Taxes Thailand 10|2024
Important information in summary on the topic: Taxes Thailand 10|2024. What you need to know about the law. Need for action !
Introduction
The tax law in this form is not new – it has existed in a similar form for a long time. Previously, however, only income from the current calendar year had to be taxed, while income from previous years remained tax-free.
Thailand has now had to adjust this tax loophole as the country joined the OECD (“Organization for Economic Cooperation and Development”) two years ago. The OECD enforces certain international standards to which Thailand must also adapt, which also includes Western-style regulations – cashing in.
Basically, what you didn’t know before may seem new to you, but it’s not a completely new law. The main problem often lies in gaining access to “correct information” – and in a language you can understand.
Thailand will also not actively ask you to file a tax return; you have to take care of these matters yourself. The law is legally valid, has been published and came into force on 01.01.2024.
This will change for you
Your income must now be submitted annually to the Thai tax office with a tax return by the deadline of 31.03.xxxx.
The tax number required for this is easy to obtain – you can find detailed instructions below in this article.
Filing a tax return should be considered mandatory. Even if you are below the tax-free allowance and do not have to pay taxes, you must prove this to the Thai tax authorities with your tax return.
The tax form
The tax form comprises around three pages and will also be available in English.
Filling out the form is supposed to be relatively straightforward, but I have not had the opportunity to see a copy.
You can obtain the tax form from the same place where you apply for your tax number. The forms should be available from January 2025 for the 2024 tax year. It is best to simply ask at the beginning of the year.
Filling in – Doing the tax
The system is briefly explained using a sample calculation – and it actually seems quite simple.
You declare your income, for example your pension, as income. Then you deduct your allowances to get the “taxable income”, which is then taxed as a percentage according to the income brackets.
| 0.00 THB up to 150,000 THB | 0% |
| 150,001 THB to 300,000 THB | 5% |
| 300,001 THB to 500,000 THB | 10% |
| … and so on |
Simple and uncomplicated
The process is designed to be simple and the tax authority staff are encouraged to help you complete your tax return.
The tax return is submitted without supporting documents. If there are any discrepancies or questions, the authorities can request documents or receipts if necessary.
You can easily complete the tax return yourself and do not need to hire an agency. Even though there are many offers on social media, you should treat them with caution.
If you still prefer help, it is advisable to look for a tax office in your area, ideally with recommendations from friends or acquaintances. Alternatively, you can ask the tax office for trustworthy recommendations when applying for your tax number.
Stay in Thailand from 01.04.2025 / Extend visa?
There are initial reports that a visa extension from 01.04.2025 could possibly fail due to a missing tax declaration if you have stayed in Thailand for longer than 180 days.
If you have been in Thailand for more than 180 days, you are considered a “taxpayer” under Thai tax law and are obliged to submit a tax return.
There are different reactions to this on social media: Some are spreading panic – which is not justified. Others are advising people to wait and do nothing – which could also be problematic. Factual preparation and information gathering is the best approach here.
Apply for a tax number
I can’t give you any precise information here about where in Thailand you need to apply for your tax number, as this varies depending on where you live. You will have to find the relevant tax office in your region yourself.
If you have any information about tax number contact points in this regard, please post them in the comments to help others.
Required documents: *** Updated 12.11.2024 ***
Copies from the passport are sufficient, one each:
- Data page (name, photo, etc.)
- Your current visa
- The last entry stamps (proof that you have been in Thailand longer, the last one may not be enough)
- The certificate of residence (is normally stapled into the back of your passport)
There are two points of contact in Pattaya
Chonburi Area Revenue Office 3, Pattaya, Jomtien
Link to Google Maps:
https://maps.app.goo.gl/pf815UstGwFm2byK6
Bang Lamung District Office, Polizei in Pattaya, Na Kluea
Link to Google Maps:
https://maps.app.goo.gl/WyW5mVAn1ZuufZG96?g_st=com.google.maps.preview.copy
Conclusion and recommendations
Tax information
This article refers to Thai tax law only and is not a guide to tax declaration. The detailed explanation of tax liability is not part of the article and I am not qualified to do so.
If the support provided by the tax authorities is not sufficient, I recommend that you consult a qualified tax advisor.
Receipts have no expiry date
Collect all receipts and keep every scrap of paper! In the long term, Germany is aiming for taxation according to nationality. Thailand, on the other hand, also wants its share and may request proof or receipts from you in certain cases. It is therefore advisable to archive all relevant documents carefully.
Note on collecting, digitally managing and backing up data and receipts
Make sure you collect all important data and receipts and manage them digitally. Good organization and backup of your data is crucial.
If you have any questions or need support, don’t hesitate to contact me. You can simply use the contact form.
It often doesn’t help to say that you no longer have the receipt or these documents. Everything that was, is and always will be tax-relevant should be guarded like the apple of your eye. There may be more money hanging on such documents than you have at your disposal.
Double taxation agreements (DTA) and differential taxation
Thailand has a double taxation agreement, but the issue of differential taxation is more complex. It is certain that differential taxation is not in line with the double taxation agreement, but this is part of the Thai regulations. This matter would have to be clarified under international law.
In any case, also with regard to real estate, it is advisable to consult an expert tax advisor.
Thai tax number protects you when you return to the EU
When you return to the West, the tax office may approach you and want to review the taxation of your stay abroad. In the past, there have already been many “horrendous estimates” in this context. This mainly affects younger emigrants who may get into financial difficulties and return to their home country.
But older long-term emigrants have also had negative experiences, especially if they had to return for health reasons in order to finance medical care.
A Thai tax number can help you to prove that you were registered in Thailand and are also registered for tax purposes there.
Disclaimer
This information should be kept according to German and Thai tax law and should be correct in content.
As I am only passing on the information in edited form, I accept no liability for its accuracy or completeness.
Anyone interested in the tax madness in Europe will find what they are looking for here
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