Cryptocurrency has gained significant popularity in recent years, offering expats in Thailand new opportunities for investment and financial growth. However, with these opportunities come important cryptocurrency tax obligations that many expats may not fully understand. Thailand’s tax authorities have recently updated their regulations, making it essential for anyone holding or trading cryptocurrencies to be aware of the rules.
This guide is designed to provide a clear and comprehensive overview of how cryptocurrency is taxed in Thailand, particularly for expats. Understanding the tax implications is crucial to avoid penalties and ensure compliance, whether you’re buying, selling, or remitting crypto earnings. In this guide, we will walk you through the critical aspects of cryptocurrency taxation, recent changes in the law, and practical tips to help you manage your tax obligations effectively.
With new regulations in effect from January 2024, making informed decisions steps has never been more important. Let’s break down what you need to know to navigate Thailand’s complex world of cryptocurrency taxation.
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Understanding Cryptocurrency Taxation in Thailand
Who Needs to Pay Tax on Crypto?
Cryptocurrency taxation in Thailand applies to both Thai tax residents and non-residents, though the rules vary based on your residency status. If you are a Thai tax resident—meaning you spend 180 days or more in Thailand during the tax year—you are only taxed on income that is remitted into Thailand, including gains from cryptocurrency. Income from cryptocurrency that remains outside of Thailand is not subject to Thai tax unless it is brought into the country.
For non-residents, cryptocurrency taxation typically applies only to income earned within Thailand, such as gains from trading on Thai-based crypto exchanges.
Why Cryptocurrency Tax Compliance Matters
Ensuring compliance with Thai cryptocurrency tax laws is not just important, it’s crucial. Non-compliance could lead to audits or heavy penalties, making it essential to stay on the right side of the law. Thailand’s Revenue Department has increased its focus on regulating and taxing digital assets like cryptocurrencies, including monitoring remittances and working with international frameworks such as the Common Reporting Standards (CRS).
By staying informed and compliant with crypto tax regulations, you can confidently manage your cryptocurrency investments in Thailand and avoid unexpected tax issues. This proactive approach ensures smooth operations and builds trust with the authorities, reducing the risk of audits or penalties.
Common Misconceptions About Cryptocurrency and Taxes
Crypto Is Tax-Free if Sold Overseas
A common misconception among expats is that cryptocurrency sold overseas is entirely tax-free. While it’s true that gains made from crypto holdings abroad are not automatically taxed in Thailand, this only applies if the gains remain overseas. Once these gains are remitted into Thailand, either by transferring the funds to a Thai bank account or spending them within the country, they become subject to Thai taxation.
Under Thai tax law, any foreign-sourced income, including cryptocurrency gains, is taxable when remitted to Thailand, regardless of where the income was earned. This means that even if you sell cryptocurrency on a foreign exchange, they are considered taxable income once those funds are brought into Thailand.
Thailand Can’t Trace Cryptocurrency Assets
Another common belief is that Thailand cannot trace cryptocurrency assets, especially those held or traded overseas. However, with the adoption of international frameworks like the Common Reporting Standards (CRS), tax authorities in Thailand now have greater visibility of foreign income and assets. The CRS is a global initiative developed by the Organisation for Economic Co-operation and Development (OECD), designed to combat tax evasion by facilitating the automatic exchange of financial information between participating countries.
Thailand joined the CRS in 2020, and the system allows the Thai Revenue Department to receive data on Thai tax residents’ overseas financial activities, including bank accounts, investment accounts, and potentially crypto-related transactions. This information enables the authorities to track assets held abroad, ensuring that individuals comply with their tax obligations, even for foreign-sourced income such as cryptocurrency gains.
Recent Tax Rule Changes Effective from January 2024
Summary of the New Regulations Impacting Thai Tax Residents
From 1 January 2024, Thailand introduced new tax regulations that expanded the pool of individuals required to pay tax, bringing many expats into the tax net for the first time. While the rules on cryptocurrency taxation have been evolving over recent years, the 2024 changes do not specifically alter how cryptocurrency is taxed. Instead, they broaden the scope of who needs to file taxes. Like many tax authorities globally, the Thailand Revenue Department (TRD) has been adjusting to the complexities of cryptocurrency as a new asset class. As a result, existing rules governing the taxation of crypto income, particularly foreign-sourced income remitted into Thailand, continue to evolve.
Key Deadlines: Tax Filing Timelines for Remitted Crypto Gains
For expats and Thai tax residents who remit foreign-sourced cryptocurrency gains into Thailand, it is important to be aware of the following filing deadlines:
- 31st March 2025: The final date to submit a paper-based tax return for income earned in 2024.
- 8th April 2025: The final deadline to submit an online tax return.
It is essential to file on time, as failing to report remitted cryptocurrency income can result in penalties or audits.
Remittance Rules: What Constitutes a Taxable Event?
Cryptocurrency gains made outside Thailand are not taxed until they are brought into the country. For Thai tax residents, any cryptocurrency income earned abroad becomes taxable once it is transferred to or spent in Thailand. The important thing to remember is that tax liability is triggered when the money is remitted, meaning crypto profits earned abroad are not subject to Thai tax unless they are brought into Thailand.
When you transfer cryptocurrency gains into Thailand, the taxable amount is based on the gain itself, no matter when or where the crypto was sold. Even if the income was generated years ago, it becomes taxable as soon as it is brought into Thailand.
Types of Cryptocurrency Income and Their Tax Treatment
Capital Gains: Taxed on Gains Exceeding the Cost of Investment
One of the most common forms of cryptocurrency income is capital gains, which occur when you sell your cryptocurrency for more than you paid. In Thailand, capital gains are taxed under Section 40 (4) (h) of the Revenue Code. This applies to both gains made on Thai exchanges and those remitted from overseas exchanges. The taxable amount is the difference between the sale and original investment costs..
- Example: If you buy 1 Bitcoin for 1,000,000 THB and sell it for 2,000,000 THB, the 1,000,000 THB gain is taxable as capital gain.
Salary and Freelance Work: Paid in Cryptocurrency
Cryptocurrency received as payment for salary or freelance work is treated as regular income under Section 40 (1) or Section 40 (2), depending on the nature of the work. Whether you’re receiving payment in crypto for your salary or as a freelancer, this income must be reported and taxed as if it were paid in fiat currency.
- Example: If you receive 1 Ethereum as payment for freelance work and its market value is 100,000 THB at the time of payment, this 100,000 THB will be considered taxable income under Section 40 (2).
Mining and Staking Rewards
Income earned through cryptocurrency mining or staking is also taxable in Thailand. These earnings fall under Section 40 (8) of the Revenue Code, which applies to other income, including rewards or profits earned through various activities. Mining and staking rewards are subject to tax whether they are received in Thailand or remitted into Thailand.
Filing Obligations:
- PND.90: Used for reporting general income, including capital gains, mining, and staking rewards.
- PND.91: Used for salaried employees or freelancers paid in cryptocurrency.
- PND.94: Filed for mid-year tax reporting, typically used when reporting mining or staking rewards received in the first half of the year.
How Cryptocurrency Capital Gains Are Taxed
Explanation of Section 40 (4) (h) on Capital Gains
In Thailand, capital gains from cryptocurrency are taxed under Section 40 (4) (h) of the Revenue Code. This section covers income derived from selling, paying, transferring, or exchanging digital assets, including cryptocurrency, where the sale price exceeds the original investment. Simply put, if you sell cryptocurrency for more than you initially paid, the profit (capital gain) is taxable.
- Gains from Thai exchanges: If you profit from cryptocurrency transactions conducted on exchanges regulated by Thailand’s Securities and Exchange Commission (SEC), those gains are immediately taxable in the year they are earned.
- Gains from overseas exchanges: If you make a profit from cryptocurrency transactions on foreign exchanges, these gains are only taxable when the income is remitted to Thailand. In other words, if the gains remain outside Thailand, they are not subject to Thai tax. However, once you transfer or spend the funds in Thailand, they become taxable.
Accounting Methods: First-In, First-Out (FIFO) vs. Moving Average
When calculating cryptocurrency capital gains, Thai tax regulations allow individuals to choose between two accounting methods:
- First-In, First-Out (FIFO): This method assumes that the first cryptocurrency you bought is the first to be sold. For example, if you purchased five Bitcoin in 2020 and another 5 in 2022 and then sold three Bitcoin in 2024, FIFO assumes the sale was from the 2020 purchase.
- Moving Average: This method calculates the average purchase price at which you purchased a particular coin. When you sell, the gain is calculated against that average buy price. For instance, if you bought Bitcoin at different prices in 2020 and 2022, your capital gain will be based on the average purchase price.
Both methods are acceptable under Thai law, but once you choose a method for the tax year, you must use it consistently throughout that year. The choice of method can affect your taxable gain, so it’s important to select the one that best suits your situation. It can be complicated and you may want to consult a tax professional to determine which method minimises your tax liability.
Watch Our Webinar – Understanding Cryptocurrency Taxation for Expats in Thailand
Filing Your Cryptocurrency Taxes
Forms to File: PND.90, PND.91, PND.94
The form you need to file depends on the type of cryptocurrency income you’ve earned. Here’s a breakdown of the relevant forms:
- PND.90: This is the main tax form for individuals with various types of income, including capital gains from cryptocurrency, mining rewards, and staking income. You’ll need to file this form if you’ve earned crypto gains by selling digital assets or receiving rewards from mining or staking.
- PND.91: This form is for salaried employees or freelancers if they are paid in cryptocurrency. In these cases, the income is reported using PND.91. Whether the income is received in Thailand or from overseas and remitted into the country, it needs to be declared.
- PND.94: This form is used for mid-year tax reporting and is typically filed for income earned in the first half of the year. It’s especially relevant for those receiving cryptocurrency income from mining or staking activities, where earnings are ongoing and must be reported regularly.
Filing Deadlines: Explanation of Paper and Online Filing Deadlines
Meeting the Thai tax authority’s deadlines is essential to avoid penalties. The deadlines are slightly different depending on whether you choose to file on paper or online:
- Paper filing: The deadline for submitting paper-based tax returns is 31st March of the year following the tax year in question. For example, your paper filing deadline for income earned in 2024 would be 31st March 2025.
- Online filing: If you prefer to file your tax return electronically, you have until 8th April of the following year. The online filing deadline for the 2024 tax year is 8th April 2025.
Be sure to file on time, as late submissions can result in fines or other penalties.
Step-by-Step Instructions: How to Fill Out and Submit the Forms
- Collect Your Cryptocurrency Records:
- Gather all records of your cryptocurrency transactions, including purchase and sale dates, prices, and any relevant fees. Accurate record-keeping is crucial.
- Determine the Type of Income:
- Identify whether your income falls under capital gains (selling crypto), salary or freelance work paid in crypto, or mining and staking rewards. This will determine whether you file PND.90, PND.91, or PND.94.
- Fill Out the Relevant Form:
- PND.90: Enter your capital gains or other crypto-related income under the appropriate sections. Include details of your gains and the accounting method used (FIFO or Moving Average).
- PND.91: If you’re paid in cryptocurrency for work, declare the crypto income in the relevant section of this form.
- PND.94: Report any mid-year mining or staking income in this form.
- Submit the Form:
- Paper filing: Submit your completed tax form in person or by post to your local Revenue Department office before the 31st March deadline.
- Online filing: Submit your tax return electronically through the Thai Revenue Department’s e-filing portal by 8th April.
- Pay Any Taxes Due:
- Once you’ve submitted your form, you will receive an assessment of your tax liability. Pay any taxes owed by the payment deadline to avoid late fees or penalties.
Simplifying Your Cryptocurrency Tax Filing
As you can see, filing cryptocurrency taxes can be complex, with various forms, deadlines, and calculation methods to manage. At Expat Tax Thailand, we make it easier by reducing the hassle and ensuring your returns are calculated accurately.
Our simple online process allows you to file your taxes with ease, and for cryptocurrency holders, we offer two tailored services to suit your needs:
- Assisted Service: Perfect for those who need help calculating their crypto gains. Our team will guide you through the process and ensure your returns are filed correctly and on time.
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- Expert Service: For a more strategic approach, our Expert Service provides comprehensive support from a dedicated tax accountant. You’ll receive dedicated assistance and guidance on managing your crypto taxes, ensuring full compliance while optimising your financial situation.
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Potential Tax Strategies
Long Term Residency Visa (LTR)
The Long-Term Resident (LTR) Visa offers significant tax benefits, particularly regarding foreign-sourced income, including cryptocurrency gains. One key advantage for LTR Visa holders is that foreign income, including capital gains from cryptocurrency, can be brought into Thailand tax-free as long as the gains were made in a previous tax year.
If you generate cryptocurrency gains abroad in one year, you can remit those gains to Thailand in a future year without incurring any tax liability. However, if you remit the gains to Thailand in the same tax year they were earned, they will be subject to Thai tax.
- Example: If you sell cryptocurrency on a foreign exchange in 2024 and remit the gains to Thailand in the same year, those gains will be taxable. However, remitting the gains in 2025 or any future tax year will not incur any tax liability.
Reducing Time in Thailand to Avoid Tax Residency
Where expats have the benefit of mobility. Pursuing a strategy of remaining a non-tax resident might be a viable option. Reducing the time spent in Thailand to 179 days or less in a tax year can be an effective strategy. By doing so, you will not meet the threshold for Thai tax residency, which is 180 days or more. This allows you to bring funds, including cryptocurrency gains, into the country without tax liability.
As a non-resident, you are not required to pay tax on foreign-sourced income, even if you remit those funds to Thailand. This can be particularly beneficial for expats who generate substantial cryptocurrency gains abroad and want to transfer those funds to Thailand without triggering tax obligations.
- Example: If you sell cryptocurrency on an overseas exchange and bring the funds into Thailand while staying there for less than 180 days, you will not be taxed on these gains, as you are not considered a tax resident.
Thailand’s New Destination Thailand Visa (DTV) might be an attractive option for expats looking to stay under the residency qualification. However, caution is advised not to inadvertently acquire a different, less favourable tax residency while pursuing this strategy.
Choosing the Right Accounting Method: FIFO vs. Moving Average
Your choice of accounting method—First-In, First-Out (FIFO) or Moving Average—can significantly impact your taxable gains and tax liability.
Choosing the right method for your situation can significantly affect the final tax amount. It’s worth consulting a tax advisor to help determine which method will reduce your tax burden.
Utlising Allowances
Thailand’s personal income tax system includes several allowances and deductions that can help reduce your taxable income. For cryptocurrency holders, utilising these allowances can help offset the taxable gains from your crypto activities.
- Personal Allowances: Ensure that you claim all available personal deductions, such as the standard personal allowance for residents, spousal allowance, and child-related allowances.
- Retirement Fund Contributions: Contributions to retirement funds or long-term mutual funds (LTFs) can reduce your taxable income, lowering the tax rate on your cryptocurrency gains.
- Charitable Donations: Donations to registered charities in Thailand can also reduce your taxable income. Depending on the amount, they can be deducted up to a certain limit.
By strategically remitting your cryptocurrency income in a year when you can maximise your allowances and deductions, you can further reduce your taxable income and overall tax liability.
Crypto Tax Resources and Services
Free Tools: Tax Calculation Tools and Crypto Tax Consultations
At Expat Tax Thailand, we offer a range of free tools to help cryptocurrency holders better understand their tax obligations. Our tax calculation tools allow you to estimate your taxable gains and potential liabilities, making planning your remittance and filing strategy easier. We also provide free tax consultations where our experienced team can answer your questions and offer personalised advice tailored to your situation.
Book a Free Tax Calculation and Support Call Here
Cryptocurrency Tax Filing and Compliance
Navigating the complexities of cryptocurrency taxation in Thailand can be challenging. That’s where Expat Tax Thailand can help. We offer comprehensive tax filing services to ensure that your cryptocurrency gains are calculated accurately and that all relevant deductions and allowances are applied. We’re here to assist whether you need help calculating gains, understanding the correct accounting method (FIFO vs. Moving Average and ensuring full compliance with Thai tax laws.
Our Assisted Service is ideal for those who need guidance on calculating gains on their crypto.
Access all our tax filing services through our secure and user-friendly online portal. Click on the link below to compare our tax services.
Links to Official Resources
For more detailed information, here are links to official resources that can help you stay informed about cryptocurrency taxation in Thailand:
- Thai Revenue Department Guidelines: Official website for tax rules and regulations in Thailand.
- Thai Revenue Department Cryptocurrencies and Digital Tokens Tax Manual: Comprehensive guide to taxation on digital assets. Currently only available in Thai
- Thai Tax Forms: Download the PND.90, PND.91, and PND.94 forms for filing your taxes.
Summary and Next Steps
Key Takeaways
Cryptocurrency taxation in Thailand can be complex, especially for expats navigating the evolving tax rules. Key points to remember including:
- Compliance is crucial: Staying compliant with Thai tax regulations is essential to avoid penalties. Understanding when crypto gains become taxable—especially when remitting income—is key to managing your tax obligations.
- Choose the right tax strategies: Timing your remittance, selecting the right accounting method (FIFO or Moving Average), and utilising available tax allowances can all help reduce your tax liability.
- Keep detailed records: Accurate record-keeping is vital for successful tax filings, whether you’re offsetting losses or reporting gains.
- Use available resources: Expat Tax Thailand provides tools, services, and expert advice to simplify the process and ensure full compliance.
Need More Help?
We understand that cryptocurrency taxation can be complex, and the regulations and processes make it easy to feel overwhelmed. That’s why we’re here to help. Our team at Expat Tax Thailand is ready to provide the support you need. Feel free to reach out and book a call with us using our free support line. Whether you have questions or need assistance with your tax filing, we’re here to guide you every step of the way.
