Thailand, a country that has previously been known for its crypto-friendly policies, is planning to tax the foreign income of crypto traders to fund its economic stimulus measures, which include a nationwide airdrop.
The newly appointed government is scrambling to find ways to pay for its planned economic stimulus measures. On September 19, the Bangkok Post reported that the Thai Revenue Department is targeting overseas income, specifically mentioning cryptocurrency traders.
According to the new ruling, those who earn overseas income from work or assets will be subject to personal income tax. The proposed new tax would target Thais and foreign nationals living in the Kingdom for more than 180 days per year.
Legal experts have said that the new policy appears to have specific targets, including “residents trading in foreign stock markets through foreign brokerages and cryptocurrency traders.”
“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,” a Finance Ministry source told Bangkok Post.
It is worth noting that this is not the first time Thailand has implemented tax regulations on crypto traders. In January 2022, profits from cryptocurrency trading were subject to a 15% capital gains tax. However, in March 2022, the Thai government reportedly exempted crypto traders from the mandatory 7% VAT on authorized exchanges while offering tax exemptions of up to 10 years for investors who invest for at least two years in crypto startups in the country.
Overall, the Thai government is tightening tax rules on overseas income to aid its economy, and crypto traders are among those who will be affected. The new policy is aimed at ensuring that everyone pays their fair share and generating additional revenue to fund economic stimulus measures.