What are the tax implications for UK directors on a DTV visa working remotely in Thailand?

The Destination Thailand Visa (DTV) grants legal permission to live and work remotely in Thailand, but it carries no tax exemptions.

Your tax liability in Thailand depends strictly on physical day counts and income remittance rules:

1. The 180-Day Tax Residency Rule:

* Under 180 days per calendar year: You remain a tax non-resident in Thailand. You will owe zero Thai tax on foreign-sourced earnings (salary or dividends from the UK Ltd), regardless of whether you bring money into the country.

* 180 days or more per calendar year: You become a Thai tax resident for that tax year (January 1 – December 31).

2. Thai Taxation on Foreign Remittances (Revenue Order Por. ):

As a Thai tax resident, Thailand operates on a remittance-based system for foreign-sourced income:

* Offshore funds: Income kept outside Thailand in a foreign or UK bank account is not taxable in Thailand.

* Remitted funds: Any assessable income (salary or dividends earned after January 1, 2024) transferred into Thailand (via bank wire, ATM withdrawal, or local spending) is subject to Thai Personal Income Tax (progressive brackets from 0% to 35%).

3. Corporate Tax Risk: Permanent Establishment (PE)

Because you are both directors managing and directing the UK business while physically living in Thailand, Thai Revenue could argue that the company’s "place of effective management" has shifted, creating a Permanent Establishment (PE). If deemed a PE, the UK Ltd's profits could become subject to Thai Corporate Income Tax (20%).

4. UK-Thailand Double Taxation Agreement (DTA)

* The UK-Thailand DTA prevents the same income from being taxed twice, allowing tax credits to be claimed in the country of residence for taxes paid abroad.

* UK tax residency depends on the HMRC Statutory Residence Test (SRT). If you lose UK tax residency, director salary for duties performed abroad and dividends are treated differently under UK non-resident rules.

To give you more tailored advice, what is your planned duration in Thailand per calendar year, and will you remain UK tax residents under HMRC's Statutory Residence Test?

once you're in thaiiland 180 days a year you become a thai tax resident but if you're already paying income tax in uk you won't need to pay it in thailand as well. Depending on what you're doing You may be able to set up a holding company in Dubao and pay your income tax there if you're beoming a non uk tax resident.

From what I understand, if your personal money is taxed in the UK. You would be able to deduct it from the Thai income remitted tax.

Not sure you would still be a UK tax resident? From what I've heard being a double tax resident can be messy.

Plenty of accountants offer free advice online with the hope you use them for your accounts.

Might be easy to go as a none UK tax resident. And pay Thai tax on the income? The Thai tax allowances are fairly good for the amount of money needed to be remitted to live.

Not much of an answer sorry it's not straightforward. I used chatgpt and the free accountant meetings to learn about my situation.

So you will still pay tax in the UK? If you were tax resident in Thailand your income remitted to Thailand would be assessable. There is a Double Taxation Treaty between UK and Thailand. Any tax paid in the UK would be deductible against the assessable income remitted. If the rate of tax is higher in Thailand than what you paid in the UK then you may be liable for the difference. That is the theory. In practice I very much doubt you will be paying any tax in Thailand unless remitting very large sums into Thailand.