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15% withholding tax for crypto sales?


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I am a bit confused about the tax system in Thailand.

I am long term in Thailand on Non-O visa. However I do not work and don't pay any tax in Thailand.

 

In case I transfer money via traditional banking (swift) into my bank account there is no tax implication.

What are the tax implications if I transfer crypto currencies (bought on exchanged abroad with money earned abroad) from a crypto exchange abroad to a Thai crypto exchange and cash out in THB to my local Thai bank account?

 

I got different answers to that scenario. A lawyer said I would have to pay 15% withholding tax for any crypto sales in Thailand.

Can anyone confirm if this correct?

 

Since Thai crypto exchanges require KYC (proof of address & passport) all details could be easily forward to the inland revenue department.

 

I asked also my Thai crypto exchange:

- they currently do not hold back any taxes

- say did not answer my question if they have or will forward any details to the inland revenue department

 

 

 

 

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I don't have a link handy but I recall reading an article that stated there is a 17% tax on crypto assets here in Thailand (plus VAT?).

 

Why not just sell on an exchange i your home country or elsewhere and pay the tax in your home country (if any) then transfer the money to your Thai bank account.

 

I don't know what country you are from but being from the USA, I certainly wouldn't sell any here as I would be taxed by the IRS, the State that I have a home in as well as the Thai tax authority.

 

It may make more sense to borrow the money you need at a low interest rate using your crypto as collateral. That way you won't have any tax liability and you won't have to sell an asset which is only appreciating in value over time (as in bitcoin for example).

 

I use Blockfi and Celsius.net for crypto loans on btc. Celcius has the lowest interest rates.  1% on a 25% loan to value for example but they go up to 50% loan to value. 

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1 hour ago, silvester2 said:

A lawyer said I would have to pay 15% withholding tax for any crypto sales in Thailand.

If a lawyer already answered that, how in the world do you think you will get a better answer here on ThaiVisa, the amateurs favorite place?😂

 

However, you are lucky! I have all that covered from my own experiences over several years.

First for you and @MeePeeMai There are no such thing as VAT on a crypto currency sale. That was waived 2018 for private transactions and gains. If a company sell digital assets they will still face VAT on their sale. Quote below:

 

"#5. 7% VAT: The May-2018 legislation dealt with 7% VAT on a digital asset transaction. The Revenue Department announced to waive this additional tax burden for retail investors who trade cryptocurrencies and digital tokens through digital exchanges."

"Private coin sales on a licensed Thai digital asset exchange are not subject to 7% VAT."

 

After that there is neither any form of 17% tax on anything taxable in Thailand. Both for Thai citizens and foreigners that sall and make a profit from digital assets in Thailand there is a 15% witholding tax. For normal income, Thailand have a progressive taxation system for Thai citizens. That does not apply to foreigners that do private taxation in Thailand. They will also there have a flat taxation rate of 15%.

 

@MeePeeMai is right in your possibilitties to sell your crypto currencies in another country. The thing here, though, is that depending on your length of stay in Thailand any profit made might according to the law be taxable in Thailand anyway. Here we are dealing with if your stay is more than 180 days, which by law states you are to pay tax on all your income during the same year in Thailand. Although, this is a very hard thing to check, and so far Thailand do not have the advanced system or technology needed.

 

As a little more information, depending on the amount of money and profit it regards, you might be forced to pay a higher tax at the end. Se quote below:

"This change in law does not have the character of a tax reduction. It does not allow to deem the withholding tax rate as final taxation. Therefore, to quote the BLARD, “juristic persons and individuals are required to include capital gains and benefits from digital asset transactions in computing income tax.” As a result, the upper limit for Bitcoin taxation remains at 35%, instead of 15%. Capital gains income is one of the regular types of taxable income. Certain specific types of capital gain are exempted. There is no separate capital gains tax law."

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I read an article back in 2018 which stated the new tax laws will apply to worldwide income even if it's transferred into Thailand in the following year 'because they have blockchain in Thailand'.

 

If you have a larger amount of money, say a million or more USD and decide to make a sale then I would suggest setting up a foreign corporation along with both corporate and personal bank accounts to handle this well in advance if the above law ever made it into the statutes.

 

Perhaps somewhere like Hong Kong.

 

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4 hours ago, ukrules said:

I read an article back in 2018 which stated the new tax laws will apply to worldwide income even if it's transferred into Thailand in the following year 'because they have blockchain in Thailand'.

 

If you have a larger amount of money, say a million or more USD and decide to make a sale then I would suggest setting up a foreign corporation along with both corporate and personal bank accounts to handle this well in advance if the above law ever made it into the statutes.

 

Perhaps somewhere like Hong Kong.

 

 

Taxation law states that only income that is brought into the country in the same year is taxable. You can well make millions of income let's say in Singapore, leave the money there and Thailand will have no means to tax that. Even better if your income is send from abroad to your SG bank account, then it is also tax free in SG as foreign sourced income is not taxable. But capital gains such as from selling of crypto are tax free anyways.

 

I know there are some vague crypto laws currently in Thailand, important is where you are tax resident and if you have a company and/or declare your tax abroad, there is a double taxation agreeement between Thailand and most countries. 

 

I personally would not trust any of the handful Thai exchanges not to give your details to the authorities. I also would not trust Hong Kong anymore under steadily  increasing Chinese influence and pressure.

Edited by MadMac
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And it's that kind of pro business thinking that has allowed Singapore to become a financial powerhouse despite having virtually no natural resources.   And if you're worried that they will close your SG accounts, just make sure your relationship with each bank is so intertwined (with a handful of time based instruments that extend 15-20 years into the future) that they likely won't want to deal with the legal hassles of terminating the relationship.   

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you can try to find on local P2P exchanges somebody for cash or domestic bank transfer.

If you fail, I do live in bangkok, I can meet. Or many small bank transfers, if you live far. I need only btc

Edited by internationalism
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