Thailand’s Revenue Department has unveiled plans to tax overseas income, including cryptocurrency trading revenues, of individuals staying in the country for over 180 days.
This updated regulation, set to be implemented on January 1, 2024, broadens the scope from the prior rule where only overseas income brought into Thailand within the earning year was subject to taxation.
According to Bangkok Post, the change aims to ensure that all overseas earnings, irrespective of their use in the Thai economy, are declared.
The focus appears to be on residents engaged in foreign stock trading via overseas brokerages, crypto traders, and Thai nationals with accounts abroad.
Thailand’s crypto landscape
Thailand has witnessed a surge in cryptocurrency trading activities in recent years, attracting domestic and foreign investors. However, the country’s Finance Minister, Arkhom Termpittayapaisith, has warned about the risks of excessive crypto speculation on Thailand’s capital markets. He noted that retail investors have shifted their savings to cryptocurrencies for high returns.
Thailand’s Securities and Exchange Commission (SEC) has established a legal framework for digital assets and initial coin offerings (ICOs) to regulate and protect the cryptocurrency sector. The framework includes guidelines on fees, taxes, licensing requirements, and a list of seven approved cryptocurrencies.
Thailand’s government has also taken steps to educate its citizens about cryptocurrencies and blockchain technology. However, regulatory challenges have also emerged in Thailand’s crypto landscape.