As per the Revenue Department's latest announcement on guidelines for collecting cryptocurrency tax as of 31 January 2022 and 2 Decrees announced on 24 May 2022, the details can be summarized as follows.
Essential terms and requirements
1. The Revenue Department currently exempts the collection of a 15% withholding tax.
2. Crypto taxpayers refer to the persons who fall under the following categories:
- A person who has sold, paid, transferred, or exchanged a cryptocurrency/digital token through digital asset business operators or exchanges that are under the supervision of the Securities and Exchange Commission (SEC) of Thailand.
- A cryptocurrency miner
- A person whose income is paid in cryptocurrencies.
- A person who earns or receives a cryptocurrency/digital token as a reward.
- A person who earns the benefits from holding cryptocurrencies/digital tokens.
3. You can deduct the losses from the profits you make for the same tax year when calculating for tax filing.
4. VAT exemption is applied for all transfers of cryptocurrencies or digital tokens done on any Exchange under the law on digital asset business from 1 April 2022 to 31 December 2023.
5. Starting 1 January 2024, VAT exemption is applied to the transfer of cryptocurrencies or digital tokens for utility purposes when done through digital asset exchanges, brokers, traders, or dealers in compliance with digital asset business laws.
6. VAT exemption is applied for all transfers occurring from 1 April 2022 to 31 December 2023 of digital currencies that are issued by the Bank of Thailand.
Cryptocurrency tax calculation methods
There are 2 methods of cost calculation for crypto tax payment:
Method 1: First in - first out method or FIFO
Method 2: Moving average cost method
Example 1: Cost calculation for trades of multiple currencies
1.1 Using FIFO method
Date of transaction | Currency | Transaction type | Amount of token | Price (THB) | Profit/Loss (THB) |
1/1/2022 | X | Buy | 1 | 1,000 | - |
1/1/2022 | Y | Buy | 1 | 600 | - |
5/1/2022 | X | Buy | 1 | 1,400 | - |
6/1/2022 | Y | Buy | 1 | 400 | - |
10/1/2022 | X | Sell | 1 | 1,150 | Profit 150* |
10/1/2022 | Y | Sell | 1 | 500 | Loss 100** |
From the above table, if Mr.A uses the FIFO method for his cost calculation,
- The cost of X token for his sell order on 10/1/2022 will be 1,000 THB (based on the price of the first-purchased X token), making Mr. A profit from selling X token = 1,150 - 1,000 = 150 THB*.
- The cost of Y token for his selling on 10/1/2022 will be 600 THB (based on the price of the first-purchased Y token), making Mr. A lose from selling Y token = 500 - 600 = -100 THB**.
1.2 Using the moving average cost method
Date of transaction | Currency | Transaction type | Amount of token | Price (THB) | Profit/Loss (THB) |
1/1/2022 | X | Buy | 1 | 1,000 | - |
1/1/2022 | Y | Buy | 1 | 600 | - |
5/1/2022 | X | Buy | 1 | 1,400 | - |
6/1/2022 | Y | Buy | 1 | 400 | - |
10/1/2022 | X | Sell | 1 | 1,150 | Loss 50* |
10/1/2022 | Y | Sell | 1 | 500 | Even** |
From the above table, if Mr.A uses the moving average cost method for his cost calculation,
- The cost of X token for his sell order on 10/1/2022 will be (1,000 + 1,400)/2 = 1,200 THB, making Mr. A loses from selling X token = 1,150 - 1,200 = -50 THB*.
- The cost of Y token for his sell order on 10/1/2022 will be (600 + 400)/2 = 500 THB, making Mr. A even (no loss nor profit) from selling Y token = 500 - 500 = 0 THB or selling at its cost.**
Example 2: Cost calculation for tax payment in case of profits
From the example in point 1.1, when Mr.A uses the FIFO method for his cost calculation, Mr.A will have total income from selling X and Y tokens = 150 - 100 = 50 THB.
As a result, Mr.A needs to file tax for his earnings from cryptocurrency in a total of 50 THB.
Example 3: Cost calculation for tax payment in case of loss
From the example in point 1.2, when Mr.A uses the moving average cost method for his cost calculation, Mr.A will have total income from selling X and Y tokens = -50 + 0 = -50 THB. This means that Mr.A loses from his crypto investment that year.
As a result, Mr.A is not required to file taxes for that tax year since he does not earn from his crypto investment that year.
However, each X and Y token that he is still holding (the remaining tokens that he has not sold yet) must be included in his cost calculation for the next tax payment.
Remarks:
- The same calculation method must be used in 1 tax year. It can be changed only in the following year.
- Both calculation methods can be used for filing the P.N.D. 90/91 (Phor.Ngor.Dor. 90/91) for the individual income tax only.
- In case you have traded on multiple types of cryptocurrencies/digital tokens, the cost of each currency/digital token must be calculated separately to find the actual profit/loss for your investment in each type of cryptocurrencies/digital tokens. After that, all profits and losses must be subtracted to find the actual profit or loss of your trades that you will be responsible for tax filing.
Tax forms and filing
Taxpayers are obligated to file the P.N.D. 90/91 for such tax year within 31 March of the following year. The information and documents required are as follows:
- Amount of tokens bought or sold
- Price of each type of cryptocurrencies/digital tokens on each transaction date
- Exchange rate references
- Details of buyers/sellers for your cryptocurrency/digital token buy/sell orders (if any)
- Tax invoices or expense receipts
- Withholding tax certificate (if any)
Important notes
- Currently, no law obliges exchanges to submit their investors’ information to the Revenue Department. However, investors can request their cryptocurrency trading information from the exchanges so that they can calculate and file the taxation correctly.
- In case you have already sold or exchanged your tokens, but have not yet withdrawn THB from your wallet on the exchange, the profits you make from your trades are considered income that must also be included in the personal income tax for the year that the trades are made.
- If in a particular year, your net income from the crypto investment is calculated as a loss, you cannot carry over such losses and include them in your cost calculation in the following year.
- If you already pay the 15% withholding tax for the profits you earn from your crypto investment with the proof of payment provided to you, you can submit the document for tax refunds.
- On 12 March 2024, the Revenue Department released an announcement regarding a new tax policy to promote fundraising with Investment tokens which has been approved by the Cabinet (reference). The main point of this tax policy is an exemption from personal income tax on the share of profits (dividends) or any other benefits received from holding or possessing Investment tokens from 1 January 2024 onwards. However, please note that this tax policy is not yet officially enforced. Investors are advised to follow announcements from the Revenue Department closely.
You can find the detailed calculation and more examples from the manual “Guidance of personal tax income filling for cryptocurrencies and digital tokens” by the Revenue Department here.
FAQs
1. Can Bitkub disclose its customers’ account information to the Revenue Department?
Answer:
We cannot disclose our customers’ trading or personal information to the Revenue Department due to the fact that this information is confidential unless the customers give their consent to the company to disclose the said information to the Revenue Department.
2. Has the Revenue Department ever requested Bitkub to disclose the customers’ personal data? If so, what kinds of information were requested?
Answer:
The Revenue Department has never requested customers’ personal data or any transaction information from the company. As stated above, we cannot disclose the customers’ information to the Revenue Department without permission from our customers.
3. Customers understand that Bitkub cannot disclose their data without permission. Are there, somehow, any kinds of information that can be accessed by or provided to the Revenue Department without permission?
Answer:
The Revenue Department cannot request any information from Bitkub without permission from our customers.
4. Is it possible that the Revenue Department will force Bitkub to disclose the customers’ information without permission? If possible, how can the Revenue Department proceed with it? (e.g. requesting a court document to force the company to disclose its customer’s data, etc.)
Answer:
Currently, there are no regulations or laws that allow the company to disclose its customers’ personal information to the Revenue Department without the customer’s consent.
5. In case Bitkub is required to disclose the customer’s information to the Revenue Department in the future, will the company clarify and inform the related customer, and how will the company do it? (e.g. sending the same set of information/documents that the company provided to the Revenue Department to the customer, etc.)
Answer:
We must receive consent from the customer before disclosing any information to the Revenue Department. However, if there will be new regulations or laws in the future that oblige us to deliver the information to the state agencies without primary notice, we will send primary notices to our customers so that they acknowledge and can prepare their information/documents for the authorities.
6. How can I request the withholding tax certificates from Bitkub? What are the required documents, the processing time of issuance, and the document delivery channels?
Answer:
As an exchange, Bitkub is NOT responsible for deducting the withholding tax from our customers and filing it to the Revenue Department. Furthermore, despite the fact that there is a law that enforces the tax collection from profits gained from trading or holding digital assets by withholding 15% of the profits from digital asset traders and issuing withholding tax certificates to payers. However, this process is not yet practically implemented, so the Revenue Department listed a tax exemption for the said tax in 2023 until further announcement.
7. Do I need to include the THB deposits-withdrawals in tax calculation and payment?
Answer:
Bitkub does not deduct any tax from THB transactions on our system. However, in case you make profits from selling your cryptocurrencies, such profits are required to be included in tax calculation as your earnings in THB and filed as a part of annual personal tax at a progressive rate. (To summarize, your profits made from crypto trading and the THB remaining balance are required to be included in your tax calculation and filing.)
8. Do I need to pay tax for free credits (such as THB or fee credits) received as compensation from Bitkub?
Answer:
The free THB or fee credits you receive from Bitkub as compensation, for example, from incidents, are not required for personal income tax filing.
9. How can I calculate the costs incurred from other exchanges?
Answer:
You are responsible for keeping a record of costs incurred from other exchanges when you transfer tokens to Bitkub for tax calculation (costs/profit-loss). We are unable to specify the costs from other exchanges. However, our system records only the market price of each token daily.
10. Does Bitkub calculate the costs/profit-loss for customers?
Answer:
We have a service to provide you with a yearly report that includes your transaction history which you can use as a supporting document for costs, profits, and losses calculation of your investment to support your tax filing or any other purposes as you wish.
11. Can I choose the tax calculation method by myself or is there a requirement specified by the Revenue Department?
Answer:
You are free to choose the calculation method by yourself from the 2 provided by the Revenue Department. However, in 1 tax year, you will need to use only 1 method for the whole year for calculation. For example, if you used the FIFO method early this year, in the same year, you could use this method only. You would be able to change to the Moving Average Cost in the next year if you wish to change, or you could continue using the FIFO method.
12. Is there any kind of information that Bitkub submits to the Revenue Department?
Answer:
Bitkub Exchange is required by law to submit the information to the Revenue Department in case customers earn more than 1,000 THB per month from the Referral Program. Earning customers can request the Withholding Tax Certificate from Bitkub Exchange with the specification of the date or period that the document needs to cover to support their tax filing.
As for trading information, we do not submit such information to the Revenue Department.
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