from residents and advisers, the Revenue Department prepared draft changes in mid-2025. The key idea is a two-year exemption window for foreign income repatriation.
Under the draft, income earned in a year (for example, 2025) would not be subject to Thai PIT if it is remitted in the same year or the following year (2025 or 2026). If the money is sent in after that window (from 2027 onwards in this example), it would remain taxable.
Deputy Director-General Panuwat Luengwilai said the aim is to encourage overseas funds to come into Thailand, improve local liquidity, and keep Thailand attractive to higher-net-worth residents. It would do this without fully rolling back the 2024 approach. If approved, the change may apply to income from 2024 onwards in many cases.
As of early 2026, the amendment is still a draft and has not been passed into law. Many tax advisers are telling residents to file based on the rules in force, which means reporting remitted foreign income earned after 2023.
At the same time, they are watching for updates because the proposal could change how people plan for the 2026 filing season (for 2025 income).
Wider Impact and Practical Takeaways
This debate shows Thailand trying to balance tax revenue with its reputation as a welcoming place to live. Enforcement has also tightened, with more checks linked to bank transfers and overseas accounts.
Many advisers recommend getting help from a qualified tax professional, especially if you have multiple income sources or large transfers. Clear records matter, including proof of where the money came from and when it was earned. For some residents, planning remittances around timing rules and using any visa-based exemptions that apply can reduce risk and avoid surprises.
Thailand’s global income taxation approach and expat tax rules may still change. The next few months should confirm whether the proposed relief becomes law. If it does, it could bring back some flexibility around foreign income remittance, while keeping the stricter post-2024 framework in place.
