How is income classified for tax purposes if working remotely for a foreign employer while residing in Thailand on a DTV visa?

Question

Tax
Hi everyone,

I’m looking for clarification from anyone with professional knowledge or direct experience of Thai personal income tax and remote employment.

Hypothetical situation:

-Living in Thailand on a DTV visa

-Staying in Thailand for 180 days or more and therefore becoming a Thai tax resident

-Working remotely for a Danish employer

-Advising and selling insurance exclusively to customers in Denmark

-Receiving the salary into a bank account outside Thailand

-Having no Thai employer, customers, clients or commercial activity

Would the salary be classified as foreign-sourced income or Thai-sourced income for Thai personal income tax purposes?

My specific concern is Section 41 of the Thai Revenue Code. Does physically performing the remote work while located in Thailand make the salary Thai-sourced, even though the employer, customers, market, contracts, salary payment and bank account are all outside Thailand?

The position is entirely connected to the Danish insurance market and requires specialist knowledge of Danish insurance products, regulations and customer advisory practices. No services are provided to Thailand or the Thai market.

I’m specifically interested in the legal tax classification—not simply whether this type of remote work is permitted under the DTV visa. If possible, please include relevant Thai Revenue Department guidance, rulings or other legal sources supporting your answer.

Thank you.

Ask Thailand · Answer

The discussion revolves around the tax implications for an individual living in Thailand on a DTV visa, working remotely for a Danish employer while advising Danish clients, and receiving salary into a bank account outside Thailand. The central concern is whether this income is classified as Thai-sourced or foreign-sourced for tax purposes, especially considering Section 41 of the Thai Revenue Code. Responses indicate that as long as the income is from foreign clients and there is no Thai employer or commercial activities in Thailand, it may be considered foreign-sourced. However, tax obligations may arise if the individual is deemed a tax resident in Thailand (i.e., staying for 180 days or more). The conversation also notes the significance of Denmark and Thailand's Double Taxation Agreement, which allows for tax credits for taxes paid in Denmark.

Angelo *********** · Answer

Only the part you transfer to Thailand would be taxed.

And for DTV users they do not care ...

BubblyStra********** · Answer

I would say you pay tax on what you remit. I’m in a similar situation as you and I got myself a tax ID

SoftLy****** · Answer

Simple, do you have Thai employer based inside Thailand ? Then do you have a Thai bank account? Next question do you bring your money into Thailand exceeding 3 million Baht in a calendar year ? If all your answers are no then enjoy thai food and the beaches you are a tourist and hold a tourist visa, you will be laughed at when you go to department of revenue and all your answers are no. And if your home country one day asks you whether you have paid your tax obligations ( im not sure they would ask that but maybe) you can say under the Thai tax Law Im obligated to pay Tax if i remit up to a certain amount then im obligated to pay my tax duty but as long as I keep the amount under that limit plus the visa type i hold im not obligated declare my foreign income in my foreign bank account.

Jay ***** · Answer

You don’t earn Thai-sourced income even though you're physically in Thailand. You have a Danish employer. Also keep in mind that Denmark and Thailand have a Double Tax Treaty, which means you get a credit for the taxes already paid in Denmark if you remit that money to Thailand. As John Stanners says, Thailand has a remittance-based tax system with many allowances and deductions. Also, it all depends on what type of money you remit (assessable income like your salary or for example savings earned before 2024 which are tax-free). These are facts based on my experience filing twice a tax return in Thailand and remitting foreign-sourced income.

John ********** · Answer

Thailand has a remittance based tax system for income not actually earned inside the country. So in any year you are a Thai tax resident and bring 120k baht or more of assessable income into the country (by any means) you are required to complete a Thai tax return. You file the return in the first 3 months of the following year, you work out the total amount of assessable income you bring in during the year, then you work out how much Thai tax you owe, and finally you claim a credit for any tax already paid on the income you bring into Thailand. The likelihood is you won't have to pay any tax in Thailand but you are still required to go through the process

Anonymous ****************** · Answer

If based on the Thailand Revenue department, living more than 180 days in a calendar year you’ll need to declare your income whether it is a foreign earnings or earnings within the country, you’ll first need to register the tax number with revenue department, and once you declare, Thai revenue office can track you and now have all of your information

Mark ********* · Answer

Impossible to pay it, I've tried - you will be laughed out of the tax office you tourist

Anonymous ****************** · Answer

Are you worried you will owe tax in Thailand? Or you want to move your tax residency to Thailand?

Denmark and Thailand have a double taxation agreement, so if you’re paying in Denmark you won’t need to pay in Thailand, however if you want to move your tax residency to Thailand, then it’s different.

How is income classified for tax purposes if working remotely for a foreign employer while residing in Thailand on a DTV visa?

Activity

Related

Resources