Navigating the tax implications of working remotely in Thailand

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Navigating the tax implications of working remotely in Thailand

Sponsored by

hlb-thailand-2.png
thailand-2113685.jpg

Paul Ashburn and Anna Selina De Vera of HLB Thailand say new tax legislation may be needed for Thailand to cement its attractiveness as a remote working base and build on the long-term resident visa scheme.

In recent years, the concept of remote working has transcended traditional boundaries, offering individuals the freedom to work from virtually anywhere in the world. Employers are realising, too, that by leveraging technology, they can access talent across the globe in a hybrid working world.

Among the many destinations that have emerged as magnets for foreigners and, more recently, digital nomads, Thailand stands out as an exceptional choice. With its captivating landscapes, rich cultural heritage, and modern infrastructures, Thailand has become an attractive destination for foreign workers seeking to combine productivity and adventure.

New visa class to attract remote workers post pandemic

Thailand’s laws have traditionally been structured around more conventional work arrangements and business activities. However, that changed with the introduction of the long-term resident visa scheme, or LTR visa, in September 2022.

One of the four types of LTR visa offered is a work-from-Thailand professional visa, which aims to attract foreign workers to work remotely from Thailand, and at the same time allow them the flexibility to travel to and from the country as they wish, without the need to relocate to Thailand on a permanent basis.

To obtain an LTR visa, there are minimum income requirements to be met and the applicant must have at least five years’ work experience in a field relevant to their current employment in the last 10 years.

In addition, their foreign employer needs to be a public company listed on a stock exchange, or if it is a private company, it must have been in operation for at least three years and have total combined revenue of more than $150 million in the last three years.

Taxation of remote workers in Thailand

Under Thailand’s Revenue Code, individuals are liable to personal income tax in Thailand in respect of income received from a post held in Thailand, regardless of whether such income is paid in or outside Thailand and regardless of whether the individual is a Thai resident.

Moreover, if one is considered a tax resident of Thailand, as a result of being present in the country for a period of 180 days or more in a year, income from an employment abroad that is brought into Thailand within the same tax year would be subject to Thai income tax.

A tax exemption has been introduced for work-from-Thailand professional LTR visa holders in respect of income from an employment abroad that is brought into Thailand.

There are no guidelines on whether foreigners working remotely in Thailand for a foreign employer will be considered to have employment or a post held in Thailand, and therefore possibly be liable to tax.

Thailand has double taxation agreements (DTAs) with over 60 countries and jurisdictions, including Australia, China, France, Germany, Hong Kong, Japan, the UK, the US, and Singapore.

The general rule for the taxation of employment income under these agreements is that the income will be taxable in the country where the employment is exercised; i.e., where the employee is physically present when performing the activities for which the employment income is paid.

An exception to this rule applies if the employer is a foreign company and does not have a permanent establishment in Thailand. In such a case, the employee will not be subject to Thai tax on income from their employment performed in Thailand if they are in Thailand for less than 183 days or similar in the relevant period.

Managing risks for foreign employers

Thailand’s Revenue Department has yet to issue guidelines on the taxation of foreign employers with staff working remotely in Thailand.

The Revenue Code does not stipulate a minimum period that an employee must spend in Thailand before they could be deemed to create a taxable presence for their foreign employer.

An applicable DTA helps to provide more certainty. Under Thailand’s DTAs, in general, business income derived from activities performed in Thailand by a foreign enterprise would not be subject to Thai income tax if the enterprise does not have a taxable permanent establishment in the country.

Despite the presence of a DTA, certain ambiguities have to be considered. The concept of a ‘fixed place of business’ test, as outlined in any DTA, raises questions regarding whether an extended stay in a ‘home office’ in Thailand constitutes a sufficient degree of permanence to create a taxable presence.

The duration of the employee's presence in Thailand could also impact the potential establishment of a permanent presence. In certain situations, it might be prudent for a foreign remote worker in Thailand to limit their stay in the country to help to mitigate the risk of creating a taxable presence for their employer.

Potential tax reforms

While Thailand has made strides in accommodating remote work with its introduction of new visa categories, the government may need to consider issuing guidelines on the tax obligations of remote workers and their foreign employers, to further attract foreign professionals to choose Thailand as their base.

more across site & shared bottom lb ros

More from across our site

Ascoria’s chief revenue officer shares her career wisdom garnered from the disparate worlds of tax technology, electric cables, radio DJing and more
Businesses no longer have a choice when it comes to tax technology transformation. Pavlo Boyko of TMF Group says the question is simply: sink or swim?
The firm is hunting for a senior TP manager in its quest to build a full-service practice in Indonesia, A&M Tax’s Jakarta head Jaap Zwaan tells ITR
With a new government in place, the evolving tax landscape presents both opportunities and challenges for taxpayers
Major economies have expressed concerns, with China arguing a US global minimum tax exemption would be a violation of the principle of fair competition – ITR understands
Senator Richard Colbeck told ITR he was concerned by the decision to let PwC Australia tender for government contracts again after a scandal-induced ban
Whether it be due to a fragmented advisory market or a rise in M&A, Italy’s frenetic hiring has not gone unnoticed by ITR’s Talent Tracker
The deal gives Azets 14 new partners and boosts its Swedish revenues to over $100 million; in other news, Svalner Atlas launched in Copenhagen
The tax technology company will be providing a free demonstration of its OTP software and offering best practice advice on whether to ‘buy or build’ on September 8
Johanes Glorinus Saragih of Indonesia’s Directorate General of Taxes outlines the nation’s delicate geopolitical situation, as it sits between a rock and a hard place with the US and pillar two
Gift this article