Thailand’s Revenue Department recently announced a significant policy change with regards to personal income tax on foreign earnings. Set to take effect in 2024, the new tax policy brings several implications for residents, including the growing community of cryptocurrency traders. This article explores the key aspects of Thailand’s Revenue Department’s latest move and its potential impact on crypto traders and the wider population.

Thailand’s Revenue Department Tweaks Tax Policy:
The Bangkok Post reported on September 19 that Thailand’s Revenue Department had reviewed a section of the country’s Revenue Code, unveiling a revised tax policy. Under this new rule, individuals residing in Thailand for at least 180 days a year will be liable for personal income tax on their foreign earnings from work or assets.

Specific Targets of the Policy:
Legal experts suggest that this tax policy targets three main groups: Thailand residents participating in foreign stock markets through foreign brokerages, crypto traders, and individuals exploiting the previous taxation system. The new rule aims to address a loophole where residents could defer the transfer of foreign income to a different tax year.

Implications for Crypto Traders:
While the new tax policy mentions foreign earnings from work or assets, there remains uncertainty about how cryptocurrency profits earned through offshore exchanges will be taxed. Given that Thailand’s largest crypto exchange, Bitkub, has limited trading pairs, it is likely that many Thai crypto traders use offshore platforms. The Revenue Department’s stance on overseas earnings from crypto trading remains to be seen.

A Way to Fund the National Airdrop?
Coinciding with the new tax policy, Thailand’s recent appointment of Srettha Thavisin as Prime Minister brings a focus on crypto-friendly policies, including plans for a national “airdrop.” This economic relief initiative aims to provide every Thai citizen above 16 years of age with 10,000 baht (approximately $300) in the form of a national token. Some commentators speculate that the revenue generated through the new tax policy might help fund this large-scale stimulus.

Criticisms and Concerns:
Despite the potential benefits of the new tax policy, critics argue that it may exacerbate Thailand’s existing income disparity. As with any taxation adjustment, concerns about fairness and its impact on different socio-economic groups arise.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.