Insights

Last year, the Thai Revenue Department (“TRD”) issued Departmental Instructions No. Paw 161/2023 and Paw 162/2023 concerning foreign-sourced income. According to these instructions, any Thai tax resident with foreign-sourced income will be taxed in Thailand when such income is remitted into the country, regardless of when you remit it.

On 15 March 2024, the Board of Investment (“BOI”) published an Announcement No. Sor 2/2024 by virtue of the Investment Promotion Act 1977, to promote investment in digital businesses in response to changing business operations and technology in the digital industry.

As we reflect on the challenges and opportunities of the past year, it's evident that many Thai entities have faced heightened scrutiny through tax audits, particularly amidst requests for tax refunds or company dissolutions. As we embark on 2024, we're gearing up with renewed determination to tackle this challenge head-on. We're excited to announce our initiative to raise awareness surrounding tax audits in these specific scenarios.

On 7 March 2024, the Cabinet agreed and approved the principle of OECD Pillar Two, also known as Global Minimum Tax, and tasked the Thai Revenue Department (“TRD”) with formulating the corresponding legislation.

The Thai government has been developing a new long-term resident visa programme as part of an effort to improve the country’s position as a hub for skilled professionals, and a residence destination for high net-worth individuals. The programme is expected to comprise four new classes of long-term resident visas: (1) professionals living in Thailand but working for an overseas employer, (2) highly skilled professionals employed in Thailand, (3) high net-worth persons, and (4) high net-worth retirees.

Thailand’s visa rules create major inconveniences for certain categories of foreigners. As a provider of Thai business advisory services, we explore these issues and suggest ways to fix the situation.

The Ministry of Commerce recently withdrew its endorsement of Thailand joining the CPTPP over concerns that the trade deal may harm farmers.

As businesses adjust to new realities during the COVID-19 pandemic, changes in transfer pricing and other areas will have significant tax planning implications, which we outline here.

With Thai businesses and citizens tightening their belts amid the COVID-19 economics crisis, we examine whether the Thai government's current tax reduction will provide sufficient help.

To alleviate the economic hardship caused by the COVID-19 pandemic, the Thai government will implement several fiscal and tax policies.

Organisations must be aware of the circumstances in which they are allowed to collect data to comply with Thailand’s Personal Data Protection Act.

This article examines the RCEP trade agreement as it stands in late 2019, while also comparing it to the CPTPP agreement.

With the economic outlook in Thailand less bright than in years past, we look at how the country can find a new way forward for future business success.

As we have seen, Thailand plans to spend money attracting new businesses and tourists, all while lowering personal income taxes. Given such an array of new expenses, the treasury arm of the Thai government would ordinarily come under pressure to balance the budget. Indeed, we have already seen the Ministry of Finance struggling to locate new sources of revenue. Thailand’s Revenue Department has considered plans for imposing taxes on capital gains, casting the tax net wide enough to include on-line operators. Banks will be required to report account holders with high-volume cash transactions in an effort to seal off tax evasion. Plans are in place to increase the tax base – with a target of adding 200,000 new taxpayers per annum.

As the world’s economic engine slows, countries are moving to stimulate their economies by increasing government spending and cutting taxes to inject cash into the domestic economy. Such actions are intended to boost the economy, and prevent it from stalling.

Now that the political climate in Thailand has stabilised, the government is looking to speed up its Free Trade Agreement (FTA) negotiations with key trading partners. Plans include resuming negotiations with the EU and UK post Brexit, as well as talks to join major multilateral FTAs. To be successful in these negotiations, Thailand needs to keep in mind the consequences that non-tariff barriers will have on improving trade as a whole.