Thailand is considering taxing cryptocurrency earnings and strengthening government regulation of digital assets
Thailand proposes to put a 15% capital gains tax on income from cryptocurrency trading in 2021, after a significant increase in the size and value of the country’s digital asset sector.
According to a storey published on January 6 by The Bangkok Post, all taxpayers who gain from cryptocurrencies, including investors and mining operators, would be subject to a 15% withholding tax in 2022, while digital asset exchanges will be exempt from such responsibilities.
This year, the Revenue Department intends to bolster its oversight of bitcoin trade. According to Section 40 of the Royal Decree amending Revenue Code No. 19, the department is authorised to collect taxes from cryptocurrency dealers since the revenues from such activity may be considered assessable income under the law.
The government recommended that investors disclose their bitcoin income as trading earnings when filing their taxes this year to avoid legal fines.
Numerous questions exist, according to Akalarp Yimwilai, co-founder and chief executive officer of Zipmex Thailand, about how profits are calculated, including whether a gain from a price increase due to the strengthening of the US currency is considered a profit.
“Tax techniques and computations should be more succinct, transparent, and simple to comprehend. Many individuals I know want to pay taxes but are unsure how to compute them,” Akalarp said.
He continued: “As an exchange provider, Zipmex has been attempting to establish a system that would assist our clients in calculating their earnings and losses, but it has been very difficult. If the Revenue Department indeed has such a sophisticated data analytics system that it can exactly compute cryptocurrency earnings, sharing it with the sector would be a huge advantage.”
The Bank of Thailand (BoT) recommended Thai banks to avoid direct engagement in cryptocurrency trading in December, citing the market’s volatility.
According to senior director Chayawadee Chai-Anant of the Bank of Thailand, banks cannot adequately protect clients owing to the dangers associated with the crypto industry.
“We do not want banks to be directly engaged in digital asset trading since banks are (responsible) for client deposits and the general public, which poses a danger. If a corporation is a shareholder, it is a different matter,” Chai-Anant said.
Meanwhile, only last week, Jasmine Technology Solution, a Thai technology company, witnessed a spike in its stock price with the addition of bitcoin mining to its services.
At the time of our analysis, the stock had increased 6,700 percent year to date since July, when it entered the crypto mining market with 335 machines. Notably, as a mining operator, the corporation will be liable to the newest capital gains tax.