In Thailand, cryptocurrencies have enjoyed a significant amount of sunlight from the locals. In fact, an estimated 100,000 Thai citizens are employed in the crypto mining sector. However, of late, Thailand’s regulatory watchdogs are increasingly intensifying their regulatory stance on crypto.
In the latest development, authorities in Thailand just levied a 15% capital gains tax, according to a source from the Finance Ministry. The ministry advised those involved with cryptocurrencies to accurately report their incomes, in order to avoid legal penalties.
According to the local media, in 2022, all taxpayers who gained from cryptocurrencies, including investors and mining operators, will be subject to a 15% withholding tax. However, digital asset exchanges are exempt from such duties.
This move doesn’t come as a complete surprise, since for long, the Revenue Department has been planning to strengthen its surveillance of cryptocurrency trading this year.
Notably, under Section 40 of the Royal Decree amending Revenue Code No.19, the department holds the authority to collect taxes on cryptocurrency trading profits. Digital assets fall under assessable income as per this litigation.
In this context, Anon Thadium, a judge on the Central Tax Court opined:
“Sellers can use the deducted tax as a tax credit for a deduction next year under Section 60 of the Revenue Code.”
It’s unclear whether the taxes will be levied on annual filings or whether the government will make the exchanges deduct it at the source. Whatever it is, it’s bound to have some repercussions.
Not so long ago, the Kingdom’s tourism ministry took the crypto-route to get the sector back in order. Given the damage caused due to the pandemic, the Tourism Authority of Thailand (TAT) considered launching its own cryptocurrency – TAT Coin. This was a step taken to make the country more appealing to crypto-investors and tourists alike.
Nevertheless, the UK and its authorities are riding the same bandwagon as far as cryptocurrency taxation is concerned.