Thailand's Revenue Department plans to implement personal income tax on foreign revenues, including those generated from cryptocurrency trading, for individuals residing in Thailand for more than 180 days. This new regulation will take effect on January 1, 2024, with tax forms, including those for overseas income, to be submitted in 2025. Previously, only foreign income remitted to Thailand in the year of earning was subject to taxation. The new rule will require individuals to declare any income earned overseas, regardless of whether it was intended for local use.
Thailand to Apply Personal Income Tax on Foreign Revenues, Including Crypto, for Residents Staying Over 180 Days
Thailand's Revenue Department is set to introduce personal income tax on foreign revenues, including income generated from cryptocurrency trading, for individuals who reside in Thailand for more than 180 days. This new regulation is scheduled to take effect on January 1, 2024, with the first tax declarations for overseas income expected to be filed in 2025.
Previously, only foreign income that was remitted to Thailand in the same year it was earned was subject to taxation. The new rule closes this loophole and mandates that individuals declare any income earned abroad, irrespective of whether it was intended for use in the local economy. A Finance Ministry official explained this approach, stating, "The principle of tax is that you must pay tax on income you earn from abroad no matter how you earn it and regardless of the tax year in which the money is earned."
According to sources cited by the Bangkok Post, this policy primarily targets residents engaged in foreign stock market trading through foreign brokerages, cryptocurrency traders, and Thai individuals with offshore accounts.
In July, Thailand's Securities and Exchange Commission imposed requirements on digital asset service providers to provide sufficient warnings about the risks associated with cryptocurrency trading. The commission also banned various forms of cryptocurrency lending services.
However, there may be a shift in the trend of strict scrutiny over the cryptocurrency industry following the recent election of Thailand's new prime minister. Srettha Thavisin, a real estate tycoon who now leads the Thai parliament, was involved in a $225 million fundraising effort for the crypto-friendly investment management firm XSpring Capital. Furthermore, Thavisin issued his own token through XSpring in 2022.
(DAVID ATTLEE, CoinTelegraph, 2023)