A finance ministry official revealed that crypto-related profits such as the trading in digital currencies will be subject to a 15% tax. After last year’s significant market growth, the department intends to improve surveillance of crypto trade in 2022.
Thailand urges crypto traders to report their profits on tax returns
According to the Bangkok Post, this Thursday’s report by Thailand’s Ministry of Finance advised investors that they should indicate any income from cryptocurrency holdings in their tax returns. According to the newspaper, capital gains from crypto trading will attract a 15% tax.
This obligation covers all taxpayers who make a profit through transactions using cryptocurrencies. It also includes investors and operators crypto mining infrastructures, according to an official. The levy will not apply to digital asset exchanges.
The Royal Decree amending Revenue Code No. 40 considers profits from crypto trading as assessable income. 19 is the explanation in this report. Amid the rapid expansion of digital assets markets in 2021 financial authorities plan to increase their supervision of coin trading in the country.
As a representative of industry points out, not all aspects regarding crypto taxation can be understood. Akalarp Yimwilai is the co-founder of Zipmex and its chief executive. He said that there are many uncertainties about how profits should be calculated. Akalarp Yimwilai, co-founder and chief executive of crypto exchange Zipmex, asked whether profits from price increases as the U.S. Dollar strengthens can be considered to be a profit. He went on to say:
It is important that tax methods and calculations are more simple, understandable and clear. Many people I know want to pay taxes, but don’t know how to calculate them.
Zipmex was also quoted as saying that it had tried to create a system for its customers that could estimate profits and losses, but this has not been possible. “If the Revenue Department really has such an advanced data analytics system that it can precisely calculate gains from cryptocurrencies, it would be a great benefit to share it with the industry,” he noted.
Thailand is a popular tourist spot and has been working to show a friendliness towards cryptocurrency users. In September, the country’s tourism authority announced it wanted to foster what it described as a “cryptourism atmosphere” and in November its governor emphasized that Thailand must become a “crypto-positive society.” Last month, Bank of Thailand officials stated that crypto payments are not illegal.
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