This is Part 4 of the Thai Life and Law series. In Part 3, we covered real estate and rental rules. This time, we tackle a topic that every Japanese national living in Thailand will eventually face: taxes. “Do I need to file a tax return in Thailand?” “Will my pension get taxed if I send it to Thailand?” The rules changed significantly in 2024 — here is what you need to know.
1. Are You a Thai Tax Resident?
Before anything else, you need to determine whether you are subject to tax in Thailand at all.
The rule is simple: anyone who spends a cumulative total of 180 days or more in Thailand during a calendar year (January 1 – December 31) is a Thai tax resident.
Days do not need to be consecutive. Even if you travel in and out, your total days are counted. The type of visa you hold is irrelevant.
| Taxable Income | |
|---|---|
| Thai tax resident (180+ days/year) | Thai-sourced income + foreign income remitted to Thailand |
| Non-resident (under 180 days/year) | Thai-sourced income only |
Nearly all expatriates qualify. If you have been posted to Thailand for a year, are living here on a retirement visa, or are enrolled as a full-time student — you are almost certainly a Thai tax resident.
2. The Rules Changed in 2024 — Foreign Income Remittance Tax
This is the most important topic in this article.
What Changed
On September 15, 2023, the Revenue Department issued orders Por.161/2566 and Por.162/2566, reinterpreting Section 41 of the Revenue Code. The change took effect on January 1, 2024.
| Up to end of 2023 | From January 1, 2024 | |
|---|---|---|
| When is foreign income taxed? | Only if remitted to Thailand in the same year it was earned | Taxable whenever remitted to Thailand, regardless of when it was earned |
| If remitted the following year? | Tax-free (widely used as a planning strategy) | Taxable |
In short, the strategy of “I earned this last year, so I’ll send it over next year tax-free” no longer works.
Important Exceptions
The following remain tax-free:
- ✅ Income earned before January 1, 2024 — exempt regardless of when remitted (transitional rule)
- ✅ Income not remitted to Thailand — keeping funds abroad is not taxable
- ✅ Income earned in a year when you were not a Thai tax resident — remains tax-free even if later remitted
- ✅ Long-Term Resident (LTR) visa holders — certain categories enjoy an exemption on foreign-sourced income
The “2-Year Remittance Exemption” Proposal — Not Yet Enacted
The Revenue Department has proposed legislation that would exempt foreign income earned from 2024 onward from Thai tax if remitted within the year it is earned or the following year. This was expected to apply from the January–March 2026 filing period, but as of April 2026, it has not been formally enacted (it still requires Cabinet approval, Council of State review, and publication in the Royal Gazette).
→ Plan based on the current rules (remittance-based taxation) until further notice.
Keeping Pre-2024 and Post-2024 Funds Separate
In practice, the key question is: when was this money earned? Income earned before 2024 remains tax-free when remitted. However, you will need documentation to prove it — bank statements, pay slips, dividend records showing the dates and amounts.
3. Thai Income Tax Rates — Generous Deductions May Surprise You
Progressive Tax Rates (2026)
Thailand uses a progressive system with 7 brackets from 0% to 35%.
| Taxable Income (THB) | Rate |
|---|---|
| 0 – 150,000 | 0% (exempt) |
| 150,001 – 300,000 | 5% |
| 300,001 – 500,000 | 10% |
| 500,001 – 750,000 | 15% |
| 750,001 – 1,000,000 | 20% |
| 1,000,001 – 2,000,000 | 25% |
| 2,000,001 – 5,000,000 | 30% |
| 5,000,001 and above | 35% |
The first THB 150,000 is completely tax-free. This is not a personal allowance — it is simply a zero-rate bracket.
Key Deductions (Available to Foreigners Too)
Taxable income is calculated after deducting various allowances. Used effectively, deductions can significantly reduce your actual tax bill.
| Deduction | Amount |
|---|---|
| Personal allowance | THB 60,000 |
| Spouse allowance (non-working spouse) | THB 60,000 |
| Child allowance | THB 30,000 per child |
| Employment income deduction | 50% of income (max THB 100,000) |
| Life insurance premiums (Thai-registered insurer) | Up to THB 100,000 |
| Health insurance premiums (Thai-registered insurer) | Up to THB 25,000 |
| Provident fund contributions | Up to THB 500,000 |
| Social Security contributions | Fully deductible |
Note: Overseas insurance policies and foreign retirement accounts do not qualify. Enrolling in Thai-registered products is tax-advantageous.
Example Calculation: Monthly Salary THB 100,000
This is a simplified example (social security and minor items omitted).
| Item | Amount |
|---|---|
| Annual income | THB 1,200,000 |
| Less: employment deduction (50%, max 100k) | – THB 100,000 |
| Less: personal allowance | – THB 60,000 |
| Less: spouse allowance | – THB 60,000 |
| Taxable income | THB 980,000 |
Tax on THB 980,000:
- 0–150k @ 0%: THB 0
- 150k–300k @ 5%: THB 7,500
- 300k–500k @ 10%: THB 20,000
- 500k–750k @ 15%: THB 37,500
- 750k–980k @ 20%: THB 46,000
Total tax: approx. THB 111,000 (effective rate approx. 9%)
Even on a THB 100,000/month salary, the effective tax rate stays below 10% once standard deductions are applied — considerably lower than Japan’s rate at comparable income levels.
4. Filing Your Tax Return — Where to Start
Which Form to Use
| Form | For |
|---|---|
| PND 91 | Salary income only |
| PND 90 | Multiple income sources (foreign remittances, investment income, rental income, etc.) |
If you remit foreign income to Thailand, you will need to use PND 90.
Deadlines
- Paper filing (at a tax office): March 31 of the following year
- e-filing (online): Extended to April 8 in 2026 (varies by year)
The online filing portal (e-filing) is available on the Revenue Department website, but all forms are in Thai only — there is no English version. You will need a TIN (Tax Identification Number) in advance. First-time filers need to register at a local tax office.
If Your Company Handles It
For salaried expats working for a Thai entity, the employer typically withholds monthly income tax and files PND 91 on your behalf. In that case, you do not need to file personally.
However, if you receive allowances or salary payments from a Japanese parent company, those may also be taxable in Thailand. Check with your company’s payroll team or tax advisor to confirm.
Penalties for Non-Filing
- Failure to file when required: up to THB 2,000 fine
- Additional tax assessment
- Surcharge interest: 1.5% per month (18% annually)
5. Double Taxation Is Preventable — Japan-Thailand Tax Treaty
The concern about paying tax in both Japan and Thailand is understandable. Fortunately, Japan and Thailand have a tax treaty in place (Convention for the Avoidance of Double Taxation).
Under the treaty, if the same income is taxed in both countries, the tax paid in one country can be credited against the tax liability in the other (foreign tax credit).
| Income Type | Treaty Treatment |
|---|---|
| Employment income | Generally taxable in the country of employment |
| Pension | Exempt or reduced under certain conditions |
| Dividends, interest, royalties | Source tax capped at treaty rates |
However, the treaty does not apply automatically. You must actively claim the foreign tax credit on your tax return. If you miss this, you may end up paying tax twice on the same income.
6. Summary — Three Key Points
| Point | Content |
|---|---|
| ① If you’re in Thailand 180+ days | Foreign income remitted to Thailand may be taxable |
| ② Pre-2024 savings are safe to send | Post-2024 income remitted to Thailand is taxable — plan accordingly |
| ③ Double taxation is preventable | But you must actively claim the treaty credit on your return |
Retirees and long-stay visitors living off overseas pensions or investment income are most affected by the 2024 rule change. If you are unsure about your situation, consulting a Thai tax accountant or certified public accountant sooner rather than later is advisable.
Related Articles
- Thai Life and Law Part 1: Online Shopping Customs — All Imports Now Taxed
- Thai Life and Law Part 2: Visas, Work Permits, and the 90-Day Report
- Thai Life and Law Part 3: Can Foreigners Buy or Rent Property in Thailand?
- Thailand SME Tax Incentives — A Complete Guide
This article summarizes general information as of April 2026. Tax obligations vary significantly by individual circumstances. For specific filing or tax planning advice, please consult a Thai tax accountant (certified public accountant) or qualified tax professional. Our firm does not provide tax return preparation services. This article is for general informational purposes and does not constitute legal or tax advice under Thai law.