Thailand's Cryptocurrency Tax Landscape: History, Current Status, and Future Trends

Thailand's Major Taxes and Rates

Corporate Income Tax (CIT)

• Rate: 30% on net profits (paid biannually).

• Exceptions:

  • Small companies (<5M THB capital): 20% if profits <1M THB; 25% for profits 1–3M THB.
  • Companies listed on SET: 25% if profits <300M THB.
  • International financial institutions in Bangkok: 10%.
• Foreign investors: Registered Thai companies enjoy tax incentives.

Personal Income Tax (PIT)

• Rate: 5–37% progressive tax on taxable income (after deductions).

• Deductibles:

  • Rental income: 10–30% deduction.
  • Professional fees: 30–60% deduction.
  • Employment income: 40% deduction.

Value-Added Tax (VAT)

• Rate: 7% (standard).
• Threshold: Applies to entities with >1.2M THB annual revenue.
• Imports: VAT levied by Customs Department.
• Refunds: Available if monthly input tax > output tax.

Special Business Tax (SBT)

• Industries: Banking (3%), real estate (3%), insurance (2.5%), etc.
• Surcharge: 10% local tax on SBT.

Digital Asset Taxation in Thailand

Definitions

• Cryptocurrency: Electronic data used as a medium of exchange (per SEC rules).
• Digital tokens: Tradeable assets granting rights to utilities or assets.

Tax Types

1. Withholding Tax (WHT)

   • Rate: 15% (individuals/foreign entities).
   • Exemption: Transactions on SEC-approved exchanges.

2. Personal Income Tax (PIT)

   • Scope: Trading, mining, salaries, gifts/airdrops, staking.
   • Methods: FIFO or MAC cost calculation.
   • Loss offset: Allowed for exchange-traded assets.

3. Corporate Income Tax (CIT)

   • Rate: 20% (standard).
   • Incentives: Reduced rates for BOI-promoted entities.

4. VAT on Digital Assets

   • Rate: 7% (considered "electronic service").
   • Exemption: Transfers on approved exchanges (2022–2023).

5. Special Business Tax (SBT)

   • Potential: Future shift from VAT to SBT for select assets.

Compliance and Future Trends

Regulatory Milestones

• 2013: Bitcoin banned, then partially legalized.
• 2018: Digital Asset Decree enacted (licensing for exchanges/brokers).
• 2022: Proposed 15% capital gains tax scrapped after backlash.
• 2023: CIT/VAT exemptions for investment token issuers.

Challenges

• Payment ban: Crypto cannot be used for payments (central bank policy).
• Regulatory uncertainty: Stricter rules may hinder regional hub ambitions.

Outlook

• Opportunities: Bangkok emerging as a crypto hub.
• Risks: Evolving laws require constant compliance monitoring.

FAQs

Q: How is crypto mining taxed in Thailand?
A: Mining profits are taxed via WHT (15%) or PIT (if traded). Costs are deductible under FIFO.

Q: Are crypto losses deductible?
A: Yes, but only for exchange-traded assets within the same tax year.

Q: What’s the VAT status for ICOs?
A: Currently taxable (7%), but exemptions are under review.

👉 Explore Thailand’s crypto regulations in depth