Thailand is planning to revise its income tax laws regarding earnings from abroad starting from January 1, 2024. This change seems to affect gains from cryptocurrency trading, offshore accounts, and international stockbrokers. According to a news article published by Bangkok Post on September 19, the first tax payments under the new law will come into effect in 2025.
Cryptocurrency Tax Under Scrutiny
Previously, Thailand’s tax law was only concerned with income that was repatriated in the year it was earned. However, it seems that this distinction will be eliminated after the new regulations. As a result, all earnings from abroad will now have to be reported regardless of the year they were earned or their purpose of use.
Officials from the Ministry of Finance will implement this change based on the principle that all foreign-sourced earnings should be taxed regardless of how and when they were obtained.
In addition to introducing a new tax obligation, this change seems to target specific groups. These include Thai citizens engaged in cryptocurrency transactions, offshore account holders, and individuals using international stockbrokers for foreign stock investments. According to various sources shared in Bangkok Post, these categories will be at the center of the new tax regulations.
What’s Next for Cryptocurrency Regulations?
Furthermore, this restrictive regulation seems to complement other moves made by the Thai government to gain control over cryptocurrency assets. In July, the Thailand Securities and Exchange Commission issued new guidelines and obligations for firms in the cryptocurrency asset space.
According to the rules, they will be required to provide sufficient warnings about the risks associated with cryptocurrency trading. Additionally, the commission announced that it has temporarily banned all methods of cryptocurrency credit services. Political winds may also steer these regulatory efforts in unpredictable directions. The country’s newly elected Prime Minister, Srettha Thavisin, is a former real estate tycoon and boss. He also emerges as a moderate figure for cryptocurrencies.
In addition to all this, the recently invested a significant amount of $225 million in XSpring Capital, a cryptocurrency-friendly investment firm. It also spearheaded the creation of Thailand’s digital currency in 2022.