Tax Alert: New visa policies rolled out – Thailand

Tax Alert: New visa policies rolled out – Thailand

EY has recently issued a Tax Alert detailing the new visa policies rolled out by the Thai government. These policies, legalised and announced in the Royal Gazette on July 15, 2024, have significant implications for travelers and businesses. Key changes are as follows:

1. Extended List of Countries Eligible for Visa Exemption (60 days)

According to the new list, the number of countries eligible for this Visa Exemption scheme now stands at 90.

• Nationals of these countries can enter Thailand with a valid passport. As best practice, the passport should not be less than 6 months from date of expiry.
• Upon entry to Thailand, travelers will be granted a 60-day stay with an option to extend for another 30 days (in-country), totaling 90 days. The extension is granted at the sole discretion of the immigration officer
• The key element of this revision is that holders of Visa Exemption are allowed to enter Thailand for the purposes of tourism, conduct business engagements, or urgent work/adhoc work. Previously, travelers needed to apply for a Non-Immigrant “B” Visa at the Thai Embassy prior to entering Thailand for business activities.
• It is worth noting the authorities have yet to define the perimeters of business engagements. However, if individuals are entering Thailand to perform urgent work/ad-hoc work that falls into any of the 17 types of activities (please refer to Annex 2 below), they must apply for the Urgent Work Permit (UWP) with the Department of Employment after entering Thailand with the Visa Exemption.

2. Extended list of countries eligible for Visa on Arrival (VOA)

• Nationals of the countries on the list can now enter Thailand with a VOA and will be granted a 15-day stay with an official fee of THB 2,000 per person.
• VOA holders are not allowed to conduct business activities.
• In case of duplication of countries eligible for Visa Exemption, the traveler is eligible for the 60-day Visa Exemption.

3. Introduction of Destination Thailand Visa (DTV)

• The objective of DTV is to position Thailand as an attractive place for individuals to stay long term. The following individuals are eligible for DTV:
  • Digital Nomads/Remote Workers/Freelancers
  • Participants in activities such as Muay Thai courses, Thai cooking classes, sports training, medical treatment, seminars, and music festivals
  • Spouses and dependents (under 20 years of age) of DTV holders.
• The DTV granted is valid for 5 years (multiple entries) and each entry to Thailand will be granted a 180-day period of stay. An in-country extension can be applied for, allowing individuals another 180 days stay for a maximum total stay of 360 days
• DTV holders are required to depart Thailand and re-enter to be granted another 180-day stay with the same DTV Visa within the visa validity period.
• It should be noted that the visa validity period (5 years) is different from the period of stay (180 days granted at the port of entry).
• It is recommended that individuals check the expiry date of their passport prior to applying for the DTV as the visa will be granted up to the expiry date of the passport.

4. Introduction of Non-ED Plus Visa for international students

• International students studying at universities in Thailand at the bachelor’s degree level or higher can now extend their visa for 1 year to enable them to seek employment in Thailand post-graduation.
• Upon obtaining employment, graduates can then apply for a Non-Immigrant B Visa, which allows them to apply for a work permit with the Ministry of Labour.

Implications for Our Members

For companies with remote work policies, the DTV provides an attractive alternative in retaining talent and offering flexibility with work locations.

It is important to note that there may be tax implications arising from such arrangements for both individuals and corporations. The Revenue Department has not provided any specific tax schemes under these new visa rules on the taxability of individuals working in Thailand but receiving payment from overseas countries. Hence, under current legislation, such income would be considered as Thai sourced and subject to tax in Thailand.

Companies should also consider the role of the employee and whether their activities generate Thai sourced income on their behalf, which may trigger additional tax implications.

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