DeFi Yield Taxation in Thailand: What You Need to Know
Thailand’s Revenue Department requires taxpayers to report all income from decentralized finance (DeFi) activities, including yield farming, liquidity mining, and staking rewards. As Thailand tightens crypto regulations, failure to report DeFi earnings could result in penalties of up to 100% of unpaid taxes plus 1.25% monthly interest.
Step-by-Step Guide to Reporting DeFi Yield
1. Calculate Your Annual DeFi Earnings
– Convert all yield rewards to THB using Bank of Thailand exchange rates
– Track daily rewards using blockchain explorers like Etherscan
– Use tax software (Koinly or TokenTax) for automated calculations
2. Determine Tax Category
| Yield Type | Tax Treatment | Rate |
|——————|————————-|——-|
| Farming Rewards | Assessable Income | 0-35% |
| Staking Income | Assessable Income | 0-35% |
| Trading Profits | Capital Gains (if held) | 15% |
3. File Through These Channels
– Revenue Department e-Filing
– RD Smartphone App
– In-person at local tax office (Form P.N.D. 90/91)
Required Documentation
- Wallet transaction histories (CSV/PDF)
- CEX withdrawal/deposit records
- DeFi platform reward statements
- THB conversion proofs
- Smart contract addresses
4 Common Reporting Mistakes to Avoid
1. Ignoring Small Rewards: Thailand taxes ALL income regardless of amount
2. Using Wrong Exchange Rates: Must use BOT’s daily rate at transaction time
3. Missing Deadlines: Personal taxes due March 31, corporate taxes May 31
4. Poor Recordkeeping: Maintain records for 5 years post-filing
DeFi Tax FAQ (Thailand)
Q: Are stablecoin yields taxable?
A: Yes – All yield denominated in any cryptocurrency is considered assessable income.
Q: How to report impermanent loss?
A: Thailand currently doesn’t allow impermanent loss deductions for DeFi LPs.
Q: Can I offset gas fees?
A: Transaction fees are deductible if properly documented as operational expenses.
Q: Penalty for late filing?
A: 1.5% monthly penalty + potential criminal charges for evasion over ฿200,000.
Q: Tax treatment for DAO earnings?
A: DAO distributions are taxed as ordinary income at progressive rates.
Always consult a certified Thai tax advisor for complex DeFi transactions. The Revenue Department has increased blockchain monitoring through partnerships with Bitkub and Zipmex.
