Thailand to start taxing overseas income next year, including from crypto

Regulation

Thailand’s Revenue Department is planning to impose personal income tax on the foreign revenues, including those made from crypto trading, of any person who resides in Thailand for more than 180 days. 

According to the Sept 19 report from the Bangkok Post, the new rule will take effect on Jan. 1, 2024, with the first tax forms, including overseas income to be delivered in 2025.

Under the previous regulation, only the foreign income, remitted to Thailand in the year of earning, was taxed. The new rule closes this loophole and will oblige an individual to declare any income, earned overseas, even if it wasn’t going to be used in the local economy. A Finance Ministry official explained this logic to journalists:

“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 other Bangkok Post sources, the policy specifically targets residents trading in foreign stock markets through foreign brokerages, cryptocurrency traders, and Thais with offshore accounts. 

Related: Second-largest Thai bank creates $100-million AI fund

In July, Thailand’s Securities and Exchange Commission (SEC) obliged digital asset service providers to offer adequate warnings highlighting risks associated with cryptocurrency trading. It has also prohibited any forms of crypto lending services.

However, the trend for tight scrutiny over the crypto industry might change with the recent election of the new prime minister. Real estate tycoon Srettha Thavisin, elected to lead the Thai parliament, participated in a $225 million raise for a crypto-friendly investment management firm XSpring Capital and even issued its own token through XSpring in 2022.

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