Thailand to Tax Overseas Income and Cryptocurrency Profits from 2024
Summary:
The Revenue Department of Thailand plans to tax overseas income, including cryptocurrency profits, for persons residing in the country for over 180 days. The new rule, effective from January 1, 2024, requires these residents to declare all foreign-generated income from 2025. This directive, mainly affecting foreign stock market traders using offshore brokers, crypto traders, and Thais with offshore accounts, follows the recent increase in regulatory scrutiny on the crypto industry, which may change under the leadership of newly elected crypto-friendly Prime Minister, Srettha Thavisin.
The Revenue Department of Thailand has a proposed a new strategy to tax overseas income including profits from cryptocurrency trading, applicable to any individual residing within the country for more than half the year. The Bangkok Post, on September 19, reported that the execution of this new regulation is planned for January 1, 2024, whereby residents will be required to include global income on their tax forms from 2025 onwards. Previously, only the income brought into Thailand during the year it was earned had been subjected to taxation. This new regulation will mandate residents to declare all income generated abroad, irrespective of its planned use in the local economy. A representative of the Finance Ministry rationalized this decision by saying that foreign income should be taxed regardless of how it was earned or during which tax year. The policy has been tailored to specifically impact those trading in foreign stock markets via offshore brokers, cryptocurrency traders, as well as Thais holding accounts abroad. In an earlier directive, the Securities and Exchange Commission (SEC) of Thailand mandated all digital asset service providers to offer proper warnings about the risks associated with cryptocurrency trading and banned any cryptocurrency lending services. Yet, the ongoing stringent oversight on the cryptocurrency industry may shift following the recent appointment of a new prime minister. Real estate mogul, Srettha Thavisin, who is now in charge of the Thai parliament, has been a part of a substantial $225 million funding round for XSpring Capital, a firm supportive of cryptocurrency, and has even launched its own token through XSpring in 2022.
Published At
9/19/2023 9:22:02 AM
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