21 November 2023
Further guidance from the Revenue Department on Foreign Sourced Income
On 20 November 2023, the Revenue Department issued Departmental Instruction no. Paw.162 (“DI Paw. 162”), which provides further guidance that the interpretation under the Departmental Instruction Paw.161/2566 (“DI Paw.161”) shall not apply to any foreign-sourced income earned by Thai tax residents before 1 January 2024.
By virtue of this DI Paw. 162, Thai tax residents will not be required to include their foreign-sourced income earned before 1 January 2024 in their personal income tax returns, even if such income will be brought into Thailand from 1 January 2024 onwards.
Mazars observation
The Revenue Department appears to be aware of the challenges encountered by taxpayers from the new protocol concerning foreign-sourced income. DI Paw. 162 resolves the difficulties taxpayers may have in distinguishing assessable income and savings incurred in years before 1 January 2024. Taxpayers with foreign-sourced income, which has yet to be realised, should consider realising income or gains before the end of this year so that such foreign-sourced income will not be taxable if remitted into Thailand on or after 1 January 2024.
Source: https://www.rd.go.th/fileadmin/user_upload/kormor/newlaw/dn162A.pdf
