The Thai authorities will introduce new tax rules for foreign income, including that derived from transactions with cryptocurrency assets.
Starting January 1, 2024, all individuals residing in Thailand for more than 180 days will be required to pay tax on personal income derived from sources outside the country, including income from crypto trading. This is reported by the local media.
According to the new rules, the first tax returns, including foreign income, will have to be submitted in 2025. Thus, the Thai government plans to close the loophole used by many non-residents and local traders. Previously, individuals were required to declare only income earned abroad and transferred to Thailand in the year of its receipt. That is, having left the country during the fiscal year, foreign investment income could be undeclared.
A representative of Thailand’s Revenue Department said that any citizen or non-resident of the country will have to pay tax on the income regardless of how it was earned and in which tax year. The tightening of taxation policy will primarily allow for greater control over residents trading in foreign stock markets through foreign brokers, crypto traders, and Thais with offshore accounts.
The Securities and Exchange Commission (SEC) of Thailand sees cryptocurrencies as a direct threat to financial stability, so it obliged digital asset service providers to warn about the risks associated with crypto trading and banned any form of cryptocurrency lending.
However, the strict control over the local crypto industry may be changing, as Parliament recently elected a new Prime Minister, Srettha Thavisin, who has a rich crypto history. Notably, the new head of Thailand’s Parliament was involved in raising $225 million for crypto-focused investment management company XSpring Capital and even issued his own token in 2022.