The new tax policies are to apply from January 2024. These taxes are believed to be targeting nomads, which is a community of individuals that has been slowly evolving over the past 10 years. This group of people have no tax ID anywhere in the world. The other group of people who will be affected by this change in taxation are Thai registered tax residents who create income from overseas investments.
For the average foreigner who receives a pension payment from overseas, this new tax policy shouldn’t affect them as long as they are a registered tax resident in their home country. For many foreigners their tax residency is being challenged by new banking policies. Many banks around the world are now closing personal bank accounts if the account holder is not resident in their home country for at least 6 months in any 12-month period.
How they are going to implement the collection of these taxes is also very unclear. At present there are many requirements from the Thai revenue department for a foreigner to become a Thai tax resident. Another question with no apparent answer for now is, when they do contact you, will the Thai revenue department accept your tax return from your home country in line with the double tax treaties signed between Thailand?
Unfortunately there are more questions than answers for now. Therefore, we can only wait in anticipation to learn how this new tax policy could affect our lives.