Also offers free 15 minutes consultation
PATTAYA, Thailand – Pattaya Mail has recently had a number of enquiries from expats, notably retirees in residence here more than half the calendar year, about their overseas income transmitted to Thailand since January 2024. Let me say at the outset that the typical retiree, living on income already taxed in the home country, has no need to panic or to feel that they are under some kind of imminent revenue or immigration threat to their welfare.
A government under prime minister Anutin Charnvirakul has very recently been appointed by His Majesty the King. The new Minister of Finance Ekniti Nitithanprapas is an independent, not political, appointee specifically chosen by the prime minister for his financial expertise going back decades. He has served as director-general of the Treasury Department, chief of the Revenue and Excise Departments – two of the largest tax-gathering agencies – and multiple other relevant roles. He is very well aware of all the issues.
However, there are not likely to be major announcements about taxation on overseas income in the four months’ administration before a general election is called. The government is centered on broad economic policies such as rapid economic recovery and public debt. The rumor a couple of months ago that overseas income transmitted to Thailand in the year of earning, or the immediate subsequent year, would be tax-free has not been confirmed by the incoming Anutin administration and is best regarded as ancient history.
Of course, whether or not you should fill in a Revenue Department tax form for the calendar year 2025 (in the first three months of 2026) cannot be answered in a yes or no response. I can only repeat that typical retirees, wholly dependent on transferring already-taxed income from overseas, are not the target of the Revenue Department with or without those 61 double taxation agreements. Those with income from within Thailand, or those financially linked to commercial enterprises worldwide and transmitting cash here, could be in a different position. I will add that I do not believe that annually renewable retiree visas will be linked to a Revenue Department registration number in the foreseeable future.
We will have to wait and see if other initiatives are in motion before/after the next general election, likely to be held March or April 2026. There has been talk of Thailand moving to a tax regime based on an individual’s worldwide income wherever earned, but that would require an act of parliament. Negative income tax, which requires a data base of the earnings of virtually all residents to channel welfare to the most needy, could be favoured. Minister of Finance Ekniti has represented Thailand on committees of the OECD (Organization of Economic Cooperation and Development) which is known to favour negative income tax. It’s too early to speculate on the detail.
I conclude by observing that most personal taxes in Thailand are paid by Thai nationals and always will be. It’s worth recalling that less than 20 percent of all Thais today have ever filled in a personal tax form in their lives. Whilst it is true that Thai authorities want both to increase and diversify tax revenues – as all neighboring countries also desire – the data bases available to the Thai Revenue Department are very, very far from being comprehensive. So any foreign residents wanting 15 minutes consultation about their personal tax situation are welcome to contact me via the contact detail below. It’s entirely free.
Victor Wong (Peerasan Wongsri)
Victor Law Pattaya/Finance & Tax Expert
Email: <[email protected]> Tel. 062-8795414
