Reportedly, The Thai government is making progress in regulating the local cryptocurrency ecosystem by enacting new tax rules for the sector.
Profits from trading cryptocurrencies in Thailand are now subject to a 15% tax on capital gains, The Bangkok Post news agency reported Thursday.
The Thai Department of Finance also plans to step up its oversight duties following the boom in the digital asset market last year. The department has the authority to collect taxes from cryptocurrency operations, since the profits from such activity are considered taxable income under article 40 of the Royal Decree amending the Revenue Code No. 19, according to the report.
The Ministry of Finance recommended that investors calculate and report their income from cryptocurrencies in their 2022 tax returns to avoid legal sanctions. The new tax will be charged to all taxpayers who make a profit from cryptocurrencies, including trading and mining operations.
On the other hand, Crypto exchanges are reportedly exempt from the new tax requirements.
Akalarp Yimwilai, co-founder and CEO of the large local exchange Zipmex Thailand, expressed concern about the uncertainty surrounding the cryptocurrency tax filing process and how to calculate earnings.
“Tax calculations and methods should be more concise, clear, and easy to understand. Many people I know want to pay taxes, but don’t know how to calculate them.”Akalarp said.
The new report coincides with the Thai government’s plans to define “red lines” for cryptocurrencies in early 2022.. Bank of Thailand Governor Sethaput Suthiwartnarueput officially announced in mid-December that the central bank was planning to launch new regulations specific to the cryptocurrency industry earlier this year.
As previously reported by Cointelegraph, Thailand’s financial authorities have been considering legislation to levy a 15% tax on capital gains from cryptocurrencies since at least March 2018.