Thailand Tax Rules 2024: New Law on Foreign Income for Expats

The 2024 Rule Change: What Happened

On September 15, 2023, the Thai Revenue Department issued Order Paw. 161/2566, fundamentally changing how Thailand taxes foreign-sourced income. The new interpretation took effect on January 1, 2024, and it directly impacts hundreds of thousands of expatriates, retirees, and digital nomads living in the country.

For decades, Thailand had a well-known loophole: foreign income was only taxable if it was both earned abroad and remitted into Thailand within the same calendar year. In practice, this meant that a retiree who earned pension income in 2023 could simply wait until January 2024 to transfer it into their Thai bank account and owe zero Thai tax on that money.

That loophole is now closed.

Under the new interpretation, any assessable income earned abroad and remitted to Thailand in the same calendar year is subject to Thai personal income tax, provided the individual qualifies as a Thai tax resident. The critical factor is the timing of the remittance relative to when the income was earned.

Before vs. After 2024: Side-by-Side Comparison

Key clarification: Income earned and saved before January 1, 2024 remains exempt from Thai tax even if remitted after that date. The new rule applies only to income earned from 2024 onward. This is a crucial distinction that the Revenue Department confirmed through subsequent guidance.

Who Is a Thai Tax Resident?

Thai tax residency is determined solely by physical presence. If you spend 180 days or more in Thailand during a calendar year (January 1 to December 31), you are a Thai tax resident for that year, regardless of your nationality, visa type, or whether you consider another country your home.

There is no concept of "domicile" or "center of vital interests" in the basic Thai tax residency test. The 180-day rule is absolute and applies to:

• O-A and O-X retirement visa holders who reside full-time or near full-time in Thailand
• DTV (Destination Thailand Visa) holders including digital nomads and remote workers
• Non-Immigrant B visa holders (employees and business owners)
• Marriage visa (Non-O) holders married to Thai nationals
• Elite visa holders who use Thailand as their primary base
• Tourists who overstay or chain visa runs exceeding 180 cumulative days

If you hold a retirement visa and live in Thailand year-round, you almost certainly exceed the 180-day threshold.

Digital Nomads and DTV Holders

The DTV visa introduced in mid-2024 allows remote workers to stay in Thailand for extended periods. DTV holders earning income from foreign employers or clients are now squarely within the scope of the new tax rules if they stay 180+ days and remit their earnings into Thai bank accounts within the same calendar year.

Thai Personal Income Tax Brackets

Thailand applies progressive tax rates to assessable income after deductions. Understanding the brackets is essential for estimating your liability.

These rates apply to net taxable income after all allowances and deductions have been subtracted. The first 150,000 THB is always tax-free, which provides meaningful relief for retirees with modest pension income.

Available Deductions and Allowances

Before applying the tax brackets, you can reduce your gross income with several standard deductions:

• Personal allowance: 60,000 THB
• Spouse allowance: 60,000 THB (if spouse has no assessable income)
• Earned income deduction: 50% of income, capped at 100,000 THB
• Social insurance contributions: up to 9,000 THB
• Life insurance premiums: up to 100,000 THB
• Health insurance premiums: up to 25,000 THB
• Provident fund contributions: up to 500,000 THB

For a full breakdown of deductions and how to claim them, see our guide on obtaining a Thai TIN and filing your return.

Concrete Example: French Retiree on an O-A Visa

Let us walk through a realistic scenario. Pierre, age 67, holds a Non-Immigrant O-A retirement visa and lives full-time in Chiang Mai. He receives the following annual income:

• French private pension (AGIRC-ARRCO): 18,000 EUR/year (approximately 700,000 THB)
• French state pension (Assurance Retraite): 10,000 EUR/year (approximately 390,000 THB)

Pierre transfers his entire pension income to his Bangkok Bank account each month. Under the new rules, this income is assessable in Thailand since it is earned and remitted in the same calendar year and Pierre is a tax resident.

However, the France-Thailand tax treaty determines which country actually has the right to tax each income stream.

Applying the Tax Treaty

Private pension (AGIRC-ARRCO) -- Article 18: Under Article 18 of the France-Thailand Double Tax Agreement, private pensions are taxable only in the country of residence of the recipient. Since Pierre resides in Thailand, his AGIRC-ARRCO pension is taxable in Thailand, not France.

Public/government pension (state pension) -- Article 19: Under Article 19, government pensions (pensions paid by the state for past government service) are generally taxable only in the paying state (France). However, if the recipient is both a resident and a national of Thailand, the pension is taxable only in Thailand. Since Pierre is French and resides in Thailand, his French state pension remains taxable in France.

Pierre's Thai Tax Calculation

Only the private pension is taxable in Thailand:

Applying the tax brackets:

• First 150,000 THB: 0% = 0 THB
• Next 150,000 THB (150,001-300,000): 5% = 7,500 THB
• Remaining 50,000 THB (300,001-350,000): 10% = 5,000 THB

Total Thai tax: 12,500 THB (approximately 325 EUR/year)

This is a very manageable amount. Many retirees with modest pensions will find their effective Thai tax rate is quite low, often lower than what they would pay in France.

How Does the France-Thailand Tax Treaty Help?

The Convention between France and Thailand for the Avoidance of Double Taxation, signed in 1974, is the cornerstone document that prevents you from being taxed twice on the same income. Understanding which articles apply to your situation is critical.

Key Articles for Retirees

For a detailed article-by-article breakdown, see our complete guide to the France-Thailand tax treaty.

The Tax Credit Mechanism

When income is taxable in both countries under the treaty, France provides a tax credit equal to the French tax attributable to that income. This means you are not taxed twice, but you pay at the higher of the two rates. In most cases involving Thai-resident retirees, the treaty simply allocates exclusive taxing rights to one country, making the credit mechanism unnecessary.

What Types of Income Are Affected?

The 2024 rule change applies broadly to all foreign-sourced income remitted to Thailand. The most common categories for expats include:

Pensions and retirement income: Both private and public pensions are considered assessable income when remitted. Treaty allocation determines which country taxes them.

Rental income from foreign property: If you own a house or apartment in France and collect rent, that rental income remitted to Thailand is assessable. However, Article 6 of the treaty gives France the exclusive right to tax real estate income from property located in France.

Investment income (dividends, interest, capital gains): Dividends from French stocks, interest from French savings accounts, and capital gains from selling French securities are all potentially assessable in Thailand. The treaty provides specific rules and withholding caps for each type.

Employment and freelance income: If you work remotely from Thailand for a foreign company or clients, this income is considered foreign-sourced but is fully assessable if you are a Thai tax resident and bring the money into Thailand.

Social security payments: Payments like the French CSG/CRDS refunds or other social benefits may also be considered assessable income depending on their nature.

Legal Optimization Strategies

There are several entirely legal strategies to minimize your tax exposure under the new rules. Tax planning is not tax evasion; it is the responsible management of your financial affairs within the law.

1. Manage Your Remittance Timing

While the old loophole of deferring remittances is closed, you can still control how much you remit each year. If you have savings abroad, only transfer what you need to live on. Income that remains in your foreign account and is not remitted to Thailand is not taxed in Thailand (though it may be taxed in the source country).

2. Maximize Thai Deductions and Allowances

Take full advantage of every deduction available to you: personal allowance, spouse allowance, insurance premiums, and the over-65 exemption. These can significantly reduce your taxable base. Filing a proper tax return, even if you think you owe nothing, ensures you can claim these deductions. Our guide to getting your Thai TIN explains the process step by step.

3. Leverage the Tax Treaty

Understand which income streams are exclusively taxable in France under the treaty. Government pensions (Article 19), real estate income from French property (Article 6), and certain other categories remain taxable only in France, regardless of how much you remit to Thailand.

4. Consider Your Residency Days Carefully

If you travel frequently, keeping your days in Thailand below 180 in a given calendar year means you are not a Thai tax resident for that year. This requires careful tracking and may not be practical for everyone, but for those who split time between countries, it is worth monitoring.

5. Separate Pre-2024 Savings from Post-2024 Income

Maintain clear records showing which funds in your foreign accounts were earned before January 1, 2024. Savings accumulated before that date can be remitted to Thailand tax-free. Good record-keeping is essential to prove this distinction to the Revenue Department if questioned.

6. Get Professional Advice

The interaction between Thai tax law, French tax law, and the bilateral treaty is complex. Our pension and retirement services team works with qualified tax advisors in both countries to help you structure your finances efficiently and legally.

What About Enforcement?

A common question is whether Thailand actually enforces these rules on foreign residents. The answer is increasingly yes.

The Thai Revenue Department has been building its enforcement capacity through several mechanisms:

• Common Reporting Standard (CRS): Thailand participates in the CRS automatic exchange of financial information. Thai authorities receive data about financial accounts held by Thai tax residents in other participating countries, including France.
• Bank reporting: Thai banks report large international transfers and may request documentation about the source of funds.
• TIN cross-referencing: The expansion of the TIN system to foreign residents suggests the Revenue Department is preparing for broader enforcement.

While enforcement was historically lax for foreign retirees, the combination of the new rules and improved data-sharing means that assuming you will not be noticed is increasingly risky.

How to File and Pay

If you determine that you have a Thai tax obligation, the process involves:

1. Obtain a Thai TIN from your local Revenue Department office (see our TIN guide)
2. File Form PND 91 (for individuals with income from employment/pensions only) or PND 90 (for individuals with multiple income sources)
3. Filing period: January 1 to March 31 of the year following the tax year
4. Payment: Tax is due at the time of filing; late payment incurs a 1.5% monthly surcharge plus potential penalties
5. Online filing is available through the Revenue Department website at rd.go.th

Frequently Overlooked Points

Pre-2024 savings are safe. Income earned and accumulated before January 1, 2024 is not subject to the new rules, regardless of when you remit it. Keep bank statements and records to prove when funds were earned.

Not all remittances are income. Transferring your own savings (from pre-2024 or from after-tax income) is not the same as remitting newly earned income. The key question is whether the funds constitute assessable income earned in the current or a prior year.

Thailand does not have a worldwide taxation system. Unlike the United States or Eritrea, Thailand only taxes income that is remitted into the country. Foreign income that stays abroad is not taxed in Thailand, even under the new rules.

The over-65 exemption is valuable. Taxpayers aged 65 and over receive an additional exemption of 190,000 THB, which substantially reduces the tax base for retirees.

What Should You Do Now?

If you are a foreign resident in Thailand, the new tax rules require you to take action, even if that action is simply documenting your situation and confirming you have no liability. Here is a practical roadmap:

1. Determine your tax residency status by counting your days in Thailand for the current calendar year
2. Identify all foreign income sources and how much you remit to Thailand annually
3. Review the France-Thailand tax treaty to understand which country has taxing rights over each income stream
4. Obtain a Thai TIN if you do not already have one
5. File a tax return by March 31, claiming all applicable deductions
6. Keep meticulous records of remittances, income sources, and pre-2024 savings

For personalized guidance on how the new rules affect your specific situation, contact our pension and retirement advisory team. We help French expatriates navigate the intersection of Thai and French tax obligations with confidence.