Written by Adam Clark, Financial Commentator
Thailand’s foreign income tax rules continue to evolve — reinforcing why patience and clear-thinking matter more than ever.
According to a report in the Bangkok Post on 19th May 2025, residents who earn income overseas will not be taxed if they transfer it to Thailand in the calendar year in which it is earned, or in the following year.
This represents a significant shift in tone from the position set out in Departmental Instruction No. Por.161/2566, which took effect on 1 January 2024 and removed the long-standing “wait a year and the tax disappears” loophole. Under Por.161, any foreign income brought in at any time — whether earned last week or ten years ago — became taxable on arrival.
Understandably, that announcement triggered a wave of activity, blogs and concern across the expat community. Almost daily, I received emails and invitations from so- called ‘experts’ urging immediate action. Many were encouraging residents to quickly move assets into complex structures — solutions that were not always aligned with their long-term financial objectives. In hindsight, this rush to act led to decisions that, for some, may now appear premature and misplaced.
Now, with the ink on Por.161 barely dry, the Revenue Department is drafting a new exemption. A legal briefing from Nishimura C Asahi on 1 June 2025 confirms that the draft would grant a two-tax-year grace period — meaning income earned in, say, 2025 could be remitted tax-free until the end of 2026. After that window closes, normal
personal income tax rules would apply.
The draft still requires Cabinet approval and could change during the process, but the direction is clear: the authorities would prefer to see funds brought back into Thailand rather than kept offshore.
What should residents do now?
- Keep records
- Whatever the final rules look like, accurate documentation of when and where income was earned will also be advisable.
- Wait for the Gazette
- Until the exemption is published in the Royal Gazette, it is not law. Treat newspaper reports as signposts, not certainty.
It’s natural that many residents wanted to ensure compliance and were concerned by the initial announcements. However, my major concern was seeing numerous so-called ‘experts’ using the headlines to frighten people into making premature and sometimes irreversible financial decisions. As this latest shift demonstrates, reacting too quickly to evolving rules can prove costly — a calm, informed approach remains the better path.
Conclusion
When the rules are still being written, the best move is to pause and plan. Let clarity — not urgency — guide your financial decisions in Thailand’s evolving tax landscape.
Disclaimer
This commentary is based on information carried in the Bangkok Post and other public sources and has not yet been confirmed by official regulations. The content is provided for general discussion; it does not constitute tax advice. Readers should obtain
personalised advice before taking any action.
Sources
Bangkok Post, 19 May 2025 Nishimura C Asahi Mahanakorn Partners