According to the Revenue Department’s directives ref. Por. 161/2566 dated September 15, 2023, and ref. Por. 162/2566 dated November 20, 2023, guidelines have been established for officers to advise individual taxpayers with income from abroad. Under the Resident Rule, individuals living in Thailand for more than 180 days in a year and earning income from abroad will be affected by these guidelines starting January 1, 2024.* From this date, individuals residing in Thailand and earning income from abroad must include this income in their personal income tax calculations at a progressive tax rate (5% - 35%). This new law has raised concerns among investors holding foreign investments.

In this article, the SCB Wealth Planning and Family Office offers the following offshore investment advice:

1. Invest in Funds Registered Under Thai Law That Invest in Foreign Assets:  This type of investment is considered domestic. Profits and capital gains are tax-exempt, while dividends are subject to a 10% withholding tax (Final Tax), which does not need to be included in the personal income tax return. Taxpayers will not be entitled to a tax credit or refund for this dividend income.
2. Invest in Depositary Receipts (DRs) or Fractional Depositary Receipts (DRx): This option allows investment in foreign stocks or units through Thai platforms like InnovestX. It is considered a domestic investment, and the personal tax burden will be the same as in No. 1.
3. Change the Investment Format from an Individual to a Legal Entity Registered Abroad: This option may be complex and requires a clear understanding of international taxes.
4. Change the Investment Format from an Individual to a Legal Entity Registered in Thailand: Setting up a company to invest abroad results in a corporate income tax burden of 20% of net profit, which is lower than the highest individual tax rate of 35%.