Key Takeaways:
- Profits from Thailand cryptocurrency trading are now subject to a 15% capital gains tax.
- The new tax, according to the article, would apply to investors and mining operations, but crypto-asset exchanges would be excluded.
- It’s unclear if the taxes would be assessed on annual filings or if the government will require exchanges to deduct them at the source.
According to the Thai Finance Ministry, profits from cryptocurrency trading will now be subject to a 15% capital gains tax. According to a January 6 report in the Bangkok Post, the ministry advised those involved with cryptocurrencies to accurately report their incomes when filing taxes this year.
It was not stated whether or not this would apply to unrealized gains. According to the article, the new tax would apply to investors and mining operations, but crypto-asset exchanges would be excluded. Thailand’s most important exchanges are linked to banks and wealthy individuals.
Thailand’s largest exchange, Bitkub, was bought out in a 51% buyout in November by the country’s oldest bank, Siam Commercial Bank. Upbit Thailand is owned by members of the CP Group, Thailand’s most prominent food monopoly. Meanwhile, Zipmex Thailand raised more than $40 million in August from the Bank of Ayudhya, the country’s fifth-largest lender.
Following a surge in trade volume in 2021, the Thai Revenue Department plans to beef up its oversight of the cryptocurrency market this year. However, according to Akalarp Yimwilai, co-founder and CEO of Zipmex, calculating taxes is difficult, especially since exchange rates with USD must be considered.
He stated that,
“Tax methods and calculations should be more concise, clear and easy to understand. Many people want to pay taxes but don’t know how to calculate them. As an exchange provider, Zipmex has been developing a system to help our customers calculate profits and losses, but it’s challenging. 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.”
It’s unclear if the taxes would be assessed on annual filings or if the government will require exchanges to deduct them at the source. The latter would surely put out the fires that have stoked Thailand’s crypto trading frenzy for the last year.
The Kingdom’s tourist ministry intends to promote the fledgling crypto industry to attract large bag holders and thus revitalize the devastated tourism industry. Those attempts, however, are being thwarted by the central bank and government, which obviously aims to crack down even more on crypto assets.
In December, the Bank of Thailand announced creating new regulations to govern crypto-related activity for individuals and corporations. This month, the central bank will release a consultation document on the “financial landscape,” in which it will seek agreement on what it calls “red lines” for crypto-related businesses. Commercial banks and small companies have been frequently cautioned by central bankers not to accept digital assets as payment.
