Tax situation

[pepi2005]

Hi guys,

 

does anyone know Thailand's current legal stance regarding taxes on cryptocurrencies?

To me as an outsider, it seemed that TH changed the respective regulations for several times during last year, it's quite confusing.

 

I just want to know if I'd buy something, would I have to pay any tax during purchase or selling, or are cryptocurrency holdings subject to some kind of "income tax"? I may avoid Thailand altogether if it's too complicated or too much.

 

thanks!

[pepi2005]

So if I'm answering myself here, this is what I've found:

 

Two emergency decrees published in the Royal Gazette by March 2018 seems to be the latest state. They enact the law and regulations - effective as of 14 May 2018 - related to

* digital asset business operations and

* Thai tax ramifications on certain income earned from digital assets. 

 

Amendment of the Thai Revenue Code (No. 19), governing Thai tax implications on income from digital assets:

 

“Shares of profits or any gains derived from holding digital tokens and an excess of the proceeds over an acquisition cost, arising from a transfer of cryptocurrencies or digital tokens are subject to Thai income tax in a manner similar to other ordinary income. Such income received by a foreign person would generally be subject to the 15% withholding tax.”

So a few questions remain:
- who is considered a 'foreign person'?
- does it only apply to 'foreign persons' living in Thailand?
- what about Thais, are they exempt?
- how is the tax supposed to be paid?
- could someone write off losses as deductibles?

 

[uli65]

why you do not open an account on any thai exchange?? they will tell you everything about the tax situation, 

[freedomnow]

I was interested in this too.....looked like their was a withholding tax 15% !...or a 10% flat rate as they rate it similar to dividends in Thailand ? Anyway looks like it will be 10-15%...

 

In UK, I think you have a CGT tax-free allowance of 11,700 pounds per year as a trader. I wanted to buy Z Cash in UK but it is blocked to buy it there ! In Thailand looks like there is no such tax-free allowance.

 

 

[FruitPudding]

My understanding is that gains are taxed at 15%.

 

However, I believe this only applies if you stay in Thailand 6 months a year or more, and the gains were realized within Thailand (i.e. with Thai exchange, local bank account).

 

I am under the impression that foreign investment (in general, stocks etc. not only crypto) is not taxed unless the gains are brought into Thailand during the same tax year they were realized. 

 

Correct me if I am wrong

Edited March 22, 2019 by FruitPudding

[myprivate]

I wonder what happens if we transfer from our local exchange account at coins.co.th to a personal hardware wallet for long term storage. Is this classified as "selling", and how would they ever know if we had sold to another person, or simply transferred to our personal hardware wallet for long term storage.

[Starboyd]

I don't think anyone will ask you to pay tax for cryptocurrencies here unless you hold a corporate account and doing daily trading through thai banks.

[piewarmer]

I'm glad there's a thread on this.

If I make no overall loss/gain over a year but transfer money from the exchange to my bank occasionally am I not taxed?

 

I expect a 15% withholding tax on all these transfers back from the market to my private bank account, which then requires interaction with the tax dept yearly to ajust capital gains re due taxes or rebates....this is my opinion only, I'm open for correction.

 

Someone must be in the know how its worked out for day traders and hodlers.

Do we need a crypto tax agent and a work permit?