As Thailand prepares to impose a levy on crypto profits, parties on both sides of the aisle have expressed concerns over the government’s current proposal. Numerous political figures insist on the need for clarification in order to prevent double taxation of income due to cryptos.
Thai politicians warn about negative effects of crypto tax
Representatives of parties from various corners of the political spectrum in Thailand have shared their disagreements with the government’s plan to tax gains from cryptocurrencies. Recent reports have revealed that Bangkok’s Finance Ministry plans to tax crypto-related profits.
The Revenue Department said Monday that it would finalize details for the tax before the end of January. According to the Thai Enquirer, cryptocurrency dealers and traders will all be affected by the law if it is approved. To determine which transactions require tax withholding, traders will need to maintain a log of their transactions.
Korn Chatikavanij is a former investment banker and finance minister. He also serves as the incumbent leader of Kla Party. Korn explained that the profits must be combined with income to make annual tax returns.
I am not in agreement with Revenue Department regarding the collection of this tax until more clarification is given on concerns.
Then comes the value-added tax (VAT), he noted, elaborating: “The Revenue Department is collecting VAT like crypto is a product. Therefore, there will be a double VAT payment on cryptocurrency transactions where you have to pay the VAT when selling the product and paying another VAT from selling crypto in baht.”
Korn stated that crypto sellers would have to pay VAT if they adopt the proposed legislation. He will not be able to issue receipts as these coins can often be traded on unidentified platforms. This is why countries such as Australia and Singapore are changing their laws to exclude crypto transactions from VAT.
Pheu Thai Party (a political organization) and Thai Sang Thai (a tax proposal), have raised similar concerns. Last week, Pheu Thai Party’s registrar Jakkapong Sangmanee remarked that crypto traders are already obliged to pay personal income tax. He stated that the addition of a tax to top it will benefit institutions while hurting retail investors.
“There is nothing wrong with a policy to collect tax on profits from digital assets, as long as it is fair and does not take advantage of taxpayers,” the leader of the Thai Sang Thai party Sudarat Keyuraphan commented this week. However, it is not clear that the government sees the opportunity to boost income by encouraging digital assets. According to her, this will stop the opportunity to generate income for the next generation.
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