Australian Tax for Australians and Founders Living in Thailand

Direct answer: living in Thailand while retaining Australian investments, companies or professional activity requires more than counting travel days. Thailand generally treats an individual as resident when present for more than 180 days in a calendar year, while Australia applies separate residence tests. Foreign income, remittances, CGT event I1, company control, permanent establishments, treaty relief and work authorisation must be coordinated—even where the client has already moved.

What changes for an Australian already living in Thailand

• Thai individual residence generally arises when presence exceeds 180 days in a calendar year.

• Thai residents can be taxed on Thai-source income and on relevant foreign-source income brought into Thailand, subject to the current law, timing and available relief.

• Becoming Thai resident does not automatically end Australian residence. A person can be resident under both domestic systems before the treaty position is applied.

• If Australian residence ceased, CGT event I1 may affect shares, options, private-company interests and other assets. If it did not cease when assumed, earlier returns and foreign-income positions may need review.

• An Australian company can create Thai taxable presence through a founder, fixed place, management activity, projects, services, staff or dependent agents.

• Founder services, payroll, customer contracting, IP, intercompany charges and local contractors should be reviewed with Thai visa and work-permit requirements.

Founder and company decision matrix

1. When did Australian residence cease, if at all?

The review reconstructs the Thai home and intended duration together with Australian family, housing, assets, business authority and return pattern. It should test the position from the actual departure date, rather than accepting a conclusion based only on 180 days or an overseas visa.

2. What income is taxable or remitted in Thailand?

The Thai treatment depends on residence, source, the character of income, when it arose and whether or when it was brought into Thailand. Salary, dividends, business income, capital receipts, loans and company payments should be classified and traced through bank accounts before conclusions are reached.

3. Does an Australian company have a Thai presence?

A founder managing the business from Thailand, a regular home office used commercially, local staff, long service projects or authority to negotiate or sign contracts may create permanent-establishment or registration exposure. Establishing a Thai entity does not automatically prevent exposure of the Australian company.

4. Does prior advice need to be revisited?

Where a client has already moved and has been told simply that overseas days determine residence or that foreign transfers are automatically exempt or taxable, Extax can reconstruct the timeline, test the Australian and Thai positions and identify whether returns, structures or documentation need correction.

Worked scenario: operating from Thailand already

An Australian founder has lived between Bangkok and Phuket for two years and continues running an Australian consulting and technology business. Thai contractors support delivery, the founder signs contracts from Thailand and receives Australian company dividends. The existing accountant has prepared Australian returns but has not analysed Thai residence, foreign-income remittances, CGT event I1 or the company’s Thai presence.

The review must determine the Australian and Thai residence positions from the actual dates, apply the treaty where needed, classify income and remittances, test whether the Australian company has a Thai permanent establishment, and review contractor, payroll, work-permit and transfer-pricing arrangements. The fact that prior returns were lodged does not establish that the international issues were resolved.

Evidence to assemble

• Travel history, Thai visas, leases and the intended and actual duration of the move

• Australian housing, family, assets, professional roles and return pattern

• Founder shares, options, valuations and transactions since departure

• Australian and Thai returns, bank statements and remittance history

• Group chart, board minutes, delegations, contracts and signing authorities

• Employment, contractor, customer, IP, funding and intercompany agreements

• Work-permit, local-office and service-project records

Primary sources

• ATO — TR 2023/1: residency tests for individuals

• ATO — CGT event I1: ceasing Australian residence

• ATO — TR 2018/5: central management and control

• Thailand Revenue Department — personal income tax and residence

• Thailand Revenue Department — Australia treaty, including residence and permanent establishments

Frequently asked questions

Can Extax review my position after I have already moved to Thailand?

Yes. The work can reconstruct the residence and remittance timeline, test earlier advice, review Australian returns and identify the treatment and evidence required going forward.

Does 180 days in Thailand automatically end Australian residence?

No. It may establish Thai residence, but Australia applies separate tests. Both domestic positions and the treaty must be considered.

Is every transfer to Thailand taxable?

No automatic conclusion applies to every transfer. The residence status, source, character and timing of the underlying amount and the current Thai rules must be analysed. Records should distinguish capital, loans, dividends, salary and business receipts.

Review an existing or proposed Thailand position

Extax can review a proposed move or an arrangement already operating from Thailand, including Australian residence, CGT event I1, Thai residence and remittances, treaty relief, company control, permanent establishments, work authorisation and transfer pricing.

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Extax Oceania

Ex Big 4 | International Tax

Published 28 July 2026. Technically updated 28 July 2026.

Extax leads or coordinates the Australian tax analysis. Thai legal, immigration, regulatory and tax advice must be provided or confirmed by appropriately qualified Thai advisers. This page is general information only.