Thailand’s Revenue Department launches a foreign tax credit tool for individuals with foreign income

Foreign Tax Credit (FTC) calculation tool 

Four key eligibility checks for using the FTC calculation tool 

1. Are you an individual? 
2. Have you stayed in Thailand for more than 180 days in the tax year? 
3. Do you have foreign-sourced income earned from 1 January 2024 onwards in a country that has a Double Tax Agreement (DTA) with Thailand? 
4. Have you remitted the foreign-sourced income into Thailand from 1 January 2024 onwards? 

If yes, you may use the tool. A calculation tool is available to help eligible individuals compute their FTC on foreign-sourced income. 

How the tool works, and what you need?

The tool determines the allowable FTC by comparing the foreign tax paid on remitted income with the calculated credit, in line with DTA principles. Under these rules, a Thai tax resident may claim a credit for foreign tax paid against Thai tax on the same income, subject to a cap. The allowable FTC is limited to the lower of 

1. the foreign tax paid on the remitted income; and 
2. the maximum credit allowable under Thai law (credit limitation). 

To use the FTC calculation tool, taxpayers are required to input key information relating to their foreign-sourced income and tax position, including: 

• The year in which the income was earned 
• The type of foreign income, classified under Section 40(1) to 40(8) of the Thai Revenue Code 
• The total amount of foreign-sourced income 
• The foreign tax paid on such income 
• The assessable income in Thailand 
• The Thai tax payable 
• The amount of foreign income remitted into Thailand 

For calculation purposes, the foreign income must be converted into Thai Baht using either the commercial bank exchange rate or the Bank of Thailand reference rate on the date of remittance.  

How to report your FTC? 

After completing all three sections, the total allowable FTC from foreign income will be displayed. This amount should be reported in the Personal Income Tax Return (PND 90 or PND 91) as follows: 

• PND 90: “Tax Calculation” section → “Foreign Tax Credit” 
• PND 91: Section A → “Foreign Tax Credit” 

For taxpayers filing via the e-Filing system, the FTC amount will be calculated and populated automatically. 

Preparation before claiming foreign tax credit 

Before claiming a foreign tax credit, taxpayers must prepare all relevant documents as evidence of foreign tax payment and remittance of income into Thailand for verification by the tax authorities including: 

• The foreign income tax return that was filed and paid in the foreign jurisdiction 
• A foreign withholding tax certificate 
• Proof of tax payment or official tax receipts from the foreign country 
• Evidence of remittance into Thailand, such as a bank transfer slip 

Reference (in Thai): 

• Foreign Tax Credit Calculation Tool (Personal Income Tax). Retrieved from the Revenue Department.