Understanding DeFi Yield and Thai Tax Requirements
Decentralized Finance (DeFi) yield—earned through staking, liquidity mining, or lending—is taxable income in Thailand. The Revenue Department classifies crypto earnings as assessable income under Section 40 of the Revenue Code. Failure to report can trigger audits, penalties up to 200% of unpaid tax, plus 1.25% monthly interest. With Thailand’s increased crypto transaction monitoring since 2022, compliance is essential for all investors.
Step-by-Step Guide to Reporting DeFi Earnings
Follow this process to accurately declare your DeFi income:
- Calculate Your Annual Yield
Track all 2023 earnings using blockchain explorers (Etherscan, BscScan) or tax software like Koinly. Convert yields to THB using Bank of Thailand exchange rates on receipt dates. - Categorize Income Type
Classify earnings:- Interest-type yield (e.g., Aave deposits) as ordinary income
- Liquidity pool rewards as service income
- Airdrops as miscellaneous income
- Prepare Documentation
Compile:- Wallet transaction histories
- Exchange statements
- Yield calculation spreadsheets
- THB conversion records
- File via e-Filing System
Submit through the Revenue Department’s e-Filing portal using:- Form P.N.D.90 for individuals (March 31 deadline)
- Form P.N.D.91 for corporate entities
Key Challenges and Compliance Tips
Thai DeFi investors face unique reporting hurdles:
- Volatility Complications
Fluctuating token values require daily THB conversion records—use crypto tax tools for accuracy. - Multi-Platform Tracking
Consolidate data from all protocols (Uniswap, PancakeSwap) into unified reports. - Regulatory Ambiguity
No specific DeFi guidelines exist—apply general crypto tax principles conservatively.
Pro Tips: Maintain real-time records using CoinTracker, deduct blockchain fees as expenses, and consult Bangkok-based crypto tax specialists like Grant Thornton Thailand for complex cases.
Frequently Asked Questions (FAQ)
Q: Is staking yield taxable the year it’s earned or when sold?
A: Taxable upon receipt. You must report the THB value when tokens enter your wallet.
Q: What if I earned yield in stablecoins?
A: Still taxable. Convert USDC/USDT to THB using the exchange rate on the day received.
Q: Can I offset losses from DeFi investments?
A: Yes, capital losses from token sales can offset capital gains, but not against yield income.
Q: Are there tax treaties for foreign-earned DeFi income?
A: Thailand taxes residents on worldwide income. Double taxation agreements may apply—consult a professional.
Q: What records should I keep?
A: Retain for 5 years: wallet addresses, transaction IDs, yield statements, and THB conversion proofs.
Staying Compliant in Thailand’s Evolving Landscape
With Thailand’s SEC increasing crypto oversight, meticulous DeFi yield reporting is non-negotiable. Document all transactions, leverage tax software, and consider professional guidance—especially for yields exceeding ฿60,000/year. Proactive compliance prevents penalties and aligns with Thailand’s push for transparent digital asset regulation. Always verify requirements via the Revenue Department’s official website for updates.
