Tax
Remittance basis
A remittance basis taxes a resident's foreign income only when it is brought into the country. Income left abroad is untaxed, which makes the statutory definition of a remittance — and the anti-avoidance rules around it — the operative question rather than the rate.
In plain terms: Foreign money is taxed when you bring it in, and not before.
Why it matters
Malaysia, Thailand and Malta operate versions of this, and the United Kingdom operated one historically. It is weaker than territorial taxation because the definition of a remittance can be extended by legislation or by departmental interpretation, which is exactly what happened in Thailand from 2024.
Common misunderstanding
Assuming a remittance means a bank transfer. Definitions commonly extend to spending on a foreign card in-country, to money used to service a local loan, and to assets bought abroad and brought in.
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