Thailand’s Revenue Department has announced its intention to impose personal income tax on earnings generated abroad, a move that includes income from cryptocurrency trading, for individuals residing in Thailand for a period exceeding 180 days. According to a report published on September 19 by the Bangkok Post, this new regulation is scheduled to come into effect on January 1, 2024. The first set of tax forms, which will encompass declarations of overseas income, will be introduced in 2025.
This development marks a significant change from the prior regulation, where only foreign income remitted to Thailand in the same year it was earned was subject to taxation. The updated rule, however, closes this loophole, making it mandatory for individuals to report any income earned abroad, irrespective of whether they intend to use it within the local economy. A Finance Ministry official explained the rationale behind this decision, 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.”
Sources from the Bangkok Post have further clarified that this policy primarily targets residents involved in foreign stock market trading through foreign brokerage firms, cryptocurrency traders, and Thai individuals with offshore financial accounts.
It’s worth noting that the Thai Securities and Exchange Commission had earlier mandated that digital asset service providers provide adequate warnings highlighting the risks associated with cryptocurrency trading. Additionally, they had imposed a ban on various forms of crypto lending services.
However, the approach to regulating the cryptocurrency industry in Thailand could potentially shift with the recent election of the new prime minister, Srettha Thavisin. Notably, Thavisin, a real estate magnate, played a prominent role in raising $225 million for a crypto-friendly investment management firm, XSpring Capital, and even issued its own token through XSpring in 2022.