Thailand Crypto Tax Guide

Capital Gains — 15% WHT

• Withholding tax on gains — 15%: The cryptocurrency exchanges (the "digital asset exchanges" licensed by the SEC) are required to deduct the withholding tax at the rate of 15% on the capital gains from the sale or the exchange of the cryptocurrencies and the digital tokens. The WHT is deducted on the net gain (the sale price minus the cost basis).
• Election to aggregate in the PIT: The taxpayer may elect to include the crypto gains in the annual PIT return (PND 90/91) and pay the tax at the progressive rates (0% to 35%) instead of the 15% WHT. The election is made by filing the PIT return and claiming the foreign tax credit (or the WHT credit) for the 15% already withheld. This is beneficial if the taxpayer's marginal rate is lower than 15%.
• Cost basis: The cost of the cryptocurrency is the "FIFO" (First-In, First-Out) method or the specific identification method. The exchange must provide the cost basis report to the taxpayer.

VAT Exemption on Exchanges (2024+)

From the 2024 tax year onward, the exchange of the cryptocurrencies and the digital tokens is exempt from VAT (the "Royal Decree No. 763" and the subsequent amendments). Previously, the crypto trades were subject to the VAT at 7%. The exemption covers the trades on the SEC-licensed exchanges. The off-exchange trades (the peer-to-peer transactions) may still be subject to the VAT.

Exchange Reporting to the SEC and the RD

• SEC reporting: The licensed crypto exchanges must report the trading data (the transaction volume, the trading pairs, the user data) to the Securities and Exchange Commission (SEC) on a regular basis.
• RD reporting: The exchanges must also report the transaction data to the Revenue Department (RD) — the sale proceeds, the cost basis, and the gains for each taxpayer. The RD uses the data for the tax compliance and the cross-checking against the PIT returns.

Tax Deduction on Crypto-to-Crypto Trades

The "swap" of one cryptocurrency for another (e.g., BTC to ETH) is treated as the disposal of the first cryptocurrency and the acquisition of the second. The gain on the disposal is subject to the 15% WHT (or the PIT aggregation). The cost of the second cryptocurrency becomes the market value at the time of the trade. The transaction is treated as two separate legs — the sale and the purchase — regardless of whether any fiat currency changes hands.

Airdrops and Mining as Income

• Airdrops: The value of the airdropped tokens is treated as the "assessable income" under Section 40(8) of the Revenue Code at the time of the receipt. The income is the market value of the tokens on the date of the receipt. The cost basis of the airdropped tokens for the future disposal is the market value at the time of the receipt (already taxed).
• Mining rewards: The mining rewards (the "block rewards" and the "transaction fees") are also taxable as the Section 40(8) income. The mining expenses (the electricity, the hardware, the internet) are deductible against the mining income. The cost basis for the subsequent disposal is the market value at the time of the mining.

FAQs

Do NFTs fall under the same rules?

Yes. The Non-Fungible Tokens (NFTs) are treated as the "digital tokens" under the Thai digital asset tax rules. The sale of the NFTs is subject to the 15% WHT on the gains. The income from the NFT creation is taxable under Section 40(8).

Are the crypto losses deductible?

The capital losses on the cryptocurrency trades may be offset against the crypto gains within the same tax year. The losses may NOT be offset against the other types of income (the salary, the business income, the rental income). The unused losses may NOT be carried forward.