Thailand plans to tax the overseas income of cryptocurrency traders.

Thailand to tax overseas income of crypto traders.

Author: David Attlee, Cointelegraph; Translation: Song Xue, LianGuai

The Thai Revenue Department plans to impose personal income tax on the overseas income (including cryptocurrency trading income) of anyone residing in Thailand for more than 180 days.

According to a report from the Bangkok Post on September 19, the new regulations will take effect on January 1, 2024, and the first batch of tax forms, including the overseas income tax form, will be delivered in 2025.

According to previous regulations, only foreign income that is remitted to Thailand in the current year is subject to taxation. The new regulations fill this loophole and require individuals to declare any income earned overseas, even if this income is not used for the local economy. A finance ministry official explained the logic behind this:

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“The principle of taxation is that regardless of how you earn it, and regardless of the tax year in which the income is earned, you must pay taxes on income earned from abroad.”

According to other sources revealed to the Bangkok Post, this policy specifically targets residents who trade in foreign stock markets through foreign brokerage firms, cryptocurrency traders, and Thai citizens who have offshore accounts.

In July, the Thai Securities and Exchange Commission required digital asset service providers to provide sufficient warnings, emphasizing the risks associated with cryptocurrency trading. It also banned any form of cryptocurrency lending services.

However, with the recent election of a new prime minister, there may be a change in the trend of strict scrutiny of the cryptocurrency industry. Srettha Thavisin, a real estate tycoon who was elected as the leader of the Thai parliament, participated in a 225 million USD financing round for the cryptocurrency-friendly investment management company XSpring Capital, and even issued his own token through XSpring in 2022.

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