Opposed! Thai Government Imposing 15 Percent Tax On Profits In Crypto Trading

Thailand will cite a capital gains tax of 15 percent of crypto trading profits in Thailand. (photo: doc. pixabay)

JAKARTA - The Thai government is showing progress in regulating the local cryptocurrency ecosystem, by enacting new tax rules for the industry. As reported by The Bangkok Post, Thursday, January 6, the Thai government will levy a capital gains tax of 15 percent on crypto trading profits in Thailand.

According to the Bangkok Post quoted by Cointelegraph, Thailand's Department of Revenue is also planning to increase its monitoring duties following last year's digital asset market boom. The department has the authority to collect taxes from crypto trading as profits from such activities are considered as appraised income under Section 40 of the Royal Decree amending Revenue Code No.19.

The finance ministry recommends investors to calculate and report their income from cryptocurrencies in tax declarations by 2022 to avoid penalties.

The new tax will be collected from all taxpayers who profit from crypto, including trading and mining operations. But cryptocurrency exchanges are reportedly exempt from the new tax requirements.

Akalarp Yimwilai, co-founder and CEO at major local exchange, Zipmex Thailand, raised concerns about the ongoing uncertainty regarding the crypto tax reporting process and how profits are calculated.

“The method and calculation of taxation must be more concise, clear, and easy to understand. A lot of people I know want to pay taxes, but don't know how to calculate them,” says Akalarp.

The new report is in line with the Thai government's plan to define a “red line” for crypto by early 2022. The Governor of the Bank of Thailand, Sethaput Suthiwartnarueput, officially announced in mid-December that the central bank plans to release new regulations specifically for the crypto industry early this year. .

As previously reported by Cointelegraph, financial authorities in Thailand have been considering legislation to collect a 15% capital gains tax on crypto since at least March 2018.