Thai government to resolve digital currency tax confusion

The Thai Revenue Service will speed up tax measures as traders and businesses seek greater transparency. Thailand is rapidly pursuing its crypto tax plans as it prepares regulations for digital asset traders this month to provide more transparency about cryptocurrency-related activities. The director general of Thailand Revenue has announced that specific criteria for calculating the profit tax on digital currency transactions will be finalized this month.

The statement comes less than a week after the Southeast Asian government announced plans to impose a 15 percent capital gains tax on digital currency traders and miners. According to a January 11 Bangkok Post article, Thai Prime Minister Prayut Chan O’Chae had instructed the revenue department to think about the issue and explain it to investors and the public. This section has already talked to the Bank of Thailand, the Securities and Exchange Commission and the Thai Stock Exchange. According to local media reports, on January 9, the Thai Digital Assets Association contacted the Revenue Section to seek clarification on capital gains and tax deductions. His concern among some traders is that arrears of taxes or penalties may be imposed on profits and transactions made in previous years.

A government spokesman said there was no intention to stop innovation and development in any industry, including Fintech, but warned that “if we support [digital currency trading] without full understanding, a crypto crisis, similar to a financial crisis, could occur.” Occur. ” The new tax is only for the benefit of traders and miners, not Thai digital asset exchanges, the largest of which are affiliated with commercial banks and billionaire trading giants. Severe penalties may be imposed on those who do not comply with the requirements of the new case.

The move follows a series of warnings by the Bank of Thailand to commercial banks and businesses about accepting digital assets as payment methods. In December, the Bank of Thailand announced that it would take new steps to regulate cryptographic activities for individuals and businesses in what it calls a “red line” for the industry. However, the increase in regulatory pressure on the industry, unlike the Royal Ministry of Tourism, is aimed at attracting cryptocurrencies and digital nomads to the country to help revitalize the tourism sector affected by the epidemic.

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