Thailand to start taxing overseas income next year, including from crypto

[bbigtart]

If we look at it from a socio-economic perspective, the long-term impact of this new regulation may worsen because there will be income inequality in Thailand itself. Because rich people who own businesses and private banking services, are very likely to avoid reporting taxes like this, ultimately making middle class traders and those who do not have the financial means to avoid it.

In short perhaps, even though this new policy aims to increase revenue by closing existing tax loopholes, the potential negative impact could be very big big. Because this makes things difficult behavior of the business world, which will create obstacles to effective law enforcement, and raise questions about the main impact of these guidelines on the economic and social order in Thailand.

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[Oasisman]

I have some Thai acquaintances, the situation in Thailand currently, is not crypto friendly. Is This a crazy policy? They already pay taxes on their income, there is no need to do it twice. What do you think will be the response to this news? I mean, let's say you're a foreigner in Thailand, let's say you have income in America does that upset you?

Yeah it is crazy, but for most cases, taxation law allows the authorities to impose tax on anything that you've earned, that means if you have 2 or more job, they will find a way to get you taxed for each income you have earned for each of those jobs/business.
That's the bitter part of all these taxation stuff, especially to an underdeveloped countries. People are paying high taxes only for the government officials to steal it.

Everybody is upset when we're talking about taxations, I think nobody is happy about it lol.

[Darker45]

Well, there's a specific loophole this new policy is trying to address. Just like in medicines, however, there will be side effects-- unpleasant ones. And then there's also the question whether this new policy will even be effective in dealing with the said loophole. Or it will be inutile to the ones who've got powers and connections and will be a heavy burden to those who don't have them. Corruption is present in Thailand.

Anyway, I haven't read the policy itself but I am curious as to whether it is really in the policy that foreign income shall be taxed "even if it wasn’t going to be used in the local economy." I always have reservations when reading news coming from Cointelegraph and other crypto online magazines.

[Don Pedro Dinero]

They decided to plug holes in their budget at the expense of visiting foreigners? Foreigners will solve this problem very easily - they will leave for countries that are more loyal to foreigners. Other countries (like Dubai) are trying to attract foreign investment with zero tax rates, while the Thais, on the contrary, are scaring them away with such taxes.

I agree with your analysis in general, but on this point I think it will depend on the tax rate as well. If they are setting it for the first time I suppose it will be low and some people who have been there for a long time will not be motivated to go, as for example Dubai is much more expensive than Tahiland. If they are foolish enough to set a relatively high tax rate then I think they will provoke a stampede of foreigners and it will backfire.

[Latviand]

Thailand is known for its tourism, and it is true that some foreigners live in their exploding tax loopholes. But this policy can create a negative impact on foreign investment and tourism. Many foreigners were happy about their low tax rates, which made them an attractive place for many expats. Most of these expats were already paying tax in their home country; now if they need to pay a high tax in Thailand as well, this will force them to leave the country.

I don't think that they are including tourists on that law so I don't think the tourists need to worry about that, they're probably talking about expatriates who have been living in Thailand but are working in overseas and are getting paid by the country that they're working from so if you're a tourist nothing to worry about I think. I think leaving the country for some of these expatriates are far fetch thing for them to do because what's a little more tax compared to going back to their country with a much higher standard of living than what they currently have in Thailand.

[traderethereum]

It doesn't seem like a crazy policy because maybe the government wants to gain or maximize sources of income through its taxes, so people think it is inappropriate.
The government seems to have learned that they can impose taxes on various sectors, even on crypto, so they want to get an even bigger source of income.
If it helps the government improve services to its people, it can be maximized so that tax revenues in Thailand can increase as long as its officials do not corrupt it.
But visitors from abroad may decrease with the new regulations so that the plan cannot go according to plan.
After all, it will still be in effect next year so the Thailand government will probably trial its regulations with people already in Thailand to see how it goes.

[Sayeds56]

I have some Thai acquaintances, the situation in Thailand currently, is not crypto friendly. Is This a crazy policy? They already pay taxes on their income, there is no need to do it twice. What do you think will be the response to this news? I mean, let's say you're a foreigner in Thailand, let's say you have income in America does that upset you?

I think taxing the foreign income earned by overseas Thai workers can have negative impact on their official remittance inflow of foreign exchange and can lead to reduction in foreign exchange income of government, as overseas workers may opt to unofficial channels to send money to their families. However, it is likely a step of the current government to increase their tax revenue to reduce their budget deficit.

Regarding the unfriendly stance towards cryptocurrencies, it might be a cautious approach of the government to avoid frauds, money laundering and financial stability. A more effective approach could be to regulate crypto currencies to protect the consumers and financial system.

[xSkylarx]

I'm not against it as based on the information those foreigners live in Thailand for more than 180 days meaning they have property there or have transactions there that took a long time to do so they should pay tax as they have already been living or staying in Thailand for a long time.

The government should impose a tax on those people because they are using the infrastructure in the country and basically they are somewhat citizens there so like others they should pay and for sure they don't have a problem with this mostly if they are earning money outside the country so they are earning huge.

[bayu7adi]

As of January 2022, income generated from crypto has indeed been subject to taxation, so this news should not come as a surprise to residents living in Thailand. The tax rate is quite reasonable, standing at 15% of capital gains rather than the total transaction amount. Furthermore, in March 2022, the tax was reduced to 7%, which is even lower than before.

Looking ahead to the new regulations set for January 2024, I believe it won't have a significant impact on those earning money from crypto. Considering that most people here derive their income from crypto, this might not bring substantial changes.

However, it could potentially introduce a new rule for residents earning money from sources outside Thailand. Think of it as a fee for the privilege of residing in Thailand. Contributing towards enjoying public facilities or security services requires financial support to make them better.

[puloweh555]

Most countries in the world are still struggling to recover from the COVID-19 pandemic, but some countries are experiencing greater difficulties than others. Thailand is one of the countries that has recently returned to growth while tourism is also starting to recover but global trade and interest rates are hampering its recovery but one sector is increasingly becoming a ray of hope and that is crypto. So in my opinion this is not bad news, because previously Thailand was a very crypto-friendly country, now the government is planning to take foreign income tax from crypto traders, which is a good step. Because this is the government's effort to fund economic stimulus measures, with this new tax policy it is hoped that the government can target income from abroad, especially crypto traders.

Apart from that, we can also see that with this change, Thailand is showing its commitment to regulating the crypto industry better and of course strictly. Although this may raise concerns among the crypto community, this step can provide clarity and certainty for investors and traders in Thailand.

[passwordnow]

They should have done that a long time ago. Because of how cheap living there is, putting a tax on the income of the foreigners there who have been traveling and working at the same time should benefit their government. Next would be a digital nomad visa or something like just Portugal. But I think that since Thailand isn't strict with tourists and they don't have visas for most countries(cmiiw). This is even better and could get them more tourist as it's a signal that if you stay there for long and you're working and getting paid offshore, could make more laws and give incentives to them since they're bringing more money to their economy.

[DrBeer]

.....
the big question is how many people come to Thailand and stay here properly and live off the money they earn from other sources of income from other parts of the world.
I have some Thai acquaintances, the situation in Thailand currently, is not crypto friendly. Is This a crazy policy? They already pay taxes on their income, there is no need to do it twice. What do you think will be the response to this news? I mean, let's say you're a foreigner in Thailand, let's say you have income in America does that upset you?

Source : https://cointelegraph.com/news/crypto-thailand-tax-overseas-income

First of all - I have a great love and respect for Thailand ! Often vacationed there, traveled there.... Culture, nature, cuisine - it's all beautiful ! But did not stay as a "remote employee". But I know a lot of people who chose this beautiful country as a place to live and work remotely. And it was very comfortable, affordable and pleasant ... Against the background of European rental prices, cost of living, comfort of living - Thailand very noticeably wins!
Of course the Thai government, which has been hit hard by the pandemic, needs to find ways to fill the budget, and this step is expected ... Hopefully it will be a balanced solution

[Sithara007]

Ever since the new King (Maha Vajiralongkorn) was crowned in, Thailand government has taken measures that are increasingly hostile to the expat population.  And let's also not forget the fact that Bitcoin was banned for a long time in Thailand, and even possession of cryptocurrency was a punishable offense. It became legal only a few year's back. So what I can see is that Thailand was never a crypto-friendly country and they are increasingly becoming hostile. I am more worried that it will become a norm and will be followed by other countries.