Thailand will implement measures to tighten tax rules on overseas income as part of efforts to reduce income inequality as well as raise revenue to pay for initiatives to stimulate its economy.
Accordingly, the Thai Ministry of Finance’s Revenue Department recently introduced more stringent rules concerning overseas income.
The new regulation, slated to be enforced from January 1, 2024, allows authorities to levy taxes on the foreign income of individuals who have resided in Thailand for a minimum of 180 days within the specified assessment year.
Legal experts said that the policy specifically targets residents trading in foreign stock markets through foreign brokerages, cryptocurrency traders and Thais who have been exploiting a loophole that allowed them to bring foreign earnings into the country tax-free after keeping it in an offshore account for more than a calendar year.
There is concern among experts that the new policy may alienate private bankers and financial institutions, who might consider the regulatory environment in Thailand to be too uncertain or onerous, local media reported.
While the Revenue Department’s new policy aims to increase revenue by closing existing tax loopholes, the potential fallout could be significant, experts said.
The guidelines complicate the conduct of businesses, create barriers to effective enforcement, and raise questions about their ultimate impact on the economic and social fabric of Thailand, they noted.
Source: Vietnam News Agency