PATTAYA, Thailand – The other day, I sat down for a chat with Barry. We were both sipping our coffees, talking about the growing worries among expats here in Thailand. The government’s new tax guidelines were the hot topic. It’s no surprise it’s got everyone asking questions: “What does this mean for me?” “How will it affect my finances?”
It was December, after all—the month of Christmas, a time of giving. So I thought, why not offer 15 minutes of free consultations as a little gift for the festive season? I figured it might help ease some concerns, even if just a little.
Well, what happened next was a bit of a surprise. My inbox, Facebook page, and phone just lit up. I ended up speaking with 32 people 31 living here in Pattaya and 1 all the way from overseas. I even handled one case entirely through email. It’s clear that these new regulations struck a nerve.
I started to notice some familiar themes as I answered their questions, so let me share a few with you maybe over your cup of coffee, you’ll see something that resonates.
How should I plan my finances as a foreigner in Thailand?
That’s the big one. With these new rules, planning is everything. From January 1, 2024, any foreign income you bring into Thailand might be taxable under the progressive personal income tax system, which runs between 0% and 35%.
How much tax will I need to pay?
It’s a fair question. Thailand’s tax system is tiered how much you pay depends on how much you earn. But what really matters is understanding what’s actually taxable and what isn’t especially if your income comes from multiple places.
Wait, I didn’t know I could get tax deductions!
This one comes up a lot. Many expats don’t realize they may qualify for deductions and allowances things like spouse or child deductions, or life insurance. Small steps like these can add up and save you a lot of money.
I have multiple bank accounts—how do I manage them?
It’s common to hear: “I’ve got one for daily expenses, another with my 800,000 THB savings, and another for receiving funds from abroad.” Here’s the thing: you need to be crystal clear about where the money comes from. Proper records will save you from any headaches later on.
I withdraw money from ATMs using my overseas cards.
Sounds simple enough, right? But under the new rules, withdrawing cash might raise flags if it’s seen as taxable income. It’s something to watch out for.
I transfer money into other people’s accounts. Is that a problem?
Transparency is key here. If you’re making transfers, be ready to explain them and have the documents to back it up.
Is this policy only targeting big fish?
I’ve heard this question a lot. While it may seem aimed at high-income individuals, the reality is that it applies to everyone. If you’re bringing foreign income into Thailand, it’s important to get ahead of the game with proper planning.
Capital Gains Tax: What You Need to Know
Now, if you’re earning capital gains maybe from selling real estate, stocks, or other investments—there’s another layer to consider. In Thailand, capital gains are treated as personal income and taxed accordingly. And starting next year, even overseas gains could come into play if they’re brought into the country.
Two Weeks Left to Get Ready
As I wrap up this story, let me remind you: we’ve got just two weeks left to prepare and comply with the Revenue Department’s new guidelines. The clock is ticking, but there’s no need to panic this can be done, and done well.
Here’s what I can help you with:
֎ Applying for a Tax Identification Number (TIN)
֎ Calculating and registering your tax obligations
֎ Applying for Double Tax Agreements (DTA) to avoid being taxed twice
֎ Offering guidance on deductions, exemptions, and allowances
The first year might seem daunting, but if you set up a solid system now, next year and every year after will be so much easier.
So, if you’re worried or just have questions, I’m here. Let’s sit down, have a coffee, and figure this out together.
Victor Wong (Peerasan Wongsri)
Victor Law Pattaya/Tax expert
Email: [email protected]> Tel. 062-8795414
