Thailand has plans to levy 15% capital gains tax on crypto profits so investors and miners will both be under the tax net while digital exchanges will not be a part of it as per the reports that we have in our latest cryptocurrency news.
The regulatory and surveillance environment will become more stringent for the traders in Thailand. According to reports from the Bangkok Post, crypto profits will bring 15% capital gains tax from this year. The initiative will be applicable to digital asset investors and miners but will not include crypto exchanges. The capital gains tax is levied on the profits made by selling a non-inventory asset. The media report cited a Finance Ministry note that recommends investors calculate and report the profits from cryptocurrencies in the annual tax filing this year. The coverage based on the information by the Finance Ministry official, claims that the Revenue Department took note of the major growth of the market in both size and value in 2021 and intends to enhance its surveillance.
However, there’s no clarity on how the taxes will be assessed and paid but Thailand has plans. The industry analysts think there are two main options. One that the mining operators and individuals can calculate the profits and declare them along with the tax payments during the annual tax filing. The government might also ask crypto exchanges to deduct these taxes at the source. The second option could impact the crypto trade which has flourished in recent years in an environment marked by a lack of regulatory taxation regulation.
The report also quoted Akalarp Yimwali who is the co-founder of Zimpex who said that calculating the profits and losses for tax assessment is not really easy given the fluctuation exchange rate of the dollar:
“As an exchange provider, Zipmex has been developing a system to help our customers calculate profits and losses, but it’s challenging.”
While the tourism industry in the country hopes for faster growth of the crypto space in order to boost its revival, the government, and the central bank maintained a rigid stance marked by heavy crackdowns. Most of the exchanges in Thailand are either operated by leading banks or wealthy people and its oldest Siam Commerical Bank bought a 51% stake in the country’s biggest asset exchange Bitkub back in 2021. another major exchange ZipMez secured $40 million in funding from the nation’s bank of Ayudha. Yimwalai added:
“If the Revenue Department really has such an advanced data analytics system that it can precisely calculate gains from cryptocurrencies, it would be a great benefit to share it with the industry.”
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