Destination Thailand Visa: DTV Holders Income Tax Fillings

Thailand’s Destination Thailand Visa (DTV) Program

1. Thailand’s Destination Thailand Visa (DTV) program has become a game-changer for freelancers, remote workers, and digital nomads seeking to work remotely in Thailand. However, the extended periods of stay permitted to holders of the DTV (180 days, plus an extension of 180 days per entry) opens them up to potential tax liabilities in Thailand.

2. What is the Destination Thailand Visa?

The Destination Thailand Visa represents a significant step in Thailand’s efforts to attract global talent and boost its digital economy. Designed for digital nomads, remote workers, and long-term visitors looking to stay in Thailand, the DTV was launched in 2024. This innovative visa program offers a flexible 5-year solution for those wanting to experience the vibrant Thai lifestyle while maintaining their international careers.

In order to take advantage of the evolving needs and preferences of modern travelers, the Thai government has introduced the Destination Thailand Visa (DTV). This visa is designed to attract digital nomads, remote workers, and long-term visitors looking to stay in Thailand long term.

The DTV is also available to other groups as well, including those who want to learn muay Thai and Thai cooking.

The DTV allows the holder to stay in Thailand and work remotely in Thailand. The holders of this visa must work for companies or clients that are located in other countries and they cannot be Thai.

It is important to note that holders of this visa cannot work for a Thai company or do business in Thailand. Employment with a Thai company would require the individual to obtain the correct visa (Non-Immigrant B visa) and a work permit.

This should be a key consideration for applicants interested in applying for the DTV. Thailand has a very broad definition of what is considered work. This wide definition of work means there is a fine line as to what foreigners can and cannot do in Thailand without a work permit. If a foreigner is caught undertaking work without the correct visa and work permit, there is a risk that they will be deported from Thailand and banned from re-entering.

In order to ensure that your proposed activities fall under the scope of the DTV and that you do not engage in any restricted work activities, please feel free to book a consultation with one of our immigration experts here. Our experts can provide feedback to you ensuring you have the correct information to determine whether the DTV is the best suited visa for your needs.

3. What are the Key Features of the Destination Thailand Visa?

The Destination Thailand Visa offers a range of attractive features that set it apart from traditional tourist visas:

• Extended Duration of Stay and 5 Year Validity: The DTV is valid for 5 years and allows holders to stay in Thailand for up to 180 days per entry. Holders of the DTV can extend their stay for 180 days one time per entry.
• Flexible Entry and Exit: The DTV is a multiple entry visa allowing holders to come and go from Thailand as per their needs.
• Eligibility for Spouse/Dependents: DTV holders will also be able to bring their spouses and children to Thailand as dependents. Please note, at the moment there is no information as to whether dependents are subject to extra application requirements. We will keep you updated as to any developments.

4. What are the Eligibility Requirements for the Destination Thailand Visa?

In order to qualify for the Destination Thailand visa, applicants must:

• be at least 20 years old
• be able to demonstrate that they have a stable source of income from remote work or ownership of a business outside Thailand or be enrolled in a qualifying soft power activity such as Muay Thai or Thai cooking.
• be able to provide evidence that they have at least $13,650 (500,000 THB) in a bank account to be used to support themselves throughout their stay in Thailand.
• be able to provide proof of employment or study

5. What are the Required Documents for Applying for a DTV?

The required documents to apply for the DTV visa as a digital nomad are as follows:

• Passport
• Passport Photograph
• Evidence of Financial Assets: Amount of no less than 500,000 THB (the requested amount differs between each Embassy)
• Bank statements, payslips, or a sponsorship letter can act as evidence to support an application.
• Proof of Purpose of Visit:
  • Workcation: Employment contract, employment certificate from your country, or a professional portfolio showing your freelance work.
  • Thai Soft Power: Proof of confirmation to attend the activity e.g. learning Muay Thai or a letter of appointment from a hospital or medical centre. Please note that copies of any agency/school/institution/company documents must be signed by an authorized person and stamped with the agency/school/institution/company seal.
  • Dependent of Primary DTV Holder: Proof of relationship, such as a marriage certificate, birth certificate, or certificate of adoption

Applicants must be aware that any documents in any language other than English or Thai must be translated into English and get the authorization from the company or organisation that provided them.

One final consideration is that the Consular officer handling the application reserves the right to require additional documents, or an interview with the applicant, as deemed necessary, without prior notice.

Please note, that the DTV is still a new visa and therefore, there is still a lot of learning taking place regarding the process and requirements. We have received reports that different embassies and consulates all require different documentation of proofs of finance. For example, certain embassies would like to see 3 months of payslips, while others require 6 months. If you are interested in applying for the DTV, it’s important to be accompanied by experts for a smooth application. For more information about how our experts can help, please see, here.

Destination Thailand Visa Tax Implications for Digital Nomads?

Holders of a DTV should be aware that should they stay in Thailand for an extended period of time, they may become subject to Thai taxation laws and requirements.

Thailand Residency Tax Rules

As per Thai law, anyone who stays in Thailand for over 180 days out of a calendar year is considered a tax resident by the Thai government. This rule applies regardless of the type of visa held, including the Destination Thailand Visa.

For DTV visa holders, it’s important to note that while the initial visa allows a stay of up to 180 days, there’s an option to extend for another 180 days. This extension could potentially trigger tax residency status, making the individual liable to pay Thai taxes on foreign income remitted into Thailand.

In practice a DTV holders, who stays in Thailand for more than 180 days in a calendar year will become a Thai tax resident. Once someone becomes a tax resident they must obtain a tax ID from their local Revenue Department Office and pay tax. This tax will apply to the amount of income transferred by the DTV holder from abroad into Thailand. Such income will be subject to the progressive personal income tax rates from 0 to 35%. For more information about PIT in Thailand, please see the section below and our article here.

Taxable Income in Thailand

As of 2024, Thailand’s Tax Code has undergone significant updates. As per the new regulations the foreign sourced income of Thai tax residents that is remitted to Thailand is now subject to income tax according to Thai PIT Rates.

Please note this is only applicable to income earned and remitted to Thailand after the 1st of January 2024.

This change has important implications for DTV visa holders who become tax residents as since they cannot work for Thai companies or do business in Thailand, all their income would be considered foreign sourced. Therefore, any foreign sourced income remitted into Thailand would be liable for Thai tax (subject to the provisions of any relevant Double Tax Agreements).

Thailand Personal Income Tax

Thailand’s Territorial Tax Policy: One important consideration is that Thailand currently operates a territorial tax system, where only income in Thailand is subject to Thai tax. Therefore, any income generated by a digital nomad while working in Thailand under a DTV that has not been remitted to Thailand is not taxable in Thailand.

For DTV holders staying less than 180 days, the current rule states that only foreign sourced income brought into Thailand is taxable.

Do Double Taxation Agreements Apply?

Double Taxation Agreements (DTAs) play a significant role in managing tax obligations for DTV visa holders. These agreements aim to eliminate the risk of double taxation when an individual operates in more than one country. Thailand has DTAs with numerous countries, including Australia, China, France, Germany, Hong Kong, Japan, the United Kingdom, the United States, and Singapore.

For DTV visa holders, these agreements can provide tax credits or exemptions. If an individual has paid taxes in their home country and that country has a DTA with Thailand, they may be exempted from paying taxes on the same income in Thailand. If tax has been paid in their home country and further tax is owed in Thailand, a tax credit can be obtained. This tax credit will essentially deduct the tax already paid in the home country from the outstanding tax owed in Thailand. This prevents income from being taxed twice.

How can DTVThaiVisa.com help potential DTV Applicants?

One of the major criteria for applying for the DTV is that the applicant’s employer must be outside of Thailand. While freelance work is an acceptable form of employment, many applicants would prefer the security of an actual company, whether for liability issues or tax reasons. We can do a document check and verify all documents before you start the application. Please contact us at consult@dtvthaivisa.com

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