Current Status: Proposal on Hold
Legislative Status
The proposed “two-year remittance” tax exemption has not been enacted. For the 2025 tax year, the current foreign income tax rules remain fully in force.
Political Context
Following the dissolution of the House of Representatives, all pending legislative matters—including this specific proposal for personal income tax relaxation—are effectively paused. The Economic Cabinet’s agenda is suspended pending the formation of a new government.
Timeline & Expectations
General elections are officially set for February 8, 2026. Consequently, no further updates or clarity on tax amendments are anticipated until after the elections are concluded and a new cabinet is formally appointed.
Bottom Line for 2025 Filings
Tax residents should proceed with their 2025 tax planning based on the existing rules. Relying on the draft proposal is not advisable, as the legislative timeline remains dependent on the incoming administration.
Background: The 2025 Foreign Income Tax Proposal
The proposal to relax foreign income tax rules first emerged in May 2025, following a recognition that the stricter rules implemented in 2024 had discouraged capital inflows. Initial reports from publications like Thai Rath (TH), Bangkok Post (EN), and Bangkok Biz News (TH) outlined the core of the plan: to exempt foreign-sourced income from personal income tax if it was brought into Thailand within two tax years of being earned.
The plan gained significant momentum on August 4, 2025. Citing Revenue Department Director-General, Mr. Pinsai Suraswadi, the Bangkok Post and Thai Post confirmed that the department was initially aiming to finalize the legislation within 2025. The intended start date was January 1, 2026, with reports also mentioning the possibility of the law being applied retroactively.
Mr. Pinsai stated that the primary goal was to stimulate the Thai economy by incentivizing the repatriation of an estimated 2 trillion baht in offshore assets. He noted that while this might lead to a loss in tax revenue, the broader economic benefits were the administration’s priority at the time.
Current Rules on Foreign Income
Under Revenue Department Order No. Por. 161/2566, which took effect on January 1, 2024, Thai tax residents must pay personal income tax on any foreign-sourced income brought into Thailand — regardless of when the income was earned. Tax is imposed at progressive rates from 5% to 35%.
Shortly before this rule came into force, Order No. Por. 162/2566 (issued November 20, 2023) confirmed that income earned before January 1, 2024 remains exempt, even if remitted later. This grandfathering provision is still in effect.
👉 Read more about foreign-sourced income rules in this section
👉 Or view our complete guide to Thai personal income tax
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Proposed Amendment: Tax Exemption for Timely Remittance
According to Mr. Panuwat Luengwilai, Deputy Director-General of the Revenue Department, a royal decree was being drafted to introduce a clear exemption window for foreign income. Under the proposed rule, foreign-sourced income would be exempt from Thai personal income tax if remitted into Thailand either in the year it was earned or the following year.
Example (illustrative only):
• Income earned in 2025 and remitted in 2025 or 2026 = ✅ tax-free
• Income remitted in 2027 or later = ❌ taxed at normal progressive rates
The proposed change aligns with the policy direction of Finance Minister Pichai Chunhavajira, who has emphasized the importance of attracting offshore income to support domestic investment. Authorities acknowledge that the 2024 rules discouraged many individuals from remitting foreign earnings, thereby limiting capital inflows into the Thai economy.
In a later statement published by Bangkok Biz News (TH) on May 26, 2025, Revenue Department Director-General Mr. Pinsai Suraswadi confirmed that the exemption would apply if the income is remitted within two tax years from when it arises. He also indicated that a ministerial regulation, not a royal decree, may be the legal instrument used — though this has not yet been finalized.
The exemption is expected to be introduced through secondary legislation, following Cabinet approval and legal review.
Applicability to Expats and Foreign Residents
Although Thai Rath and Bangkok Post refer to “Thais with foreign income,” Thailand’s personal income tax system is based on residency, not nationality. Under Section 41 of the Thai Revenue Code, anyone who resides in Thailand for 180 days or more in a calendar year is considered a Thai tax resident — regardless of citizenship.
Unless the final legislation introduces specific exclusions (which is unlikely), the proposed exemption should apply equally to all tax residents, including expatriates and other foreign nationals who meet the residency threshold. This is consistent with Thailand’s long-standing principle of non-discrimination in tax law.
Final Thoughts
The proposed relaxation of foreign income tax rules remains a draft proposal and is not in force. The legislative process is currently suspended following the dissolution of Parliament. Consequently, all tax planning for the 2025 tax year must adhere to the current rules (Order Por. 161/2566) that have been in effect since January 1, 2024.
With general elections scheduled for February 8, 2026, no further legislative updates are expected until a new government is formed. We advise against basing any financial decisions on the draft proposal. We continue to monitor the situation closely.
If you have questions about your tax obligations under the existing framework, please contact us for guidance.
