Thailand government announces crypto taxes as subject to 15% capital gains tax
The Thailand government has shown progress with the regulation of its local cryptocurrency ecosystem in the latest development of the enactment of news tax rules for the crypto sector.
As per a news report on January 5, The Bangkok Post, profits from crypto trading in the Thai nation will now be subjected to a 15 per cent capital gains tax.
The Thai Revenue Department has also expressed plans of stepping up its monitoring duties after the digital assets market has recorded bloom in the last year.
The department is authorized to collect taxes from crypto trades owing to the regulation that profits from such activity are now “assessable income” under Section 40 of the Royal Decree that has amended its predecessor Revenue Code No.19.
The finance ministry of Thailand has recommended investors to calculate as well as report their income from cryptocurrencies in all tax declarations in the year 2022 in order to avoid legal penalties. The new tax would now be collected from all taxpayers who have gained profits from cryptocurrencies, including trading and mining operations.
On the other hand, cryptocurrency exchanges have been exempt from new tax requirements.
Akalarp Yimwilai, the Co-founder and CEO of Zipmex Thailand, a major local crypto exchange firm, has raised concerns about the ongoing uncertainty in crypto tax reporting processes and the issue of calculating profits.
Akalarp said that tax methods and calculations should have been “more concise, clear and easy to understand,” as many people he knows would want to pay taxes, but they are unaware of how to calculate them.
The new report aligns with the Thai government’s plans of defining “red lines” for cryptocurrencies in early 2022. Bank of Thailand’s Governor, Sethaput Suthiwartnarueput, had officially announced in mid-December that the central bank had been planning to release new regulations that are specific to the crypto industry early this year.
As per local news reports, financial authorities in Thailand have been considering legislation for the collection of 15 per cent capital gains tax on cryptocurrencies since at least March 2018.