Income tax exemption long stay visa
A man walks past a billboard on Sukhumvit Road, Bangkok. (File Photo: Bangkok Post)
The cabinet approved personal income tax exemption for three groups of foreign taxpayers: high earners, retirees and those who wish to work remotely from Thailand, Finance Minister Arkhom Termpittayapaisith said.
Mr Arkhom said on Tuesday that recipients would be considered investors in Thailand, as required by the government by offering them long-term residency (LTR) visas.
The first group must invest at least 500,000 US dollars (16.35 million baht) in government bonds, real estate or otherwise in the form of foreign direct investment. They must have amassed at least $80,000 in income over the past two years and have $1 million in assets.
Foreign retirees must be at least 50 years old, have an annual income of $40,000 or more, and invest $250,000 in government bonds or real estate.
Professionals interested in working remotely from Thailand must demonstrate that they have an annual income of at least $40,000, a master’s degree or higher or intellectual property rights, and five years of experience in a research field.
However, a fourth visa-eligible group would be taxed.
Digital Services Experts must work for SET-listed companies or have worked for at least three years in private companies that generate revenues of $50 million per year or more.
This group is considered highly skilled professionals. They are required to work in targeted industries or as academic experts in universities or state agencies.
“However, if [the last group] earns income once in Thailand, they are liable to pay personal income tax at the normal rate,” Mr Arkhom said.
Traisulee Traisoranakul, deputy government spokesperson, said the finance ministry had signaled to the cabinet that the government would not lose any revenue from the plan as the three groups pay no taxes here at present.
However, the government stands to gain by levying a 17% personal income tax on certain highly skilled professionals, she said.
Arkhom said the economic stimulus and investment measures will help attract high-potential foreigners to Thailand. Wealthy foreigners and experts will be encouraged to work in the country.
“(High-potential foreigners) will help broaden the personal income tax base, stimulate domestic consumption and investment, and improve the country’s competitiveness, which will contribute to economic growth. It It is expected that one million foreigners will stay in Thailand,” the finance minister said. .
The Home Office proposals provide for LTR visas for up to four family members, including children up to 20 years old.
Visas will be valid for five years and renewable for up to five years, with a final cap of 10 years. Visa holders will have to pay an annual fee of 10,000 baht and declare their residential address once a year.
After receiving the visa, foreigners can apply for a work permit.
The National Economic and Social Development Council (NESDC) predicts the policy will attract one million arrivals in five years, generating 1 trillion baht in revenue.