Cryptocurrency Income: How to determine its source

15 Dec 2022
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Under the law concerning Thai personal income tax, a person shall be taxable in Thailand if that person derived income from sources in Thailand. In other words, the Thai-sourced income is taxable in Thailand, regardless of where the income was paid from or to. Thai sourced income is defined as (1) income from work/employment in Thailand, (2) business in Thailand, (3) business of an employer in Thailand, or (4) property in Thailand.

 

Foreign-sourced income is taxable in Thailand only if (1) the earner stayed in Thailand in the year that he received that income for 180 days or more AND (2) that foreign-sourced income was remitted into Thailand in the same calendar year that it was received.

 

In case of a person deriving taxable gains from trading cryptocurrency through a trading platform/e-wallet, the Thai Revenue Department would determine the source of income from the location where that trading platform/e-wallet is registered. If it is registered in Thailand (such as Bitkub, Zipmex, etc.), the gains derived from trading cryptocurrency through that trading platform/e-wallet would be considered Thai-sourced income and thus taxable in Thailand. If it is registered abroad (such as Bi-Nance), the gains derived from trading cryptocurrency through that trading platform/e-wallet would be considered foreign-sourced income and thus taxable in Thailand only if BOTH of the above two conditions were met.

 

Please note that only losses incurred from trading cryptocurrency through the trading platform in Thailand could be deducted against gains derived from other transactions of cryptocurrency trading. Yet, the taxpayer must prepare an account for his cryptocurrency trading transactions. For more information about this requirement, please visit our article on our website at Additional tax regulations for cryptocurrency income earners (nablecompanies.com). Losses incurred from trading cryptocurrency through the trading platform outside of Thailand cannot be deducted against gains derived from other transactions of cryptocurrency trading.

 

We, N-Able Group, are real experts in tax advisory and compliance, and the planning for any issues that concern CRYPTOCURRENCY. If you wish for us to assist in finding the ways to reduce your tax on your cryptocurrency income, while maintaining compliance with the Thai tax laws in respect to the concerned areas, please do not hesitate to contact us through any of the following channels:

Email: Info@nablecompanies.com

Telephone, WhatsApp, and Line: +66 95 557 1410 


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