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New Thai tax rule alters foreign income treatment

Thailand's Revenue Department announced a significant tax regulation change effective January 1, 2024, impacting Thai citizens and foreign residents remitting foreign income. The revised interpretation requires personal income tax on foreign-sourced income when brought into Thailand. This alters a 40-year-old practice exempting foreign income brought in the subsequent year. The move follows Thailand's adoption of the Common Reporting Standard for financial account information exchange, facilitating tax compliance enforcement. Tax consultants, notably Mazars, report increased inquiries, especially from expatriate retirees concerned about pension and social security taxation. However, tax implications for pensions and benefits remain uncertain, varying by international treaties. The change, coinciding with Srettha Thavisin's tenure as prime minister and finance minister, aims to support economic measures and address income inequality, although its impact on Thailand's wealthier class is debated.


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