Many expats are either exempt from paying taxes in their home country or benefit from certain tax exemptions.
For instance, Americans living full-time in Thailand can qualify for a foreign earned income exclusion of up to $126,000 against federal taxes. The significant shift now is that Thailand may start taxing that income directly, which could amount to a substantial figure, especially for those working remotely—sometimes exceeding 1 million THB annually.
Additionally, expats from countries that waive all tax obligations if they live abroad for a certain period may face even steeper costs, potentially amounting to several million THB per year.
Many have chosen Thailand as their home specificly because of the lack of taxation on worldwide income.
However, for expats from countries without such exemptions, the impact of Thailand’s tax policies might be minimal.