Thailand Government Disperses Confusion Surrounding Cryptocurrency Taxation

Some countries had previously mapped out crypto taxes to allow transactions for cryptocurrency assets. Thailand is among the countries proposing taxation plans.

Thailand’s revenue department is preparing its plans for January to implement its tax policies on cryptocurrency traders as the start of a new year. To provide additional clarity on taxation of crypto-related activities, the move was made.

The director-general for the revenue department said that this month would mark the completion of tax calculation criteria, which will focus on crypto trading profits. The statement’s release was one week following its government’s disclosed plans to levy crypto miners and traders with a capital taxation gain of 15%.

cryptocurrency
The crypto market total is below $2 trillion. Source: TradingView.com| Source: TradingView.com

On Tuesday, the Bangkok Post reported that Prayut Cha-o-cha (the Thai Prime Minister) instructed the revenue department. He instructed the department to investigate the situation and determine the best taxation plan for investors and all the public.

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Following the Prime Minster’s instructions, the department has engaged the Bank of Thailand in a discussion. The talk is also the country’s Stock Exchange and Security and Exchange Commission.

The Taxation Plan: Cryptocurrency Investors Respond

While seeking clarifications on the matter, the Thai Digital Asset Association contacted revenue to clarify their concerns.

Local media reported that the association is interested in learning more about capital gains and withholding taxes. Suppakrit Boronsat is the Association’s President. He stated that most cryptocurrency investors are happy to pay the taxation. They are concerned about making decisions that could violate the Revenue Code.

Some traders fear that back taxes or other penalties could affect trades and profits from previous years.

A spokeswoman for the government said that the authorities do not pose any obstacle to innovation and industrial development, including fintech. But she cautioned that an inordinate rush to allow crypto trading could result in crypto crises.

Thailand will not tax profits made by traders and miners as part of its new tax. In addition, there is an exemption of the country’s digital asset exchanges. The largest are associated with large commercial banks, and the billionaire business tycoons.

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Conforming to the most recent filing requirements, anyone who fails to follow the rules will be punished. In addition, they issued some warnings to individual businesses and commercial banks concerning adopting the country’s digital assets as pa through the movement options.

The Bank of Thailand announced its plans to regulate crypto-related activity in December through the Move. The regulation, which was tagged ‘Red Lines,’ will cover both businesses and individuals within the crypto industry.

Featured image taken from Pixabay. Chart from TradingView.com

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