The Revenue Department has issued a tax guide for “crypto” and “digital tokens” in order to create a common understanding between government agencies, non-governmental organizations, and the public.
Tax calculations can be done in two ways: costing by first-in, first-out method; and the moving average cost method. which if one of the methods is selected That calculation must be used throughout the year. and will be able to change the new calculation method in the next tax year. The details of the tax calculation are as follows:
1. In the case of selling, paying, transferring or exchanging cryptocurrencies/digital tokens
An example where cost is calculated using a first-in, first-out method for the first year. And in the following year, change to the moving average cost method, such as the tax year 2021, Mr. A chooses the first-in, first-out method, details as follows:
• Buy 3 cryptocurrencies
– On 3 Feb. 19, amount 10 coins, value 20 baht per coin.
– On June 5, 1964, the amount of 5 coins, the value of 8 baht per coin
– On October 15, 1964, volume 15 coins, value 9 baht per coin.
• Sell 2 cryptocurrencies
– On July 10, 1964, the amount of 10 coins, the value of 30 baht per coin
– On November 16, 19, the amount is 16 coins, the value is 10 baht per coin.
Therefore, Mr. A has a duty to bring income in the amount of 121 baht (100+21) to be included in the calculation of assessable income for personal income tax, Por Ngor Dor 90, income type 40 (4) (i) of the Revenue Code. And for the balance, the amount of 4 coins, the value of 9 baht per coin, is still considered income of the tax year 2021.
And in the 2022 tax year, NA has chosen the moving average cost method. Details are as follows
Buy 1 cryptocurrency
– Date 15 Jan. 65, amount 10 coins, value 16 baht per coin.
Sell 1 cryptocurrency
– On 20 January 65, the amount is 12 coins, the value is 17 baht per coin.
Therefore, Mr. A is obliged to bring income in the amount of 36 baht to calculate as assessable money for personal income tax, PND 90, income type 40 (4)(i) of the Revenue Code and for the balance, amount of 2 coins, coin value. 14 baht per person, not considered income in 2022
2. Selling, distributing, transferring or exchanging digital assets in different currencies
Example of using cryptocurrencies/digital tokens Trade with cryptocurrencies/digital tokens
In tax year 2021, NAAA bought 8 cryptocurrencies, currency X, worth 15 baht per coin.
Exchange for 12 coins of Y-denominated cryptocurrencies of Mr. B, bought at a value of 9 baht per coin on the exchange date. Cryptocurrency currency X is worth 20 baht per coin, and cryptocurrencies denominated Y is worth 14 baht per coin. Profit or loss is calculated as follows:
Therefore, Mr. A has a duty to bring the profit of 42 baht to include in the calculation of assessable income. To pay personal income tax, P.N.D.90, income type 40(4)(i) of the Revenue Code.
As for Mr. B, he is obliged to bring profits in the amount of 52 baht to be included in the calculation of assessable income to pay personal income tax, P.N.D.90, income type 40 (4)(i) of the Revenue Code.
3. Cryptocurrency Mining
Cryptocurrency Mining The law interpreted that it was originally a producer. or how to produce Coins are acquired as assets. Income under Section 40 (8), which can be deducted according to actual expenses such as expenses from the purchase of computers, electricity and staff, etc. For example:
In the case of income from the sale of cryptocurrencies obtained from mining Cost is calculated by first-in, first-year method. and the following year changed to the moving average cost method.
In the 2021 tax year, Mr. A invests in a computer for 900,000 baht. In January, he mines 60 coins of cryptocurrency X. In March, Mr. A sells crypto. The amount of 40 coins on the cryptocurrency X is 30,000 baht per coin. In the 2021 tax year, Mr. A has a computer repair fee of 100,000 baht, an electricity fee of 80,000 baht, and Internet cost 30,000 baht. Mr. A calculates the cost by first-in, first-out method. Calculate profit or loss as follows:
tax payable calculation
Method 1 Assessable income less expenses and expenses and various allowances multiplied by the income tax rate also known as the progressive rate under Section 48(1) of the Revenue Code.
Method 2 The assessable income is multiplied by the rate of 0.5 percent, known as five per thousand under Section 48(2) of the Revenue Code.
Therefore, in the tax year 2021, Mr. A will have to pay tax calculated according to method 1 of 75,000 baht, because the tax calculated according to method 1 is higher than method 2 and Mr. A has cryptocurrency X. Remaining $20 at cost price of 170,000 baht (510,000-340,000) carried over to the next year.
And in the 2022 tax year, in March, Mr. A mines 60 coins of cryptocurrency X, in April, Mr. A sells 30 volumes of cryptocurrency X. Coins as of the date of sale of cryptocurrency X worth 20,000 baht per coin. In the tax year 2022, Mr. A has computer repair costs 50,000 baht, electricity costs 60,000 baht and internet costs 20,000 baht. Costs are calculated using the weighted cost method. Moving average calculate profit or loss as follows:
tax payable calculation
Method 1 Assessable income less expenses and expenses and various allowances multiplied by the income tax rate also known as the progressive rate under Section 48(1) of the Revenue Code.
Method 2 The assessable income is multiplied by the rate of 0.5 percent, known as five per thousand under Section 48(2) of the Revenue Code.
Therefore, in the tax year 2022, from the calculation of method 2, the tax that must be paid not more than 5,000 baht, there is no tax that must be paid according to method 2. Therefore, Mr. A has to pay tax calculated according to method 1 in the amount of 9,000 baht and has Cryptocurrency X has a balance of 50 coins at a cost of 7,500 baht per coin, carried over to the next tax year.
You can download and read the details of the entire manualhere