How is capital gain calculated?

[mohinga]

I have a vague idea of the tax situation for CGT re: crypto; but it's confusing. The %15 tax on gains seems acceptable; but, from what I can see, it seems that is based on the sale price. One can sell at a loss; so what then? Does the exchange still withhold  %15. It would seem fairer to calculate the CG based on the actual gain. If that were to be the case, then how would the cost base be assessed? If I were to return to my home country and re-establish residency  for tax purposes, then the cost base of my holdings would be assessed at the price on the day of return to my country. i.e. "deemed acquired". But how does it work in Thailand? If, for example, I have some BTC that I bought a long time ago when not a resident of Thailand, would it be assessed as bought then? If so how would I provide proof of purchase price? Or is the purchase price somehow calculated upon the date of becoming a resident here?

[JBChiangRai]

There is normal income tax paid on the entire amount of crypto sold if acquired on a non-Thai exchange, or, on the profit if you bought it on an authorized Thai exchange.

 

assuming you lived here for 180 days in that tax year.

[freeworld]

2 hours ago, mohinga said:

If so how would I provide proof of purchase price?

Thought it was required to keep a record of all purchases and sales like it is in many countries.

 

This site provides some info for 2024 https://kryptos.io/guides/thailand-crypto-tax-guide-2024

[freeworld]

Additional info how to estimate:

https://www.belaws.com/thailand/cryptocurrency-taxation-guidelines-thailand/

[CrossBones]

18 hours ago, JBChiangRai said:

There is normal income tax paid on the entire amount of crypto sold if acquired on a non-Thai exchange, or, on the profit if you bought it on an authorized Thai exchange.

 

assuming you lived here for 180 days in that tax year.

And if you bought on overseas exchange and sold on overseas exchange, and never bring the money into thailand?

[mohinga]

So it seems that it's not really a capital gain but rather a tax on the final sale price. How many would be able to verify purchase price if bought in another country and another currency. The paperwork would be daunting.

I'm in Malaysia where, so far, there is no CGT. I could sell near the next cycle high (wishful thinking) and buy it back to establish a new, higher, purchase price. But that would likely lose me at least 5% of my holdings. Malaysian exchanges have very low liquidity, and big spreads.

Another possibility is I could re-establish residency in my home country at/near the next ATH, and then only have to pay CGT on any further price rises. Neither of these two options appeal to me. So I'll just bide my time hoping that there will be more options appearing over the next few years. I can't see Thailand embracing the Bitcoin ethos; but maybe there will be more flexibility regarding stablecoins. 

[JBChiangRai]

22 hours ago, freeworld said:

Thought it was required to keep a record of all purchases and sales like it is in many countries.

 

This site provides some info for 2024 https://kryptos.io/guides/thailand-crypto-tax-guide-2024

 

If you bought on an authorised Thai exchange, you can download a tax report identfying the date & purchase price & amount and so establish a buy price for profitability/tax calculation later.

 

5 hours ago, CrossBones said:

And if you bought on overseas exchange and sold on overseas exchange, and never bring the money into thailand?

 

No tax due here. However, if you sold on an overseas and brought the money here then the normal rules for money transfers apply.

 

1 hour ago, mohinga said:

So it seems that it's not really a capital gain but rather a tax on the final sale price. How many would be able to verify purchase price if bought in another country and another currency. The paperwork would be daunting.

I'm in Malaysia where, so far, there is no CGT. I could sell near the next cycle high (wishful thinking) and buy it back to establish a new, higher, purchase price. But that would likely lose me at least 5% of my holdings. Malaysian exchanges have very low liquidity, and big spreads.

Another possibility is I could re-establish residency in my home country at/near the next ATH, and then only have to pay CGT on any further price rises. Neither of these two options appeal to me. So I'll just bide my time hoping that there will be more options appearing over the next few years. I can't see Thailand embracing the Bitcoin ethos; but maybe there will be more flexibility regarding stablecoins. 

 

Bed & Breakfasting in Malaysia (selling/buying back) does not change anything in Thailand.  If you sell or trade your crypto on a Thai exchange that you bought overseas then you crystallise a tax liability on the full amount of the trade if you are tax resident here. If you traded it for (say) USDT, then you crystallise a tax liability on the full amount of the trade but you establish a buy price on the (say) USDT, for a future liability based on the profit of when you sell the (say) USDT.

 

The Revenue Department here are not stupid, they have thought this through.  They know people might sell stablecoin here having converted it overseas, that's why they tax on the full value of a trade here on ANY crypto not acquired on an authorised Thai exchange.

 

Your best approach is to convert to FIAT overseas and remit that here as savings if you can justify that, or trade/sell/B&B it here but make sure you spend less than 180 days here in the year that you make the trade here, so you are not tax resident that year.