Thailand’s Revenue Department is set to implement a new rule that will require individuals residing in Thailand for more than 180 days to pay personal income tax on their foreign revenues, including income generated from cryptocurrency trading. The rule, which will take effect on January 1, 2024, aims to close a loophole in the previous regulation that only taxed foreign income remitted to Thailand in the year it was earned.
Under the new rule, individuals will be obligated to declare any income earned overseas, even if it is not intended for use in the local economy. This means that individuals will need to pay taxes on any income earned abroad, regardless of how it was earned or the tax year in which it was earned. 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.”
The policy specifically targets residents who engage in foreign stock market trading through foreign brokerages, cryptocurrency traders, and Thai individuals with offshore accounts. The aim is to ensure that all individuals, regardless of the source of their income, are subject to taxation.
This move by Thailand’s Revenue Department follows other recent regulatory actions taken by the country’s Securities and Exchange Commission (SEC) to tighten oversight of the cryptocurrency industry. In July, the SEC mandated that digital asset service providers must provide adequate warnings about the risks associated with cryptocurrency trading. The SEC has also banned any forms of cryptocurrency lending services.
However, there may be a shift in the strict scrutiny of the crypto industry with the appointment of the new prime minister, Srettha Thavisin. Thavisin, a real estate tycoon, has shown support for the crypto space by participating in a $225 million raise for crypto-friendly investment management firm XSpring Capital. In 2022, XSpring Capital even issued its own token. This suggests a potential change in the government’s stance on cryptocurrencies.
It is worth noting that the trend of increased regulation and taxation in the crypto industry is not unique to Thailand. Governments and regulatory bodies worldwide are grappling with how to effectively regulate the emerging and rapidly evolving cryptocurrency market.
Sources:
– Bangkok Post: [Link](https://www.bangkokpost.com/business/general/2649138/overseas-earnings-targeted)
– CoinTelegraph: [Link](https://cointelegraph.com/news/crypto-thailand-tax-overseas-income)
Related Articles:
– Second-largest Thai bank creates $100-million AI fund: [Link](https://cointelegraph.com/news/ai-second-largest-thai-bank-creates-100-million-ai-fund)
– Thailand’s XSpring Capital raises $225m to build integrated financial marketplace: [Link](https://cointelegraph.com/news/thailand-s-xspring-capital-raises-225m-to-build-integrated-financial-marketplace)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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