Cryptocurrencies Tax in Thailand

In Thailand, cryptocurrencies are classified as digital assets for tax purposes. The legal definition of cryptocurrencies is established under the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018) and subsequent regulations issued by the Securities and Exchange Commission (SEC). Cryptocurrency transactions are categorized based on their nature, including buying, selling, mining, trading, and exchanging cryptocurrencies.

Tax liabilities on cryptocurrencies in Thailand are determined based on the following principles:

• Capital Gains Tax: Profits derived from the sale or exchange of cryptocurrencies are subject to capital gains tax. The taxable amount is calculated by subtracting the acquisition cost from the selling price.
• Income Tax: Income generated from cryptocurrency trading or mining activities is subject to personal income tax or corporate income tax, depending on the taxpayer's status.
• Withholding Tax: Certain cryptocurrency transactions may be subject to withholding tax, such as payments made to non-resident cryptocurrency service providers.

The tax rates applicable to cryptocurrency transactions in Thailand vary depending on the type of transaction and the taxpayer's status:

• Capital Gains Tax: Profits derived from the sale or exchange of cryptocurrencies are subject to personal income tax. The tax rate is progressive, up to 35%, depending on the individual's income level.
• Income Tax: Income from cryptocurrency trading or mining activities is taxed at individual income tax rates, which range from 5% to 35%, depending on the taxpayer's income level.
• Withholding Tax: Certain cryptocurrency transactions may be subject to a 15% withholding tax. However, this practice is not consistently applied by crypto exchanges in Thailand.
• Value-Added Tax (VAT) Exemption: Transfers of cryptocurrency on a digital asset exchange licensed by the Ministry of Finance are exempt from VAT.

The taxation of cryptocurrencies in Thailand is governed by various laws and regulations, including:

• Emergency Decree on Digital Asset Businesses B.E. 2561 (2018): Defines cryptocurrencies as digital assets and establishes the regulatory framework for digital asset businesses in Thailand.
• Revenue Code of Thailand: Provides the legal basis for taxation, including the taxation of capital gains, income, and withholding tax.
• Regulations and guidelines issued by the Securities and Exchange Commission (SEC): Provide further details on the classification, regulation, and taxation of cryptocurrencies and digital assets in Thailand.