Belaws Home ›› Thailand ›› Blog ›› What are the taxes on Cryptocurrency in Thailand and do I need to pay tax?
legal – Crypto tax in Thailand
What are the taxes on Cryptocurrency in Thailand and do I need to pay tax?
07/10/2021
Thailand is currently experiencing a Blockchain boom, with exchanges such as Bitkub, Zipmex and Fraction all being granted a Digital Assets Exchange License from Thailand’s Ministry of Finance.
Exchanges such as those mentioned above have made buying and selling Cryptocurrencies easier than ever in Thailand. As with all investments, Crypto transactions are subject to Tax in Thailand.
How are Cryptocurrency transactions taxed in Thailand?
The Emergency Decree on the Amendment of the Revenue Code (No. 19) B.E. 2561 introduced 2 subcategories of assessable income under Section 40(4):
- The share of profits or any benefits of a similar nature derived from holding or possessing digital tokens (section 40 (4) (h)), and
- The benefit derived from the transfer of cryptocurrency or digital tokens which exceeds the cost of the investment (section 40 (4)(i)).
The amendment to the Revenue Code considers Cryptocurrencies as intangible assets and therefore subject to the following taxes.
Personal Income Tax on Cryptocurrency gains (PIT):
An individual’s capital gains earned through the sale of Cryptocurrencies are subject to PIT.
Currently, there is no option to exclude assessable income from annual PIT returns as stated under Section 40 (4) (h) and (i) of the Revenue Code. Therefore, individual taxpayers are required to include any income made from the sale of Cryptocurrencies when filing their annual personal income tax returns.
Thailand’s PIT is calculated on a progressive scale of up to 35%. More details on Personal Income Tax can be found here.
Please see the following example of a PIT calculation:
In this example, David, a Thai resident purchases some Cryptocurrency from a Thai exchange platform and transfer his profit to his Thai bank account.
David purchases some Bitcoin valued at 1,600,000 THB and by the end of the year the value of the Bitcoin has increased to 4,000,000 THB.
David is working in Thailand and has an annual salary of 600,000 THB per year, his company had deducted 19,000 THB for the Withholding Tax. David is single, has an insurance policy allowing him to deduct 25,000 THB from his return. When David includes the revenue earned from his Crypto transactions, he will reach the 30% PIT threshold.
- Total income : Salary 600,000 + Gain from selling BTC 2,400,000 = 3,000,000
- Applicable deductions: Expenses 100,000 + Allowance 60,000 + Insurance 25,000 = 185,000
- Taxable income: 3,000,000 – 185,000 = 2,815,000
- Total income tax: 609,000
- Additional tax to pay: 609,000 – WHT 19,000 = 590,000
*All figures above are in THB
Withholding Tax on Cryptocurrency transactions (WHT):
Additionally, any gains made from Cryptocurrency transactions are subject to a 15% Withholding Tax as stated by Section 50 (2) (f) for Thai residents and Section 50 (2) (a) for nonresidents. The 15% WHT paid can be claimed as a tax credit against any PIT payments.
However, it is important to note that this is not applied in everyday practice. Crypto exchanges in Thailand will not deduct the WHT tax from transactions made on their platforms.
What type of Cryptocurrency transactions are considered assessable income and subject to tax?
The following transaction types are considered taxable events and are subject to taxes mentioned above:
- Cryptocurrencies converted into FIAT (a Government backed legal tender such as USD, THB, EUR etc.);
- Cryptocurrencies used in exchange for goods and services;
- Cryptocurrencies exchanged against others e.g. Ethereum being used to purchase Bitcoin.
In conclusion
The 2018 Amendment to the Revenue Code introduced the mandatory payment of Withholding Tax on all Cryptocurrency transactions. It also clearly states that any capital gains made from such transactions must be included in the yearly PIT returns. Our tax experts can assist you with the filing of your yearly PIT return, please click here for more info.
The Belaws blockchain and Cryptocurrency tax service provides reliable advice and feedback relating to blockchain tax best practices to ensure our clients are in full compliance with the current legislation at all times.
Our consultations last for a period of up to 1 hour and are conducted by expert Lawyers who are fluent in English, French and Thai.
Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
Up to 1 hour
Web conferencing details provided upon confirmation
$150 USD
How Many Thai Staff are Required to Support a Work Permit?
By jonathan
/ 2023-11-29
28/11/2023 In this article, we will explore how many Thai staff are required to support a work permit.
Read More
Why a BOI Promotion in Thailand Can Help Your Business
By jonathan
/ 2023-11-28
27/11/2023 A BOI promotion can give you a competitive edge in the Thai market and navigate the regulatory landscape.
Read More
How to start a business in Thailand
By jonathan
/ 2023-11-22
16/11/2023 In this blog post, we will provide you with step-by-step instructions on how to start a business in Thailands.
Read More
Documents required for company registration in Thailand
By jonathan
/ 2023-11-21
15/11/2023 This blog post will explore the documents required for company registration in Thailand for the most common company structures.
Read More
Company name registration In Thailand 2024
By jonathan
/ 2023-11-15
14/11/2023 Lets explore what companies must know when undergoing the company name registration process in Thailand.
Read More
5 Types of Companies for Foreigners in Thailand
By jonathan
/ 2023-11-07
07/11/2023 In this blog post, we'll explore 5 types of companies for foreigners in Thailand
Read More
Starting a Small Business in Thailand as a Foreigner in 2024
By jonathan
/ 2023-11-06
03/11/2023 When starting a Small Business in Thailand, it is important to consider the following important points.
Read More
Thailand Elite Membership Program latest update Nov 2023
By jonathan
/ 2023-10-31
31/10/2023 The Thailand Elite Visa program has recently unveiled new membership packages, learn more here.
Read More
Power of Attorney in Thailand: A Guide for Foreigners
By jonathan
/ 2023-10-20
20/10/2023 Unlock the power of attorney in Thailand with our comprehensive guide for foreigners. Learn how this legal instrument can...
Read More
Technology Transfer Plans in Thailand
By jonathan
/ 2023-10-17
17/10/2023 Submitting a technology transfer plan is a crucial requirement for obtaining a Foreign Business License.
Read More
+66 (0) 63 695 5945We are open:
Monday – Friday
9 am – 6 pm (UTC+7)
Belaws 2017 - 2023.
Belaws provides information and software only. Belaws is not a "lawyer referral service" and does not provide legal service or participate in any legal representation.
Belaws is not a law firm or a substitute for an attorney or a law firm. The use of Belaws is subject to our Terms of Use.
