19/05/2024
(Translation)
Q&A from the Order of Revenue Department No. Por.161/2566.
Re: Payment of Income Tax under Section 41, Paragraph Two, of Revenue Code
Dated on September 15th, 2023.
#1
Question: What is the principle of the Order of Revenue Department No. Por.161/2566?
Answer: the Order of Revenue Department No. Por.161/2566 is the explanation of the article 41 subsection two from the Revenue Code that the person who has the duty to pay the personal income tax from abroad when it reaches as follows:
(1) the person who has the assessable income from abroad in the tax year who stays in Thailand from 180 days and;
(2) the person who has the assessable income from abroad in the mentioned tax year or the next tax year onward.
If both elements above are complete, that person has a duty to bring in the assessable income to be included and calculated to pay the personal income tax in the tax year that imports the assessable income into Thailand.
Example, in the year 2566 (2023), Mr. A lived in Thailand for a total of 200 days. Mr. A has the assessable income from lending the property abroad which received the transferred rental payment in the bank account in Thailand. Thus, in the year 2570 (2027) Mr. A transferred such payment into the bank account in Thailand, Mr. A shall take such assessable income to be included for the tax payment of the personal income tax in the tax year 2570 (2027).
#2
Question: When does the Order of Revenue Department No. Por.161/2566 dated 15 September 2566 (2023) to be enforced?
Answer: The enforcement of the assessable income started from 1st January 2567 (2024) onward no matter what year such income happens.
#3
Question: What is the meaning of the “The person who stays in Thailand”?
Answer: Any person staying in Thailand for a period or periods aggregating 180 days or more in any tax year, no matter whether the period is continued, or many periods together shall be deemed a resident of Thailand.
Example:
• Mr. A stayed in Thailand every day from January to December 2567, a total of 366 days. Mr. A is a resident in Thailand in the tax year 2567.
• Ms. B stays in Thailand only the odds months in the year of 2567, a total of 184 days. Ms. B is a resident in Thailand in the tax year 2567.
• Mr. C stays in Thailand from January to December 2567, a total of 179 days. Mr. C is not a resident in Thailand in the tax year 2567.
• Mrs. D stays in Thailand continued for a period of 250 days which such period the first 100 days stayed in the year 2567, and the last 150 days stayed in the year 2568. Thus, Mrs. D is not a resident of Thailand for both years of 2567 and 2568 regarding Mrs. D stay in Thailand does not cover 180 days for each year.
#4
Question: Which assessable income must be paid by section 41 sub-section two of the Revenue Code?
Answer: The assessable income from abroad that in which enforcement to pay the personal income tax such as the assessable income section 40 (1) to (8) of the Revenue Code. However, for the assessable income that has been exempted by law, the taxpayer shall not have to include the assessable income to be paid in Thailand i.e., inheritance or the accessible income received from parents, a descendant, or a spouse, particularly the assessable income for the part that not exceeding over twenty million THB throughout the tax year.
#5
Question: If the money is taken to purchase a debenture abroad and receive the interest from holding the debenture. Thus, the principle and the interest are brought to Thailand. Accordingly, Shall the principal and interest be included and calculated in personal income tax?
Answer: No. To pay tax for the part of interest according to article 40 (4) (a.) of the Revenue Code that has been brought in Thailand if the tax year receives such interest, such person is the person who stays in Thailand for 180 days.
#6
Question: If the assessable income received prior to the year 2567 (2024) but, has been brought into Thailand in the same year. Shall this pay the tax?
Answer: Yes, this shall pay the tax. If the income that happened in the tax year that person who has stayed in Thailand for 180 days, and has brought the assessable income since 1st January B.E. 2567. The person shall take the assessable income to be paid for the personal income tax in the year 2567, and submit the form to declare the list within March in the year 2568.
#7
Question: If the assessable income received in the year 2566 (2024) has been brought into Thailand in the year 2566. Shall this pay the tax?
Answer: Yes, this shall pay the tax. If the income that happened in the tax year that person who has stayed in Thailand for 180 days, and has brought the assessable income the year 2566. The person shall take the assessable income to be paid for the personal income tax in the year 2566, and submit the form to declare the list within March in the year 2567.
#8
Question: If the person does not stay in Thailand from 180 days onward in the tax year but, there is an assessable income tax from abroad that must pay the personal income tax. When that income is brought into Thailand, shall this pay the tax?
Answer: No, even though the assessable income will be taken into Thailand.
Example: In the year 2571 Mr. A stayed in Thailand for a period of 65 days. Mr. A has an assessable income from renting the property abroad which receives the rental fee in the bank account located abroad, and in the same year, Mr. A transferred such income into the bank account in Thailand. Accordingly, Mr. A shall not pay the personal income tax from Thailand because Mr .A is not the person who stayed in Thailand when the income happened.
#9
Question: If the person stays and works or engages the business abroad for a long time, thus, they want to come back and live in Thailand. Consequently, they have brought the deposit from working or engaging the business abroad. Do they have to pay the tax for importing such deposits in Thailand?
Answer: No. In the case of importing the deposit or engaging the business abroad into Thailand in accordance with the assessable income that happened in the tax year of those who do not stay in Thailand does not reach out to 180 days.
Example: Mrs. D is Thai and has stayed in China since 2550 but, in the year 2567, Mrs. D wants to come back to stay in Thailand permanently. Thus, Mrs. D has brought all the income from engaging the business in China to Thailand. Consequently, Mrs. D does not have a duty to pay the personal income tax for the deposit that was brought in Thailand in 2567 regarding such a deposit came from the assessable income that happened in the tax year that Mrs. D was not in Thailand.
#10
Question: The assessable income has been brought to Thailand and has already paid the tax abroad, does it have to pay the tax again in Thailand? Or it is whether double tax payment?
Answer: There is no double tax payment. In case such a person has an address in Thailand (stay in Thailand for 180 days), this shall take the tax payment abroad to be credited with the tax payment in Thailand by Double Taxation Agreement which Thailand is the party with such country.
#11
Question: The Order of Revenue Department No. Por.161/2566 is not the law, shall the taxpayer be forced to follow the Order or not?
Answer: It is not the law but, it is a description of Article 41 sub-clause two of the Revenue Code. The taxpayer still has the duty to follow the law of tax payment which is the order of the Revenue Department category Por. Is the order from the director general who is the commander to the Revenue Officer to follow the order for advising the taxpayer properly?
