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Exit strategy options for a Thailand-based crypto investor
- Thread starter Curveball
- Start date
Just read that from april they collect 15% on domestic withdrawal, but free for foreigners, and there's possibly a tax 'as income' but unlikely as its going into the economy -surprised myself, bitkub.
Easier option.
use exchange that does SGD -> move to SGD FCD
Wait 12 months
or straight away -> its in the system and isn't recorded as Crypto.
Easier option.
use exchange that does SGD -> move to SGD FCD
Wait 12 months
or straight away -> its in the system and isn't recorded as Crypto.
Sounds like the steps to amend the tax code towards "taxing everything, everywhere".
First they came up with the definition "crypto is always with you" which made it taxable in Thailand, even if kept abroad. Now that strange 15% collection. Next (perhaps) the abolishment of the 12-month-transfer rule .... .
They need money and it shows.
All this would also be inline with the projected figures regarding future tax collection from resident foreigners.
A workable solution is the transferring of your crypto investing/trading to a company in a jurisdiction where you will get beneficial tax treatment and at the same time would allow for tax free dividend distributions to you in Thailand.
Haven't seen any statement on the 15% collection as yet.
Guessing this is from "Exchange" commentary.
The guy that initiated this, essentially declared his transactions to the Government and THEY charged him 15%, not the exchange.
For all intense purposes, the 15% isn't a tax, but a fee for the transaction and or 15% of the profit in the transaction...
Now as that's a 'on-shore' transaction sure it would be expected to pay that... (if via the 'exchange' and if you 'declare' it).
If however you used a offshore exchange and transferred to a overseas bank - account and/or FCD onshore there is no specific record merging... as such its funds coming on-shore.
There's talk of the "all crypto where-ever you are bla bla" that's in respect of the citizens of the country (read it) not the expats, tourists etc that just remain in the country
As for CRS - records start in the country from Jan 2022 for transfer 2023... basically they are being forced to do this and dragged out as long as they could.
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Your proposed solution needs to be approached with great care! Otherwise it does more harm than good.
Many jurisdictions do not accept "one-man" companies where most of the value is created within this company (by one person!) and then paid out as a dividend.
So, just finding a jurisdiction where you get beneficial tax treatment won't do the trick.
The Revenue Code of Thailand does not distinguish between resident citizens and resident aliens!
Of course, if a person is not a tax resident of Thailand he/she won't be affected by the Revenue Code of Thailand.
And an aside from that is you could establish an offshore company, hire a desk jockey and then claim ah, its owned by a overseas company, and only pay tax on what you bring into Thailand (where appropriate).
ANYWAY... I can't imagine a competent thailand will be able to force foreigners to pay tax for world wide crypto.
Regardless of what the docs, rules, etc state... just ain't gonna happen, this is a country that is 'meant to charge tax' for your overseas holdings etc and doesn't, money you bring in and doesn't. etc
Even with CRS, they'd just see how poor the average farang actually is (will be a upheaval for those).
ANYWAY... I can't imagine a competent thailand will be able to force foreigners to pay tax for world wide crypto.
Regardless of what the docs, rules, etc state... just ain't gonna happen, this is a country that is 'meant to charge tax' for your overseas holdings etc and doesn't, money you bring in and doesn't. etc
Even with CRS, they'd just see how poor the average farang actually is (will be a upheaval for those).
I've started a thread on trying to ascertain the facts here. Perhaps somebody can elaborate where in the Thai Revenue Code the law says that crypto is everywhere as I have advice from a lawyer that suggests otherwise?
Can you point me in the direction on this statement in the revenue code, or elsewhere?
Can you point me in the direction on this statement in the revenue code, or elsewhere?
Crypto is deemed with you in Thailand. So you can not take advantage of the territorial tax advantage.
You can set up a separate offshore company and then remit the funds a year later. You can structure it if you already have a one year old company.
You can set up a separate offshore company and then remit the funds a year later. You can structure it if you already have a one year old company.
You have said this at leave 5 times on various threads and not a shred of evidence to substantiate it. Please don't confuse matters on an already complicated subject unless you can tell us where this is in the law.....
I was told by my client who is heavily into Crypto and is a British Expat who has been in Thailand for 12 years. As anything on this or any forum do your own DD and then make an informed decision.
From my experience of clients who I service they have not had any issues thus far.
From my experience of clients who I service they have not had any issues thus far.
I totally agree, and this is exactly what I'm trying to do on here - to find out the facts based on the posts that say "it follows you" without a reference to the law. I have hired a lawyer that says otherwise, and am trying to get to the source of these posts, that's all.
Thanks for confirming the source as I can now understand where these/your posts come from, and I weigh that against what advice I am getting professionally, and make a decision.
The problem with forums such as this is that posts can be read by a large number of people, and then taken as the facts, which I believe to be the case here.
Much appreciated
True,
Also Crypto law changes very fast. Few month back information may become outdated. If something is worked is past there is no guaranteed it works today in crypto space.
Be very careful before taking any step.
Check double Check.
High value crypto holder always seems as a criminal by most people around the world.
Authorities will find you guilty until you prove your innocence.
Yes, this is also a VERY valid point. Things move very fast, and there are a number of countries that are backing down/reversing previous decisions when it comes to crypto - INCLUDING Thailand - so you make an excellent point.
Which is an arse when you are trying to do some genuine planning, and seeking the help of a forum like this
True that! My experience has tought me that a risk based approach appears to be the best approach when dealing with international taxation and related matters. Rules shift and sometimes fast, so understanding what shifts fast what shifts slow and how the tax rules are applied in practice is vital in choosing a set up which would carry a certain level of anti-fragility to changes in international tax environments.
The problem with this is that the lawyer you are speaking won't have an answer. In Thailand there isn't a definitive answer and the system is designed to be that way.
Everyone I know of who has looked into this has come to a similar conclusion that if you are classed as a tax resident of Thailand, then the Thai gov could consider your personal crypto-crypto trades are taxable regardless of where they take place in the world or on what exchanges. It isn't being enforced but should one day you be investigated for something, then it would come up. Thats how they like to have it.
In those times, ensure you have an offshore company, and keep records under that company (digital/physical) and then you have a paper-trail and claim it's co funds.
But agree on what you refer to there about 'the way they like it'.
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