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Thailand, a nation known for its progressive stance on cryptocurrencies, has recently unveiled a new tax policy that aims to target the foreign income of crypto traders. This move is part of the government&#39;s broader strategy to fund its economic stimulus measures, which includes a nationwide airdrop.According to Section 48 of the Revenue Code, people living in Thailand for over 180 days a year who earn overseas income from their work or assets will be subject to personal income tax.Beginning on January 1, 2024, authorities will be able to tax foreign income of individuals in 2025.<h2 id="header-0">A Closer Look at the New Tax Policy</h2>According to a report from the Bangkok Post on September 19, the Thai Revenue Department is setting its sights on overseas income, with a special emphasis on cryptocurrency traders.The new ruling stipulates that individuals who earn income from foreign sources, be it from work or assets, will be subject to personal income tax. This tax will be applicable to both Thais and foreign nationals who reside in Thailand for more than 180 days annually.Previously, only foreign income that was remitted to Thailand within the year it was earned was taxed. However, the new regulation closes this loophole. Now, individuals are required to declare any income earned overseas, irrespective of whether they intend to use it within the local Thai economy.You must pay tax on income you earn from abroad regardless of how you earn it and regardless of the tax year.Legal experts have pointed out that this policy seems to have specific targets in mind. These include residents trading in foreign stock markets via foreign brokerages and, notably, cryptocurrency traders.A source from the Finance Ministry told the <a href="https://www.bangkokpost.com/business/general/2649138/overseas-earnings-targeted" rel="noopener noreferrer nofollow">Bangkok Post</a>, &#34;The principle of tax is to ensure that everyone pays their fair share. The government needs to find new sources of revenue to fund its economic stimulus measures, and this is one way to do it.&#34;<h2 id="header-1">Historical Context: Thailand and Crypto Taxation</h2>It&#39;s worth noting that this isn&#39;t Thailand&#39;s first foray into taxing the crypto realm. In January 2022, the Thai government imposed a 15% capital gains tax on profits derived from cryptocurrency trading.A few months later, in March 2022, the government reportedly provided crypto traders with an exemption from the mandatory 7% VAT on authorized exchanges.Additionally, tax exemptions of up to a decade were offered to investors who committed to investing in crypto startups in the country for a minimum of two years.<h2 id="header-2">The Broader Picture</h2>The overarching aim of the Thai government&#39;s tightened tax rules on overseas income is to bolster its economy. Cryptocurrency traders are among the groups that will feel the impact of these changes.The objective of this new policy is twofold: to ensure equitable tax contributions from all and to generate additional revenue to support economic stimulus measures.Thailand&#39;s recent move to target overseas crypto trading income is a testament to the growing significance of digital currencies in the global financial landscape. As the Thai government seeks to strike a balance between fostering innovation and ensuring fiscal responsibility, it will be interesting to see how these new regulations impact the country&#39;s crypto ecosystem in the coming years.Want to simplify your crypto tax journey? <a href="https://app.kryptoskatt.com/signup" rel="noopener noreferrer nofollow">Sign Up for Kryptoskatt</a> and get started for free.<h2 id="header-3">FAQs</h2>1. What is Thailand&#39;s new tax policy regarding crypto?Thailand is targeting the foreign income of crypto traders with a new tax policy to fund its economic stimulus measures.2. Who will be affected by this new tax regulation?Both Thais and foreign nationals residing in Thailand for more than 180 days annually will be subject to this tax on overseas income.3. Was foreign income previously taxed in Thailand?Only foreign income remitted to Thailand within the year it was earned was previously taxed.4. Has Thailand imposed any other crypto-related taxes before?Yes, in January 2022, a 15% capital gains tax was imposed on crypto trading profits.5. Why is the Thai government implementing this new tax policy?The aim is to ensure equitable tax contributions and generate additional revenue to support economic stimulus measures.

Thailand Targets Overseas Crypto Trading with this New Policy

Thailand Targets Overseas Crypto Trading with this New Policy

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