Answered2 years ago
Is income earned through remote work while in Thailand considered Thai-sourced or foreign-sourced income?
In theory, is income from work performed in Thailand under the remote worker DTV considered:
1. Thai-sourced income (taxable regardless of whether paid to a Thai or foreign bank account)
2. Foreign-sourced income (taxable only if remitted to Thailand for those tax resident in Thailand)
Getting conflicting information on this.
Anyone know what happens in practice?
1. Thai-sourced income (taxable regardless of whether paid to a Thai or foreign bank account)
2. Foreign-sourced income (taxable only if remitted to Thailand for those tax resident in Thailand)
Getting conflicting information on this.
Anyone know what happens in practice?
Answer summary
The classification of income earned through remote work in Thailand under the Digital Nomad Visa (DTV) is unclear and often debated. Generally, if a DTV holder works for foreign clients while in Thailand, the income is typically considered foreign-sourced and only taxable if remitted to Thailand—provided the individual meets the criteria for tax residency (staying over 180 days). Some comments suggest that working from within Thailand, even for foreign clients, could be seen as generating Thai-sourced income, which typically requires a work permit. The lack of clear official guidelines creates a grey area, prompting users to seek clarification on definitions like 'remitted' and the implications of income sourced from work done in Thailand.
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Marks *********
Sorry if this seems elementary but can someone define “remitted to Thailand,” please? If I use a Thai ATM to get cash from a foreign account does that count? Or only if I deposit it into a Thai bank account? Thanks.
Luit *****************
@Marks ********
ATM from foreign account is bringing in money, taking cash with you is bringing in money. How well everything can be checked is another story, but be aware that you are supposed to live from something, so you should tell you bring in some money when you are tax resident and have no Thai job.
Anonymous ******************
1. What is Thai-sourced income? A DTV holder cannot work with any Thai individuals or business entities. Physical work with foreigners in Thailand also falls into that category (ex: tattoos artists, tourist guide, etc.); anything that is considered as taking the job of a Thai. DTV allows remote work with foreign companies/foreign individuals. You’ll need a different type of visa and a work permit to do so. Can you explain a little more about what you mean with physical work in Thailand?
2. Foreign income remitted to Thailand is taxable. You must stay in Thailand for at least 180 days and check tax treaties between Thailand and your country.
2. Foreign income remitted to Thailand is taxable. You must stay in Thailand for at least 180 days and check tax treaties between Thailand and your country.
Anonymous *************
OPAnonymous participant 764 For example, a software developer working remotely in Thailand for a foreign client or company, some jurisdictions (most I would say) would treat that as local sourced income since it is physically carried out locally (despite the digital nature of the work and foreign client). The LTR visa apparently has a Royal decree for tax exemption, but it's hard to find official information on how income tax works with DTV income. If the software developer earns $50,000 per year paid into their foreign account and remits $10,000 to Thailand each year, I guess most here agree on the $10,000 is assessable income. So around $375 tax would be due for the year. Would be great to have this confirmed by a Thai tax authority...
Anonymous ******************
Anonymous participant Okay. A software developer can use a DTV when working remotely for a foreign company. If you remit 10K to Thailand, you'll be liable for taxes if you stay 180 days or more per calendar year in Thailand. The exact tax amounts depend on treaties between Thailand and your home country. Be sure to understand the definition of "remitted" in Thailand, as it may include cash and credit card transactions—even though many say it's nearly impossible to trace. And right, an LTR visa is tax-exempt.
Anonymous *************
OP@Greg *******
By Thai-sourced income, I mean work carried out in Thailand for a foreign client/company. Since the work is physically performed in Thailand, that income could be considered Thai-sourced income. Some digital nomad visas treat it as local sourced income and some as foreign sourced. Thailand seems to treat such income done under the DTV as foreign sourced but I haven't found any official documentation confirming this....I'm wondering if this is a grey area officially? Ideally I would like official confirmation before staying in Thailand on the DTV over 180 days...Anonymous ******************
Anonymous participant Can you describe the "physically performed in Thailand?" Physical services you're offering to foreigners are considered working in Thailand and are strictly prohibited under a DTV (on-site class teacher, tourist guide, tattoos artist, architect, etc.)They are not in a legal "grey zone." However, activities like meeting other foreigners to sign contracts, discuss business are tolerated.
Luit *****************
Anonieme deelnemer Thailand not even sees it as work, because on DTV there still is the remark "work prohibited". And when it is not considered as working in Thailand, the income cannot be local sourced, so until you stay 180 days or more, and bring the money in, you might have to pay tax for it.
Greg ********
Anonymous participant These guys are global tax consultants. This article is useful
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Greg ********
Anonymous participant That is not considered Thai sourced income. You are doing the work online remotely but not for Thai customers or legal entities. Not a great area here. You would only be taxed on that if you are a 1) Thai tax resident 2) it was remitted to Thailand 3) Subject to Double Taxation agreements with source country and if tax was paid elsewhere plus Thai allowances. If you never remitted these earnings to Thailand and you did submit a tax return no need to declare. Hope that clears it up
Anna *********
1. No as with this visa you cannot earn money inside Thailand. 2. Yes only on funds brought into Thailand and again in line with Thai tax rules
Wesley ********
There should be NO Thai sourced income. No one in Thailand should be paying for your services.
Then whatever you do make. What you bring into Thailand should have Thai taxes paid on it, unless you can prove you have already paid taxes in another country, and that country as a double taxation agreement with Thailand.
Then whatever you do make. What you bring into Thailand should have Thai taxes paid on it, unless you can prove you have already paid taxes in another country, and that country as a double taxation agreement with Thailand.
Greg ********
Under current rules number 2. Only if remitted to Thailand. You also need to be a Thai Tax Resident for it ot be assessed and any DTV and allowances taken into consideration. EDIT. What do you mean by Thai sourced income? You woukd need a Work Permit for thst if being paid by Thai customers, clients or companies.
Michael *******
@Greg *******
you may have dividend from thai company, interest saving account, renting condo ..Greg ********
@Michael ******
OK quite exceptional circumstances I would have thought for 99.99% of DTV holder. I will let you answer any questions relating to those.
Marianne ********
When you are in Thailand more than 180 or more days during a calendar year, you need to pay taxes on any income you have made while in the country.
Marianne ********
I stand corrected.
My googled source said any foreign income. Didn't specify remitted or not on the part I read.
My googled source said any foreign income. Didn't specify remitted or not on the part I read.
Michael *******
@Marianne *******
ask chatgpt, and ask it twice. Or go Google and type "pwc thai tax" for a pdf full explaination.
Todd *********
@Marianne *******
lol. Cmon
Nick *******
@Marianne *******
totally incorrect 🙄. You pay taxes on anything remitted into Thailand, and it can be offset to taxes paid in your home country if a DTA is in place with that countryNick *******
unless you can prove you had it in the bank before Jan 1 2024, and that is the money you are using, it will be classed as income
Michael *******
@Nick ******
not anything, only incomeMichael *******
Note, point 8 is large to basically try to include any income ( there is a Grey area about pension as it is not explicitly in the list )
Michael *******
@Luit ****************
not all gift, but "inheritance gift" , under 20 millions baht, yes.Luit *****************
@Michael ******
so you think when you get money in your home country as a gift, and then bring that to Thailand, they will accept you don't pay tax on it?Michael *******
@Luit ****************
and yes, the way you gain money ( the income ) is important, for example gift/inheritance is tax free ( if the amount don't exceed xx millions baht )Michael *******
@Luit ****************
yes, so not anything 😉Luit *****************
@Michael ******
no, you pay tax on any money you bring in, unless you gained it before 2024. The way you gained the money does not matter.
Siggi *******
@Marianne *******
not trueGreg ********
@Marianne *******
No. If I earned money online and it was paid into a UK account and left it there. Never remitted into Thailand. This is neither asessable or taxable. PS: I am a Thai Tax Resident with a TIN and paid taxes here for yearsActivity
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