Thailand Plans to Tax Foreign Income from Crypto Traders
The newly appointed government of Thailand is looking for ways to fund its economic stimulus measures, including a nationwide airdrop, and one of the proposed methods is to tax foreign income from cryptocurrency traders. The Thai Revenue Department is specifically targeting overseas income, with a focus on cryptocurrency traders and Thais and foreign nationals living in Thailand for more than 180 days per year. According to the new ruling, individuals who earn overseas income from work or assets will be subject to personal income tax. However, it remains unclear how the tax on crypto trading overseas will be collected.
Concerns from Expats and Potential Impact on Financial Institutions
The new tax policy has raised concerns among retired expats in Thailand who receive pension income from abroad. It is uncertain whether they are included in the new ruling. Additionally, financial experts have warned that the tax policy may alienate private bankers and financial institutions. This could have negative consequences for the country’s financial sector.
Economic Stimulus Drive and Digital Currency Handout
The Thai government has recently pledged a series of economic reforms and plans to distribute a 10,000 THB (around $280) airdrop to eligible citizens using blockchain digital wallets. This policy is estimated to cost around 2 trillion baht ($56 billion), which could explain the government’s decision to implement the crypto tax. However, it should be noted that Thailand’s benchmark SET Index has performed poorly this year, with foreign investors withdrawing billions of dollars from the Thai bourse.
Hot Take: Potential Consequences of the Tax Ruling
The tax ruling targeting foreign income from crypto traders in Thailand may have unintended consequences. If the trend of foreign investors withdrawing money from the Thai market continues, this tax policy could result in even less money flowing into the country. Additionally, the uncertainty surrounding the inclusion of retired expats in the ruling and the potential alienation of financial institutions raise concerns about the long-term impact on Thailand’s economy and its reputation as a crypto-friendly nation.
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