According to Cointelegraph, Thailand's Revenue Department plans to impose personal income tax on foreign revenues, including those from cryptocurrency trading, for individuals residing in the country for over 180 days. The new rule will take effect on January 1, 2024, with the first tax forms, including overseas income, to be delivered in 2025.
Previously, only foreign income remitted to Thailand in the year of earning was taxed. The new regulation closes this loophole, requiring individuals to declare any income earned overseas, even if it is not used in the local economy. A Finance Ministry official explained the rationale behind the change, stating that individuals must pay tax on income earned abroad, regardless of how it is earned or the tax year in which it is earned.
The policy specifically targets residents trading in foreign stock markets through foreign brokerages, cryptocurrency traders, and Thais with offshore accounts. In July, Thailand's Securities and Exchange Commission (SEC) required digital asset service providers to offer adequate warnings highlighting risks associated with cryptocurrency trading and prohibited any forms of crypto lending services. However, the trend for tight scrutiny over the crypto industry might change with the recent election of the new prime minister, real estate tycoon Srettha Thavisin, who participated in a $225 million raise for a crypto-friendly investment management firm XSpring Capital and issued its own token through XSpring in 2022.