How to Report DeFi Yield in Thailand: Complete Tax Guide 2024

Introduction to DeFi Taxation in Thailand

As decentralized finance (DeFi) gains popularity in Thailand, investors earning yield from liquidity mining, staking, or lending must navigate complex tax reporting requirements. The Thai Revenue Department treats DeFi earnings as taxable income, and failure to report accurately can result in penalties. This guide explains step-by-step how to legally declare your DeFi profits while maximizing compliance.

How Thailand Taxes DeFi Yield Income

Under Thai tax law, DeFi yields are categorized as assessable income regardless of whether rewards are in crypto or fiat. Key principles include:

• Taxable Events: Yield generation (e.g., staking rewards received) triggers tax liability
• Valuation: Income is calculated in THB using exchange rates at receipt time
• Progressive Rates: Yields are taxed at personal income rates (5%-35%) after deductions
• Withholding Tax: Some platforms may deduct 15% for non-resident entities

Step-by-Step Guide to Reporting DeFi Yield

1. Track All Transactions
   Use tools like Koinly or CoinTracking to log:
   • Date and time of yield receipt
   • THB value at time of acquisition
   • Source platform (e.g., PancakeSwap, Aave)
2. Calculate Taxable Income
   Sum all yields received during the tax year (January 1 – December 31). Convert to THB using Bank of Thailand exchange rates.
3. Prepare Documentation
   • Wallet transaction histories
   • Platform reward statements
   • Exchange rate records
4. File via P.N.D.90/91 Form
   Report under Section 40(4)(g): Other Income when e-filing between January 1 – March 31.
5. Pay Taxes Due
   Submit payment by April 30 to avoid 1.5% monthly penalties.

Special Considerations for Thai DeFi Investors

• Deductions: Offset losses from crypto trading against yield income
• NFT Rewards: Treated as income based on fair market value
• Stablecoins: Yields in USDT/DAI still require THB conversion
• DAO Earnings: Distributed tokens are taxable upon receipt

Penalties for Non-Compliance

Failure to report DeFi income may result in:

• Fines up to 200% of unpaid tax
• 0.75% monthly interest on overdue amounts
• Criminal charges for evasion exceeding ฿200,000

FAQs on Reporting DeFi Yield in Thailand

1. Is DeFi yield taxed if I reinvest it immediately?

Yes. Tax applies when you receive the yield, regardless of whether you hold or reinvest it.

2. How do I value yields from obscure tokens?

Use the average THB price across major exchanges (Bitkub, Zipmex) at time of receipt. Document your methodology.

3. Are there tax treaties for foreign platforms?

Thailand has DTAs with 61 countries. If withholding tax was paid abroad, claim foreign tax credits via Form 110.

4. Can I deduct gas fees?

Transaction fees directly related to yield collection (e.g., claiming rewards) are deductible expenses.

5. What if I earned less than ฿150,000 annually?

You must still file a return, but may owe no tax due to the ฿150,000 personal allowance.

6. How are airdrops taxed?

Taxable as income if received through active participation (e.g., completing tasks). Random airdrops may be exempt.

Staying Compliant in 2024

With Thailand’s new digital asset regulations under development, maintain detailed records using crypto tax software and consult a Thai-certified tax advisor specializing in digital assets. Update wallets quarterly and monitor Revenue Department announcements for evolving guidelines.