important details have been marked by the editors, but this does not mean that this is final.

On 27 February 2024, a meeting took place between Swiss Ambassador Pedro Zwahlen, Swiss Ambassador to Thailand, and Khun Nathanan Junprateepchai from the Legal Department of the Thai Revenue Department as well as representatives from other departments of the authority, including the Tax Policy and Planning and International Tax Departments.
Ambassador Zwahlen explained that the meeting would take the form of a dialogue between him and Khun Nathanan. The ambassador further explained that the Swiss Embassy decided to organise the online seminar after the Thai Ministry of Finance announced changes to the Thai tax system regarding foreign income on 15 September 2023.
tax system in relation to foreign income. According to Department Instruction (D.I.) No. 161/2566, a Thai resident who receives or earns taxable income from abroad is subject to income tax if he or she brings that income into Thailand in a calendar year beginning on or after 1 January 2024.

The Ambassador explained that the aim of the online seminar was to provide an overview and general information about this new regulation and its impact on Swiss nationals living in Thailand. The discussion should also serve to clarify important questions about the changes in the tax system and improve the general understanding of Swiss citizens in Thailand of the new situation. Prior to the seminar, the Embassy had received over 200 questions from the Swiss population and the Ambassador thanked all those who had submitted their questions in writing. He explained that it would not be possible to answer all the questions during the seminar and that the Embassy would not be able to respond to specific individual cases or provide personalised tax advice. The Embassy has therefore grouped the questions and identified 17 key questions to cover the main areas of interest and concern. The Ambassador encouraged all citizens to actively seek information and support to understand their individual tax situation based on the knowledge provided in the seminar. Below is a summary of the questions and answers during the discussion between Khun Nathanan (N) and Ambassador Zwahlen:

B) Questions and answers
1 Ambassador Zwahlen (B):
Could you please start by explaining for our audience the reasons for the introduction of the new tax regime?
Khun Nathanan Junprateepchai (N):
The new regulation is not specifically aimed at foreigners. The main reason for this change is that the Thai authorities want to ensure tax equity and fairness between Thai residents who earn income in Thailand and those who earn income abroad. All should be treated equally.
For this reason, Section 41 of the Tax Act has been reinterpreted. So if you are a tax resident in Thailand and earn income abroad and transfer it to Thailand, you will be subject to Thai tax. No distinction is made between Thai citizens and foreigners resident in Thailand.

2. (B): When exactly will the new tax regime come into effect?
(N): The new tax system will come into effect on 1 January 2024. This means that it will apply to income earned abroad from 1 January 2024 and then remitted to Thailand. Income earned before 1 January 2024
are not affected by the new regulation and will not be taxed.

3. (B): How will the new regulation affect foreigners, especially pensioners, in Thailand?
(N): All pension payments received abroad after 1 January 2024 will be taxed in Thailand as soon as they are transferred to Thailand. The double taxation agreement between Thailand and Switzerland (DTA) prevents double taxation
Note from the Swiss Embassy: The Thai authorities do not differentiate between AHV and pension fund payments.

4. (B): What criteria determine tax residence in Thailand?
(N): According to Art. 41(3) of the Tax Act, any person, whether Thai or foreign, who stays in Thailand for more than 180 days within a tax year is deemed to be tax resident in Thailand.

5. (B): How do the changes to the tax regime square with the existing double taxation agreement between Thailand and Switzerland, particularly in relation to pensions?
(N): Article 17 of the double tax treaty between Thailand and Switzerland (DTA) provides that a pension [or similar remuneration] paid to a resident of a contracting state - in this case
any person who stays in Thailand for more than 180 days during a tax year - can only be taxed in that state.
Note from the Swiss embassy: According to the DTA, pensions and lump-sum benefits from the second pillar (pension fund) can only be
only be taxed in the country of residence. AHV pensions are not covered by the DTA and can therefore be taxed in any country under
taxed in any country under national law. Until now, AHV pensions have been taxed neither in Switzerland nor in Thailand (double non-taxation). The same applies to second-pillar benefits, which are not taxed in Switzerland (or, in the case of lump-sum benefits, in Thailand). (taxpayers could apply for a refund of the withholding tax levied in Switzerland) or in Thailand (provided the benefits were
Thailand (provided the benefits were not paid out in the same year).

6. (B): What documentation is required to prove the source and amount of income, including pensions, investments and savings - are any specific formats required?
(N): There is no specific format required. In general, Thai tax authorities trust official documents issued by other governments. Therefore, official documents issued by
Swiss authorities, e.g. withholding tax certificates or tax payments in Switzerland, are useful for filing tax returns in Thailand.

7. (B): Do the documents submitted from abroad have to be in Thai and how is the authenticity and accuracy of the foreign pension income verified?
(N): The official language is Thai. Official documents are also accepted in English. However, documents written in a language other than English must be translated into English or Thai and signed by a Swiss lawyer or similarly authorised person or institution.

8. (B): Are individuals taxed separately or jointly depending on their marital status and how does this affect the taxation of pensions and other income?
(N): This depends on the individual situation of each couple. Each couple can decide whether they want to be taxed jointly or separately. This is independent of the adapted regulation in Art. 41.

9. (B): Are there categories of expenses that can be deducted from new taxable income (e.g. health expenses, insurance, charitable donations)?
(N): Yes, there are deductions. For example, the personal allowance is THB 60,000. The allowance for the spouse is also THB 60,000. For the first child, the allowance is THB 30,000, for the second child
60,000 THB. The allowance for health insurance is THB 100,000.

10. (B): Does the new tax regime affect visa requirements for foreign residents - specifically, whether visa requirements require proof of tax compliance, and how does this affect long-term visa holders, including retirees?
(N): For example, if you apply for a visa or work permit in Thailand, a copy of your tax return will be required. This means that you must file a tax return in Thailand and then submit a copy of it when you apply for a visa or work permit.

11. (B): Are the effects the same for the different visa categories? For example, do the same conditions apply to holders of special visas such as Thailand Elite and Long-Term Resident (LTR)?
(N): Thailand offers tax incentives to foreigners who are eligible for special visas such as LTR. If you have an LTR visa, you will receive special tax treatment. If you belong to this category
your income from abroad is tax-free when you bring it to Thailand. Wealthy global citizens, wealthy retirees and professionals working from Thailand are eligible for an LTR visa.

12. (B): How is income from investments, including dividends, interest and capital gains, taxed and what evidence is required to prove that tax has been paid in another country?
(N): First of all, investments or income earned before 1 January 2024 are not taxable, regardless of when they are repatriated to Thailand (unless they were brought in during the same tax year in which the income was earned),
in which the income was earned). However, income earned abroad after 1 January 2024 is subject to Thai tax when it is repatriated to Thailand. This includes income from investments, be it dividends or interest earned abroad, income from sales, or capital gains. The tax is due when the income is transferred to Thailand. If a person resident in Thailand pays tax in Switzerland on income earned in Switzerland and can prove this to the Thai authorities, Thailand will take this payment into account and only levy tax if the tax rate applied in Thailand is higher than that applied in Switzerland (tax credit). If both countries apply the same
If both countries apply the same tax rate to a certain category of income and the tax was paid in Switzerland, no tax will be levied in Thailand on the same income.

(B): This means that foreign taxpayers in Thailand must in future keep and prepare complete documentation in Thai or (translated into English) that proves the income earned abroad and, if applicable, the taxes already paid in the source country.
income earned abroad and, where applicable, the taxes already paid in the source country. Overall, it becomes even more important to keep income and tax records in order.

13. (B): How are inheritances and gifts taxed if they originate abroad and are remitted to Thailand?
(N): Thai law provides for tax exemptions, for example, for gifts to relatives in ascending or descending line or for maintenance payments to spouses and children. In these cases, up to
20 million THB per year are tax-free. Exceptions are also provided for payments to persons who are not
relatives in the ascending line, descendants or spouses if they serve a moral purpose or are in accordance with customary practice (maximum tax-free amount = THB 10 million).
14. (B): Is there an online portal for tax filing and does it cater to the specific needs of foreign residents, including language options and user support?
(N): Yes, there is an online portal that any taxpayer can access to file their tax return.
 However, it is in Thai. However, to accommodate foreign taxpayers, further language options will be
language options will be available in the near future.
15. (B): What is the deadline for filing the tax return and what are the consequences if the taxpayer is unable to meet this deadline? Can this deadline be extended?
(N): The deadline for filing the tax return under the new regime is 31 March 2025 (tax return for income from abroad in 2024). This deadline can be extended by 8 days.3 After expiry of this
deadline, surcharges will apply.
Note from the embassy The deadline extension applies to all taxpayers who submit their tax return via the official online portal (e-filing). It is not necessary to apply for an extension.
However, it is in Thai. However, to accommodate foreign taxpayers, further language options will be
language options will be available in the near future.

15. (B): What is the deadline for filing the tax return and what are the consequences if the taxpayer is unable to meet this deadline? Can this deadline be extended?
(N): The deadline for filing the tax return under the new regime is 31 March 2025 (tax return for income from abroad in 2024). This deadline can be extended by 8 days.3 After expiry of this
deadline, surcharges will apply.
Note from the embassy The deadline extension applies to all taxpayers who submit their tax return via the official online portal (e-filing). It is not necessary to apply for an extension.

16. (B): How does the tax system accommodate taxpayers with special needs, e.g. older people or people with health restrictions, when filing tax returns and claiming tax exemptions?
exemptions?
(N): The regional branch offices of the tax office provide information on how tax returns can be submitted without prior registration. Every taxpayer needs a tax number. This can also be obtained from the
regional office of the tax office. The following applies to senior citizens: Taxpayers who are 65 years or older receive an allowance of THB 190,000 on their taxable income. For example, if you receive THB 500,000 in pension income from Switzerland, your taxable income will be reduced by THB 190,000. This also applies to persons with a disability that is recognised by the Thai authorities.

17. (B): Where and how can citizens and expatriates contact the Thai government for clarification, information and assistance regarding tax regulations, registration procedures and
other tax matters? For example, is there a dedicated office, website or call centre that concerned citizens can contact with specific questions?
(N): As of 1 January 2024, the Thai government has published specific guidelines and a Q&A document in Thai. These resources will soon be available in other languages. There is also a dedicated call centre to answer questions in English. The telephone number is 1161.