The Thai government is making progress in regulating the local cryptocurrency ecosystem by promulgating new tax rules for the industry.
Profits from crypto trading in Thailand are now subject to a 15% capital gains tax, The Bangkok Post news agency reported on Thursday.
Thailand’s revenue service also plans to step up its oversight functions following a booming digital asset market last year. The department has the power to levy taxes on crypto transactions, as profits from this activity are considered taxable income under Article 40 of the Royal Decree amending Income Code No.19, the report says. .
The Ministry of Finance recommended that investors calculate and report their income from cryptocurrencies in tax returns in 2022 to avoid legal penalties. The new tax will be collected from all taxpayers who have made profits from crypto, including business and mining operations.
On the other hand, cryptocurrency exchanges would be exempt from the new tax requirements.
Akalarp Yimwilai, co-founder and CEO of leading local exchange Zipmex Thailand, has raised concerns over the lingering uncertainty over the crypto tax filing process and how to calculate profits.
“Tax methods and calculations should be more concise, clear and easy to understand. A lot of people I know want to pay taxes, but don’t know how to calculate them, ”Akalarp said.
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The new report is part of the Thai government‘s plan to define “red lines” for crypto in early 2022. Bank of Thailand Governor Sethaput Suthiwartnarueput officially announced in mid-December that the central bank planned to release new regulations specific to the crypto industry. at the start of this year.
As previously reported by Cointelegraph, Thai financial authorities have been considering legislating to levy a 15% capital gains tax on crypto since at least March 2018.