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Starting January 1, 2024, Thailand plans to revamp its income tax laws concerning money earned abroad. This change includes earnings from cryptocurrency trading, offshore accounts, and international stock brokerages. The first tax forms under the new law will appear in 2025, according to a report from the Bangkok Post dated September 19.
Offshore and Crypto Trader Accounts in Crosshairs
Previously, the tax code in Thailand only concerned itself with foreign income repatriated in the same year it was earned. However, the new regulations sweep away this distinction. Consequently, all money earned abroad must now be reported, irrespective of the year of earning or its intended use. Officials from the Ministry of Finance justify this change by stating that it adheres to the principle that tax should be levied on all foreign-sourced earnings, regardless of how or when the income is acquired.
Besides serving as a new tax requirement, this change targets specific groups. Significantly, these include Thai citizens who trade cryptocurrencies, those with offshore accounts, and individuals who use international brokerages for foreign stock market investments. According to various sources within the Bangkok Post, these categories will be the focal point of the new taxation regulations.
What’s Next for Crypto Regulations In Thailand?
Moreover, this regulatory adjustment complements other moves by the Thai government to assert control over digital assets. In July, Thailand’s Securities and Exchange Commission (SEC) issued mandates for firms in the digital asset sphere. They must now provide adequate warnings about the risks associated with cryptocurrency trading. Additionally, the SEC has banned cryptocurrency loan services in any form.
Political winds might steer these regulatory efforts in new directions. Newly elected Prime Minister Srettha Thavisin, a former real estate magnate, has shown a softer corner for digital currencies. In light of this, he recently invested $225 million in XSpring Capital, a crypto-friendly investment firm. Furthermore, he led the launch of Thailand’s digital currency in 2022.